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Agenda and PacketAGENDA CHANHASSEN CITY COUNCIL MONDAY, JULY 9, 2018 CHANHASSEN CITY HALL, 7700 MARKET BOULEVARD A.5:00 P.M. WORK SESSION (FOUNTAIN CONFERENCE ROOM) Note: Work sessions are open to the public.If the City Council does not complete the work session items in the time allotted, the remaining items will be considered after the regular agenda. 1.Review of 2017 Audit 2.Powers Boulevard Pedestrian Crossing Study 3.LongTerm Road Funding Needs for MSA, Local Road, and County Partnerships 4.Key Financial Stragegy: Economic DevelopmentConsider Economic Development Practices Policy B.7:00 P.M. CALL TO ORDER (CITY COUNCIL CHAMBERS) C.PUBLIC ANNOUNCEMENTS D.CONSENT AGENDA All items listed under the Consent Agenda are considered to be routine by the city council and will be considered as one motion. There will be no separate discussion of these items. If discussion is desired, that item will be removed from the Consent Agenda and considered separately. City council action is based on the staff recommendation for each item. Refer to the council packet for each staff report. 1.Approval of City Council Minutes dated June 25, 2018 2.Receive Planning Commission Minutes dated June 19, 2018 3.Resolution 201838: Appoint Election Judges for State Primary and General Elections and Approve Rates of Pay 4.Approval of Retail OnSale Intoxicating Liquor Sales for OffPremise Consumption for Buy Chanhassen’s “Night on the Town” on Thursday, July 26, 2018 5.Approve Settlement Agreement with Mediacom E.VISITOR PRESENTATIONS F.OLD BUSINESS G.PUBLIC HEARINGS AGENDACHANHASSEN CITY COUNCILMONDAY, JULY 9, 2018CHANHASSEN CITY HALL, 7700 MARKET BOULEVARDA.5:00 P.M. WORK SESSION (FOUNTAIN CONFERENCE ROOM)Note: Work sessions are open to the public.If the City Council does not complete the worksession items in the time allotted, the remaining items will be considered after the regularagenda.1.Review of 2017 Audit2.Powers Boulevard Pedestrian Crossing Study3.LongTerm Road Funding Needs for MSA, Local Road, and County Partnerships4.Key Financial Stragegy: Economic DevelopmentConsider Economic Development PracticesPolicyB.7:00 P.M. CALL TO ORDER (CITY COUNCIL CHAMBERS)C.PUBLIC ANNOUNCEMENTSD.CONSENT AGENDAAll items listed under the Consent Agenda are considered to be routine by the city council andwill be considered as one motion. There will be no separate discussion of these items. Ifdiscussion is desired, that item will be removed from the Consent Agenda and consideredseparately. City council action is based on the staff recommendation for each item. Refer to thecouncil packet for each staff report.1.Approval of City Council Minutes dated June 25, 20182.Receive Planning Commission Minutes dated June 19, 20183.Resolution 201838: Appoint Election Judges for State Primary and General Electionsand Approve Rates of Pay4.Approval of Retail OnSale Intoxicating Liquor Sales for OffPremise Consumptionfor Buy Chanhassen’s “Night on the Town” on Thursday, July 26, 20185.Approve Settlement Agreement with MediacomE.VISITOR PRESENTATIONS F.OLD BUSINESS G.PUBLIC HEARINGS H.NEW BUSINESS 1.Resolution 201839: Red Cedar Point – Approval of Preliminary and Final Plat with a Variance for a TwoLot Subdivision I.COUNCIL PRESENTATIONS J.ADMINISTRATIVE PRESENTATIONS K.CORRESPONDENCE DISCUSSION 1.Review of Claims Paid 07092018 2.Website Analytics Overview June 2018 3.New Business issued Sign Permits in April, May, and June 2018 L.ADJOURNMENT M.GUIDELINES GUIDELINES FOR VISITOR PRESENTATIONS Welcome to the Chanhassen City Council Meeting. In the interest of open communications, the Chanhassen City Council wishes to provide an opportunity for the public to address the City Council. That opportunity is provided at every regular City Council meeting during Visitor Presentations. Anyone indicating a desire to speak during Visitor Presentations will be acknowledged by the Mayor. When called upon to speak, state your name, address, and topic. All remarks shall be addressed to the City Council as a whole, not to any specific member(s) or to any person who is not a member of the City Council. If there are a number of individuals present to speak on the same topic, please designate a spokesperson that can summarize the issue. Limit your comments to five minutes. Additional time may be granted at the discretion of the Mayor. If you have written comments, provide a copy to the Council. During Visitor Presentations, the Council and staff listen to comments and will not engage in discussion. Council members or the City Manager may ask questions of you in order to gain a thorough understanding of your concern, suggestion or request. Please be aware that disrespectful comments or comments of a personal nature, directed at an individual either by name or inference, will not be allowed. Personnel concerns should be directed to the City Manager. Members of the City Council and some staff members may gather at Houlihan's, 530 Pond Promenade in Chanhassen immediately after the meeting for a purely social event. All members of the public are welcome. CITY COUNCIL STAFF REPORT Monday, July 9, 2018 Subject Review of 2017 Audit Section 5:00 P.M. WORK SESSION (FOUNTAIN CONFERENCE ROOM) Item No: A.1. Prepared By Greg Sticha, Finance Director File No: BACKGROUND The Finance Department just finished another audit cycle. Andy Herring and Dave Mol from Redpath & Companies will be present to review the financial results and audit findings for 2017. The financial statements take into account the city’s entire financial picture and are in a format similar to a proprietary or forprofit organization. This includes a statement of activities that break out the primary government and proprietary revenues and expenses by function. There are three reports that Redpath & Companies complete for the city as part of the audit. Attached are copies of all three reports and representatives from Redpath & Companies will review each report with City Council. In addition, they will be presenting a PowerPoint that will give some insight on how a number of various funds finished the 2017 audit year. ATTACHMENTS: 2018 CAFR Chanhassen 2017 Audit Presentation For the Fiscal Year Ended December 31, 2017. CITY OF CHANHASSEN, MINNESOTA Comprehensive Annual FINANCIALREP RT 2017 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF CHANHASSEN, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2017 Finance Department Greg Sticha, Finance Director Member of Government Finance Officers Association of United States and Canada - This page intentionally left blank - CITY OF CHANHASSEN, MINNESOTA TABLE OF CONTENTS Page Reference No. I. INTRODUCTORY SECTION Letter of Transmittal 3 Certificate of Achievement 7 Organization Chart 8 Organization 9 II. FINANCIAL SECTION Independent Auditor's Report 13 Management's Discussion and Analysis 17 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position Statement 1 33 Statement of Activities Statement 2 34 Fund Financial Statements: Balance Sheet - Governmental Funds Statement 3 36 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Statement 4 37 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement 5 38 Statement of Net Position - Proprietary Funds Statement 6 39 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds Statement 7 40 Statement of Cash Flows - Proprietary Funds Statement 8 41 Statement of Net Position - Fiduciary Funds Statement 9 42 Notes to Financial Statements 43 Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 10 86 Schedule of Funding Progress - Retiree Health Plan Statement 11 92 Schedule of Proportionate Share of Net Pension Liability - General Employees Retirement Fund Statement 12 93 Schedule of Pension Contributions - General Employees Retirement Fund Statement 13 94 Schedule of Proportionate Share of Net Pension Liability - Public Employees Police and Fire Fund Statement 14 95 Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 15 96 Schedule of Changes in the Net Pension Liability and Related Ratios - Chanhassen Fire Department Relief Association Statement 16 97 Schedule of Contributions - Chanhassen Fire Department Relief Association Statement 17 98 Notes to RSI 99 CITY OF CHANHASSEN, MINNESOTA TABLE OF CONTENTS Page Reference No. Combining and Individual Nonmajor Fund Financial Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 18 106 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Statement 19 107 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 20 110 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds Statement 21 111 Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 22 114 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Debt Service Funds Statement 23 115 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 24 118 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Capital Project Funds Statement 25 121 Special Revenue Funds: Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Contribution Fund Statement 26 124 Cemetery Fund Statement 27 125 CATV Statement 28 126 Combining Statement of Net Position - Agency Funds Statement 29 128 Combining Statement of Changes in Assets and Liabilities - Agency Funds Statement 30 129 III. STATISTICAL SECTION (UNAUDITED) Financial Trends: Net Position by Component Table 1 134 Changes in Net Position Table 2 136 Fund Balances - Governmental Funds Table 3 140 Changes in Fund Balances - Governmental Funds Table 4 142 Revenue Capacity: Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 144 Direct and Overlapping Property Tax Capacity Rates Table 6 146 Principal Property Taxpayers Table 7 147 Property Tax Levies and Collections Table 8 149 Debt Capacity: Ratios of Outstanding Debt by Type Table 9 150 Ratios of General Bonded Debt Outstanding Table 10 152 Direct and Overlapping Governmental Activities Debt Table 11 153 Legal Debt Margin Information Table 12 154 Pledged Revenue Coverage Table 13 155 CITY OF CHANHASSEN, MINNESOTA TABLE OF CONTENTS Page Reference No. Demographic and Economic: Demographic and Economic Statistics Table 14 156 Principal Employers Table 15 157 Operating Information: Full-Time Equivalent City Government Employees by Function/Program Table 16 158 Operating Indicators by Function/Program Table 17 160 Capital Asset Statistics by Function/Program Table 18 162 Combined Schedule of Indebtedness Exhibit 1 166 Debt Service Payments to Maturity: General Obligation Bonds - Governmental Activities Exhibit 2 168 General Obligation Revenue Bonds Exhibit 3 169 Schedule of Deferred Tax Levies Exhibit 4 170 IV. OTHER INFORMATION (UNAUDITED) - This page intentionally left blank - I. INTRODUCTORY SECTION 1 - This page intentionally left blank - 2 June 22, 2018 To the Honorable Mayor and City Council City of Chanhassen Chanhassen, Minnesota The Comprehensive Annual Financial Report of the City of Chanhassen, Minnesota (the City) for the fiscal year ended December 31, 2017 is hereby submitted. This report was prepared by the Chanhassen Finance Department and responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, supporting schedules and statistical tables rests with the City. We believe the data, as presented, is accurate in all material respects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been included. The organization, form and contents of this report were prepared in accordance with the standards prescribed by the Governmental Accounting Standards Board, the Government Finance Officers Association of the United States and Canada (GFOA), the American Institute of Certified Public Accountants, Minnesota’s Office of the State Auditor and City policies. This transmittal letter is designed to complement the Management’s Discussion and Analysis (MD&A) and should be read in conjunction with it. The MD&A can be found immediately following the report of the independent auditors. Reporting Entity and Its Services This report includes all funds and departments of the City (the primary government) and its component unit. The City provides a full range of services to its residents and businesses including general government, public safety (police and fire protection), public works (engineering, streets, and equipment maintenance), parks and recreational activities, and community development. In addition to general municipal services, the City provides water and sanitary sewer service and oversight (through licensing) of the refuse and recycling services. In accordance with the reporting entity definition of the Governmental Accounting Standards Board, the City has included the Chanhassen Economic Development Authority (EDA) in these financial statements as a blended component unit. The EDA is governed by five commissioners appointed by the City Council with the City Manager as executive director. The Chanhassen Fire Relief Association has been excluded from this report because it is governed by a board elected by its members and it is not fiscally dependent upon the City. The Western Area Fire Training Association (WAFTA) is governed by an eleven-person board comprised of one member appointed by each jurisdiction who is a party to the joint powers agreement. Although the City is jointly responsible for the maintenance and cleanup costs of the training site in rural Carver County, we do not exercise substantial control of the association. The school districts that serve residents of the City, like all school districts in Minnesota, are governed independently by their own elected board members. They levy their own taxes and prepare their own financial reports. Accordingly, they are excluded from this report. 3 Relevant Financial Policies The City has a policy regarding General Fund reserve balances. The City has a designated fund balance in the General Fund equivalent to 50% of the ensuing year’s budgeted tax levy to provide working capital between serve- owned property tax settlements. The primary financial goal of the City’s investment policy is to ensure the safety and principal invested by the City. Cash temporarily idle during the year is invested in certificates of deposit and obligations of the U.S. Treasury and government agencies. The City only invests in instruments authorized under Minnesota Statute 118A. Cash balances from all City funds are pooled into an investment fund and investment income is distributed on a pro-rata basis at the end of the year, based on average monthly cash balances. At December 31, 2017, the maturities of the investments range from 1 day to 7 years, with an average maturity of 1.51 years. Maturities are not to exceed 7 years unless for a dedicated purpose such as a future bond payment. The average yield to maturity on the portfolio at December 31, 2017 was 1.36%. It is the City’s practice to hold all instruments to maturity. Economic Condition and Outlook The City of Chanhassen, Minnesota, located southwest of the Twin Cities metropolitan area, is situated primarily in Carver County with a small portion in Hennepin County. The City encompasses an area of 23.79 square miles. U.S. Highways 169 and 212, as well as State Highways 5, 7, 41 and 101, provide access for commuters coming into the City from the Twin Cities metropolitan area as well as for residents traveling to work outside the City. The City’s population estimate as of April 1, 2017 was 25,273. Chanhassen’s residential permits were higher in 2017 as compared to 2016. In 2016, there were 48 residential permits as compared to 67 in 2017. The total value of all building permits and plan checks in 2017 was $82,430,550. The City anticipates a continuous uptick in residential permits in the coming years and more diversity in housing types, including apartments, townhouses and senior housing. Office and industrial land use continues to be in demand. The 115 acre Lifestyle Center, which includes 1,000,000 square feet of office, retail and housing, was approved in 2017 and is currently working on site grading. Commercial and industrial remodeling and expansion continues the reinvestment into the community. During 2017, the City issued $10,000,000 of General Obligation Water Revenue Bonds, being used for improvements to the water utility system, including construction of a new water treatment plant. In early 2018, the final $3,595,000 of bonds were issued for the construction of the new water treatment plant. Accounting System and Budgetary Control The City's accounting records are maintained on the accrual, or modified accrual basis, as appropriate. Budgetary control is maintained through the City's accounting and reporting system whereby monthly detail reports of budget versus actual are provided to all departments with summaries being provided to the City Council. Approval listings and documentation are provided for the City Council at each semi-monthly meeting for all checks issued by the City. In the City's accounting system, careful consideration is given to the adequacy of internal controls. These controls are designed to provide reasonable, but not necessarily absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (1) the cost of control should not exceed the benefits likely to be derived and (2) the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluation occurs within the above framework. We believe the City's internal controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Capital financings for major municipal improvements are provided through (1) improvement bonds, (2) general obligation bonds, (3) tax increment bonds, or (4) revenue bonds. Internal financing of improvement projects is usually minimal and only for short periods of time. 4 Long Term Financial Planning In 2002, the City undertook an extensive long term financial planning process called “Key Financial Strategies”. As a part of this process the City developed a long term (5 years) general fund budgeting model. In addition the City developed annual strategies and measurement tools, both financial and non-financial, to compare our results from year to year and with other like communities in our area. These strategies and the long term general fund budget are updated on an annual basis as part of our goal setting strategies at the beginning of each year. In addition, the City has a 5 year capital improvement plan in place for infrastructure and equipment, as well as a pavement management plan in place for streets. The City also undertakes an annual rate study of its Water, Sanitary Sewer, and Storm Water rates. As part of this process the City projects fund balances and capital improvements to each of the systems for the next twenty years, and the projected user and connection rates needed for each fund for that same time period. Certificate of Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Chanhassen for its comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2016. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City of Chanhassen has received a Certificate of Achievement for the last twenty five consecutive years (fiscal years ended 1992 – 2016). We believe our current report continues to conform to the Certificate of Achievement program requirements and we are submitting it to GFOA to determine its eligibility for another certificate. Independent Audit State law provides that the City may arrange for examination of its books, records, accounts and affairs, or any part thereof, by the State Auditor, or by Certified Public Accountants. It has been a long-standing policy of the City to provide for a complete annual audit of City records by Certified Public Accountants. The auditor’s opinion has been included in this report. Acknowledgments We wish to express our appreciation to the members of the City Council for their support in improving the financial condition of the City. We also want to thank the Finance Department staff and department directors for their assistance in compiling the information necessary for this report. Finally, we wish to acknowledge Redpath and Company, LTD for their assistance in preparing this report. Respectfully submitted, Greg Sticha, Finance Director 5 - This page intentionally left blank - 6 7 City of Chanhassen, Minnesota Organization Chart Citizens Administration Mayor - Council Environmental Commission Planning Commission Senior Commission Park & RecreationPark & Recreation Commission Economic Development Authority Finance Law Enforcement & Fire Administration Public Works Community Development Parks and Recreation 8 CITY OF CHANHASSEN, MINNESOTA ORGANIZATION December 31, 2017 Term Expires Mayor: Denny Laufenburger 12/31/18 Council Members: Bethany Tjornhom 12/31/20 Jerry McDonald 12/31/20 Elise Ryan 12/31/18 Dan Campion 12/31/18 City Manager: Todd Gerhardt Appointed Finance Director: Greg Sticha Appointed Community Development Director: Kathryn Aanenson Appointed Public Works Director/City Engineer: Paul Oehme Appointed Parks and Recreation Director: Todd Hoffman Appointed 9 - This page intentionally left blank - 10 II. FINANCIAL SECTION 11 - This page intentionally left blank - 12 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Chanhassen, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Chanhassen, Minnesota, as of and for the year ended December 31, 2017, and the related notes to the financial statements, which collectively comprise the City of Chanhassen, Minnesota’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 13 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Chanhassen, Minnesota, as of December 31, 2017, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited the City of Chanhassen, Minnesota’s 2016 financial statements, and we expressed an unmodified audit opinion on the respective financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information in our report dated June 16, 2017. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2016 is consistent, in all material respects, with the audited financial statements from which it has been derived. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison information, the schedule of funding progress, and the schedules of pension liabilities and contributions, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Chanhassen, Minnesota’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, statistical section and other information, are presented for purposes of additional analysis and are not a required part of the basic financial statements. 14 The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory section, statistical section and other information have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 22, 2018, on our consideration of the City of Chanhassen, Minnesota’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Chanhassen, Minnesota’s internal control over financial reporting and compliance. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 22, 2018 15 - This page intentionally left blank - 16 MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Chanhassen, Minnesota (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2017. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. Financial Highlights The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $150,892,647 (net position). Of this amount, $20,154,670 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors in accordance with the City's fund designations and fiscal policies. The City’s total net position decreased by $3,373,128. As of the close of the current fiscal year, governmental funds reported combined ending fund balances of $21,285,048. Of this amount, $8,458,576 is restricted by external constraints established by creditors, grantors, contributors, or by state statutory provisions. At the end of the current fiscal year, the General Fund had a fund balance of $5,388,120. Of that amount, $81,032 was in a nonspendable form and the remaining $5,307,088 was unassigned. Total debt increased by $8,766,614 during the current fiscal year, from $27,240,507 to $36,007,121. Please refer to the Capital Asset and Debt Administration portion of this analysis for an explanation of the increase. Overview of the Financial Statements The management’s discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. 17 Management’s Discussion and Analysis The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes, and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, parks and recreation, and community development. The business-type activities include water, sewer, and surface water management. The government-wide financial statements can be found on Statements 1 and 2 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financial requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City's near-term financial decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 18 Management’s Discussion and Analysis The City maintains two individual major governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the following major funds:  General Fund  Revolving Assessment Fund Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for the General Fund and for the Contribution, Cemetery and CATV special revenue funds. Budgetary comparison statements have been provided for those funds to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on Statements 3 through 5 of this report. Proprietary funds. The City maintains three enterprise funds as a part of its proprietary fund type. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the following funds:  Water  Sewer  Surface Water Management The basic proprietary fund financial statements can be found on Statements 6 through 8 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statement can be found on Statement 9 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found following Statement 9 of this report. 19 Management’s Discussion and Analysis Other information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information. Combining and individual fund financial statements and schedules can be found on Statements 18 through 30 of this report. Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. Assets plus deferred outflows of resources exceeded liabilities plus deferred inflows of resources by $150,892,647 at the close of the most recent fiscal year. The largest portion of the City’s net position ($127,467,890, or 84%) reflects its net investment in capital assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Chanhassen, Minnesota's Net Position 2017 2016 2017 2016 2017 2016 Assets: Current and other assets $25,717,270 $25,828,754 $19,036,069 $17,610,363 $44,753,339 $43,439,117 Capital assets 78,118,880 81,182,242 74,879,632 65,998,971 152,998,512 147,181,213 Total assets 103,836,150 107,010,996 93,915,701 83,609,334 197,751,851 190,620,330 Total deferred outflows of resources 1,546,919 2,766,838 215,456 469,375 1,762,375 3,236,213 Liabilities: Long-term liabilities outstanding 18,235,875 20,427,351 24,453,599 15,238,791 42,689,474 35,666,142 Other liabilities 2,220,129 2,318,730 2,156,104 695,956 4,376,233 3,014,686 Total liabilities 20,456,004 22,746,081 26,609,703 15,934,747 47,065,707 38,680,828 Total deferred inflows of resources 1,372,839 761,269 183,033 148,671 1,555,872 909,940 Net position: Net investment in capital assets 70,255,784 72,588,940 57,212,106 57,478,975 127,467,890 130,067,915 Restricted 3,270,087 3,459,840 - - 3,270,087 3,459,840 Unrestricted 10,028,355 10,221,704 10,126,315 10,516,316 20,154,670 20,738,020 Total net position $83,554,226 $86,270,484 $67,338,421 $67,995,291 $150,892,647 $154,265,775 Governmental Activities Business-Type Activities Totals $3,270,087 of the City’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($20,154,670) may be used to meet ongoing obligations to citizens and creditors. 20 Management’s Discussion and Analysis At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the City as a whole, as well as for its separate governmental and business-type activities. Governmental Activities Total net position of the governmental activities decreased $2,716,258, or 3%. The most significant components of change in net position are as follows:  Net investment in capital assets decreased $2,333,156 due to depreciation expense exceeding capital asset additions.  Restricted net position decreased $189,753. This decrease occurred due to the decertification of four TIF districts in 2017 (TIF #4, #5, #9 and #10).  Unrestricted net position decreased $193,349. A $370,753 reduction occurred as a result of recording pension expense in accordance with GASB Statement No. 68. A variety of other positive factors helped to offset pension expense. Business-Type Activities The total net position of the City’s business-type activities decreased by $656,870, or less than 1%, primarily because contributions of capital assets and operating revenues were less than depreciation expense and transfers out for construction projects. Unrestricted net position decreased $390,001, primarily due to the transfer out of construction costs to the appropriate governmental funds. 21 Management’s Discussion and Analysis City of Chanhassen, Minnesota's Changes in Net Position 2017 2016 2017 2016 2017 2016 Revenues: Program revenues: Charges for services $3,027,020 $2,978,107 $6,396,118 $6,021,366 $9,423,138 $8,999,473 Operating grants and contributions 902,871 735,840 45,109 72,007 947,980 807,847 Capital grants and contributions 2,425,333 3,705,857 1,678,595 5,199,139 4,103,928 8,904,996 General revenues: General property taxes 10,826,116 10,643,917 - - 10,826,116 10,643,917 Tax increment collections - 111,761 - - - 111,761 Grants and contributions not restricted to specific programs 19,753 19,754 - - 19,753 19,754 Unrestricted investment earnings 164,393 156,202 171,044 79,765 335,437 235,967 Gain on sale of capital assets 38,254 41,129 - 25,224 38,254 66,353 Total revenues 17,403,740 18,392,567 8,290,866 11,397,501 25,694,606 29,790,068 Expenses: General government 3,230,517 2,887,111 - - 3,230,517 2,887,111 Public safety 3,969,540 3,973,031 - - 3,969,540 3,973,031 Public works 8,161,048 7,591,530 - - 8,161,048 7,591,530 Parks and recreation 3,227,236 3,278,139 - - 3,227,236 3,278,139 Community development 918,962 689,448 - - 918,962 689,448 Interest and fees on long-term debt 408,273 493,746 - - 408,273 493,746 Water - - 3,866,810 4,422,789 3,866,810 4,422,789 Sewer - - 3,746,880 3,254,619 3,746,880 3,254,619 Surface water management - - 1,538,468 1,388,979 1,538,468 1,388,979 Total expenses 19,915,576 18,913,005 9,152,158 9,066,387 29,067,734 27,979,392 Increase (decrease) in net position before transfers (2,511,836) (520,438) (861,292) 2,331,114 (3,373,128) 1,810,676 Transfers (204,422) 73,032 204,422 (73,032) - - Change in net position (2,716,258) (447,406) (656,870) 2,258,082 (3,373,128) 1,810,676 Net position - beginning 86,270,484 86,717,890 67,995,291 65,737,209 154,265,775 152,455,099 Net position - ending $83,554,226 $86,270,484 $67,338,421 $67,995,291 $150,892,647 $154,265,775 Governmental Activities Business-Type Activities Totals 22 Management’s Discussion and Analysis Governmental Activities Revenues Revenues for the governmental activities decreased by $988,827, or 5%. The primary reason for the change was due to a decrease in capital asset contributions which were slightly offset by increased special assessment and other intergovernmental revenues. Expenses Expenses for the governmental activities increased by $1,002,571, or 5%. This increase was due to non-capitalized construction costs, including street construction projects and city hall exterior improvements. Below are specific graphs which provide comparisons of the governmental activities revenues and expenses: 23 Management’s Discussion and Analysis Business-Type Activities Revenues Revenues for the business-type activities decreased by $3,106,635, or 27%. More specifically, capital grants and contributions decreased $3,520,544 from the previous year. The decrease was primarily due to fewer developer contributed assets in all funds as compared to the previous year. Expenses Expenses for business-type activities increased by $85,771, or 1%. There was no significant item that accounted for this increase. 24 Management’s Discussion and Analysis Below are specific graphs showing the business-type activities revenue and expense comparisons: 25 Management’s Discussion and Analysis Financial Analysis of the Government's Funds Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unrestricted fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $21,285,048. Approximately 40% of this total amount ($8,458,576) constitutes fund balance restricted by external constraints established by creditors, grantors, contributors, or by state statutory provisions. $1,071,755 of fund balance is not in a spendable form, $6,602,135 has been assigned, and $5,152,582 is unassigned. The General Fund balance increased by $75,408 in 2017. There were no significant items that contributed to this change in fund balance. The Revolving Assessment Fund balance decreased by $232,419. The decrease was due to expenses for construction projects. The nonmajor special revenue funds increased by $44,465. There were no significant items that contributed to this change in fund balance. The nonmajor debt service funds decreased by $4,914. There were no significant items that contributed to this change in fund balance. The nonmajor capital project funds decreased by $126,371. The decrease was due to the decertification of TIF #10 (returning the increment to Carver County) which was partly offset by governmental revenues in two funds exceeding spending within those funds. Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The unrestricted net position in the respective proprietary funds is $4,298,965 (Water), $4,727,849 (Sewer) and $1,099,501 (Surface Water Management). Net position in the Water Fund increased by $25,082. There was nothing significant that contributed to this increase. Net position in the Sewer Fund decreased by $502,789. The decrease was due to fewer developer contributed assets as compared to previous year. Net position in the Surface Water Management Fund decreased by $179,163. The decrease was due to fewer developer contributed assets as compared to the previous year. 26 Management’s Discussion and Analysis Budgetary Highlights General Fund There were no budget amendments to the General Fund in 2017. Budgetary Variances – Revenues The positive General Fund revenue variance of $246,564 was primarily due to building permit revenue exceeding budget. Budgetary Variances – Expenses Expenses for the General Fund had a positive variance of $233,322. The variance was due to a number of insignificant line items below budget, primarily vacant positions and fuel costs being less than anticipated. Capital Asset and Debt Administration Capital assets. The City’s investment in capital assets for its governmental and business-type activities as of December 31, 2017 amounts to $152,998,512 (net of accumulated depreciation). This investment in capital assets includes land, easements, buildings, infrastructure, machinery, and equipment. City of Chanhassen, Minnesota’s Capital Assets (Net of Depreciation) Beginning Ending Primary Government Balance Increase Decrease Balance Governmental activities: Capital assets not being depreciated: Land $19,801,717 $1,001 $ - $19,802,718 Construction in progress 1,618,180 1,274,915 (1,043,815) 1,849,280 Permanent easements 1,498,994 67,468 - 1,566,462 Total capital assets not being depreciated 22,918,891 1,343,384 (1,043,815) 23,218,460 Capital assets being depreciated: Buildings and structures 23,188,737 121,646 - 23,310,383 Machinery and equipment 8,748,196 175,090 (184,755) 8,738,531 Other improvements 7,501,186 1,133,761 (7,431) 8,627,516 Infrastructure 118,353,094 52,317 (41,520) 118,363,891 Total capital assets being depreciated 157,791,213 1,482,814 (233,706) 159,040,321 Less accumulated depreciation for: Buildings and structures 7,834,495 567,566 - 8,402,061 Machinery and equipment 5,912,938 477,489 (92,297) 6,298,130 Other improvements 3,564,572 296,596 (4,757) 3,856,411 Infrastructure 82,215,857 3,408,962 (41,520) 85,583,299 Total accumulated depreciation 99,527,862 4,750,613 (138,574) 104,139,901 Governmental activities capital assets - net $81,182,242 ($1,924,415) ($1,138,947) $78,118,880 27 Management’s Discussion and Analysis Beginning Ending Primary Government Balance Increase Decrease Balance Business-type activities: Capital assets not being depreciated: Land $2,085,435 $9,000 $ - $2,094,435 Construction in progress 1,257,057 11,785,659 (153,330) 12,889,386 Permanent easements 1,312,248 568,557 - 1,880,805 Total capital assets not being depreciated 4,654,740 12,363,216 (153,330) 16,864,626 Capital assets being depreciated: Buildings and structures 12,445,429 - - 12,445,429 Machinery and equipment 1,804,519 50,074 (22,365) 1,832,228 Other improvements 113,533,018 207,421 (15,591) 113,724,848 Total capital assets being depreciated 127,782,966 257,495 (37,956) 128,002,505 Less accumulated depreciation for: Buildings and structures 2,240,914 248,917 - 2,489,831 Machinery and equipment 883,315 120,071 (22,364) 981,022 Other improvements 63,314,506 3,217,731 (15,591) 66,516,646 Total accumulated depreciation 66,438,735 3,586,719 (37,955) 69,987,499 Business-type activities capital assets - net 65,998,971 9,033,992 (153,331) 74,879,632 Total capital assets - net $147,181,213 $7,109,577 ($1,292,278) $152,998,512 Additional information on the City’s capital assets can be found in Note 5. Governmental Activities Capital Assets. There was a decrease in capital assets due to the reduction in depreciable assets (current year depreciation expense exceeded current year additions). Business-Type Activities Capital Assets. There was an increase in capital assets due to the construction of a new water treatment plant. Long-term debt. At the end of the current fiscal year, the City had total bonds payable outstanding of $36,007,121, an increase of $8,766,614 from 2016. The increase was due to the issuance of $10,000,000 General Obligation Revenue Bonds for the new water treatment plant. The balance of the bonds payable outstanding is comprised of $12,420,000 in general obligation bonds, $22,565,000 of revenue bonds which financed capital investments for the water, sewer, and surface water management operations, and unamortized bond premiums of $1,022,121. Additional long-term debt in the amount of $899,243 for compensated absences was also outstanding at the end of 2017. 28 Management’s Discussion and Analysis City of Chanhassen, Minnesota’s Outstanding Debt 2017 2016 2017 2016 2017 2016 General obligation bonds $12,420,000 $13,090,000 $ - $ - $12,420,000 $13,090,000 Revenue bonds - - 22,565,000 13,520,000 22,565,000 13,520,000 Bond premium 207,803 223,788 814,318 406,719 1,022,121 630,507 Compensated absences 705,202 763,563 194,041 180,600 899,243 944,163 Total $13,333,005 $14,077,351 $23,573,359 $14,107,319 $36,906,364 $28,184,670 TotalsBusiness-Type ActivitiesGovernmental Activities As the financial statements will indicate, the City maintained strong financial reserves and continues its practice of utilizing multiple long term financial planning documents. The City’s bond rating was reaffirmed in February 2017 by Standard & Poor’s. The City of Chanhassen is one of approximately 25 communities in the State of Minnesota to have an AAA bond rating from either Standard & Poor’s or Moody’s. State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of the total estimated market value. The current debt limitation for the City is $116,994,876. Of the City's outstanding debt, $7,130,000 is applicable to the statutory limitation. Additional information on the City’s long-term debt can be found in Note 6. Requests for Information. This financial report is designed to provide a general overview of the City of Chanhassen, Minnesota’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, 7700 Market Boulevard, P.O. Box 147, Chanhassen, Minnesota 55317. 29 - This page intentionally left blank - 30 BASIC FINANCIAL STATEMENTS 31 - This page intentionally left blank - 32 CITY OF CHANHASSEN, MINNESOTA STATEMENT OF NET POSITION Statement 1 December 31, 2017 With Comparative Totals For December 31, 2016 Governmental Business-Type Activities Activities 2017 2016 Assets: Cash and investments $15,438,795 $12,822,106 $28,260,901 $28,786,085 Cash with escrow agent 5,331,655 - 5,331,655 5,414,798 Restricted cash - 5,686,976 5,686,976 3,724,395 Accrued interest receivable 59,075 57,026 116,101 95,218 Due from other governmental units 79,911 2,872 82,783 280,169 Accounts receivable - net 239,632 1,240,316 1,479,948 1,409,998 Property taxes receivable 249,327 - 249,327 217,259 Prepaid items 1,071,755 20,752 1,092,507 28,023 Inventories - at cost - 79,527 79,527 51,113 Internal balances 942,793 (942,793) - - Contract for deed receivable - - - 1,252,869 Special assessments receivable 2,304,327 69,287 2,373,614 2,179,190 Capital assets (net of accumulated depreciation): Nondepreciable 23,218,460 16,864,626 40,083,086 27,573,631 Depreciable 54,900,420 58,015,006 112,915,426 119,607,582 Total assets 103,836,150 93,915,701 197,751,851 190,620,330 Deferred outflows of resources related to pensions 1,546,919 215,456 1,762,375 3,236,213 Liabilities: Accounts payable 552,149 220,266 772,415 523,050 Due to other governmental units 22,611 106,511 129,122 247,634 Salaries payable 195,990 44,657 240,647 236,912 Contracts payable 601,219 1,513,453 2,114,672 627,009 Accrued interest payable 175,686 270,492 446,178 277,926 Unearned revenue 672,474 725 673,199 1,102,155 Compensated absences payable: Due within one year 72,769 20,022 92,791 155,772 Due in more than one year 632,433 174,019 806,452 788,391 Other post employment benefits payable: Due in more than one year 47,656 - 47,656 34,050 Bonds payable: Due within one year 5,985,000 1,375,000 7,360,000 1,625,000 Due in more than one year 6,642,803 22,004,318 28,647,121 25,615,507 Net pension liability: Due in more than one year 4,855,214 880,240 5,735,454 7,447,422 Total liabilities 20,456,004 26,609,703 47,065,707 38,680,828 Deferred inflows of resources related to pensions 1,372,839 183,033 1,555,872 909,940 Net position: Net investment in capital assets 70,255,784 57,212,106 127,467,890 130,067,915 Restricted for: Debt service 1,400,411 - 1,400,411 1,390,127 Park improvements 1,716,043 - 1,716,043 1,505,784 Tax increment purposes - - - 399,178 Other purposes 153,633 - 153,633 164,751 Unrestricted 10,028,355 10,126,315 20,154,670 20,738,020 Total net position $83,554,226 $67,338,421 $150,892,647 $154,265,775 Primary Government Totals The accompanying notes are an integral part of these financial statements. 33 CITY OF CHANHASSEN, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2017 With Comparative Totals For The Year Ended December 31, 2016 Program Revenues Charges For Functions/Programs Expenses Services Primary government: Governmental activities: General government $3,230,517 $481,125 Public safety 3,969,540 1,289,794 Public works 8,161,048 329,129 Parks and recreation 3,227,236 891,390 Community development 918,962 35,582 Interest and fees on long-term debt 408,273 - Total governmental activities 19,915,576 3,027,020 Business-type activities: Water 3,866,810 2,921,936 Sewer 3,746,880 2,764,674 Surface water management 1,538,468 709,508 Total business-type activities 9,152,158 6,396,118 Total primary government $29,067,734 $9,423,138 The accompanying notes are an integral part of these financial statements. 34 Statement 2 Operating Capital Grants and Grants and Governmental Business-Type Contributions Contributions Activities Activities 2017 2016 $13,470 $ - ($2,735,922) $ - ($2,735,922) ($2,354,442) 435,476 - (2,244,270) - (2,244,270) (2,259,745) 425,316 2,425,333 (4,981,270) - (4,981,270) (3,437,685) 28,609 - (2,307,237) - (2,307,237) (2,286,642) - - (883,380) - (883,380) (660,941) - - (408,273) - (408,273) (493,746) 902,871 2,425,333 (13,560,352) 0 (13,560,352) (11,493,201) 8,778 880,395 - (55,701) (55,701) 449,685 - 491,485 - (490,721) (490,721) 1,070,394 36,331 306,715 - (485,914) (485,914) 706,046 45,109 1,678,595 0 (1,032,336) (1,032,336) 2,226,125 $947,980 $4,103,928 (13,560,352) (1,032,336) (14,592,688) (9,267,076) General revenues: General property taxes 10,826,116 - 10,826,116 10,643,917 Tax increment collections - - - 111,761 Grants and contributions not restricted to specific programs 19,753 - 19,753 19,754 Unrestricted investment earnings 164,393 171,044 335,437 235,967 Gain on sale of capital assets 38,254 - 38,254 66,353 Transfers (204,422) 204,422 - - Total general revenues and transfers 10,844,094 375,466 11,219,560 11,077,752 Change in net position (2,716,258) (656,870) (3,373,128) 1,810,676 Net position - January 1 86,270,484 67,995,291 154,265,775 152,455,099 Net position - December 31 $83,554,226 $67,338,421 $150,892,647 $154,265,775 Program Revenues Net (Expense) Revenue and Changes in Net Position Primary Government Totals The accompanying notes are an integral part of these financial statements. 35 CITY OF CHANHASSEN, MINNESOTA BALANCE SHEET Statement 3 GOVERNMENTAL FUNDS December 31, 2017 With Comparative Totals For December 31, 2016 Other 601 Revolving Governmental General Fund Assessment Fund Funds Assets:2017 2016 Cash and investments $5,537,205 $2,294,494 $7,607,096 $15,438,795 $15,294,797 Cash with escrow agent - - 5,331,655 5,331,655 5,414,798 Accrued interest receivable 20,862 7,525 30,688 59,075 48,322 Due from other governmental units 41,893 - 38,018 79,911 245,027 Accounts receivable - net 64,786 43,136 131,710 239,632 256,296 Property taxes receivable 234,710 2,424 12,193 249,327 217,259 Prepaid items 81,032 - 990,723 1,071,755 25,832 Interfund loan receivable - 397,299 700,000 1,097,299 1,264,892 Contract for deed receivable - - - - 1,252,869 Special assessments receivable - 1,743,087 561,240 2,304,327 2,073,434 Total assets $5,980,488 $4,487,965 $15,403,323 $25,871,776 $26,093,526 Liabilities, Deferred Inflows of Resources, and Fund Balances Liabilities: Accounts payable $210,045 $136,439 $205,665 $552,149 $338,127 Due to other governmental units 21,736 875 - 22,611 68,329 Salaries payable 189,417 - 6,573 195,990 196,988 Contracts payable - 399,137 202,082 601,219 428,628 Interfund loan payable - - 154,506 154,506 264,772 Unearned revenue 86,043 19,563 566,868 672,474 1,101,305 Total liabilities 507,241 556,014 1,135,694 2,198,949 2,398,149 Deferred inflows of resources: Unavailable revenue 85,127 1,741,411 561,241 2,387,779 2,166,498 Fund balances: Nonspendable 81,032 - 990,723 1,071,755 25,832 Restricted - - 8,458,576 8,458,576 8,673,981 Assigned - 2,190,540 4,411,595 6,602,135 7,806,958 Unassigned 5,307,088 - (154,506) 5,152,582 5,022,108 Total fund balances 5,388,120 2,190,540 13,706,388 21,285,048 21,528,879 Total liabilities, deferred inflows of resources, and fund balances $5,980,488 $4,487,965 $15,403,323 $25,871,776 $26,093,526 Fund balance reported above $21,285,048 $21,528,879 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.78,118,880 81,182,242 Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailabe revenue in the funds.2,387,779 2,166,498 Long-term liabilities, including pension related deferred outflows and inflows, are not due and payable in the current period and, therefore, are not reported in the funds (see Note 1U).(18,237,481) (18,607,135) Net position of governmental activities $83,554,226 $86,270,484 Total Governmental Funds The accompanying notes are an integral part of these financial statements. 36 CITY OF CHANHASSEN, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND Statement 4 CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For The Year Ended December 31, 2017 With Comparative Totals For The Year Ended December 31, 2016 General Fund 601 Revolving Assessment Fund Other Govt'l Funds Revenues:2017 2016 General property taxes $8,494,192 $384,838 $1,941,652 $10,820,682 $10,640,315 Tax increment collections - - - - 111,761 Licenses and permits 1,215,051 - 426,089 1,641,140 1,653,858 Intergovernmental 415,918 1,050,665 683,292 2,149,875 974,917 Special assessments - 703,113 139,410 842,523 820,026 Charges for services 638,565 - 199,933 838,498 846,540 Fines and forfeits 128,394 - - 128,394 114,367 Investment earnings 36,120 40,187 88,086 164,393 156,202 Contributions and donations 28,609 - 45,125 73,734 60,802 Refunds and reimbursements 74,345 85,860 14,648 174,853 150,093 Other 206,770 - 57,344 264,114 276,067 Total revenues 11,237,964 2,264,663 3,595,579 17,098,206 15,804,948 Expenditures: Current: General government 2,052,473 - 818,794 2,871,267 2,479,271 Public safety 3,484,769 - 118,128 3,602,897 3,713,146 Public works 2,467,809 1,679,658 470,056 4,617,523 3,961,016 Parks and recreation 2,212,205 - 183,349 2,395,554 2,256,314 Community development 540,822 - 37,055 577,877 519,682 Capital outlay: General government - - 30,838 30,838 62,713 Public safety - - 2,950 2,950 314,004 Public works - 2,567,810 27,202 2,595,012 459,142 Parks and recreation - - 376,992 376,992 1,153,763 Decertification of TIF district - - 362,123 362,123 139,594 Debt service: Principal - - 670,000 670,000 1,795,000 Interest and paying agent fees - - 433,925 433,925 483,533 Total expenditures 10,758,078 4,247,468 3,531,412 18,536,958 17,337,178 Revenues over (under) expenditures 479,886 (1,982,805) 64,167 (1,438,752) (1,532,230) Other financing sources (uses): Sale of capital assets - - 19,286 19,286 90,318 Issuance of debt - - - - 4,805,000 Bonds premium - - - - 239,773 Transfers in - 1,750,386 173,771 1,924,157 1,347,883 Transfers out (404,478) - (344,044) (748,522) (1,044,114) Total other financing sources (uses) (404,478) 1,750,386 (150,987) 1,194,921 5,438,860 Net change in fund balance 75,408 (232,419) (86,820) (243,831) 3,906,630 Fund balance - January 1 5,312,712 2,422,959 13,793,208 21,528,879 17,622,249 Fund balance - December 31 $5,388,120 $2,190,540 $13,706,388 $21,285,048 $21,528,879 Total Governmental Funds The accompanying notes are an integral part of these financial statements. 37 CITY OF CHANHASSEN, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5 EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended December 31, 2017 With Comparative Totals For The Year Ended December 31, 2016 2017 2016 Amounts reported for governmental activities in the statement of activities (Statement 2) are different because: Net changes in fund balances - total governmental funds (Statement 4)($243,831) $3,906,630 Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense: Capital outlay 3,005,792 1,989,622 Depreciation expense (4,750,613) (4,911,126) The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins and donations) is to increase (decrease) net position. Developer contributed infrastructure 42,548 2,979,064 Transfer of capital assets to Enterprise Funds (1,380,057) (230,737) Gain (loss) on disposal of capital assets 18,968 (49,189) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Change in delinquent property taxes 5,434 3,602 Change in deferred and delinquent special assessments 235,826 (467,814) Change in other unavailable revenue (19,979)5,926 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effects of bond premiums when the debt is first issued, whereas amounts are deferred and amortized over the life of the debt in the statement of activities. Issuance of bonds, including bond premium - (5,044,773) Repayment of principal 670,000 1,795,000 Amortization of bond premiums 15,985 15,985 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Expenses reported in the statement of activities include the effects of the changes in these expense accruals as follows: Change in compensated absences payable 58,361 5,701 Change in other post employment benefits payable (13,606)(3,447) Change in accrued interest payable 9,667 (26,198) Governmental funds report pension contributions as expenditures, however, pension expense is reported in the statement of activities. This is the amount by which pension expense exceeds pension contributions.(370,753) (415,652) Change in net position of governmental activities (Statement 2)($2,716,258) ($447,406) The accompanying notes are an integral part of these financial statements. 38 CITY OF CHANHASSEN, MINNESOTA STATEMENT OF NET POSITION Statement 6 PROPRIETARY FUNDS December 31, 2017 With Comparative Totals For December 31, 2016 Water Sewer Surface Water Management 2017 2016 Assets: Current assets: Cash and cash equivalents $6,591,398 $4,971,583 $1,259,125 $12,822,106 $13,491,288 Restricted cash 5,686,976 - - 5,686,976 3,724,395 Accrued interest receivable 27,688 22,651 6,687 57,026 46,896 Due from other governmental units 468 192 2,212 2,872 35,142 Accounts receivable - net 514,733 553,928 171,655 1,240,316 1,153,702 Interfund loan receivable 154,506 - - 154,506 264,772 Prepaid items 9,842 6,920 3,990 20,752 2,191 Water meter inventory 79,527 - - 79,527 51,113 Special assessments receivable 55,157 2,435 - 57,592 76,363 Connection charges receivable 9,546 2,149 - 11,695 29,393 Total current assets 13,129,841 5,559,858 1,443,669 20,133,368 18,875,255 Noncurrent assets: Capital assets: Nondepreciable 13,709,048 958,111 2,197,467 16,864,626 4,654,740 Depreciable 63,482,633 36,054,338 28,465,534 128,002,505 127,782,966 Total capital assets 77,191,681 37,012,449 30,663,001 144,867,131 132,437,706 Less: Allowance for depreciation (30,294,797) (23,759,646) (15,933,056) (69,987,499) (66,438,735) Net capital assets 46,896,884 13,252,803 14,729,945 74,879,632 65,998,971 Total assets 60,026,725 18,812,661 16,173,614 95,013,000 84,874,226 Deferred outflows of resources related to pensions 92,355 75,691 47,410 215,456 469,375 Liabilities: Current liabilities: Accounts payable 143,835 18,816 57,615 220,266 184,923 Due to other governmental units 20,091 30,018 56,402 106,511 179,305 Salaries payable 21,897 13,327 9,433 44,657 39,924 Contracts payable 1,501,821 11,632 - 1,513,453 198,381 Accrued interest payable 268,504 1,988 - 270,492 92,573 Unearned revenue - - 725 725 850 Interfund loan payable - due within one year 192,517 - - 192,517 192,175 Compensated absences payable - due within one year 9,000 7,572 3,450 20,022 29,797 Bonds payable - due within one year 1,312,500 62,500 - 1,375,000 955,000 Total current liabilities 3,470,165 145,853 127,625 3,743,643 1,872,928 Noncurrent liabilities: Interfund loan payable 904,782 - - 904,782 1,072,717 Compensated absences payable 78,221 65,811 29,987 174,019 150,803 Bonds payable 21,681,818 322,500 - 22,004,318 12,971,719 Net pension liability 377,314 309,235 193,691 880,240 1,131,472 Total noncurrent liabilities 23,042,135 697,546 223,678 23,963,359 15,326,711 Total liabilities 26,512,300 843,399 351,303 27,707,002 17,199,639 Deferred inflows of resources related to pensions 78,457 64,301 40,275 183,033 148,671 Net position: Net investment in capital assets 29,229,358 13,252,803 14,729,945 57,212,106 57,478,975 Unrestricted 4,298,965 4,727,849 1,099,501 10,126,315 10,516,316 Total net position $33,528,323 $17,980,652 $15,829,446 $67,338,421 $67,995,291 Totals The accompanying notes are an integral part of these financial statements. 39 CITY OF CHANHASSEN, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND Statement 7 CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For The Year Ended December 31, 2017 With Comparative Totals For The Year Ended December 31, 2016 Water Sewer Surface Water Management 2017 2016 Operating revenues: Charges for services $2,824,929 $2,699,906 $693,552 $6,218,387 $5,844,688 Penalties and other 91,710 64,576 15,906 172,192 169,692 Total operating revenues 2,916,639 2,764,482 709,458 6,390,579 6,014,380 Operating expenses: Personal services 778,844 467,003 272,452 1,518,299 1,362,844 Materials and supplies 298,098 39,730 18,586 356,414 317,182 Contractual services: MCES - 1,564,754 - 1,564,754 1,445,540 Other 442,319 516,408 344,814 1,303,541 1,698,344 Repairs and maintenance 374,056 137,187 2,407 513,650 485,356 Depreciation 1,669,757 1,016,753 900,209 3,586,719 3,432,685 Total operating expenses 3,563,074 3,741,835 1,538,468 8,843,377 8,741,951 Operating income (loss)(646,435) (977,353) (829,010) (2,452,798) (2,727,571) Nonoperating revenues (expenses): Investment earnings 120,248 39,219 11,577 171,044 79,765 Intergovernmental 8,778 - 36,331 45,109 72,007 Refunds and reimbursements 5,297 192 50 5,539 6,986 Interest and fiscal charges (303,736)(5,045) - (308,781) (324,436) Gain on disposal of capital assets - - - - 25,224 Total nonoperating revenues (expenses) (169,413)34,366 47,958 (87,089) (140,454) Income before contributions and transfers (815,848) (942,987) (781,052) (2,539,887) (2,868,025) Transfers in 21,063 - - 21,063 72,286 Transfers out (580,671) (223,074) (392,953) (1,196,698) (376,055) Capital contributions: Contributions of capital assets 709,699 361,286 890,577 1,961,562 3,886,130 Special assessments 2,582 - - 2,582 7,823 Connection charges 688,257 301,986 104,265 1,094,508 1,535,923 Total contributions and transfers 840,930 440,198 601,889 1,883,017 5,126,107 Change in net position 25,082 (502,789) (179,163) (656,870) 2,258,082 Net position - January 1 33,503,241 18,483,441 16,008,609 67,995,291 65,737,209 Net position - December 31 $33,528,323 $17,980,652 $15,829,446 $67,338,421 $67,995,291 Capital Transfers - Contributions Net Amounts reported above $3,058,652 ($1,175,635) Amounts reported for business-type activities in the statement of activities are different because: Transfer in of capital assets from governmental activities (1,380,057) 1,380,057 Amounts reported on the statement of activities $1,678,595 $204,422 Totals The accompanying notes are an integral part of these financial statements. 40 CITY OF CHANHASSEN, MINNESOTA STATEMENT OF CASH FLOWS Statement 8 PROPRIETARY FUNDS For The Year Ended December 31, 2017 With Comparative Totals For The Year Ended December 31, 2016 Water Sewer Surface Water Management 2017 2016 Cash flows from operating activities: Receipts from customers and users $2,873,609 $2,735,844 $726,657 $6,336,110 $6,101,745 Payment to suppliers (1,164,412) (2,377,977) (280,396) (3,822,785) (3,754,032) Payment to employees (749,324) (444,679) (269,073) (1,463,076) (1,266,249) Miscellaneous revenue 14,075 192 36,381 50,648 78,993 Net cash flows provided by (used in) operating activities 973,948 (86,620) 213,569 1,100,897 1,160,457 Cash flows from noncapital financing activities: Transfers in 21,063 - - 21,063 34,203 Interfund loan receivable - collections 110,266 - - 110,266 104,025 Interfund loan payable - (payments)(192,176) - - (192,176) (163,446) Net cash flows provided by (used in) noncapital financing activities (60,847)0 0 (60,847) (363,190) Cash flows from capital and related financing activities: Acquisition of capital assets (8,663,639) (24,082) (55,648) (8,743,369) (1,435,967) Connection charges 702,984 304,957 104,265 1,112,206 1,545,274 Special assessment collections 20,744 609 - 21,353 29,605 Transfers out (580,671) (223,074) (392,953) (1,196,698) (337,972) Proceeds from issuance of bonds 10,462,491 - - 10,462,491 5,500,545 Principal paid on bonds (895,000) (60,000) - (955,000) (805,000) Interest and fiscal charges (603,253) (5,295) - (608,548) (353,137) Net cash flows provided by (used in) capital and related financing activities 443,656 (6,885) (344,336) 92,435 4,143,348 Cash flows from investing activities: Investment earnings 117,350 33,960 9,604 160,914 108,457 Net increase (decrease) in cash and cash equivalents 1,474,107 (59,545) (121,163) 1,293,399 5,387,044 Cash and cash equivalents - January 1 10,804,267 5,031,128 1,380,288 17,215,683 11,828,639 Cash and cash equivalents - December 31 $12,278,374 $4,971,583 $1,259,125 $18,509,082 $17,215,683 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) ($646,435) ($977,353) ($829,010) ($2,452,798) ($2,727,571) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenue (expense)14,075 192 36,381 50,648 78,993 Depreciation 1,669,757 1,016,753 900,209 3,586,719 3,432,685 Changes in assets and liabilities, deferred outflows and inflows: Decrease (increase) in receivables (43,030) (28,638) 17,324 (54,344) 86,515 Decrease (increase) in prepaid items (8,819) (6,092) (3,650) (18,561) 11,918 Decrease (increase) in inventory (28,414) - - (28,414) (15,903) Decrease (increase) in deferred outflows of resources 108,842 89,204 55,873 253,919 (366,072) Increase (decrease) in payables 933 (104,498) 84,163 (19,402) 222,610 Increase (decrease) in net pension liability (107,691) (88,259) (55,282) (251,232) 378,938 Increase (decrease) in deferred inflows of resources 14,730 12,071 7,561 34,362 58,344 Total adjustments 1,620,383 890,733 1,042,579 3,553,695 3,888,028 Net cash provided by operating activities $973,948 ($86,620) $213,569 $1,100,897 $1,160,457 Noncash investing, capital and financing activities: Capital assets in the amount of $709,699 and $1,268,976 were contributed to the Water Fund in 2017 and 2016, respectively. Capital assets in the amount of $361,286 and $1,362,245 were contributed to the Sewer Fund in 2017 and 2016, respectively. Capital assets in the amount of $890,577 and $1,254,909 were contributed to the Surface Water Fund in 2017 and 2016, respectively. Capital assets with a net book value of $38,083 were transferred from the Sewer Fund to the Water fund in 2016. Totals The accompanying notes are an integral part of these financial statements. 41 CITY OF CHANHASSEN, MINNESOTA STATEMENT OF NET POSITION Statement 9 FIDUCIARY FUNDS December 31, 2017 With Comparative Totals For December 31, 2016 2017 2016 Assets: Cash and investments $2,603,979 $1,639,041 Accounts receivable - 10,905 Total assets $2,603,979 $1,649,946 Liabilities: Accounts payable $ - $10,905 Escrow deposits payable 2,603,979 1,639,041 Total liabilities $2,603,979 $1,649,946 Agency Funds The accompanying notes are an integral part of these financial statements. 42 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Chanhassen, Minnesota (the City) was incorporated in 1967 and operates under the State of Minnesota Statutory Plan B form of government. The governing body consists of a five member City council elected by voters of the City. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies. A. FINANCIAL REPORTING ENTITY In accordance with GASB pronouncements and accounting principles generally accepted in the United States of America, the financial statements of the reporting entity should include those of the City (the primary government) and its component units. The component unit discussed below is included in the City’s reporting entity because of the significance of its operational or financial relationships with the City. COMPONENT UNITS The City has one component unit, the Economic Development Authority (EDA). The financial statements of the EDA are included as a blended component unit because its governing body is substantively the same as the City Council, the City is in a relationship of the financial burden with the EDA, and because management of the City have operational responsibilities for the EDA. Separate financial statements for the EDA are not prepared. JOINTLY GOVERNED ORGANIZATIONS Southwest Area Transit Commission. The City, in conjunction with the Cities of Eden Prairie and Chaska, has agreed to establish the Southwest Area Transit Commission (the Commission). The purpose of the Commission is to provide alternative methods of public transit service to the three cities. The Commission’s board is composed of two commissioners from each of the cities. Western Area Fire Training Association (WAFTA). The City is a member of a joint powers group along with ten other communities. WAFTA operates a fire training facility in western Carver County. JOINT POWERS AGREEMENT The Chanhassen Recreation Center is owned by Independent School District No. 112 and operates under a joint powers agreement between the City and the School District. The ninety-nine year agreement expires in 2093. According to the terms of the agreement, the City reimburses the School District 24% of the cost to operate and maintain the facility. B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. 43 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 The statement of activities demonstrates the degree to which the direct expenses of a given function or business-type activity, are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business-type activity. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or business-type activity and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business-type activity. Taxes and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The City’s only fiduciary funds are agency funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if they are collected within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, special assessments, intergovernmental revenues, charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major governmental funds: General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Revolving Assessment Fund (601) accounts for the City’s annual street re-construction program. The individual property owner pays a portion of the cost of the annual project with assessments and the City funds its portion with the reserves created in this fund and an annual tax levy. 44 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 The City reports the following major proprietary funds: The Water Fund accounts for the water service charges which are used to finance the water system operating expenses. The Sewer Fund accounts for the sewer service charges which are used to finance the sanitary sewer system operating expenses. The Surface Water Management Fund accounts for the surface water charges which are used to finance the surface water system operating expenses. Additionally, the City reports the following fund type: Agency funds account for the assets of various escrow deposits and the Moon Valley Restoration Funds held by the City in a trustee capacity or as an agent. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the water, sewer, and surface water management enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. BUDGETS Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund and for the Contribution, Cemetery, and CATV Special Revenue Funds. Budgeted amounts are reported as originally adopted, or as amended by the City Council. There were no budget amendments during 2017. Budgeted expenditure appropriations lapse at year end. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by the City because it is at present not considered necessary to assure effective budgetary control or to facilitate effective cash management. 45 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 E. LEGAL COMPLIANCE - BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution. 4. Management may authorize transfer of budgeted amounts between departments within any fund. All budget amendments between funds must be approved by the City Council. The legal level of budgetary control is at the fund level. Budgetary monitoring, by departments or divisions and by category, is required by City policy. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund and for the Contribution, Cemetery and CATV Special Revenue Funds. Formal budgetary integration is not employed for Debt Service Funds because effective budgetary control is alternatively achieved through general obligation bond indenture provisions. Budgetary control for Capital Projects Funds is accomplished through the use of project controls. During 2017, the Contribution Special Revenue Fund had expenditures of $53,981, which exceeded budgeted expenditures of $43,500 by $10,481. F. CASH AND INVESTMENTS Cash and investment balances from all funds are pooled and invested to the extent available in authorized investments. Investments are stated at fair value. Investment income is accrued at the balance sheet date and allocated to individual funds on the basis of the fund's equity in the cash and investment pool. For purposes of the statement of cash flows, the Proprietary Funds consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the Proprietary Fund types have original maturities of 90 days or less. Therefore, the entire balance in such fund types is considered cash equivalents. G. RECEIVABLES Property taxes and special assessment receivables have been reported net of estimated uncollectible accounts (See Note 1 H and I). Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. H. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes 46 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 15 and December 15 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes property tax revenue in the period for which taxes were levied. Uncollectible property taxes are not material and have not been reported. GOVERNMENT FUND FINANCIAL STATEMENTS The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and January are recognized as revenue for the current year. Taxes collected by the County by December 31 (remitted to the City the following January) and taxes and credits not received at year end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January are fully offset by deferred inflows of resources because they are not available to finance current expenditures. The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of the taxable valuation of commercial/industrial real property to various taxing authorities within the defined metropolitan area. The valuation "shared" is a portion of commercial/industrial property valuation growth since 1971. I. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Generally, the City will collect the full amount of its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. 47 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 GOVERNMENT FUND FINANCIAL STATEMENTS Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments are collected by the County and remitted by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funds are completely offset by deferred inflows of resources. J. INVENTORIES GOVERNMENTAL FUNDS The original cost of materials and supplies are recorded as expenditures at the time of purchase. These funds do not maintain material amounts of inventories. PROPRIETARY FUNDS Inventories of the Proprietary Funds are stated at cost, which approximates market, using the first-in, first- out (FIFO) method. K. PREPAID ITEMS Certain prepayments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. L. CAPITAL ASSETS Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, trails, sidewalks, and similar items), and intangible assets such as easements and computer software, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $10,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. In the case of the initial capitalization of general infrastructure assets, the City chose to include all such items regardless of their acquisition date amount. These assets are reported at historical or estimated historical cost, using the 1987 base highway construction price trend, when historical costs were unavailable. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. For the year ended December 31, 2017, $434,000 of interest was capitalized in connection with construction in progress. 48 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Capital assets of the City are depreciated/amortized using the straight line method over the following estimated useful lives: Buildings and structures 20 – 50 years Machinery and equipment (including software) 3 – 30 years Drainage systems 30 years Water and sewer lines 30 years Streets 25 – 50 years Trails 15 years Sidewalks 25 years Other improvements 7 – 40 years Temporary easements 2 years M. COMPENSATED ABSENCES The City compensates all employees upon termination for unused vacation and unused sick time up to a maximum based upon length of service. The City compensates nonexempt employees for unused comp time. All vacation pay and comp time is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. In accordance with the provisions of GASB Statement No. 16, Accounting for Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulating sick leave benefits that is vested as severance pay. N. LONG-TERM OBLIGATIONS In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts, if material, are amortized over the life of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. O. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government has one item that qualifies for reporting in the category. It is the pension related deferred outflows of resources reported in the government-wide Statement of Net Position and the proprietary funds Statement of Net Position. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to future periods, and therefore, will not be recognized as an inflow of resources (revenue) until 49 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 that time. The government has pension related deferred inflows of resources reported in the government- wide Statement of Net Pension and the proprietary funds Statements of Net Position. The government also has an item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental fund balance sheet. The governmental funds report unavailable revenues from the following sources: property taxes, special assessments and other revenue not collected within 60 days from year-end. P. FUND BALANCE CLASSIFICATIONS In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable - consists of amounts that are not in spendable form, such as prepaid items. Restricted - consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - consists of internally imposed constraints. These constraints are established by Resolution of City Council, and committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by resolution. Assigned - consists of internally imposed constraints for the specific purpose of the City’s intended use. Pursuant to the City’s Fund Balance Policy, the City Manager or Finance Director are authorized to assign fund balance that reflects the City’s intended use of those funds. Unassigned - is the residual classification for the general fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed. When committed, assigned or unassigned resources are available for use, it is the City’s policy to use resources in the following order: 1) committed 2) assigned and 3) unassigned. The exception to this is the Park Acquisition and Development Fund (410), where it is the City’s policy to use resources in the following order: 1) assigned, 2) committed, and 3) restricted. Q. INTERFUND TRANSACTIONS During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund. Short-term interfund loans are classified as “due to/from other funds.” Long- term interfund loans are classified as “interfund loan receivable/payable.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the 50 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 government-wide financial statements as “internal balances.” All other interfund transactions are reported as transfers. R. USE OF ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. S. COMPARATIVE TOTALS The basic financial statements, required supplementary information, and combining and individual fund financial statements and schedules include certain prior-year summarized comparative information in total but not at the level of detail required for a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the government’s financial statements for the year ended December 31, 2016, from which the summarized information was derived. T. PENSION PLANS COST SHARING MULTIPLE – EMPLOYER PLANS For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA except PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. SINGLE EMPLOYER PLAN Pensions. For purposes of measuring the net pension liability (asset), deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Chanhassen Fire Department Relief Association (Relief) and additions to/deductions from the Relief’s fiduciary net position have been determined on the same basis as they were reported by the Relief. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 51 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 U. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The governmental fund balance sheet includes a reconciliation between fund balances – total governmental funds and net position – governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that “long-term liabilities, including pension related deferred outflows and inflows, are not due and payable in the current period and, therefore, are not reported in the funds.” The details of this ($18,071,295) difference are as follows: Bonds payable ($12,420,000) Unamortized bond premium (207,803) Accrued interest payable (175,686) Compensated absences payable (705,202) Other post employment benefits payable (47,656) Net pension liability (4,855,214) Deferred outflows of resources related to pensions 1,546,919 Deferred inflows of resources related to pensions (1,372,839) Net adjustment to decrease fund balances - total governmental funds to arrive at net position - governmental activities ($18,237,481) Note 2 DEPOSITS AND INVESTMENTS A. DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. Minnesota Statutes require that insurance, surety bonds or collateral protect all City deposits. The market value of collateral pledged must equal 110% of deposits not covered by insurance or bonds. The City has no additional deposit policies addressing custodial credit risk. As of December 31, 2017, the bank balance of the City’s deposits was insured by the FDIC or covered by pledged collateral held in the City’s name. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral includes the following: a) United States government treasury bills, treasury notes, treasury bonds; b) Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; c) General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; 52 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 d) General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc. or Standard & Poor’s Corporation; and f) Time deposits that are fully insured by any federal agency. At December 31, 2017, the carrying amount of the City’s deposits with financial institutions was $3,534,333. B. INVESTMENTS Minnesota Statutes authorize the City to invest in the following: a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities, or organizations created by an act of congress, excluding mortgage-backed securities defined as high risk. b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above, general obligation tax-exempt securities, or repurchase or reverse repurchase agreements. c) State and local securities as follows: 1) any security which is a general obligation of any state or local government with taxing powers which is rated “A” or better by a national bond rating service; 2) any security which is a revenue obligation of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; and 3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the State of Minnesota and is rated “A” or better by a national bond rating agency. d) Bankers’ acceptance of United States banks. e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers; or, a bank qualified as a depositor. g) General obligation temporary bonds of the same governmental entity issued under section 429.091, subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6. 53 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 As of December 31, 2017, the City had the following investments and maturities: Fair Less Investment Type Rating Value Than 1 1-5 6-10 Money Market NR $3,286,590 $3,286,590 $ - $ - Brokered Certificates of Deposit NR 8,148,720 4,688,972 3,459,748 - Municipal Bonds (1)8,800,476 2,141,616 5,086,759 1,572,101 Federal National Mortgage Assn. Notes Aaa 3,145,022 529,746 2,615,276 - Federal Home Loan Mortgage Corp. Notes Aaa 2,830,246 1,796,798 536,329 497,119 Federal Home Loan Bank Notes Aaa 1,325,024 - 983,322 341,702 Federal Farm Credit Bank Aaa 994,476 994,476 - - Resolution Funding Corp. Strip Bonds NR 1,346,625 - 1,346,625 - Private Export Funding Corp. Bonds Aaa 645,954 - 645,954 - US Treasury Notes Aaa 2,493,525 2,493,525 - - Total $33,016,658 $15,931,723 $14,674,013 $2,410,922 (1) $3,113,949 are rated Aaa, $1,965,696 are rated Aa1,Total investments $33,016,658 $2,898,196 are rated Aa2, and $822,635 are rated Aa3.Deposits 3,534,533 Cash with escrow agent 5,331,655 NR - Not Rated Petty cash 665 Total cash and investments $41,883,511 Classifications above are by maturity date. Some investments listed above have call dates that occur in less than one year. Investment Maturities (in Years) The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are based on quoted prices in active markets for identical assets. Level 2 investments are valued using inputs that are based on quoted prices for similar assets or inputs that are observable, either directly or indirectly. Level 3 investments are valued using inputs that are unobservable. The City has the following recurring fair value measurements as of December 31, 2017: Investment Type 12/31/2017 Level 1 Level 2 Level 3 Investments at fair value: Brokered Certificates of Deposit $8,148,720 $ - $8,148,720 $ - Municipal Bonds 8,800,476 - 8,800,476 - Federal National Mortgage Assn. Notes 3,145,022 - 3,145,022 - Federal Home Loan Mortgage Corp. Notes 2,830,246 - 2,830,246 - Federal Home Loan Bank Notes 1,325,024 - 1,325,024 - Federal Farm Credit Bank 994,476 - 994,476 - US Treasury Notes 2,493,525 - 2,493,525 - Resolution Funding Corp. Strip Bonds 1,346,625 - 1,346,625 - Private Export Funding Corp. Bonds 645,954 - 645,954 - Total/subtotal 29,730,068 $0 $29,730,068 $0 Investments not categorized: Money Market 3,286,590 Total $33,016,658 Fair Value Measurement Using 54 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Cash and investments are presented in the financial statements as follows: Cash and investments: Governmental and business-type (Statement 1)$28,260,901 Fiduciary (Statement 9)2,603,979 Cash with escrow agent (Statement 1)5,331,655 Restricted cash (Statement 1)5,686,976 Total $41,883,511 C. INVESTMENT RISKS Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk that in the event of failure of the counterparty to a transaction, the City will not be able to recover the value of its investment securities that are in the possession of an outside party. Investments in investment pools and money markets are not evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. The City’s investment policy requires the City’s security broker/dealers to provide its audited financial statements, proof of NASD certification, proof of state registration, and certification of having read, understood and agreed to comply with the City’s investment policy. Investments in securities are held by the City’s broker-dealer of which $500,000 per broker is insured through SIPC. Each broker-dealer has provided additional protection by providing additional insurance. This insurance is subject to aggregate limits applied to all of the broker-dealer’s accounts. Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments could adversely affect the fair value of an investment. The City’s investment policy requires the City to diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of assets in a specific maturity. The policy also states the City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonable, i.e., not investing in maturities longer than seven years. Credit risk – Credit risk is the risk that an issuer or other counterparty to an investment will be unable to fulfill its obligation to the holder of the investment. State law limits investments to commercial paper to those rated in the highest quality category by at least two nationally recognized rating agencies; in any security of the State of Minnesota or any of its municipalities which is rated “A” or better by a national bond rating service for general obligation and rated “AA” or better for a revenue obligation; a general obligation of the Minnesota Housing Finance Agency to those rated “A” or better by a national bond rating agency; mutual funds or money market funds whose investments are restricted to securities described in MS 118A.04. The City’s investment policy does not place further restrictions on investment options. Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government’s investment in a single issuer. The City’s investment policy states investments shall be diversified by limiting investments to avoid over concentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities). Investments in a single issuer exceeding 5% of the City’s overall investment portfolio are in various holdings as follows: Federal National Mortgage Association notes 10% Federal Home Loan Mortgage Corporation notes 9% 55 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Note 3 RECEIVABLES Significant receivable balances not expected to be collected within one year of December 31, 2017 are as follows: Interfund Delinquent Special Loan Property Assessments Receivable Taxes Receivable Total Major Funds: General $ - $31,750 $ - $31,750 Revolving Assessment Fund 204,782 - 1,460,795 1,665,577 Water 37,624 - 51,695 89,319 Sewer - - 2,663 2,663 Nonmajor Funds 700,000 - 445,932 1,145,932 $942,406 $31,750 $1,961,085 $2,935,241 Note 4 UNAVAILABLE REVENUE Governmental funds report deferred inflows of resources in connection with receivables of revenues that are not considered to be available to liquidate liabilities of the current period. At December 31, 2017, the various components of unavailable revenue were as follows: Revolving General Assessment Nonmajor Fund Fund Funds Total Delinquent property taxes receivable $85,127 $ - $ - $85,127 Special assessments not yet due - 1,741,411 561,241 2,302,652 Total unavailable revenue $85,127 $1,741,411 $561,241 $2,387,779 Major Funds 56 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Note 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2017 was as follows: Beginning Ending Primary Government Balance Increase Decrease Balance Governmental activities: Capital assets not being depreciated: Land $19,801,717 $1,001 $ - $19,802,718 Construction in progress 1,618,180 1,274,915 (1,043,815) 1,849,280 Permanent easements 1,498,994 67,468 - 1,566,462 Total capital assets not being depreciated 22,918,891 1,343,384 (1,043,815) 23,218,460 Capital assets being depreciated: Buildings and structures 23,188,737 121,646 - 23,310,383 Machinery and equipment 8,748,196 175,090 (184,755) 8,738,531 Other improvements 7,501,186 1,133,761 (7,431) 8,627,516 Infrastructure 118,353,094 52,317 (41,520) 118,363,891 Total capital assets being depreciated 157,791,213 1,482,814 (233,706) 159,040,321 Less accumulated depreciation for: Buildings and structures 7,834,495 567,566 - 8,402,061 Machinery and equipment 5,912,938 477,489 (92,297) 6,298,130 Other improvements 3,564,572 296,596 (4,757) 3,856,411 Infrastructure 82,215,857 3,408,962 (41,520) 85,583,299 Total accumulated depreciation 99,527,862 4,750,613 (138,574) 104,139,901 Governmental activities capital assets - net $81,182,242 ($1,924,415) ($1,138,947) $78,118,880 Beginning Ending Primary Government Balance Increase Decrease Balance Business-type activities: Capital assets not being depreciated: Land $2,085,435 $9,000 $ - $2,094,435 Construction in progress 1,257,057 11,785,659 (153,330) 12,889,386 Permanent easements 1,312,248 568,557 - 1,880,805 Total capital assets not being depreciated 4,654,740 12,363,216 (153,330) 16,864,626 Capital assets being depreciated: Buildings and structures 12,445,429 - - 12,445,429 Machinery and equipment 1,804,519 50,074 (22,365) 1,832,228 Other improvements 113,533,018 207,421 (15,591) 113,724,848 Total capital assets being depreciated 127,782,966 257,495 (37,956) 128,002,505 Less accumulated depreciation for: Buildings and structures 2,240,914 248,917 - 2,489,831 Machinery and equipment 883,315 120,071 (22,364) 981,022 Other improvements 63,314,506 3,217,731 (15,591) 66,516,646 Total accumulated depreciation 66,438,735 3,586,719 (37,955) 69,987,499 Business-type activities capital assets - net 65,998,971 9,033,992 (153,331) 74,879,632 Total capital assets - net $147,181,213 $7,109,577 ($1,292,278) $152,998,512 57 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Depreciation expense was charged to functions/programs of the City as follows: Governmental activities: General government $308,660 Public safety 133,975 Public works 3,492,241 Parks and recreation 815,737 Total depreciation expense - governmental activities $4,750,613 Business-type activities: Water $1,669,757 Sewer 1,016,753 Surface water management 900,209 Total depreciation expense - business-type activities $3,586,719 Note 6 CITY INDEBTEDNESS The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. The City’s long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business-type activities. GOVERNMENTAL ACTIVITIES As of December 31, 2017, the governmental activities long-term debt of the City consisted of the following: Final Authorized Issue Maturity Interest And Outstanding Date Date Rate Issued 12/31/17 General Long-Term Debt: General Obligation Bonds: G.O. Capital Improvement Plan Bonds, Series 2008A 11/18/08 2/1/2018 4.00% - 4.60% $7,550,000 $5,615,000 G.O. Library Refunding Bonds, Series 2010A 1/27/10 2/1/2022 2.00% - 3.10% 3,660,000 2,000,000 G.O. Bonds, Series 2016A 3/3/2016 2/1/2030 2.00% - 3.00% 4,805,000 4,805,000 Bond premium 239,773 207,803 Total general obligation bonds 16,254,773 12,627,803 Compensated absences payable N/A 705,202 Total City indebtedness - governmental activities $16,254,773 $13,333,005 58 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 BUSINESS-TYPE ACTIVITIES As of December 31, 2017, the business-type activities long-term debt of the City consisted of the following: Final Authorized Issue Maturity Interest And Outstanding Date Date Rate Issued 12/31/17 G.O. Revenue Bonds: Water Revenue Bonds, Series 2011A 10/6/2011 2/1/2022 0.30% - 2.15% $5,920,000 $3,080,000 Water Revenue Bonds, Series 2011B 10/6/2011 2/1/2025 2.00% - 3.00% 3,720,000 3,660,000 Water and Sewer Revenue Bonds, Series 2012A 11/15/2012 2/1/2023 1.00% - 1.55% 1,245,000 770,000 Water Revenue Bonds, Series 2016A 3/3/2016 2/1/2026 2.00% - 3.00% 1,565,000 1,425,000 Water Revenue Bonds, Series 2016B 12/29/2016 2/1/2042 3.50% - 4.00% 3,630,000 3,630,000 Water Revenue Bonds, Series 2017A 2/1/2017 2/1/2038 2.00% - 4.00% 10,000,000 10,000,000 Bond premium 939,339 814,318 Total G.O. revenue bonds 27,019,339 23,379,318 Compensated absences payable N/A 194,041 Total City indebtedness - business-type activities $27,019,339 $23,573,359 GOVERNMENTAL ACTIVITIES Annual debt service requirements to maturity for the governmental activities long-term debt are as follows: Year Ending Governmental Activities December 31, Principal Interest 2018 $5,985,000 $294,464 2019 720,000 156,480 2020 745,000 134,505 2021 770,000 111,780 2022 800,000 88,015 2023 385,000 70,025 2024 395,000 58,325 2025 410,000 48,300 2026 420,000 40,000 2027 430,000 31,500 2028 440,000 22,800 2029 455,000 13,850 2030 465,000 4,650 Total $12,420,000 $1,074,694 General Obligation Bonds It is not practicable to determine the specific year for payment of long-term accrued compensated absences. 59 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 BUSINESS-TYPE ACTIVITIES Annual debt service requirements to maturity for the business-type long-term debt are as follows: G.O. Revenue Bonds Year Ending Business-Type Activities December 31, Principal Interest 2018 $1,375,000 $637,566 2019 1,585,000 611,391 2020 1,610,000 578,817 2021 1,665,000 541,334 2022 1,235,000 506,322 2023 995,000 476,034 2024 880,000 447,288 2025 910,000 419,663 2026 345,000 400,888 2027 595,000 386,813 2028 615,000 368,663 2029 635,000 349,913 2030 655,000 330,563 2031 670,000 310,688 2032 690,000 290,288 2033 715,000 269,213 2034 735,000 247,463 2035 755,000 225,113 2036 780,000 202,088 2037 800,000 176,388 2038 830,000 147,863 2039 825,000 118,900 2040 855,000 88,431 2041 885,000 54,700 2042 925,000 18,500 Total $22,565,000 $8,204,890 It is not practicable to determine the specific year for payment of long-term accrued compensated absences. 60 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2017 was as follows: Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental activities: General obligation bonds $13,090,000 $ - ($670,000) $12,420,000 $5,985,000 Bond premium 223,788 - (15,985) 207,803 - Compensated absences 763,563 553,222 (611,583) 705,202 72,769 Total governmental activity long-term liabilities $14,077,351 $553,222 ($1,297,568) $13,333,005 $6,057,769 Business-type activities: G.O. revenue bonds $13,520,000 $10,000,000 ($955,000) $22,565,000 $1,375,000 Bond premium 406,719 462,491 (54,892)814,318 - Compensated absences 180,600 141,890 (128,449) 194,041 20,022 Total business-type activity long-term liabilities $14,107,319 $10,604,381 ($1,138,341) $23,573,359 $1,395,022 For the governmental activities, compensated absences are generally liquidated by the General and Special Revenue Funds. All long-term bonded indebtedness outstanding at December 31, 2017 is backed by the full faith and credit of the City. General Obligation Revenue Bonds are serviced by the Sewer and Water Enterprise Funds and are carried as debt of those funds. Other bonds are supported by various Debt Service Funds. NONEXCHANGE FINANCIAL GUARANTEE OF DEBT On August 1, 2014 the Carver County Community Development Agency, a legally separate entity from the City, issued $2,110,000 of Housing Development Refunding Bonds, Series 2014 and $2,370,000 of Taxable Housing Development and Refunding Bonds, Series 2014T. The proceeds were used to refund a portion of prior bonds and to fund certain capital improvements of the Centennial Hill Apartments, which are located within the City. In accordance with Minnesota Statutes, Section 469.034, Subd. 2, the City has pledged its full faith and credit and taxing powers to the payment of debt service on the Series 2014 and Series 2014T bonds. In the event that the Carver County Community Development Agency is unable to pay the debt service on the bonds due to insufficient housing revenues and cash reserves, the City is obligated to pay the debt service. The City’s guarantee extends until the bonds have fully matured, which is scheduled to occur in 2034. The total amount of outstanding guaranteed debt, including interest, at December 31, 2017 is $5,349,214. The City’s management does not expect the City will be required to make any debt service payments towards these bonds. Accordingly, the bonds are not reflected in the financial statements of the City. 61 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 CROSSOVER REFUNDING Series 2016A Bonds On March 3, 2016, the City issued $6,370,000 in General Obligation Bonds, Series 2016A with an average interest rate of 2.35%. Bonds in the amount of $1,565,000 were issued to provide funding for water system improvements. The remaining $4,805,000 of bonds, along with $475,000 of cash on hand, will be used to advance refund $5,290,000 of outstanding 2008A Series Bonds with an average interest rate of 4.42%. The net proceeds were used to purchase U.S. government securities in the amount of $5,448,832. Those securities were deposited in an irrevocable trust with an escrow agent to provide for the interest on the refunding bonds through the crossover date of February 1, 2018 and called principal on the refunded bonds (2019 through 2030 maturities) on February 1, 2018. The City advance refunded the 2019 through 2030 maturities of the 2008A Series Bonds to reduce its total debt service payments during the years 2017 through 2030 by $928,572 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $757,654. The City is responsible for the debt service of the refunded bonds through February 1, 2018 and the debt service of the refunding bonds beginning August 1, 2018. The debt service of the refunding bonds due prior to August 1, 2018 is payable from the escrow account. Assets held with the escrow agent total $5,331,655 at December 31, 2017. The financial statements present each bond issue and the escrow account assets pursuant to GASB Statement No. 7. The effect on the financial statements is to report greater debt than, in substance, the City will be responsible for paying. The refunding portion of the 2016A bonds are crossover refunding bonds whereby the City and the escrow agent are responsible for debt service payments as follows: Year Ending Refunded Refunding Escrow December 31, Bonds Total Bonds Total Account City 2018 $5,736,634 $117,950 $5,348,975 $505,609 2019 - 443,000 - 443,000 2020 - 447,875 - 447,875 2021 - 452,300 - 452,300 2022 - 451,350 - 451,350 2023 - 455,025 - 455,025 2024 - 453,325 - 453,325 2025 - 458,300 - 458,300 2026 - 460,000 - 460,000 2027 - 461,500 - 461,500 2028 - 462,800 - 462,800 2029 - 468,850 - 468,850 2030 - 469,650 - 469,650 Total $5,736,634 $5,601,925 $5,348,975 $5,989,584 Debt Service Commitment 62 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 REVENUE PLEDGED Future revenue pledged for the payment of long-term debt is as follows: Percent of Debt service Remaining Principal Pledged Use of Total as a % of Term of Principal and Interest Revenue Bond Issue Proceeds Type Debt Service net revenues Pledge and Interest Paid Received 2008A CIP bonds Public Works Facility construction Property taxes 100% n/a 2009 - 2029 $5,989,584 $559,468 $596,700 2010A Library Refunding bonds Library construction Property taxes 100% n/a 2012 - 2021 $2,156,135 $425,830 $451,592 - refunded the 2002A Library bonds 2011A Water Revenue bonds Water infrastructure improvements Water usage charges 100% 24.8% 2012 - 2021 $3,210,351 $722,060 $2,916,639 - refunded the 2005B bonds 2011B Water Revenue bonds Water infrastructure improvements Water usage charges 100% 4.6% 2012 - 2024 $4,158,300 $135,100 $2,916,639 - refunded the 2005B bonds 2012A Water & Sewer Revenue Purchase of meter reading equipment Water and sewer 100% 2.3% 2013 - 2022 $801,708 $130,140 $5,681,121 bonds usage charges 2016A Water Revenue bonds Water infrastructure improvements Water usage charges 100% 6.2% 2016 - 2025 $1,597,400 $181,400 $2,916,639 2016B Water Revenue bonds West Water Treatment Plant Water usage charges 100% n/a 2017 - 2041 $6,811,079 $81,407 $2,916,639 2017A Water Revenue bonds West Water Treatment Plant Water usage charges 100% n/a 2018 - 2038 $14,191,050 $151,950 $2,916,639 Revenue Pledged Current Year Note 7 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT General obligation bond issues sold by the City are financed by ad valorem tax levies. Special assessment bond issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any additional taxes found necessary for full payment of principal and interest. These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2017. Future scheduled tax levies for all bonds outstanding at December 31, 2017 totaled $7,663,816. 63 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Note 8 DEFINED BENEFIT PENSION PLANS A. PLAN DESCRIPTION The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by PERA. PERA’s defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. 1. General Employees Retirement Fund (GERF) All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of the City are covered by the GERF. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. The Basic Plan was closed to new members in 1967. The City no longer has any employees who are members of the Basic Plan. All new members must participate in the Coordinated Plan. 2. Public Employees Police and Fire Fund (PEPFF) The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA. B. BENEFITS PROVIDED PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan. Members in plans that are at least 90% funded for two consecutive years are given 2.5% increases. Members in plans that have not exceeded 90% funded, or have fallen below 80%, are given 1% increases. The benefit provisions stated in the following paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. 1. GERF Benefits Benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's members. The retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a member is 1.2% of average salary for each of the first ten years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 1.7% of average salary for each year of service. For members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66. 64 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 2. PEPFF Benefits Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for PEPFF members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For PEPFF members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. C. CONTRIBUTIONS Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. 1. GERF Contributions Coordinated Plan members were required to contribute 6.5% of their annual covered salary in calendar year 2017. The City was required to contribute 7.5% for Coordinated Plan members in calendar year 2017. The City’s contributions to the GERF for the year ended December 31, 2017 were $371,824. The City’s contributions were equal to the required contributions as set by state statute. 2. PEPFF Contributions Plan members were required to contribute 10.8% of their annual covered salary in calendar year 2017. The City was required to contribute 16.2% of pay for PEPFF members in calendar year 2017. The City’s contributions to the PEPFF for the year ended December 31, 2017 were $32,612. The City’s contributions were equal to the required contributions as set by state statute. D. PENSION COSTS 1. GERF Pension Costs At December 31, 2017, the City reported a liability of $4,794,334 for its proportionate share of the GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $6 million to the fund in 2017. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $60,265. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2016 through June 30, 2017, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2017, the City’s proportion was 0.0751%, which was a decrease of 0.0008% from its proportion measured as of June 30, 2016. For the year ended December 31, 2017, the City recognized pension expense of $573,623 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $1,741 65 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $6 million to the GERF. At December 31, 2017, the City reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $158,007 $308,082 Changes in actuarial assumptions 795,963 480,632 Difference between projected and actual investment earnings 30,311 - Changes in proportion - 208,203 Contributions paid to PERA subsequent to the measurement date 189,228 - Total $1,173,509 $996,917 $189,228 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2018. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Pension December 31,Expense 2018 $66,581 2019 226,767 2020 (102,473) 2021 (203,511) 2022 - Thereafter - 2. PEPFF Pension Costs At December 31, 2017, the City reported a liability of $256,523 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2016 through June 30, 2017, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2017, the City’s proportion was 0.0190%, which was equal to its proportion measured as of June 30, 2016. For the year ended December 31, 2017, the City also recognized $1,710 as revenue (and an offsetting reduction of net pension liability) for its proportionate share of the State of Minnesota’s contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the PEPFF each year, starting in fiscal year 2014. 66 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 For the year ended December 31, 2017, the City recognized pension expense of $74,139 for its proportionate share of the PEPFF’s pension expense. At December 31, 2017, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $5,905 $68,580 Changes in actuarial assumptions 335,711 364,198 Difference between projected and actual investment earnings 3,523 - Changes in proportion 37,802 7,484 Contributions paid to PERA subsequent to the measurement date 16,500 - Total $399,441 $440,262 $16,500 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2018. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Pension December 31,Expense 2018 $15,196 2019 15,194 2020 5,791 2021 (21,845) 2022 (71,657) Thereafter - E. ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2017 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% per year Active Member Payroll Growth 3.25% per year Investment Rate of Return 7.50% Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors and disabilitants were based on RP-2014 tables for both plans for males or females, as appropriate, with slight adjustments to fit PERA’s experience. Cost of living benefit increases for retirees 67 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 are assumed to be 1% per year for the GERF through 2044 and PEPFF through 2064 and then 2.5% thereafter. Actuarial assumptions used in the June 30, 2017 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the General Employees Plan was completed in 2015. The most recent five-year experience study for the Police and Fire Plan was completed in 2016. The following changes in actuarial assumptions occurred in 2017: General Employees Fund  The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non-vested deferred member liability.  The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. Police and Fire Fund  The single discount rate was changed from 5.6% to 7.5%.  Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates.  Assumed rates of retirement were changed, resulting in fewer retirements.  The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for non- vested members.  The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP- 2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees.  Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall.  Assumed percentage of married female members was decreased from 65 percent to 60 percent.  Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females.  The assumed percentage of female members electing Joint and Survivor annuities was increased.  The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. 68 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 The long-term expected rate of return on pension plan investments is 7.5%. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Domestic Stocks 39%5.10% International Stocks 19%5.30% Bonds 20%0.75% Alternative Assets 20%5.90% Cash 2%0.00% Total 100% F. DISCOUNT RATE The discount rate used to measure the total pension liability in 2017 was 7.5%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota statute. Based on those assumptions, the fiduciary net position of the GERF and PEPFF was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. At June 30, 2016, the Police and Fire Fund projected benefit payments to exceed the funds projected fiduciary net position after June 30, 2056 and therefore used a single discount rate of 5.6%, which as stated above, increased to 7.5% at June 30, 2017. G. PENSION LIABILITY SENSITIVITY The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in 1% Increase in Discount Rate (6.5%) Discount Rate (7.5%) Discount Rate (8.5%) City's proportionate share of the GERF net pension liability $7,436,369 $4,794,334 $2,631,349 City's proportionate share of the PEPFF net pension liability $483,107 $256,523 $69,465 69 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 H. PENSION PLAN FIDUCIARY NET POSITION Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained at www.mnpera.org. Note 9 SINGLE EMPLOYER PENSION PLAN A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Chanhassen Fire Department Relief Association (the Relief Association) and additions to/deductions from the Relief Association’s fiduciary net position have been determined on the same basis as they were reported by the Relief Association. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. B. PLAN DESCRIPTION All members of the Chanhassen Fire Department are covered by a defined benefit pension plan administered by the Relief Association. The Plan is a single employer retirement plan and is established and administered in accordance with Minnesota Statute, Chapter 69. C. BENEFITS PROVIDED Twenty Year Service Pension Prior to April 1997, each member who is at least 50 years of age, has retired from the Fire Department, has served at least twenty years of active service with such department before retirement, and has been a member of the Relief Association in good standing at least ten years prior to such retirement shall be entitled to receive either a monthly lifetime service pension or a defined benefit lump sum pension. After April 1997, each member shall be entitled to receive a defined benefit lump sum pension. Monthly service pensions shall be $410 per month. Defined benefit service pension per year of service shall be $6,000. Effective January 1, 2018, the benefit level per year of service will increase to $6,800. The maximum service pension shall not exceed the maximum service pension amount permitted under the flexible service pension maximums pursuant to Minnesota Section 424A.02, Subdivision 3. Members who choose the lump sum receive no additional interest accrual. 70 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Ten Year Service But Less Than Twenty Year Service Each member who is at least 50 years of age; who has retired from the Fire Department; who has served at least five years of active service with such department before retirement but has not served at least 20 years of active service; and, who has been a member of the Relief Association in good standing at least ten years prior to such retirement, shall be entitled to either a pro-rated monthly service pension or a pro-rated lump sum service pension based on the percentages in the following table: For Duty of: more than but less than 5 years 6 years 40% 6744 7848 8952 91056 10 11 60 11 12 64 12 13 68 13 14 72 14 15 76 15 16 80 16 17 84 17 18 88 18 19 92 19 20 96 20 100 The payment amount will be calculated by using the amount payable per year of service in effect at the time of such early retirement, multiplied by the number of accumulated years of service, multiplied by the appropriate percentage as defined above. During the time a member is on early-vested pension, he or she will not be eligible for disability benefits. Survivors Benefit Prior to April 1997, if any active vested or deferred member dies leaving an eligible surviving spouse, they shall receive a monthly pension for a guaranteed fifteen year period. After April 1997, an eligible surviving spouse shall receive a lump sum payment calculated in accordance with the by-laws. If there is no surviving spouse, then the deceased member’s designated beneficiary or their estate would receive the payment. A surviving spouse of a member receiving a monthly pension shall receive 50% of the member’s monthly benefit, based on the date of death. Permanent Disability Any member of the Relief Association contracting sickness or injury, incapacitating the member from attending to their business, from causes outside or within their line of duty, and a physician’s report shows 71 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 that that member is unable to perform their duties, they are entitled to their full accrued lump sum benefit, payable immediately. Temporary Disability Any member of the Relief Association who becomes temporarily incapacitated from attending to their business due to illness of injury, sustained in the performance of such business, and is unable to work for a period of one week or longer, shall be paid a benefit of $5 per day for a period of no longer than 120 days in any one fiscal year, providing the member is under the care of a physician or doctor during this period. Death Benefit Upon the death of any active or deferred member, the beneficiaries of the deceased member shall be paid a death benefit in an amount equivalent to the accrued service pension. D. EMPLOYEES COVERED BY BENEFIT TERMS At December 31, 2017, the following employees were covered by the benefit terms: Retirees and beneficiaries currently receiving benefits 7 Retired members entitled to benefits but have not received them 27 Active members: Fully vested (20 years or more) 4 Partially vested (5 years to 19 years) 16 Non-vested (less than 5 years)19 Total 73 E. CONTRIBUTIONS Minnesota Statutes Chapter 424A.092 specifies minimum support rates required on an annual basis. The minimum support rates from the municipality and from State Aid are determined as the amount required to meet the normal cost plus amortizing any existing prior service costs over a ten-year period. The significant actuarial assumptions used to compute the municipal support are not the same as those used to compute the accrued pension liability. The Relief Association is comprised of volunteers; therefore, there are no payroll expenditures (i.e., there are no covered payroll percentage calculations). Contributions totaling $181,554 from the State of Minnesota were made to the Relief Association in accordance with state statute requirements for the year ended December 31, 2017. 72 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 F. ACTUARIAL METHOD AND SIGNIFICANT ASSUMPTIONS The total pension liability was determined by an actuarial valuation as of December 31, 2017 using the following actuarial assumptions, applied to all periods in the measurement: Valuation date 12/31/2017 Measurement date (assets and funded status)12/31/2017 Actuarial cost method Entry Age Normal Amortization method Level dollar Closed 20-year period Asset valuation method Market Value Actuarial assumptions: Investment rate of return 5% Projected salary increases N/A Includes inflation at 3% Cost-of-living adjustments 3% Age of service retirement The later of the age 50 and 20 years of service Post-retirement benefit increases None Mortality assumptions were determined using the RP-2014 Blue Collar Mortality with fully generational improvements from 2006 based on assumptions from the Social Security Administration’s 2017 trustees report. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimates of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. For each major asset class that is included in the pension plan’s target asset allocation as of December 31, 2017, these best estimates are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Stock and mutual funds 60%5.1% Fixed income 30%0.6% Other 5%0.6% Cash 5%0.0% 100% G. DISCOUNT RATES The discount rate used to measure the total pension liability was 5%. The liability discount rate was developed using the alternative method described in paragraph 43 of GASB 67, which states that “if the evaluations required by paragraph 41 can be made with sufficient reliability without a separate projection of cash flows into and out of the pension plan, alternative methods may be applied in making the evaluations.” The determination of the discount rate assumed that the plan’s current underfunded status, combined with Minnesota statutory funding requirements, provide sufficient reliability that projected 73 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 plan assets will be adequate to pay future retiree benefits. Therefore, the plan’s long-term expected return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. H. CHANGES IN THE NET PENSION LIABILITY Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a) - (b) Balance at December 31, 2016 $2,635,785 $2,113,570 $522,215 Changes for the year: Service cost 88,924 - 88,924 Interest 127,729 - 127,729 Changes in benefit terms 212,120 - 212,120 Differences between expected and actual experience 5,145 - 5,145 Changes of assumptions 231,636 - 231,636 Contributions - employer - - - On behalf contributions - State of MN - 181,554 (181,554) Contributions - employee - - - Net investment income - 306,593 (306,593) Benefit payments, including refunds of employee contributions (340,243) (340,243) - Administrative expense - (14,875)14,875 Other changes - 29,900 (29,900) Net changes 325,311 162,929 162,382 Balance at December 31, 2017 $2,961,096 $2,276,499 $684,597 Increase (Decrease) I. PENSION LIABILITY SENSITIVITY The following presents the net pension liability of the Relief Association, calculated using the discount rate of 5.0%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (4.0%) or 1-percentage-point higher (6.0%) than the current rate: Current 1% Decrease Discount Rate 1% Increase (4.0%)(5.0%)(6.0%) Net pension liability $839,061 $684,597 $537,791 74 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 J. PENSION PLAN FIDUCIARY NET POSITION Detailed information about the pension plan’s fiduciary net position is available in the separately issued Relief Association financial report. That report may be obtained by writing to Chanhassen Fire Department Relief Association, P.O. Box 147, Chanhassen, Minnesota, 55317. K. PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RLEATED TO PENSIONS For the year ended December 31, 2017, the City recognized pension expense of $377,640, including $181,554 as pension expense (and grant revenue) for the State of Minnesota’s on-behalf contribution to the plan. At December 31, 2017, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $4,116 $2,130 Changes in actuarial assumptions 185,309 121 Difference between projected and actual investment earnings - 116,442 Total $189,425 $118,693 Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Year Ended Pension December 31,Expense 2018 $35,331 2019 35,335 2020 (6,241) 2021 6,307 2022 - Thereafter - 75 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 L. TOTAL PENSION EXPENSE Pension expense recognized by the City for all pension plans for the fiscal year ended December 31, 2016 is as follows: GERF (Note 8)$575,364 PEPFF (Note 8)74,139 Fire Relief 377,640 Total $1,027,143 Note 10 OTHER POST-EMPLOYMENT BENEFITS (OPEB) A. PLAN DESCRIPTION In addition to providing the pension benefits described in Note 8 and 9, the City provides post-employment health care benefits (as defined in paragraph B) for retired employees through a single-employer defined benefit plan. The City’s OPEB plan is administered by the City. The authority to provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a, and 299A.465. The benefits, benefit levels, employee contributions and employer contributions are governed by the City and can be amended by the City through its personnel manual and collective bargaining agreements with employee groups. The Plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan. The Plan does not issue a separate report. B. BENEFITS PROVIDED Retirees The City is required by State Statute to allow retirees to continue participation in the City’s group health insurance plan if the individual terminates service with the City through service retirement or disability retirement. Employees who satisfy the rule of 80 or attain age 55 and have completed 10 years of service at termination can immediately commence medical benefits. Retirees may obtain dependent coverage while the participating retiree is under age 65. Covered spouses may continue coverage after the retiree’s death. The surviving spouse of an active employee may continue coverage in the group health insurance plan after the employee’s death. All health care coverage is provided through the City’s group health insurance plans. The retiree is required to pay 100% of their premium cost for the City-sponsored group health insurance plan in which they participate. The premium is a blended rate determined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer and the City’s plan becomes secondary. 76 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 C. PARTICIPANTS As of the January 1, 2017 actuarial valuation, participants consisted of: Retirees and beneficiaries currently purchasing health insurance through the City 1 Active employees 66 Total 67 Participating employers 1 D. FUNDING POLICY The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as-you-go basis. The City Council may change the funding policy at any time. E. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION The City’s annual OPEB cost is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The net OPEB obligation as of December 31, 2017, was calculated as follows: Annual required contribution (ARC)$23,350 Interest on net OPEB obligation 1,362 Adjustment to ARC (1,969) Annual OPEB cost 22,743 Contributions made during the year (9,137) Increase (decrease) in net OPEB obligation 13,606 Net OPEB obligation - beginning of year 34,050 Net OPEB obligation - end of year $47,656 For governmental activities, the net OPEB obligation is generally liquidated by the General Fund. 77 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the previous three years was as follows: Percentage of Fiscal Year Annual OPEB Employer Annual OPEB Cost Net OPEB Ended Cost Contributions Contributed Obligation December 31, 2015 $12,719 $7,647 60.1% $30,603 December 31, 2016 12,629 9,182 72.7% 34,050 December 31, 2017 22,743 9,137 40.2% 47,656 F. FUNDED STATUS AND FUNDING PROGRESS The City currently has no assets that have been irrevocably deposited in a trust for future health benefits, therefore, the actuarial value of assets is zero. The funded status of the plan was as follows: Unfunded Actuarial Actuarial UAAL as a Actuarial Actuarial Accrued Accrued Funded Covered Percentage of Valuation Value of Assets Liability (AAL)* Liability (UAAL) Ratio Payroll Covered Payroll Date (a) (b) (b-a) (a/b) (c) ( (b-a) / c) January 1, 2017 $0 $176,208 $176,208 0.0% $4,989,034 3.5% *Using the projected unit credit actuarial pay cost method. G. ACTUARIAL METHODS AND ASSUMPTIONS Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the health care cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions (ARC) of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to financial statements, presents multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2017 actuarial valuation, the projected unit credit actuarial pay cost method was used. The actuarial assumptions included a 4.0% investment rate of return (net of administrative expenses) and an annual health care cost trend rate of 8.0% for 2018, decreasing by 0.5% annually to an ultimate rate of 78 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 4.0%. These rates include a 3% inflation rate. The actuarial value of assets was $0. The plan’s unfunded actuarial accrued liability is being amortized using the level percentage of projected payroll method over 30 years on an open basis. The remaining amortization period at December 31, 2017 was 30 years. Note 11 INTERFUND LOANS AND TRANSFERS Amounts reported as interfund loan receivable/payable at December 31, 2017 are as follows: Interfund Interfund Loan Receivable Loan Payable Major Funds: Revolving Assessment Fund $397,299 $ - Water Fund 154,506 1,097,299 Nonmajor Funds 700,000 154,506 Total $1,251,805 $1,251,805 During 2010, the City adopted resolution 2010-16A authorizing an interfund loan for advance of certain costs in connection with the Transit Station Public Improvement Project. The Transit Station Assessment Fund borrowed $729,253 from the Water Fund. Repayments, including interest, will be made as funds become available. There were $110,266 of repayments in 2017 and $116,882 is expected to be repaid in 2018. During 2015, the City adopted resolution 2015-15 authorizing an interfund loan to finance construction of Well #15. The Water Fund borrowed $700,000 from the Revolving Assessment Fund and $700,000 from the Capital Equipment Replacement Fund. The loan is being repaid at an interest rate of 2.5% over eight years. Payments during years 2016-2019 are being made to the Revolving Assessment Fund and payments during years 2020-2023 will be made to the Capital Replacement Fund. There were $192,176 of repayments in 2017 and $192,517 is expected to be repaid in 2018. Interfund transfers made during 2017 are summarized as follows: Transfers In Transfers Out Major Funds: General Fund $ - $404,478 Revolving Assessment Fund 1,750,386 - Water Fund 21,063 580,671 Sewer Fund - 223,074 Surface Water Management Fund - 392,953 Nonmajor Funds 173,771 344,044 Total $1,945,220 $1,945,220 $1,942,422 of interfund transfers were made to finance capital expenditures, primarily in the Revolving Assessment Fund. A $2,798 transfer was also made to close a nonmajor capital project fund. These transfers are considered routine and consistent with previous practices. 79 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Note 12 CONDUIT DEBT From time to time, the City has issued conduit debt to provide financial assistance to private-sector entities for the acquisition and construction of facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2017, the outstanding conduit debt is as follows: Bonds Original 12/31/17 Maturity Project Name Issued Principal Principal Date St. Hubert Catholic Community, Series 2007 10/07 $5,942,140 $2,785,620 2027 Presbyterian Homes, Series 2014B 06/14 9,300,000 8,037,903 2034 Note 13 DEFICIT FUND BALANCES The City has a deficit fund balance of $154,506 in the Transit Station Assessment Capital Project Fund at December 31, 2017. The deficit will be eliminated through special assessment collections. Note 14 COMMITMENTS AND CONTINGENCIES A. RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City continues to carry commercial insurance for risks of loss, including workers compensation, property and general liability and employee health and accident insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. B. LITIGATION Any existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City’s management, are remotely recoverable by plaintiffs. C. WESTERN AREA FIRE TRAINING ACADEMY A potential claim may be asserted against the City arising out of its membership in the Western Area Fire Training Academy (WAFTA). WAFTA is a joint powers entity consisting of 11 member cities that was formed in 1974 to purchase property to be used and operated as a fire training facility. In the late 1980’s, WAFTA became aware that the site was contaminated. Since that time, WAFTA has been working with the Minnesota Pollution Control Agency (MPCA) and other responsible parties to address the contamination issues on the site. At this time, the City’s share of the potential cost to remediate the site cannot be determined, nor has a claim been asserted against WAFTA or the City. Based on recent studies 80 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 of the site, it is Management’s belief that the amount of any potential claim is not material to the financial statements. D. FEDERAL AND STATE FUNDS The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2017. E. TAX ABATEMENTS – PAY-AS-YOU-GO TAX INCREMENT The City occasionally provides tax abatements pursuant to Minnesota Statutes 469.174 to 469.1794 (Tax Increment Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can be used to encourage private development, redevelopment, renovation and renewal, growth in low-to-moderate- income housing, and economic development within the City. TIF captures the increase in tax capacity and property taxes from development or redevelopment to provide funding for the related project. As of December 31, 2017, there were no outstanding pay-as-you-go notes. F. COMMITTED CONTRACTS At December 31, 2017, the City had commitments of $7,237,455 for uncompleted construction contracts. In addition, the City entered into construction contracts during 2018 totaling $1,238,779. 81 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Note 15 FUND BALANCE A. CLASSIFICATIONS Definitions of fund balance classifications are included in Note 1P. At December 31, 2017, a summary of the governmental fund balance classifications are as follows: Revolving Other General Assessment Governmental Fund Fund Funds Total Nonspendable: Prepaid items $81,032 $ - $990,723 $1,071,755 Restricted for: Debt service - - 6,588,900 6,588,900 Park improvements - - 1,716,043 1,716,043 CATV - public education - - 112,161 112,161 Public safety - fire - - 41,472 41,472 Total restricted 0 0 8,458,576 8,458,576 Assigned for: Capital improvements - 2,190,540 2,393,837 4,584,377 Cable communications - - 376,563 376,563 Cemetery operations - - 37,226 37,226 Debt service reserve - - 1,603,969 1,603,969 Total assigned 0 2,190,540 4,411,595 6,602,135 Unassigned 5,307,088 - (154,506) 5,152,582 Total $5,388,120 $2,190,540 $13,706,388 $21,285,048 B. MINIMUM UNASSIGNED FUND BALANCE POLICY The City Council has formally adopted a policy regarding the minimum unassigned fund balance for the General Fund. The most significant revenue source of the General Fund is property taxes. This revenue source is received in two installments during the year – June and December. As such, it is the City’s goal to begin each fiscal year with sufficient working capital to fund operations between each semi-annual receipt of property taxes. The City’s fund balance policy states the year end General Fund balance shall be sufficient to cover 50% of the property taxes budgeted to be received during the following year. At December 31, 2017, the fund balance of the General Fund exceeded this level. 82 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Note 16 LEASE REVENUE The City receives revenue from agreements for the lease of space above its water towers and on City property to communication companies. The space is used for antennas and other equipment necessary to provide radio communications. For accounting purposes, the leases are considered operating leases. Lease revenue for the year ended December 31, 2017 totaled $186,978. Terms of each lease outstanding at year end are as follows: Lessee Terms Current Term Sprint $25,082 per year with 3% annual increases 8/1/06 - 7/31/21 Sprint $23,486 per year with 3% annual increases 12/1/05 - 11/30/20 Verizon $2,342 per month 5/1/17 - 4/30/21 Nextel West Corp. $22,926 per year with 3% annual increases 12/1/14 - 11/30/19 T-Mobile $2,153 per month with 3% annual increases 11/1/05 - 10/31/20 T-Mobile $22,258 per year with 3% annual increases 1/1/14 - 12/31/19 StoneBridge/Nextera 5% of gross revenues associated with equipment used on property 4/1/06 - 12/31/19 Cingular/AT&T $2,029 per month with 3% annual increases 8/1/12 - 7/31/22 Note 17 RECENTLY ISSUED ACCOUNTING STANDARDS The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were not implemented for these financial statements: Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The provisions in Statement 75 are effective for fiscal years beginning after June 15, 2017. Statement No. 83 Certain Asset Retirement Obligations. The provisions of this Statement are effective for reporting periods beginning after June 15, 2018. Statement No. 84 Fiduciary Activities. The provisions of this Statement are effective for reporting periods beginning after December 15, 2018. Statement No. 85 Omnibus 2017. The provisions of this Statement are effective for reporting periods beginning after June 15, 2017. Statement No. 86 Certain Debt Extinguishment Issues. The provisions of this Statement are effective for reporting periods beginning after June 15, 2017. Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning after December 15, 2019. Statement No. 88 Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The provisions of this Statement are effective for reporting periods beginning after June 15, 2018. The effect these standards may have on future financial statements is not determinable at this time, but it is expected that Statements No. 75 and No. 87 may have a material impact. 83 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Note 18 SUBSEQUENT EVENT On March 1, 2018, the City issued $3,595,000 of General Obligation Water Revenue Bonds, Series 2018A, with an average coupon rate of 2.23%. The bonds were issued to provide funding for construction of the West Water Treatment Plant and related utility system improvements. 84 REQUIRED SUPPLEMENTARY INFORMATION 85 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 6 For The Year Ended December 31, 2017 With Comparative Actual Amounts For The Year Ended December 31, 2016 2016 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues: General property taxes $8,503,631 $8,503,631 $8,407,559 ($96,072) $7,995,056 Excess tax increment received - - 86,633 86,633 33,069 Total general property taxes 8,503,631 8,503,631 8,494,192 (9,439) 8,028,125 Licenses and permits: Licenses - general government 5,300 5,300 3,150 (2,150) 3,000 Licenses - public safety 95,500 95,500 92,268 (3,232) 92,721 Permits - public safety 895,500 895,500 1,055,127 159,627 994,456 Permits - public works 33,000 33,000 58,941 25,941 43,676 Permits - community development 6,500 6,500 5,565 (935) 8,925 Total licenses and permits 1,035,800 1,035,800 1,215,051 179,251 1,142,778 Intergovernmental: State aid - police - public safety 146,000 146,000 155,816 9,816 149,504 State aid - fire - public safety 180,000 180,000 184,650 4,650 189,502 PERA - public safety 20,000 20,000 19,467 (533) 19,467 Other 45,000 45,000 55,985 10,985 48,034 Total intergovernmental 391,000 391,000 415,918 24,918 406,507 Charges for services: General government 76,850 76,850 76,367 (483) 76,205 Public safety 5,000 5,000 4,771 (229) 6,282 Public works 58,900 58,900 62,359 3,459 65,917 Parks and recreation 441,500 441,500 465,051 23,551 454,583 Community development 29,950 29,950 30,017 67 19,582 Total charges for services 612,200 612,200 638,565 26,365 622,569 Fines and forfeits: Public safety 116,000 116,000 128,394 12,394 114,367 Investment earnings 50,000 50,000 36,120 (13,880) 27,080 Contributions and donations: General government 500 500 - (500) 600 Public safety 200 200 - (200) 300 Parks and recreation 24,269 24,269 28,609 4,340 23,375 Total contributions and donations 24,969 24,969 28,609 3,640 24,275 Refunds and reimbursements: General government 10,300 10,300 15,945 5,645 10,268 Public safety 13,200 13,200 4,107 (9,093) 8,050 Public works 45,000 45,000 54,043 9,043 40,030 Parks and recreation 1,500 1,500 250 (1,250) 2,456 Total refunds and reimbursements 70,000 70,000 74,345 4,345 60,804 Other: General government 181,800 181,800 201,643 19,843 189,487 Public safety 6,000 6,000 5,127 (873) 4,067 Public works - - - - 1,646 Total other 187,800 187,800 206,770 18,970 195,200 Total revenues 10,991,400 10,991,400 11,237,964 246,564 10,621,705 2017 Budgeted Amounts 86 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 6 For The Year Ended December 31, 2017 With Comparative Actual Amounts For The Year Ended December 31, 2016 2016 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: General government: Legislative: Current: Personal services $44,900 $44,900 $44,894 $6 $30,821 Contractual services 71,600 71,600 77,723 (6,123) 80,208 Total legislative 116,500 116,500 122,617 (6,117) 111,029 Administrative office: Current: Personal services 473,600 473,600 473,518 82 487,834 Contractual services 55,900 55,900 49,354 6,546 61,290 Total administrative office 529,500 529,500 522,872 6,628 549,124 Finance: Current: Personal services 296,000 296,000 300,279 (4,279) 281,815 Materials and supplies 200 200 - 200 - Contractual services 68,300 68,300 38,822 29,478 41,269 Total finance 364,500 364,500 339,101 25,399 323,084 Election: Current: Personal services 24,600 24,600 - 24,600 29,581 Materials and supplies 4,000 4,000 - 4,000 731 Contractual services 14,000 14,000 - 14,000 14,559 Total election 42,600 42,600 0 42,600 44,871 Legal: Current: Contractual services 180,500 180,500 198,417 (17,917) 187,471 Property assessment: Current: Contractual services 140,000 140,000 146,422 (6,422) 146,371 M.I.S.: Current: Personal services 156,300 156,300 149,389 6,911 161,476 Materials and supplies 33,200 33,200 29,061 4,139 21,843 Contractual services 49,600 49,600 45,163 4,437 54,777 Total M.I.S. 239,100 239,100 223,613 15,487 238,096 2017 Budgeted Amounts 87 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 6 For The Year Ended December 31, 2017 With Comparative Actual Amounts For The Year Ended December 31, 2016 2016 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) General government: (continued) City hall: Current: Personal services $81,600 $81,600 $84,870 ($3,270) $79,795 Materials and supplies 42,600 42,600 37,610 4,990 39,896 Contractual services 280,000 280,000 267,786 12,214 255,629 Total City hall 404,200 404,200 390,266 13,934 375,320 Library: Current: Materials and supplies 4,500 4,500 2,333 2,167 2,105 Contractual services 107,100 107,100 106,832 268 109,849 Total library 111,600 111,600 109,165 2,435 111,954 Total general government 2,128,500 2,128,500 2,052,473 76,027 2,087,320 Public safety: Police: Current: Personal services 10,400 10,400 7,462 2,938 30,597 Materials and supplies 3,000 3,000 313 2,687 475 Contractual services 1,796,500 1,796,500 1,796,460 40 1,685,775 Total police 1,809,900 1,809,900 1,804,235 5,665 1,716,847 Fire department: Current: Personal services 735,900 735,900 725,762 10,138 687,197 Materials and supplies 45,100 45,100 34,621 10,479 34,527 Contractual services 157,100 157,100 134,702 22,398 113,488 Total fire department 938,100 938,100 895,085 43,015 835,212 Code enforcement: Current: Personal services 735,700 735,700 727,619 8,081 687,628 Materials and supplies 6,600 6,600 2,533 4,067 5,742 Contractual services 13,000 13,000 6,632 6,368 8,921 Total code enforcement 755,300 755,300 736,784 18,516 702,291 Animal control: Current: Personal services 56,600 56,600 42,301 14,299 51,495 Materials and supplies 2,300 2,300 993 1,307 1,797 Contractual services 8,200 8,200 5,371 2,829 5,062 Total animal control 67,100 67,100 48,665 18,435 58,354 Total public safety 3,570,400 3,570,400 3,484,769 85,631 3,312,704 2017 Budgeted Amounts 88 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 6 For The Year Ended December 31, 2017 With Comparative Actual Amounts For The Year Ended December 31, 2016 2016 Actual Variance with Actual Expenditures: (continued) Original Final Amounts Final Budget Amounts Public works: Engineering: Current: Personal services $657,700 $657,700 $638,145 $19,555 $629,262 Materials and supplies 1,300 1,300 31 1,269 843 Contractual services 29,700 29,700 20,532 9,168 24,389 Total engineering 688,700 688,700 658,708 29,992 654,494 Street maintenance: Current: Personal services 806,200 806,200 781,788 24,412 730,609 Materials and supplies 116,900 116,900 102,711 14,189 95,257 Contractual services 32,900 32,900 46,597 (13,697) 27,713 Total street maintenance 956,000 956,000 931,096 24,904 853,579 Street lighting: Current: Materials and supplies 2,000 2,000 4,679 (2,679) 2,785 Contractual services 347,500 347,500 354,518 (7,018) 356,777 Total street lighting 349,500 349,500 359,197 (9,697) 359,562 Fleet department: Current: Personal services 298,400 298,400 295,499 2,901 279,669 Materials and supplies 202,200 202,200 149,653 52,547 116,830 Contractual services 68,300 68,300 73,656 (5,356) 60,701 Total fleet department 568,900 568,900 518,808 50,092 457,200 Total public works 2,563,100 2,563,100 2,467,809 95,291 2,324,835 Parks and recreation: Parks and recreation commission: Current: Materials and supplies 100 100 - 100 - Contractual services 1,100 1,100 175 925 325 Total parks and recreation commission 1,200 1,200 175 1,025 325 Parks and recreation administration: Current: Personal services 221,900 221,900 226,421 (4,521) 209,634 Materials and supplies 200 200 16 184 - Contractual services 5,900 5,900 6,714 (814) 4,849 Total parks and recreation administration 228,000 228,000 233,151 (5,151) 214,483 Recreation center: Current: Personal services 225,000 225,000 205,080 19,920 203,502 Materials and supplies 31,000 31,000 15,505 15,495 16,056 Contractual services 85,500 85,500 91,836 (6,336) 100,314 Total recreation center 341,500 341,500 312,421 29,079 319,872 2017 Budgeted Amounts 89 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 6 For The Year Ended December 31, 2017 With Comparative Actual Amounts For The Year Ended December 31, 2016 2016 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Parks and recreation: (continued) Senior citizen center: Current: Personal services $89,900 $89,900 $78,268 $11,632 $51,889 Materials and supplies 4,300 4,300 4,472 (172) 2,539 Contractual services 27,700 27,700 35,200 (7,500) 31,157 Total senior citizen center 121,900 121,900 117,940 3,960 85,585 Recreation programs: Current: Personal services 208,600 208,600 203,941 4,659 188,269 Materials and supplies 21,100 21,100 26,115 (5,015) 19,230 Contractual services 116,100 116,100 123,322 (7,222) 108,630 Total recreation programs 345,800 345,800 353,378 (7,578) 316,129 Self-supporting programs: Current: Personal services 34,700 34,700 34,758 (58) 33,164 Materials and supplies 5,400 5,400 4,284 1,116 4,142 Contractual services 25,000 25,000 11,575 13,425 11,766 Total self-supporting programs 65,100 65,100 50,617 14,483 49,072 Lake Ann Park operations: Current: Personal services 11,900 11,900 9,289 2,611 10,096 Materials and supplies 10,200 10,200 10,677 (477) 8,633 Contractual services 48,100 48,100 47,608 492 46,869 Total Lake Ann Park operations 70,200 70,200 67,574 2,626 65,598 Park maintenance: Current: Personal services 840,700 840,700 837,263 3,437 821,629 Materials and supplies 83,000 83,000 86,356 (3,356) 76,369 Contractual services 93,700 93,700 118,072 (24,372) 74,880 Total park maintenance 1,017,400 1,017,400 1,041,691 (24,291) 972,878 Downtown maintenance: Current: Contractual services - - - - 41 Recreation sports: Current: Personal services 28,400 28,400 27,312 1,088 24,571 Materials and supplies 8,000 8,000 7,946 54 8,162 Contractual services 300 300 - 300 - Total recreation sports 36,700 36,700 35,258 1,442 32,733 Total parks and recreation 2,227,800 2,227,800 2,212,205 15,595 2,056,716 2017 Budgeted Amounts 90 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 6 of 6 For The Year Ended December 31, 2017 With Comparative Actual Amounts For The Year Ended December 31, 2016 2016 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Community development: Planning commission: Current: Materials and supplies $200 $200 $ - $200 $ - Contractual services 1,100 1,100 1,339 (239) 1,160 Total planning commission 1,300 1,300 1,339 (39) 1,160 Planning administration: Current: Personal services 451,600 451,600 453,703 (2,103) 427,035 Materials and supplies 400 400 503 (103) 119 Contractual services 11,500 11,500 42,023 (30,523) 7,761 Total planning administration 463,500 463,500 496,229 (32,729) 434,915 Senior facility commission: Current: Personal services 27,100 27,100 27,735 (635) 26,403 Contractual services 9,700 9,700 15,519 (5,819) 9,329 Total senior facility commission 36,800 36,800 43,254 (6,454) 35,732 Total community development 501,600 501,600 540,822 (39,222) 471,807 Total expenditures 10,991,400 10,991,400 10,758,078 233,322 10,253,382 Revenues over expenditures 0 0 479,886 479,886 368,323 Other financing sources (uses): Sale of capital assets - - - - 35,324 Transfers out - - (404,478) (404,478) (421,281) Total other financing sources (uses) 0 0 (404,478) (404,478) (385,957) Net change in fund balance $0 $0 75,408 $75,408 (17,634) Fund balance - January 1 5,312,712 5,330,346 Fund balance - December 31 $5,388,120 $5,312,712 Budgeted Amounts 2017 91 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN For The Year Ended December 31, 2017 Unfunded Actuarial Actuarial Actuarial UAAL as a Actuarial Value of Accrued Accrued Funded Covered Percentage of Valuation Assets Liability (AAL)* Liability (UAAL) Ratio Payroll Covered Payroll Date (a)(b)(b-a)(a/b)(c) ( (b-a) / c) January 1, 2011 $0 $89,875 $89,875 0.0% $4,299,466 2.1% January 1, 2014 $0 $116,025 $116,025 0.0% $4,568,337 2.5% January 1, 2017 $0 $176,208 $176,208 0.0% $4,989,034 3.5% *Using the projected unit credit actuarial pay cost method. 92 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 12 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - GENERAL EMPLOYEES RETIREMENT FUND For The Year Ended December 31, 2017 City's Plan State's Proportionate Fiduciary Proportionate Share of the Net Net City's City's Share Pension Liability City's Position Proportionate Proportionate (Amount) and the State's Proportionate as a Share Share of the Net Proportionate Share of the Net Percentage (Percentage) (Amount) Pension Share of the Net Pension Liability of the Measurement Fiscal Year of the of the Net Liability Pension Liability as a Percentage Total Date Ending Net Pension Pension Associated Associated with Covered of its Covered Pension June 30 December 31 Liability Liability (a) with City (b) City (a+b) Payroll (c) Payroll ((a+b)/c) Liability 2015 2015 0.0791% $4,099,373 $0 $4,099,373 $4,651,703 88.1% 78.2% 2016 2016 0.0759% 6,162,704 80,496 6,243,200 4,708,444 132.6% 68.9% 2017 2017 0.0751% 4,794,334 60,265 4,854,599 4,836,519 100.4% 75.9% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. 93 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 13 SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND For The Year Ended December 31, 2017 Statutorily Contributions in Contribution Contributions as a Required Relation to the Deficiency Covered Percentage of Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered-Employee Ending (a) Contribution (b) (a-b) (c) Payroll (b/c) December 31, 2015 $346,881 $346,881 $0 $4,625,080 7.5% December 31, 2016 358,611 358,611 - 4,781,489 7.5% December 31, 2017 371,824 371,824 - 4,957,652 7.5% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. 94 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 14 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Year Ended December 31, 2017 Proportionate Share Proportionate Proportionate of the Net Pension Plan Fiduciary Share Share (Amount) Liability as a Net Position as (Percentage) of of the Net Percentage of its a Percentage Measurement Fiscal Year the Net Pension Pension Covered Covered of the Total Date Ending Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability June 30, 2015 December 31, 2015 0.0200% $227,247 $180,370 126.0%86.6% June 30, 2016 December 31, 2016 0.0190% 762,503 186,408 409.1%63.9% June 30, 2017 December 31, 2017 0.0190% 256,523 194,526 131.9%85.4% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. 95 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 15 SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Year Ended December 31, 2017 Statutorily Contributions in Contribution Contributions as a Required Relation to the Deficiency Covered Percentage of Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered Ending (a) Contribution (b) (a-b) (c) Payroll (b/c) December 31, 2015 $29,647 $29,647 $0 $183,006 16.2% December 31, 2016 30,790 30,790 - 190,064 16.2% December 31, 2017 32,612 32,612 - 201,307 16.2% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. 96 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 16 SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION For The Year Ended December 31, 2017 Fiscal year ending and measurement date December 31, 2017 December 31, 2016 December 31, 2015 Total pension liability: Service cost $88,924 $88,924 $86,369 Interest 127,729 128,235 118,909 Changes of benefit terms 212,120 - 279,202 Differences between expected and actual experience 5,145 - (5,328) Changes of assumptions 231,636 (203) - Benefit payments, including refunds of employee contributions (340,243)(113,883)(470,743) Net change in total pension liability 325,311 103,073 8,409 Total pension liability - beginning 2,635,785 2,532,712 2,524,303 Total pension liability - ending (a)$2,961,096 $2,635,785 $2,532,712 Plan fiduciary net position: Contributions - employer $ - $ - $37,571 Contributions - State of Minnesota 181,554 177,831 177,784 Contributions - employee - - - Net investment income 306,593 158,581 (105,958) Benefit payments, including refunds of employee contributions (340,243)(113,883)(470,743) Administrative expense (14,875)(16,972)(7,225) Other changes 29,900 500 - Net change in plan fiduciary net position 162,929 206,057 (368,571) Plan fiduciary net position - beginning 2,113,570 1,907,513 2,276,084 Plan fiduciary net position - ending (b)$2,276,499 $2,113,570 $1,907,513 Net pension liability - ending (a) - (b)$684,597 $522,215 $625,199 Plan fiduciary net position as a percentage of the total pension liability 76.9%80.2%75.3% Covered payroll*$0 $0 $0 Net pension liability as a percentage of covered payroll*Not applicable Not applicable Not applicable *The Chanhassen Fire Department Relief Association is comprised of volunteers, therefore there are no payroll expenditures. GASB 68 was implemented in 2015. Information prior to 2015 is not available. 97 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 17 SCHEDULE OF CONTRIBUTIONS - CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION For The Year Ended December 31, 2017 Actuarially Contribution Contributions Determined Deficiency as a Percentage Fiscal Year Contribution Employer State of MN (Excess) Covered of Covered Ending (a) Contributions (b) Contributions (c) (a-b-c) Payroll Payroll December 31, 2015 $142,501 $37,571 $177,784 ($72,854) ** December 31, 2016 171,760 - 177,831 (6,071) ** December 31, 2017 236,444 - 181,554 54,890 ** *The Chanhassen Fire Department Relief Association is comprised of volunteers, therefore, there are no payroll expenditures. (i.e., there are no covered payroll amounts or percentage calculations.) GASB 68 was implemented in 2015. Information prior to 2015 is not available. Contributions in Relation to the Actuarially Determined Contribution 98 CITY OF CHANHASSEN, MINNESOTA NOTES TO RSI December 31, 2017 A. LEGAL COMPLIANCE – BUDGETS The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the expenditure category level. B. PENSION INFORMATION PERA – General Employees Retirement Fund 2017 Changes in Actuarial Assumptions:  The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and 60% for vested and non-vested deferred members. The revised CSA loads are now 0.0% for active member liability, 15.0% for vested deferred member liability and 3.0% for non-vested deferred member liability.  The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years to 1.0% per year through 2044 and 2.5% per year thereafter. 2016 Changes in Actuarial Assumptions:  The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years.  The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%.  Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. PERA – Public Employees Police and Fire Fund 2017 Changes in Actuarial Assumptions:  The single discount rate was changed from 5.6% to 7.5%.  Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34% lower than the previous rates.  Assumed rates of retirement were changed, resulting in fewer retirements.  The Combined Service Annuity (CSA) load was 30% for vested and non-vested deferred members. The CSA has been changed to 33% for vested members and 2% for non-vested members.  The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees.  Assumed termination rates were decreased to 3.0% for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. 99 CITY OF CHANHASSEN, MINNESOTA NOTES TO RSI December 31, 2017  Assumed percentage of married female members was decreased from 65% to 60%.  Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females.  The assumed percentage of female members electing Joint and Survivor annuities was increased.  The assumed post-retirement benefit increase rate was changed from 1.00% for all years to 1.00% per year through 2064 and 2.50% thereafter. 2016 Changes in Actuarial Assumptions:  The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% per year thereafter to 1.0% per year for all future years.  The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%.  The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Single Employer – Fire Relief Association Valuation date – actuarially determined contribution rates are calculated as of January 1 every other year, which is the same date as the beginning of the fiscal year beginning in which contributions are reported. 2017 Changes in Actuarial Assumptions:  The mortality improvement scale has been changed from an improvement scale based on assumptions developed from the 2016 Social Security Trustees Report to an improvement scale based on assumptions developed from the 2017 Social Security Trustees Report.  Disability rates have changed from 0.03% at age 20, grading to 0.33% at age 50 to Class 1 1985 Disability Rates.  The lump sum benefit accrual amount has been projected to increase by 9.27% every three years (3% compounded each year). 2016 Changes in Actuarial Assumptions:  As of December 31, 2016, the mortality assumption was changed to the RP-2014 Blue Collar Mortality with fully generational improvements from 2006 based on assumptions from the Social Security Administration’s 2016 trustees report. Details can be obtained from the financial reports of the Fire Relief Association. 100 COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL STATEMENTS AND SCHEDULES 101 - This page intentionally left blank - 102 NONMAJOR GOVERNMENTAL FUNDS 103 - This page intentionally left blank - 104 SPECIAL REVENUE FUNDS The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. DEBT SERVICE FUNDS The Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest, principal and related costs on general long-term debt. CAPITAL PROJECT FUNDS The Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). 105 CITY OF CHANHASSEN, MINNESOTA COMBINING BALANCE SHEET Statement 18 NONMAJOR GOVERNMENTAL FUNDS December 31, 2017 With Comparative Totals For December 31, 2016 Special Debt Capital Revenue Service Project 2017 2016 Assets: Cash and investments $519,079 $2,844,741 $4,243,276 $7,607,096 $6,993,505 Cash with escrow agent - 5,331,655 - 5,331,655 5,414,798 Accrued interest receivable 2,269 9,907 18,512 30,688 26,113 Due from other governmental units 104 - 37,914 38,018 38,269 Accounts receivable - net 52,843 - 78,867 131,710 196,568 Property taxes receivable - 6,567 5,626 12,193 19,467 Prepaid items 769 - 989,954 990,723 - Interfund loan receivable - - 700,000 700,000 700,000 Contract for deed receivable - - - - 1,252,869 Special assessments receivable - 320,463 240,777 561,240 679,507 Total assets $575,064 $8,513,333 $6,314,926 $15,403,323 $15,321,096 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $300 $ - $205,365 $205,665 $119,781 Due to other governmental units - - - - 25,408 Salaries payable 6,573 - - 6,573 3,350 Contracts payable - - 202,082 202,082 351,203 Interfund loan payable - - 154,506 154,506 264,772 Unearned revenue - - 566,868 566,868 81,629 Total liabilities 6,873 0 1,128,821 1,135,694 846,143 Deferred inflows of resources: Unavailable revenue - 320,464 240,777 561,241 684,543 Fund balance: Nonspendable 769 - 989,954 990,723 - Restricted 153,633 6,588,900 1,716,043 8,458,576 8,673,981 Assigned 413,789 1,603,969 2,393,837 4,411,595 5,381,201 Unassigned - - (154,506) (154,506) (264,772) Total fund balance 568,191 8,192,869 4,945,328 13,706,388 13,790,410 Total liabilities, deferred inflows of resources, and fund balance $575,064 $8,513,333 $6,314,926 $15,403,323 $15,321,096 Total Nonmajor Governmental Funds 106 CITY OF CHANHASSEN, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 19 CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2017 With Comparative Totals For The Year Ended December 31, 2016 Special Debt Capital Revenue Service Project 2017 2016 Revenues: General property taxes $ - $1,048,652 $893,000 $1,941,652 $2,180,492 Tax increment collections - - - - 111,761 Licenses and permits - - 426,089 426,089 511,080 Intergovernmental - - 683,292 683,292 426,474 Special assessments - 8,081 131,329 139,410 190,865 Charges for services 191,952 7,981 - 199,933 223,971 Investment earnings 3,930 52,103 32,053 88,086 58,824 Contributions and donations 41,952 - 3,173 45,125 36,527 Refunds and reimbursements 104 - 14,544 14,648 76,458 Other - - 57,344 57,344 80,867 Total revenues 237,938 1,116,817 2,240,824 3,595,579 3,897,319 Expenditures: Current: General government 140,323 17,806 660,665 818,794 391,951 Public safety 51,031 - 67,097 118,128 400,442 Public works - - 470,056 470,056 761,167 Parks and recreation - - 183,349 183,349 199,598 Community development - - 37,055 37,055 47,875 Capital outlay: General government - - 30,838 30,838 62,713 Public safety 2,950 - - 2,950 314,004 Public works - - 27,202 27,202 95,757 Parks and recreation - - 376,992 376,992 1,153,763 Decertification of TIF district - - 362,123 362,123 139,594 Debt service: Principal - 670,000 - 670,000 1,795,000 Interest and paying agent fees - 433,925 - 433,925 483,533 Total expenditures 194,304 1,121,731 2,215,377 3,531,412 5,845,397 Revenues over (under) expenditures 43,634 (4,914)25,447 64,167 (1,948,078) Other financing sources (uses): Sale of capital assets - - 19,286 19,286 54,994 Issuance of debt - - - - 4,805,000 Bonds premium - - - - 239,773 Transfers in 831 - 172,940 173,771 627,546 Transfers out - - (344,044) (344,044) (593,999) Total other financing sources (uses)831 0 (151,818) (150,987) 5,133,314 Net change in fund balance 44,465 (4,914) (126,371) (86,820) 3,185,236 Fund balance - January 1 523,726 8,197,783 5,071,699 13,793,208 10,605,174 Fund balance - December 31 $568,191 $8,192,869 $4,945,328 $13,706,388 $13,790,410 Reconciliation of beginning fund balance to prior year ending fund balance: Prior year ending fund balance reported above $13,790,410 Reclassification of TH 101 Improvements - Lyman to Pioneer fund balance, now presented as a nonmajor fund 2,798 Fund balance - January 1, 2017 as reported on this statement $13,793,208 Total Nonmajor Governmental Funds 107 - This page intentionally left blank - 108 NONMAJOR SPECIAL REVENUE FUNDS Special Revenue Funds are established to account for taxes and other revenues set aside for a particular purpose. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the related liability is incurred. Contribution Fund – This fund accounts for the proceeds that the City receives from charitable gambling. The City collects 10% of the net proceeds from a pull-tab operation in the City. By state statute, the fund may only be used for equipment and training for the City’s fire department. Cemetery Fund – The City owns and operates a municipal cemetery. In 2014, improvements were made to add approximately 300 additional plots. This fund accounts for all plot fees and maintenance going forward. Cemetery operations had previously been accounted for within the City’s General Fund. CATV Fund – Under the terms of the franchise agreement with Triax Cablevision, the City is to receive 5% of the revenues derived from cable television sales within the City. These monies are dedicated solely to improving public broadcasting capabilities, studio improvements, and other capital expenditures improving the overall cable system. 109 CITY OF CHANHASSEN, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 20 NONMAJOR SPECIAL REVENUE FUNDS December 31, 2017 With Comparative Totals For December 31, 2016 201 Contribution Fund 202 Cemetery Fund 210 CATV Fund 2017 2016 Assets: Cash and investments $37,252 $37,065 $444,762 $519,079 $471,946 Accrued interest receivable 187 161 1,921 2,269 1,649 Due from other governmental units 104 - - 104 249 Accounts receivable - net 7,033 - 45,810 52,843 53,232 Prepaid items - - 769 769 - Total assets $44,576 $37,226 $493,262 $575,064 $527,076 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $300 $300 $ - Salaries payable 3,104 - 3,469 6,573 3,350 Total liabilities 3,104 0 3,769 6,873 3,350 Fund balance: Nonspendable - - 769 769 - Restricted 41,472 - 112,161 153,633 164,751 Assigned - 37,226 376,563 413,789 358,975 Total fund balance 41,472 37,226 489,493 568,191 523,726 Total liabilities and fund balance $44,576 $37,226 $493,262 $575,064 $527,076 Total Nonmajor Special Revenue Funds 110 CITY OF CHANHASSEN, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES Statement 21 AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2017 With Comparative Totals For The Year Ended December 31, 2016 201 Contribution Fund 202 Cemetery Fund 210 CATV Fund 2017 2016 Revenues: Charges for services $ - $4,150 $187,802 $191,952 $219,932 Investment earnings 325 279 3,326 3,930 2,803 Contributions and donations 41,603 349 - 41,952 36,527 Refunds and reimbursements 104 - - 104 249 Total revenues 42,032 4,778 191,128 237,938 259,511 Expenditures: Current: General government - 1,963 138,360 140,323 172,777 Public safety 51,031 - - 51,031 16,670 Capital outlay: Public safety 2,950 - - 2,950 5,900 Total expenditures 53,981 1,963 138,360 194,304 195,347 Revenues over (under) expenditures (11,949) 2,815 52,768 43,634 64,164 Other financing sources: Transfers in 831 - - 831 - Net change in fund balance (11,118) 2,815 52,768 44,465 64,164 Fund balance - January 1 52,590 34,411 436,725 523,726 459,562 Fund balance - December 31 $41,472 $37,226 $489,493 $568,191 $523,726 Total Nonmajor Special Revenue Funds 111 - This page intentionally left blank - 112 NONMAJOR DEBT SERVICE FUNDS Debt Service Funds are maintained on the modified accrual basis of accounting for revenues from taxes and other sources set aside for the payment of the debt obligations of the City. Principal and interest on the general long-term debt is recognized when due. Permanent Revolving Debt – This fund is used to account for excess resources from matured bond issues. General Obligation Bofunds – These funds are used to account for the accumulation of resources for payment of general obligation bonds or other general indebtedness and the interest thereon. 113 CITY OF CHANHASSEN, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 22 NONMAJOR DEBT SERVICE FUNDS December 31, 2017 With Comparative Totals For December 31, 2016 300 Permanent Revolving Debt 367 2008A G.O. Public Works Facility Bonds 368 2009A G.O. Refunding Bonds 369 2010A G.O. Library Refunding Bonds 370 2016A G.O. Refunding Bonds 2017 2016 Assets: Cash and investments $820,319 $554,583 $776,607 $693,232 $ - $2,844,741 $2,761,824 Cash with escrow agent - - - - 5,331,655 5,331,655 5,414,798 Accrued interest receivable 3,633 1,029 3,411 1,834 - 9,907 9,182 Property taxes receivable - 3,755 - 2,812 - 6,567 11,490 Special assessments receivable 9,341 - 311,122 - - 320,463 328,464 Total assets $833,293 $559,367 $1,091,140 $697,878 $5,331,655 $8,513,333 $8,525,758 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: $ - $ - $ - $ - $ - $ - $ - Deferred inflows of resources: Unavailable revenue 9,342 - 311,122 - - 320,464 327,975 Fund balance: Restricted - 559,367 - 697,878 5,331,655 6,588,900 6,604,268 Assigned 823,951 - 780,018 - - 1,603,969 1,593,515 Total fund balance 823,951 559,367 780,018 697,878 5,331,655 8,192,869 8,197,783 Total liabilities, deferred inflows of resources, and fund balance $833,293 $559,367 $1,091,140 $697,878 $5,331,655 $8,513,333 $8,525,758 Total Nonmajor Debt Service Funds 114 CITY OF CHANHASSEN, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 23 CHANGES IN FUND BALANCES NONMAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2017 With Comparative Totals For The Year Ended December 31, 2016 300 Permanent Revolving Debt 367 2008A G.O. Public Works Facility Bonds 368 2009A G.O. Refunding Bonds 369 2010A G.O. Library Refunding Bonds 370 2016A G.O. Refunding Bonds 2017 2016 Revenues: General property taxes $ - $596,700 $ - $451,952 $ - $1,048,652 $1,287,492 Special assessments 8,081 - - - - 8,081 44,360 Charges for services 7,981 - - - - 7,981 4,039 Investment earnings 6,291 1,782 5,907 3,175 34,948 52,103 30,058 Total revenues 22,353 598,482 5,907 455,127 34,948 1,116,817 1,365,949 Expenditures: Current: General government 17,806 - - - - 17,806 3,891 Debt service: Principal - 310,000 - 360,000 - 670,000 1,795,000 Interest and paying agent fees - 249,468 - 66,280 118,177 433,925 483,533 Total expenditures 17,806 559,468 0 426,280 118,177 1,121,731 2,282,424 Revenues over (under) expenditures 4,547 39,014 5,907 28,847 (83,229) (4,914) (916,475) Other financing sources (uses): Issuance of debt - - - - - - 4,805,000 Bond premium - - - - - - 239,773 Transfers in - - - - - - 475,000 Transfers out - - - - - - (475,000) Total other financing sources (uses)0000005,044,773 Net change in fund balance 4,547 39,014 5,907 28,847 (83,229) (4,914) 4,128,298 Fund balance - January 1 819,404 520,353 774,111 669,031 5,414,884 8,197,783 4,069,485 Fund balance - December 31 $823,951 $559,367 $780,018 $697,878 $5,331,655 $8,192,869 $8,197,783 Total Nonmajor Debt Service Funds 115 - This page intentionally left blank - 116 NONMAJOR CAPITAL PROJECT FUNDS Capital Project Funds are used to account for the construction and financing of large capital projects. Revenues and expenditures are recognized on the modified accrual basis. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which they are incurred. Most capital projects are singular in purpose and their revenues/expenditures cannot be used for subsidizing any other operating fund. In each of these cases, bonds or other revenues received can only be used for these specific activities. The following Capital Project Funds differ in that several of the expenditure categories represent recurring types of costs, i.e., personal services, repair and maintenance of utilities, and/or recurring land improvements. 400 Capital Replacement Fund – Accounts for monies collected from developers for inspection and administrative services for projects. 410 Park Acquisition and Development – Accounts for park dedication fees as required by the City ordinance. These funds are then utilized to finance park and trail improvements identified in the park and recreation section of the City’s comprehensive plan. 413 Transit Station Assessment Fund – Accounts for the interfund loan from the Water Fund to fund costs associated with the redevelopment of the Dinner Theater Transit Station in TIF #10, and for the repayment of the special assessment to repay those costs. 420 Street Pavement Management – Accounts for sealcoating costs on local streets. 422 Old Public Works Building – Accounts for the sale of the old public works building and the related contract for deed receivable. 461 Gateway Place TIF #9, 462 Downtown Transit Station TIF #10, 491 Entertainment TIF #4, and 494 North Bay TIF #5 – Accounts for financing improvements in tax increment financing districts. 603 Lyman Blvd Improvements – Accounts for the street and utility improvement of Lyman Blvd. 604 TH101 Improvements – Lyman to Pioneer – Accounts for the funding sources and costs of the Trunk Highway 101 improvement project, which includes widening of the highway between Lyman Boulevard and Pioneer Trail, pedestrian/bicycle trails and a trail underpass. 605 TH101 Improvements – Pioneer to Flying Cloud – Accounts for the funding sources and costs of the Trunk Highway 101 improvement project, which includes widening of the highway between Pioneer Trail and Flying Cloud Drive, sanitary sewer and water extension, storm sewer improvements, pedestrian/bicycle trails and a pedestrian bridge. 117 CITY OF CHANHASSEN, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2017 With Comparative Totals For December 31, 2016 410 Park 400 Capital Acquisition and 413 Transit Station Replacement Fund Development Assessment Fund Assets: Cash and investments $587,192 $1,816,355 $ - Accrued interest receivable 1,791 7,045 - Due from other governmental units 213 - - Accounts receivable - net 78,867 - - Property taxes receivable 5,040 - - Prepaid items - - - Interfund loan receivable 700,000 - - Contract for deed receivable - - - Special assessments receivable - - 240,777 Total assets $1,373,103 $1,823,400 $240,777 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $117,096 $85,201 $ - Due to other governmental units - - - Contracts payable 179,926 22,156 - Interfund loan payable - - 154,506 Unearned revenue - - - Total liabilities 297,022 107,357 154,506 Deferred inflows of resources: Unavailable revenue - - 240,777 Fund balance: Nonspendable - - - Restricted - 1,716,043 - Assigned 1,076,081 - - Unassigned - - (154,506) Total fund balance 1,076,081 1,716,043 (154,506) Total liabilities, deferred inflows of resources, and fund balance $1,373,103 $1,823,400 $240,777 118 Statement 24 605 TH101 420 Street 603 Lyman Improvments - Pavement 422 Old Public Boulevard Pioneer to Total Nonmajor Management Works Building Improvements Flying Cloud 2017 2016 $287,780 $495,079 $465,152 $591,718 $4,243,276 $3,759,735 1,734 2,846 2,026 3,070 18,512 15,282 12,471 - 25,230 - 37,914 38,020 - - - - 78,867 143,336 586 - - - 5,626 7,977 - 989,954 - - 989,954 - - - - - 700,000 700,000 - - - - - 1,252,869 - - - - 240,777 351,043 $302,571 $1,487,879 $492,408 $594,788 $6,314,926 $6,268,262 $3,068 $ - $ - $ - $205,365 $119,781 - - - - - 25,408 - - - - 202,082 351,203 - - - - 154,506 264,772 - - - 566,868 566,868 81,629 3,068 0 0 566,868 1,128,821 842,793 - - - - 240,777 356,568 - 989,954 - - 989,954 - - - - - 1,716,043 1,904,962 299,503 497,925 492,408 27,920 2,393,837 3,428,711 - - - - (154,506) (264,772) 299,503 1,487,879 492,408 27,920 4,945,328 5,068,901 $302,571 $1,487,879 $492,408 $594,788 $6,314,926 $6,268,262 Capital Project Funds 119 - This page intentionally left blank - 120 CITY OF CHANHASSEN, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 25 CHANGES IN FUND BALANCES Page 1 of 2 NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2017 With Comparative Totals For The Year Ended December 31, 2016 410 Park 413 Transit Station 420 Street 400 Capital Acquisition and Assessment Pavement Replacement Fund Development Fund Management Revenues: General property taxes $800,000 $ - $ - $93,000 Tax increment collections - - - - Licenses and permits - 426,089 - - Intergovernmental 4,000 - - 341,509 Special assessments - - 131,329 - Investment earnings 3,101 12,198 - 3,003 Contributions and donations 3,173 - - - Refunds and reimbursements 7,143 - - 57 Other 4,800 - - - Total revenues 822,217 438,287 131,329 437,569 Expenditures: Current: General government 660,665 - - - Public safety 67,097 - - - Public works 22,381 - - 399,450 Parks and recreation 160,525 22,824 - - Community development - - - - Capital outlay: General government 30,838 - - - Public safety - - - - Public works 27,202 - - - Parks and recreation 121,646 255,346 - - Decertification of TIF district - - - - Total expenditures 1,090,354 278,170 0 399,450 Revenues over (under) expenditures (268,137) 160,117 131,329 38,119 Other financing sources (uses): Sale of capital assets 19,286 - - - Transfers in 120,000 50,142 - - Transfers out - - (21,063) - Total other financing sources (uses) 139,286 50,142 (21,063) 0 Net change in fund balance (128,851) 210,259 110,266 38,119 Fund balance - January 1 1,204,932 1,505,784 (264,772) 261,384 Fund balance - December 31 $1,076,081 $1,716,043 ($154,506) $299,503 121 CITY OF CHANHASSEN, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2017 With Comparative Totals For The Year Ended December 31, 2016 462 Downtown 422 Old Public 461 Gateway Transit Station Works Building Place TIF #9 TIF # 10 Revenues: General property taxes $ - $ - $ - Tax increment collections - - - Licenses and permits - - - Intergovernmental - - - Special assessments - - - Investment earnings 4,927 - - Contributions and donations - - - Refunds and reimbursements - - - Other 38,144 - - Total revenues 43,071 0 0 Expenditures: Current: General government - - - Public safety - - - Public works 23,925 - - Parks and recreation - - - Community development - 10,650 - Capital outlay: General government - - - Public safety - - - Public works - - - Parks and recreation - - - Decertification of TIF district - 29,496 66 Total expenditures 23,925 40,146 66 Revenues over (under) expenditures 19,146 (40,146) (66) Other financing sources (uses): Sale of capital assets - - - Transfers in - - - Transfers out - - - Total other financing sources (uses) 0 0 0 Net change in fund balance 19,146 (40,146) (66) Fund balance - January 1 1,468,733 40,146 66 Fund balance - December 31 $1,487,879 $0 $0 122 Statement 25 Page 2 of 2 605 TH101 491 494 603 Lyman 604 TH101 Improvments - Entertainment North Bay Boulevard Improvements - Pioneer to TIF # 4 TIF # 5 Improvements Lyman to Pioneer Flying Cloud 2017 2016 $ - $ - $ - $ - $ - $893,000 $893,000 - - - - - - 111,761 - - - - - 426,089 511,080 - - - - 337,783 683,292 426,474 - - - - - 131,329 146,505 - - 3,508 - 5,316 32,053 25,963 - - - - - 3,173 - - - 7,344 - - 14,544 76,209 - - - - 14,400 57,344 80,867 0 0 10,852 0 357,499 2,240,824 2,271,859 - - - - - 660,665 215,283 - - - - - 67,097 383,772 - - - - 24,300 470,056 761,167 - - - - - 183,349 199,598 375 26,030 - - - 37,055 47,875 - - - - - 30,838 62,713 - - - - - - 308,104 - - - - - 27,202 95,757 - - - - - 376,992 1,153,763 - 332,561 - - - 362,123 139,594 375 358,591 0 0 24,300 2,215,377 3,367,626 (375) (358,591)10,852 0 333,199 25,447 (1,095,767) - - - - - 19,286 54,994 - - - - 2,798 172,940 152,546 - - - (2,798) (320,183) (344,044) (118,999) 0 0 0 (2,798) (317,385) (151,818)88,541 (375) (358,591)10,852 (2,798)15,814 (126,371) (1,007,226) 375 358,591 481,556 2,798 12,106 5,071,699 6,076,127 $0 $0 $492,408 $0 $27,920 $4,945,328 $5,068,901 Reconciliation of beginning fund balance to prior year ending fund balance: Prior year ending fund balance reported above $5,068,901 Reclassification of TH 101 Improvements - Lyman to Pioneer fund balance, now presented as a nonmajor fund 2,798 Fund balance - January 1, 2017 as reported on this statement $5,071,699 Total Nonmajor Capital Project Funds 123 CITY OF CHANHASSEN, MINNESOTA SPECIAL REVENUE FUND - CONTRIBUTION FUND Statement 26 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended December 31, 2017 With Comparative Actual Amounts For The Year Ended December 31, 2016 2016 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues: Investment earnings $ - $ - $325 $325 $265 Contributions and donations 40,000 40,000 41,603 1,603 36,527 Refunds and reimbursements - - 104 104 - Total revenues 40,000 40,000 42,032 2,032 36,792 Expenditures: Current: Public safety: Contractual services 43,500 43,500 51,031 (7,531) 16,670 Capital outlay - - 2,950 (2,950) 5,900 Total expenditures 43,500 43,500 53,981 (10,481) 22,570 Revenues over (under) expenditures (3,500) (3,500) (11,949) (8,449) 14,222 Other financing sources (uses): Transfers in - - 831 831 - Net change in fund balance ($3,500) ($3,500) (11,118) ($7,618) 14,222 Fund balance - January 1 52,590 38,368 Fund balance - December 31 $41,472 $52,590 2017 Budgeted Amounts 124 CITY OF CHANHASSEN, MINNESOTA SPECIAL REVENUE FUND - CEMETERY FUND Statement 27 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended December 31, 2017 With Comparative Actual Amounts For The Year Ended December 31, 2016 2016 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues: Charges for services $8,900 $8,900 $4,150 ($4,750) $25,850 Investment earnings 100 100 279 179 167 Contributions and donations - - 349 349 - Total revenues 9,000 9,000 4,778 (4,222) 26,017 Expenditures: Current: General government: Contractual services 6,500 6,500 1,963 4,537 1,105 Total expenditures 6,500 6,500 1,963 4,537 1,105 Revenues over (under) expenditures $2,500 $2,500 2,815 $315 24,912 Fund balance - January 1 34,411 9,499 Fund balance - December 31 $37,226 $34,411 2017 Budgeted Amounts 125 CITY OF CHANHASSEN, MINNESOTA SPECIAL REVENUE FUND - CATV Statement 28 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended December 31, 2017 With Comparative Actual Amounts For The Year Ended December 31, 2016 2016 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues: Franchise and PEG fees $200,000 $200,000 $187,802 ($12,198) $194,082 Refunds and reimbursements - - - - 249 Investment earnings 2,000 2,000 3,326 1,326 2,371 Total revenues 202,000 202,000 191,128 (10,872) 196,702 Expenditures: Current: General government: Personal services 104,700 104,700 107,267 (2,567) 102,350 Materials and supplies 5,000 5,000 - 5,000 4,557 Contractual services 26,700 26,700 31,093 (4,393) 64,765 Capital outlay 15,000 15,000 - 15,000 - Total expenditures 151,400 151,400 138,360 13,040 171,672 Revenues over expenditures $50,600 $50,600 52,768 $2,168 25,030 Fund balance - January 1 436,725 411,695 Fund balance - December 31 $489,493 $436,725 2017 Budgeted Amounts 126 FIDUCIARY FUNDS Fiduciary Funds have been established to account for cash or other assets held by the City as a trustee or agent for others. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the related liability is incurred. Fiduciary Funds are custodial in nature (assets equal liabilities) and do not involve measurement of the results of operations. Escrow Fund – This fund is used to account for various deposits required by the City. Moon Valley Restoration Fund – This is an escrow fund which will be used to finance restoration to a gravel pit when it ceases operation. 127 CITY OF CHANHASSEN, MINNESOTA COMBINING STATEMENT OF NET POSITION Statement 29 AGENCY FUNDS December 31, 2017 With Comparative Totals For December 31, 2016 815 Escrow Fund 913 Moon Valley Restoration Fund 2017 2016 Assets: Cash and investments $2,516,891 $87,088 $2,603,979 $1,639,041 Accounts receivable - - - 10,905 Total assets $2,516,891 $87,088 $2,603,979 $1,649,946 Liabilities: Accounts payable $ - $ - $ - $10,905 Escrow deposits payable 2,516,891 87,088 2,603,979 1,639,041 Total liabilities $2,516,891 $87,088 $2,603,979 $1,649,946 Totals 128 CITY OF CHANHASSEN, MINNESOTA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 30 AGENCY FUNDS For The Year Ended December 31, 2017 Balance Balance 01/01/17 Additions Deletions 12/31/17 Escrow Fund Assets: Cash and investments $1,552,083 $1,448,658 $483,850 $2,516,891 Accounts receivable 10,905 - 10,905 - Total assets $1,562,988 $1,448,658 $494,755 $2,516,891 Liabilities: Accounts payable $10,905 $ - $10,905 $ - Escrow deposits payable 1,552,083 1,448,658 483,850 2,516,891 Total liabilities $1,562,988 $1,448,658 $494,755 $2,516,891 Moon Valley Restoration Fund Assets: Cash and investments $86,958 $130 $ - $87,088 Liabilities: Escrow deposits payable $86,958 $130 $ - $87,088 Totals - All Agency Funds Assets: Cash and investments $1,639,041 $1,448,788 $483,850 $2,603,979 Accounts receivable 10,905 - 10,905 - Total assets $1,649,946 $1,448,788 $494,755 $2,603,979 Liabilities: Accounts payable $10,905 $ - $10,905 $ - Escrow deposits payable 1,639,041 1,448,788 483,850 2,603,979 Total liabilities $1,649,946 $1,448,788 $494,755 $2,603,979 129 - This page intentionally left blank - 130 III. STATISTICAL SECTION (UNAUDITED) 131 - This page intentionally left blank - 132 III. STATISTICAL SECTION (UNAUDITED) This part of the City of Chanhassen, Minnesota’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City of Chanhassen, Minnesota’s overall financial health. Contents Table Number Financial Trends These tables contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Tables 1-4 Revenue Capacity These tables contain information to help the reader assess the City’s most significant local revenue source, the property tax. Tables 5-8 Debt Capacity These tables present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. Tables 9-13 Demographic and Economic These tables offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. Tables 14-15 Operating Information These tables contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. Tables 16-18 Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive financial reports for the relevant year. 133 CITY OF CHANHASSEN, MINNESOTA NET POSITION BY COMPONENT Last Ten Fiscal Years (Accrual Basis of Accounting) 2008 2009 2010 2011 Governmental activities: Net investment in capital assets $70,611,368 $72,106,198 $73,272,450 $70,866,708 Restricted: Debt service 12,165,653 6,461,780 9,655,951 5,709,727 Park improvements - - 2,088,246 2,516,027 Tax increment purposes 129,033 195,265 319,864 338,029 Other purposes - - 121,137 168,147 Unrestricted 15,664,273 15,066,634 8,722,413 13,363,047 Total governmental activities net position $98,570,327 $93,829,877 $94,180,061 $92,961,685 Business-type activities: Net investment in capital assets $55,541,752 $55,496,919 $57,028,340 $55,430,138 Unrestricted 13,117,323 12,129,049 10,259,836 9,484,947 Total business-type activities net position $68,659,075 $67,625,968 $67,288,176 $64,915,085 Primary government: Net investment in capital assets $126,153,120 $127,603,117 $130,300,790 $126,296,846 Restricted: Debt service 12,165,653 6,461,780 9,655,951 5,709,727 Park improvements - - 2,088,246 2,516,027 Tax increment purposes 129,033 195,265 319,864 338,029 Other purposes - - 121,137 168,147 Unrestricted 28,781,596 27,195,683 18,982,249 22,847,994 Total primary government net position $167,229,402 $161,455,845 $161,468,237 $157,876,770 Note: GASB 65 was implemented in 2013. Unamortized bond issuance costs are no longer included within net position. Net position for years prior to 2013 was not restated. Note: GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net pension liability and pension related deferred outflows of resources. Net position for years prior to 2014 was not restated. 134 Table 1 2012 2013 2014 2015 2016 2017 $69,987,563 $71,260,946 $71,867,072 $71,225,523 $72,588,940 $70,255,784 5,905,553 6,595,927 3,441,810 3,455,172 1,390,127 1,400,411 1,650,118 1,714,972 1,751,739 1,896,923 1,505,784 1,716,043 471,930 711,287 330,809 475,357 399,178 - 142,747 165,838 176,089 154,810 164,751 153,633 15,094,966 14,361,011 14,512,772 9,510,105 10,221,704 10,028,355 $93,252,877 $94,809,981 $92,080,291 $86,717,890 $86,270,484 $83,554,226 $54,475,353 $52,541,451 $54,111,608 $55,704,478 $57,478,975 $57,212,106 10,631,342 11,391,338 10,467,201 10,032,731 10,516,316 10,126,315 $65,106,695 $63,932,789 $64,578,809 $65,737,209 $67,995,291 $67,338,421 $124,462,916 $123,802,397 $125,978,680 $126,930,001 $130,067,915 $127,467,890 5,905,553 6,595,927 3,441,810 3,455,172 1,390,127 1,400,411 1,650,118 1,714,972 1,751,739 1,896,923 1,505,784 1,716,043 471,930 711,287 330,809 475,357 399,178 - 142,747 165,838 176,089 154,810 164,751 153,633 25,726,308 25,752,349 24,979,973 19,542,836 20,738,020 20,154,670 $158,359,572 $158,742,770 $156,659,100 $152,455,099 $154,265,775 $150,892,647 135 CITY OF CHANHASSEN, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2008 2009 2010 2011 Expenses Governmental activities: General government $2,469,055 $2,597,147 $2,898,608 $2,565,486 Public safety 3,062,941 3,158,465 3,227,396 3,061,122 Public works 6,220,816 9,123,165 6,308,023 8,607,534 Parks and recreation 3,025,987 3,663,124 3,046,718 2,921,593 Community development 704,979 628,339 879,048 799,379 Interest and fees on long-term debt 652,015 1,031,567 880,384 838,421 Total governmental activities expenses 16,135,793 20,201,807 17,240,177 18,793,535 Business-type activities: Water 3,234,139 3,311,129 3,443,583 3,581,955 Sewer 3,072,588 3,276,042 3,252,510 3,317,329 Surface water management 1,121,197 1,093,165 1,202,556 1,173,115 Total business-type activities expenses 7,427,924 7,680,336 7,898,649 8,072,399 Total primary government expenses $23,563,717 $27,882,143 $25,138,826 $26,865,934 Program revenues Governmental activities: Charges for services: Licenses and permits $1,810,545 $1,085,754 $1,331,374 $1,381,326 Charges for services 1,115,903 1,064,173 1,189,560 1,047,726 Fines and forfeits 124,633 122,496 123,609 126,571 Operating grants and contributions 346,023 363,540 414,654 692,428 Capital grants and contributions 3,221,636 1,265,287 4,175,655 1,646,573 Total governmental activities program revenues 6,618,740 3,901,250 7,234,852 4,894,624 Business-type activities: Charges for services: Water 2,408,379 2,689,170 2,424,634 2,611,327 Sewer 2,187,209 2,378,111 2,365,358 2,297,677 Surface water management 479,318 512,761 538,688 534,473 Operating grants and contributions 36,350 5,332 2,984 12,589 Capital grants and contributions 1,527,624 1,684,982 1,593,289 1,086,655 Total business-type activities program revenues 6,638,880 7,270,356 6,924,953 6,542,721 Total primary government program revenues $13,257,620 $11,171,606 $14,159,805 $11,437,345 136 Table 2 Page 1 of 2 2012 2013 2014 2015 2016 2017 $2,690,853 $2,630,405 $3,099,004 $2,775,663 $2,887,111 $3,230,517 3,176,441 3,313,694 3,416,088 3,826,376 3,973,031 3,969,540 7,743,147 14,224,453 9,604,525 11,153,322 7,591,530 8,161,048 3,114,340 2,919,183 3,062,592 2,952,985 3,278,139 3,227,236 646,262 523,651 1,043,848 527,268 689,448 918,962 725,881 588,352 465,935 409,676 493,746 408,273 18,096,924 24,199,738 20,691,992 21,645,290 18,913,005 19,915,576 3,646,787 4,702,686 3,347,965 3,290,265 4,422,789 3,866,810 3,235,324 3,548,200 3,171,696 3,297,128 3,254,619 3,746,880 1,347,345 1,334,173 1,491,763 1,328,144 1,388,979 1,538,468 8,229,456 9,585,059 8,011,424 7,915,537 9,066,387 9,152,158 $26,326,380 $33,784,797 $28,703,416 $29,560,827 $27,979,392 $29,067,734 $1,595,358 $2,113,770 $1,691,634 $1,565,900 $1,653,858 $1,641,140 1,394,356 1,396,068 1,149,372 1,153,779 1,209,882 1,257,486 119,997 99,984 100,516 117,189 114,367 128,394 404,663 472,298 532,337 823,943 735,840 902,871 2,953,496 10,718,999 3,296,748 5,812,825 3,705,857 2,425,333 6,467,870 14,801,119 6,770,607 9,473,636 7,419,804 6,355,224 3,146,886 2,829,226 2,573,027 2,611,895 2,717,285 2,921,936 2,434,370 2,358,854 2,472,536 2,525,731 2,619,882 2,764,674 590,323 615,896 639,087 668,971 684,199 709,508 121,925 63,112 210,857 45,130 72,007 45,109 1,861,689 2,852,437 2,633,793 3,140,823 5,199,139 1,678,595 8,155,193 8,719,525 8,529,300 8,992,550 11,292,512 8,119,822 $14,623,063 $23,520,644 $15,299,907 $18,466,186 $18,712,316 $14,475,046 137 CITY OF CHANHASSEN, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2008 2009 2010 2011 Net (expense) revenue: Governmental activities ($9,517,053) ($16,300,557) ($10,005,325) ($13,898,911) Business-type activities (789,044) (409,980) (973,696) (1,529,678) Total primary government net (expense) revenue (10,306,097) (16,710,537) (10,979,021) (15,428,589) General revenues and other changes in net position Governmental activities: Property taxes 9,651,758 9,921,598 10,014,684 9,849,882 Tax increment collections 574,101 473,674 539,523 566,045 Grants and contributions not restricted to specific programs 108,039 27,612 45,767 28,304 Unrestricted investment earnings 1,150,993 357,953 222,719 505,541 Gain on sale of capital assets 32,195 4,524 20,727 44,000 Special item - sale of public works building - - - - Transfers 1,112,623 774,746 (487,911) 1,061,763 Total governmental activities 12,629,709 11,560,107 10,355,509 12,055,535 Business-type activities: Unrestricted investment earnings 797,079 141,070 114,349 211,707 Miscellaneous 22,464 10,549 33,644 6,643 Gain on sale of capital assets - - - - Transfers (1,112,623) (774,746) 487,911 (1,061,763) Total business-type activities (293,080) (623,127) 635,904 (843,413) Total primary government $12,336,629 $10,936,980 $10,991,413 $11,212,122 Change in net position: Governmental activities $3,112,656 ($4,740,450) $350,184 ($1,843,376) Business-type activities (1,082,124) (1,033,107) (337,792) (2,373,091) Total primary government $2,030,532 ($5,773,557) $12,392 ($4,216,467) Note: GASB 65 was implemented in 2013. Bond issuance costs are now expensed in the year of issuance. Expenses for years prior to 2013 were not restated. Note: GASB 68 was implemented in 2015. Pension expense for years prior to 2015 were not restated. 138 Table 2 Page 2 of 2 2012 2013 2014 2015 2016 2017 ($11,629,054) ($9,398,619) ($13,921,385) ($12,171,654) ($11,493,201) ($13,560,352) (74,263) (865,534) 517,876 1,077,013 2,226,125 (1,032,336) (11,703,317) (10,264,153) (13,403,509) (11,094,641) (9,267,076) (14,592,688) 10,064,176 10,059,324 10,482,273 10,536,216 10,643,917 10,826,116 533,011 545,906 307,940 200,338 111,761 - 20,071 19,941 19,736 21,679 19,754 19,753 173,523 (14,764)183,602 176,731 156,202 164,393 56,610 37,720 191,755 66,248 41,129 38,254 1,246,275 - - - - - (173,420)307,596 6,389 (612,078)73,032 (204,422) 11,920,246 10,955,723 11,191,695 10,389,134 11,045,795 10,844,094 92,453 (776)134,533 132,406 79,765 171,044 - - - - - - - - - 57,510 25,224 - 173,420 (307,596)(6,389)612,078 (73,032)204,422 265,873 (308,372)128,144 801,994 31,957 375,466 $12,186,119 $10,647,351 $11,319,839 $11,191,128 $11,077,752 $11,219,560 $291,192 $1,557,104 ($2,729,690) ($1,782,520) ($447,406) ($2,716,258) 191,610 (1,173,906)646,020 1,879,007 2,258,082 (656,870) $482,802 $383,198 ($2,083,670)$96,487 $1,810,676 ($3,373,128) 139 CITY OF CHANHASSEN, MINNESOTA FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2008 2009 2010 2011 General Fund: Reserved $21,173 $46,750 $55,826 $ - Unreserved: Designated 3,586,750 3,690,000 3,754,000 - Undesignated 1,273,796 1,137,109 1,459,792 - Nonspendable - - - 17,280 Unassigned - - - 5,278,118 Total general fund $4,881,719 $4,873,859 $5,269,618 $5,295,398 All other governmental funds: Reserved $6,671,271 $2,950,284 $5,642,029 $ - Unreserved: Designated: Special revenue funds 525,692 668,992 2,082,929 - Capital project funds 18,732,625 11,418,006 7,487,198 - Undesignated: Debt service funds 237,721 342,877 356,724 - Capital project funds (11,584) (2,001,149) (786,209) - Nonspendable - - - 12,662 Restricted - - - 10,426,585 Assigned - - - 6,561,411 Unassigned - - - (730,120) Total all other governmental funds $26,155,725 $13,379,010 $14,782,671 $16,270,538 The City implemented GASB Statement No. 54 for the fiscal year ended December 31, 2011. Information for years prior to 2011 is presented in accordance with fund balance classifications in effect at that time. 140 Table 3 2012 2013 2014 2015 2016 2017 $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - 57,137 16,741 58,333 72,114 25,832 81,032 5,434,641 5,274,584 5,550,732 5,258,232 5,286,880 5,307,088 $5,491,778 $5,291,325 $5,609,065 $5,330,346 $5,312,712 $5,388,120 $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - - - - - - - - - - - - - 1,373,146 1,327,068 1,289,575 1,253,705 - 990,723 6,359,422 9,181,230 5,724,419 5,824,354 8,673,981 8,458,576 6,731,400 6,366,292 5,951,507 5,586,353 7,806,958 6,602,135 (646,856)(559,515)(475,352)(372,509)(264,772)(154,506) $13,817,112 $16,315,075 $12,490,149 $12,291,903 $16,216,167 $15,896,928 141 CITY OF CHANHASSEN, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Revenues: 2008 2009 2010 2011 General property taxes $9,582,333 $9,834,389 $10,141,168 $9,760,052 Tax increment collections $574,101 473,674 539,523 566,045 Licenses and permits 1,810,545 1,085,754 1,331,374 1,381,326 Intergovernmental 2,147,970 397,438 401,550 1,425,525 Special assessments 623,893 540,151 790,426 1,242,040 Charges for services 841,209 950,760 923,550 795,616 Fines and forfeits 124,633 122,496 123,609 126,571 Investment earnings 1,150,993 357,953 222,719 505,541 Contributions and donations 43,410 47,206 58,016 50,685 Refunds and reimbursements 51,247 61,707 132,616 117,441 Other 238,030 170,688 213,272 846,523 Total revenues 17,188,364 14,042,216 14,877,823 16,817,365 Expenditures: Current: General government 2,102,512 2,070,698 2,525,326 2,162,479 Public safety 2,885,296 2,979,044 3,077,038 2,896,644 Public works 2,786,397 5,710,804 2,739,704 4,779,067 Parks and recreation 1,933,353 2,487,985 1,901,564 1,906,489 Community development 468,819 527,919 698,818 502,916 Capital outlay: General government 233,600 143,663 473,753 129,535 Public safety 54,284 55,152 65,667 52,645 Public works 4,677,179 8,179,324 3,995,444 2,122,641 Parks and recreation 642,508 235,292 490,737 309,524 Debt service: Principal 2,689,552 2,553,002 2,370,000 1,025,000 Interest and paying agent fees 874,848 920,529 888,843 853,152 Bond issuance costs 93,811 73,182 46,505 - Developer assistance 226,055 90,354 176,643 298,216 Total expenditures 19,668,214 26,026,948 19,450,042 17,038,308 Revenues over (under) expenditures (2,479,850) (11,984,732) (4,572,219) (220,943) Other financing sources (uses): Bonds issued 7,550,000 6,020,000 5,200,000 - Loans issued 24,839 - - - Bond premium - 226,991 35,964 - Redemption of refunding bonds - (8,387,123) - - Transfers in 2,646,011 1,324,015 1,105,000 1,734,590 Transfers out - - - - Sale of capital assets 10,695 16,274 30,675 - Special item - sale of old public works building - - - - Total other financing sources (uses)10,231,545 (799,843) 6,371,639 1,734,590 Net change in fund balance $7,751,695 ($12,784,575) $1,799,420 $1,513,647 Debt service as a percentage of noncapital expenditures 26.4%20.5%23.2%13.3% Debt service as percentage of total expenditures 18.6%13.6%17.0%11.0% 142 Table 4 2012 2013 2014 2015 2016 2017 $10,143,011 $10,176,483 $10,489,350 $10,529,994 $10,640,315 $10,820,682 533,011 545,906 307,940 200,338 111,761 - 1,595,358 2,113,770 1,691,634 1,565,900 1,653,858 1,641,140 2,151,785 7,971,339 2,553,062 4,897,139 974,917 2,149,875 1,667,881 3,193,078 854,966 1,664,424 820,026 842,523 880,920 907,414 798,578 799,543 846,540 838,498 119,997 99,984 100,516 117,189 114,367 128,394 173,523 (14,764) 183,602 176,731 156,202 164,393 36,893 33,159 66,918 78,175 60,802 73,734 253,030 235,363 77,871 85,955 150,093 174,853 264,038 259,703 265,119 267,622 276,067 264,114 17,819,447 25,521,435 17,389,556 20,383,010 15,804,948 17,098,206 2,326,490 2,274,640 2,350,437 2,391,195 2,479,271 2,871,267 3,013,980 3,179,446 3,258,363 3,431,541 3,713,146 3,602,897 3,726,158 10,628,140 5,352,221 7,537,376 3,961,016 4,617,523 2,154,714 2,002,604 2,164,703 2,068,532 2,256,314 2,395,554 621,295 522,538 1,034,047 515,382 659,276 940,000 75,226 87,707 34,080 - 62,713 30,838 39,314 74,144 23,980 122,143 314,004 2,950 3,502,371 2,482,728 2,894,237 2,566,867 459,142 2,595,012 1,310,366 627,214 485,107 476,323 1,153,763 376,992 5,100,000 1,590,000 4,190,000 1,810,000 1,795,000 670,000 814,621 599,487 518,722 439,470 483,533 433,925 - - - - - - 21,108 - - - - - 22,705,643 24,068,648 22,305,897 21,358,829 17,337,178 18,536,958 (4,886,196)1,452,787 (4,916,341)(975,819) (1,532,230) (1,438,752) - - - - 4,805,000 - - - - - - - - - - - 239,773 - - - - - - - 1,203,031 888,711 1,783,719 2,158,844 1,347,883 1,924,157 (48,881)(43,988)(676,095) (1,701,005) (1,044,114)(748,522) - - 301,531 41,015 90,318 19,286 1,475,000 - - - - - 2,629,150 844,723 1,409,155 498,854 5,438,860 1,194,921 ($2,257,046) $2,297,510 ($3,507,186)($476,965) $3,906,630 ($243,831) 33.3%10.5%25.0%12.4%14.8%7.1% 26.0%9.1%21.1%10.5%13.1%6.0% 143 CITY OF CHANHASSEN, MINNESOTA TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Fiscal Year Commercial/Total Ended Residential Industrial All Tax December 31, Property Agricultural Property Other Capacity 2008 $29,821,326 $208,789 $9,135,911 $435,603 $39,601,629 2009 30,741,292 190,844 9,665,269 471,749 41,069,154 2010 30,301,115 170,857 10,229,329 477,663 41,178,964 2011 28,951,885 131,751 9,778,491 511,185 39,373,312 2012 27,198,238 137,012 9,149,904 520,743 37,005,897 2013 26,970,557 105,160 8,927,095 541,612 36,544,424 2014 28,725,937 132,728 8,984,174 613,105 38,455,944 2015 32,778,287 153,500 9,205,053 620,620 42,757,460 2016 33,790,483 222,144 9,508,063 669,890 44,190,580 2017 34,470,607 278,224 9,910,242 764,420 45,423,493 Sources: Carver County Taxpayer Services and Hennepin County 144 Table 5 Captured Tax Capacity on Fiscal Adjusted City Estimated Tax Capacity Tax Increment Disparity Tax Capacity Direct Tax Market as a Percent District Contribution Value Rate Value of EMV ($479,494) ($1,498,894) $37,623,241 23.71300 $3,394,928,100 1.11% (473,702) (1,627,749) 38,967,703 22.99300 3,501,886,800 1.11% (532,007) (1,861,362) 38,785,595 25.18300 3,491,841,800 1.11% (509,863) (1,998,912) 36,864,537 26.60256 3,350,141,800 1.10% (469,759) (2,038,437) 34,497,701 28.53211 3,153,275,000 1.09% (435,999) (1,804,630) 34,303,795 28.42838 3,118,066,700 1.10% (252,884) (1,971,928) 36,231,132 27.23862 3,294,605,000 1.10% (267,337) (1,896,611) 40,593,512 24.63317 3,686,777,200 1.10% (103,638) (2,119,400) 41,967,542 24.25249 3,802,904,100 1.10% - (2,055,461) 43,368,032 23.85464 3,899,829,200 1.11% 145 CITY OF CHANHASSEN, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES Table 6 Last Ten Fiscal Years Fiscal Operational Debt City School Carver Year and Capital Service Total District #112 County Other Total Tax capacity rates (per $100 of adjusted tax capacity value) 2008 19.110 4.603 23.713 35.970 37.563 5.547 102.793 2009 18.864 4.129 22.993 35.505 38.033 5.458 101.989 2010 20.722 4.461 25.183 35.840 39.509 5.639 106.171 2011 21.915 4.688 26.603 40.236 41.752 6.021 114.610 2012 23.701 4.831 28.532 44.382 43.562 6.681 123.158 2013 23.635 4.793 28.428 45.319 46.115 6.603 126.467 2014 22.708 4.531 27.239 44.917 45.211 6.873 124.239 2015 21.532 3.101 24.633 39.120 40.488 6.270 110.512 2016 21.314 2.938 24.252 39.245 38.880 6.417 108.795 2017 21.536 2.317 23.853 37.005 38.851 6.565 106.274 Source: Carver County Taxpayer Services (1)The City Direct Rate is the Urban Based Rate, not including market value levies. City Direct Rate(1)Overlapping Rates 146 CITY OF CHANHASSEN, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS Table 7 Current Year and Nine Years Ago Percentage Percentage Taxable of Total City Taxable of Total City Capacity Capacity Capacity Capacity Taxpayer Value Rank Value Value Rank Value Istar Minnesota LLC $430,910 1 1.0% $326,308 3 0.9% SGO MN West Village LLC 424,776 2 1.0% - - Northern States Power Co 363,530 3 0.8% 213,890 6 0.6% Rosemount Inc 323,340 4 0.7% 396,692 1 1.1% LTF Real Estate Company Inc 313,164 5 0.7% 227,232 4 0.6% Prince R Nelson 248,188 6 0.6% - - Lake Susan Apartment Homes 222,368 7 0.5% - - Centerpoint Energy Minnegasco 212,848 8 0.5% - - James Campbell Company LLC 209,138 9 0.5% - - Target Corporation T-0862 208,488 10 0.5% 203,224 7 0.5% IRET Properties - - 351,170 2 0.9% DRF Chanhassen Medical Bldg - - 220,360 5 0.6% Park Avenue Lofts LLC - - 193,654 8 0.5% Market Square Assoc Ltd Partnership - - 175,392 9 0.5% McGlynn Bakeries Inc #366 - - 167,250 10 0.4% Total $2,956,750 6.7% $2,475,172 6.6% Total All Property $44,017,949 $37,484,401 Source: Carver County Taxpayer Services 20082017 147 - This page intentionally left blank - 148 CITY OF CHANHASSEN, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Table 8 Last Ten Fiscal Years Fiscal Taxes Collections Year Levied in Ended For The Percentage Subsequent Percentage December 31, Fiscal Year Amount of Levy Years Amount of Levy 2008 $9,834,965 $9,555,489 97.2%$146,761 $9,702,249 98.7% 2009 10,074,565 9,668,713 96.0%158,526 9,827,239 97.5% 2010 10,213,190 9,918,528 97.1%(18,413) 9,900,115 96.9% 2011 10,267,390 9,739,125 94.9%185,801 9,924,926 96.7% 2012 10,153,690 10,005,877 98.5%51,236 10,057,113 99.0% 2013 10,195,890 10,105,393 99.1%19,741 10,125,135 99.3% 2014 10,334,140 10,269,518 99.4%25,851 10,295,369 99.6% 2015 10,484,021 10,446,765 99.6%21,548 10,468,313 99.9% 2016 10,629,621 10,564,815 99.4%19,223 10,584,038 99.6% 2017 10,795,121 10,718,876 99.3% - 10,718,876 99.3% Source: City Finance Department Fiscal Year of the Levy Collected Within The Total Collections to Date 149 CITY OF CHANHASSEN, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years General General Fiscal Obligation Revenue Tax Increment Improvement Year Bonds Bonds Bonds Bonds 2008 $13,905,000 $435,000 $1,015,000 $7,155,000 2009 13,045,000 335,000 960,000 6,625,000 2010 16,860,000 230,000 900,000 5,805,000 2011 16,195,000 120,000 840,000 5,615,000 2012 11,475,000 - 775,000 5,420,000 2013 10,155,000 - 705,000 5,220,000 2014 9,550,000 - 635,000 1,705,000 2015 8,925,000 - - 1,155,000 2016 13,313,788 - - - 2017 12,627,803 - - - Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1)Information pertaining to Chanhassen Personal Income is not available, information for Carver County was included instead. (a) Information not available Governmental Activities 150 Table 9 Business-Type Bonded Debt Activities Per Total Carver County Other G.O. Revenue Debt Personal Debt Bonds Total Debt Per Capita Income(1) $3,375,125 $12,415,000 $38,300,125 $1,564 0.8% - 11,695,000 32,660,000 1,322 0.7% - 10,955,000 34,750,000 1,514 0.7% - 20,077,339 42,847,339 1,849 0.9% - 20,578,313 38,248,313 1,629 0.7% - 16,324,287 32,404,287 1,353 0.6% - 10,045,261 21,935,261 899 0.4% - 9,256,235 19,336,235 784 0.3% - 13,926,719 27,240,507 1,092 0.4% - 23,379,318 36,007,121 1,425 (a) 151 CITY OF CHANHASSEN, MINNESOTA RATIOS OF GENERAL BONDED DEBT OUTSTANDING Table 10 Last Ten Fiscal Years Net General General G.O. Tax G.O. G.O. Total General Less Amounts Net General Percentage Obligation Fiscal Obligation Increment Improvement Revenue Obligation Restricted for Obligation of Tax Bonded Debt Year Bonds Bonds Bonds Bonds Bonded Debt Debt Service Bonded Debt Capacity Per Capita 2008 $13,905,000 $1,015,000 $7,155,000 $12,415,000 $34,490,000 $12,165,653 $22,324,347 59.56%912 2009 13,045,000 960,000 6,625,000 11,695,000 32,325,000 6,461,780 25,863,220 66.29% 1,047 2010 16,860,000 900,000 5,805,000 10,955,000 34,520,000 9,217,254 25,302,746 64.55% 1,102 2011 16,195,000 840,000 5,615,000 20,077,339 42,727,339 16,998,401 25,728,938 68.61% 1,110 2012 11,475,000 775,000 5,420,000 20,578,313 38,248,313 13,020,206 25,228,107 71.80% 1,074 2013 10,155,000 705,000 5,220,000 16,324,287 32,404,287 10,266,366 22,137,921 63.62%924 2014 9,550,000 635,000 1,705,000 10,045,261 21,935,261 3,441,810 18,493,451 50.09%758 2015 8,925,000 - 1,155,000 9,256,235 19,336,235 3,455,172 15,881,063 38.60%644 2016 13,313,788 - - 13,926,719 27,240,507 6,418,913 20,821,594 48.72%834 2017 12,627,803 - - 23,379,318 36,007,121 6,413,214 29,593,907 67.23% 1,171 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 152 CITY OF CHANHASSEN, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11 December 31, 2017 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable*Debt Direct debt: City of Chanhassen(1)$12,627,803 100.00% $12,627,803 Overlapping debt: Eastern Carver County School District 170,605,000 37.74% 64,386,327 Eden Prairie Independent School District 53,008,080 0.94% 498,276 Carver County 20,990,000 31.98% 6,712,602 Hennepin County 911,083,511 0.05% 455,542 Hennepin Suburban Park District 45,784,829 0.07%32,049 Hennepin Regulatory Railroad Authority 26,942,546 0.07%18,860 Metropolitan Council 12,606,580 0.03%3,782 Subtotal - overlapping debt 1,241,020,546 72,107,438 Total direct and overlapping debt $1,253,648,349 $84,735,241 (1)Excludes debt related to the City's business-type activities. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. *For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value. 153 CITY OF CHANHASSEN, MINNESOTA LEGAL DEBT MARGIN INFORMATION Table 12 Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2017 Market value $3,899,829,200 Applicable percentage 3% Debt limit 116,994,876 Debt applicable to limit: Total bonded debt 36,007,121 Less: Enterprise Fund debt (23,379,318) Less: Cash and investments in G.O. Bond Debt Service Fund (6,579,470) 6,048,333 Legal debt margin $110,946,543 Legal Debt Margin Calculation for Fiscal Years 2008 Through 2017 Net Debt Net Debt Legal Amount of Debt Applicable Fiscal Debt Applicable to Debt Applicable to to Limit Year Population Limit Limit Margin Debt Limit Per Capita 2008 24,481 $101,847,843 $11,924,438 $89,923,405 11.71% $487 2009 24,699 105,056,604 11,175,086 93,881,518 10.64% 452 2010 22,952 104,755,254 15,831,831 88,923,423 15.11% 690 2011 23,179 100,504,254 14,755,258 85,748,996 14.68% 637 2012 23,484 94,598,250 10,117,347 84,480,903 10.70% 431 2013 23,954 93,542,001 8,705,958 84,836,043 9.31% 363 2014 24,388 98,838,150 8,030,953 90,807,197 8.13% 329 2015 24,655 110,603,316 7,346,583 103,256,733 6.64% 298 2016 24,951 114,087,123 6,721,445 107,365,678 5.89% 269 2017 25,273 116,994,876 6,048,333 110,946,543 5.17% 239 154 CITY OF CHANHASSEN, MINNESOTA PLEDGED REVENUE COVERAGE Table 13 Last Ten Fiscal Years Special Fiscal Assessment Year Collections Principal Interest Coverage 2008 $84,814 $1,300,000 $287,727 0.053 2009 74,575 1,220,000 142,963 0.055 2010 313,131 820,000 223,667 0.300 2011 456,912 190,000 171,300 1.265 2012 625,288 195,000 165,525 1.734 2013 2,174,645 200,000 159,600 6.047 2014 119,060 3,515,000 103,875 0.033 2015 751,995 550,000 42,900 1.268 2016 6,298 1,155,000 26,175 0.005 2017 - - - 0.000 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Improvement bonds with a designated revenue source of special assessments were paid off in 2016. Improvement Bonds Debt Service 155 CITY OF CHANHASSEN, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS Table 14 Last Ten Fiscal Years Carver County Carver County Chanhassen Carver County Personal Per Capita Fiscal Chanhassen Unemployment Unemployment Income Personal Year Population(1)Rate(2)Rate(2)(Thousands)(3)Income(3) 2008 24,481 3.6%4.9%$4,700,313 $52,924 2009 24,699 5.8%7.2%4,443,704 49,242 2010 22,952 6.1%6.8%4,642,812 50,796 2011 23,179 4.9%5.5%5,034,748 54,233 2012 23,484 4.5%4.8%5,433,676 57,869 2013 23,954 4.1%4.3%5,548,893 58,028 2014 24,388 3.4%3.6%5,944,605 61,081 2015 24,655 3.0%3.2%6,238,692 63,266 2016 24,951 3.1%3.3%6,464,183 64,473 2017 25,273 2.9%3.1%(a)(a) Sources:(1)Federal Census Data and Chanhassen Planning Department (2)State of Minnesota, Department of Employment and Economic Development (3)U.S. Department of Commerce, Bureau of Economic Analysis (a) Information not available Note: Information pertaining to Chanhassen Personal Income and Per Capita Personal Income is not available, information for Carver County was included instead. 156 CITY OF CHANHASSEN, MINNESOTA PRINCIPAL EMPLOYERS Table 15 Current Year and Nine Years Ago Percentage Percentage of Total City of Total City Employer Employees Rank Employment(1)Employees Rank Employment(1) Lifetime Fitness 1,934 1 28.8%919 2 16.5% Instant Web Companies 1,152 2 17.2%847 3 15.2% Rosemount Inc 1,050 3 15.7% 1,475 1 26.5% The Bernard Group 640 4 9.5% - - Eastern Carver County Schools 450 5 6.7%165 10 3.0% RR Donnelley 382 6 5.7%383 6 6.9% General Mills 347 7 5.2%475 5 8.5% Chanhassen Dinner Theatres 290 8 4.3%300 7 5.4% Minnesota Landscape Arboretum 274 9 4.1%230 9 4.1% Control Products 188 10 2.8% - - Super Value Headquarters - - 500 4 9.0% Byerly's - - 280 8 5.0% Total 6,707 5,574 Source: Survey by City Administration and Finance Departments (1)The statistic for total City employment is not available, therefore the percentage represents the percentage of the top ten listed. 2017 2008 157 CITY OF CHANHASSEN, MINNESOTA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2008 2009 2010 General government 13 13 13 Public safety 3 3 3 Public works 26 26 26 Parks & recreation 11 11 11 Community development 16 16 15 Total 69 69 68 Source: City Finance Department Full-Time Equivalent Employees as of December 31, 158 Table 16 2011 2012 2013 2014 2015 2016 2017 13 13 13 13 13 13 13 3333322 26 26 26 26 26 27 29 11 11 11 11 11 12 13 15 14 14 14 14 16 16 68 67 67 67 67 70 73 Full-Time Equivalent Employees as of December 31, 159 CITY OF CHANHASSEN, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2008 2009 2010 Building: Total permits issued 2,838 2,608 2,910 Total estimated value $124,885,965 $67,811,817 $65,046,933 Election: Registered voters 16,544 16,544 15,326 Fire: Average number of employees 45 45 45 General government: Area of city - square miles 23.78 23.78 23.78 Average number of permanent full-time employees (excluding fire department)69 69 68 Police: Average number of employees 14 15 15 Number of crimes - MNCJRS(1)1,013 702 647 Number of crimes - NIBRS(1) - - - Water: Number of customers 7,039 7,427 7,620 Daily average consumption - gallons 3,200,000 3,642,410 2,698,559 Plant capacity - gallons 8,550,000 8,550,000 8,550,000 Source: Various City Departments (1)Crime statistics in Minnesota had been reported for the last forty years utilizing Minnesota's Criminal Justice Reporting System (MNCJRS). The Federal Bureau of Investigations has mandated that all states become National Incident Based Reporting System (NIBRS) compliant by 2019. The Carver County Sheriff's Office transitioned to NIBRS June 1, 2016. Fiscal Year 160 Table 17 2011 2012 2013 2014 2015 2016 2017 3,397 3,285 3,201 3,076 3,266 2,891 2,981 $82,991,029 $83,531,808 $89,370,069 $80,591,941 $82,145,483 $73,881,121 $82,430,550 15,326 16,916 16,916 16,344 16,344 17,769 17,769 45 45 45 45 45 45 45 23.78 23.78 23.78 23.79 23.79 23.79 23.79 68 67 67 67 67 70 73 15 15 15 15 15 15 15 757 777 748 838 870 313 - - - - - - 472 737 7,655 7,741 7,953 8,075 8,195 8,254 8,312 2,257,542 2,570,349 2,876,383 2,542,413 2,495,868 2,565,905 2,624,486 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 Fiscal Year 161 CITY OF CHANHASSEN, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2008 2009 2010 Fire: Number of stations 2 2 2 Parks and recreation: Acres of parks 383 383 396 Acres of open space 434 434 434 Number of shelter buildings 3 4 4 Number of picnic shelters 5 5 5 Number of playgrounds 26 26 26 Number of swimming beaches 6 6 5 Number of tennis courts 17 17 17 Number of outdoor pickleball courts - - - Police: Number of stations 1 1 1 Public works: Miles of streets 107.0 110.9 111.9 Miles of sidewalks 28.4 31.1 31.9 Miles of trails 53.0 53.6 53.6 Sewer: Miles of storm sewers 67.1 69.5 71.0 Miles of sanitary sewers 120.8 123.0 123.6 Number of lift stations 31 31 31 Water: Miles of watermains 129.6 135.1 136.8 Number of wells 12 12 12 Source: Various City Departments Fiscal Year 162 Table 18 2011 2012 2013 2014 2015 2016 2017 2222222 396 401 401 405 405 405 466 489 503 503 503 503 503 528 4444444 5567131518 26 26 27 27 27 27 27 5555555 17 15 15 15 15 15 16 - 2366610 1111111 112.0 112.6 113.5 113.7 113.9 116.5 116.5 31.9 31.9 31.9 32.0 32.0 34.0 34.0 56.1 56.4 58.6 59.2 59.9 62.4 62.4 74.5 75.3 76.5 77.0 78.8 84.3 84.5 123.7 123.9 124.3 124.5 125.3 128.2 128.2 31 31 31 31 31 31 31 137.8 138.0 139.1 139.3 140.6 145.5 145.5 12 12 12 12 12 13 13 Fiscal Year 163 - This page intentionally left blank - 164 IV. OTHER INFORMATION (UNAUDITED) 165 CITY OF CHANHASSEN, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 2017 Final Interest Issue Maturity Bonded indebtedness: Rates Date Date General obligation bonds: G.O. Capital Improvement Plan Bonds, Series 2008A 4.00%-4.60% 11/18/08 02/01/30 G.O. Library Refunding Bonds, Series 2010A 2.00%-3.10% 01/27/10 02/01/22 G.O. Bonds, Series 2016A 2.00%-3.00% 03/03/16 02/01/30 Total general obligation bonds Enterprise Fund debt: G.O. Water Revenue Bonds, Series 2011A 0.30%-2.15% 10/06/11 02/01/22 G.O. Water Revenue Refunding Bonds, Series 2011B 2.00%-3.00% 10/06/11 02/01/25 G.O. Water and Sewer Revenue Bonds, Series 2012A 1.00%-1.55% 11/15/12 02/01/23 G.O. Water Revenue Bonds, Series 2016A 2.00%-3.00% 03/03/16 02/01/26 G.O. Water Revenue Bonds, Series 2016B 3.50%-4.00% 12/29/16 02/01/42 G.O. Water Revenue Bonds, Series 2017A 2.00%-4.00% 02/01/17 02/01/38 Total Enterprise Fund debt Total City bonded indebtedness 166 Exhibit 1 Payable Payable Principal Original January 1, December 31, Due in Issue Payments 2017 Issued Payments 2017 2018 $7,550,000 $1,625,000 $5,925,000 $ - $310,000 $5,615,000 $5,615,000 3,660,000 1,300,000 2,360,000 - 360,000 2,000,000 370,000 4,805,000 - 4,805,000 - - 4,805,000 - 16,015,000 2,925,000 13,090,000 0 670,000 12,420,000 5,985,000 5,920,000 2,175,000 3,745,000 - 665,000 3,080,000 680,000 3,720,000 30,000 3,690,000 - 30,000 3,660,000 30,000 1,245,000 355,000 890,000 - 120,000 770,000 125,000 1,565,000 - 1,565,000 - 140,000 1,425,000 140,000 3,630,000 - 3,630,000 - - 3,630,000 - 10,000,000 - - 10,000,000 - 10,000,000 400,000 26,080,000 2,560,000 13,520,000 10,000,000 955,000 22,565,000 1,375,000 $42,095,000 $5,485,000 $26,610,000 $10,000,000 $1,625,000 $34,985,000 $7,360,000 Prior Years 2017 167 CITY OF CHANHASSEN, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY Exhibit 2 GENERAL OBLIGATION BONDS - GOVERNMENTAL ACTIVITIES December 31, 2017 G.O. Capital G.O. Library Improvement Refunding G.O. Plan Bonds,Bonds,Bonds, Series 2008A Series 2010A Series 2016A Total Bonds payable $5,615,000 $2,000,000 $4,805,000 $12,420,000 Future interest payable 121,634 156,135 796,925 1,074,694 $5,736,634 $2,156,135 $5,601,925 $13,494,694 Payments to maturity: 2018 $5,736,634 $424,880 $117,950 $6,279,464 2019 - 433,480 443,000 876,480 2020 - 431,630 447,875 879,505 2021 - 429,480 452,300 881,780 2022 - 436,665 451,350 888,015 2023 - - 455,025 455,025 2024 - - 453,325 453,325 2025 - - 458,300 458,300 2026 - - 460,000 460,000 2027 - - 461,500 461,500 2028 - - 462,800 462,800 2029 - - 468,850 468,850 2030 - - 469,650 469,650 $5,736,634 $2,156,135 $5,601,925 $13,494,694 168 CITY OF CHANHASSEN, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY Exhibit 3 GENERAL OBLIGATION REVENUE BONDS December 31, 2017 G.O. Water G.O. Water G.O. Water & G.O. Water G.O. Water G.O. Water Revenue Revenue Sewer Revenue Revenue Revenue Revenue Bonds, Series Bonds, Series Bonds, Series Bonds, Series Bonds, Series Bonds, Series 2011A 2011B 2012A 2016A 2016B 2017A Total Bonds payable $3,080,000 $3,660,000 $770,000 $1,425,000 $3,630,000 $10,000,000 $22,565,000 Future interest payable 130,353 498,300 31,708 172,400 3,181,079 4,191,050 8,204,890 $3,210,353 $4,158,300 $801,708 $1,597,400 $6,811,079 $14,191,050 $30,769,890 Payments to maturity: 2018 $728,813 $134,500 $133,915 $177,200 $138,238 $699,900 $2,012,566 2019 733,663 569,500 132,665 177,925 138,238 444,400 2,196,391 2020 731,758 567,600 131,321 178,500 138,238 441,400 2,188,817 2021 738,163 572,900 134,758 178,925 138,238 443,350 2,206,334 2022 277,956 572,675 133,003 179,200 138,238 440,250 1,741,322 2023 - 576,925 136,046 179,325 138,238 440,500 1,471,034 2024 - 580,575 - 174,375 138,238 434,100 1,327,288 2025 - 583,625 - 175,200 138,238 432,600 1,329,663 2026 - - - 176,750 138,238 430,900 745,888 2027 - - - - 138,238 843,575 981,813 2028 - - - - 138,238 845,425 983,663 2029 - - - - 138,238 846,675 984,913 2030 - - - - 138,238 847,325 985,563 2031 - - - - 138,238 842,450 980,688 2032 - - - - 138,238 842,050 980,288 2033 - - - - 138,238 845,975 984,213 2034 - - - - 138,238 844,225 982,463 2035 - - - - 138,238 841,875 980,113 2036 - - - - 138,238 843,850 982,088 2037 - - - - 138,238 838,150 976,388 2038 - - - - 275,788 702,075 977,863 2039 - - - - 943,900 - 943,900 2040 - - - - 943,431 - 943,431 2041 - - - - 939,700 - 939,700 2042 - - - - 943,500 - 943,500 $3,210,353 $4,158,300 $801,708 $1,597,400 $6,811,079 $14,191,050 $30,769,890 169 CITY OF CHANHASSEN, MINNESOTA SCHEDULE OF DEFERRED TAX LEVIES Exhibit 4 December 31, 2017 Library G.O. Capital Total Years of Bonds Improvement Deferred Levy/ of 2002A/ Plan Bonds Tax Collection 2010A of 2008A Levies 2017/2018 $461,297 $470,348 $931,645 2018/2019 459,512 475,702 935,214 2019/2020 457,412 480,585 937,997 2020/2021 465,497 479,745 945,242 2021/2022 - 483,840 483,840 2022/2023 - 482,213 482,213 2023/2024 - 485,520 485,520 2024/2025 - 487,410 487,410 2025/2026 - 489,090 489,090 2026/2027 - 490,560 490,560 2027/2028 - 497,070 497,070 2028/2029 - 498,015 498,015 $1,843,718 $5,820,098 $7,663,816 170 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com MINNESOTA LEGAL COMPLIANCE To the Honorable Mayor and Members of the City Council City of Chanhassen, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chanhassen, Minnesota as of and for the year ended December 31, 2017, and the related notes to the financial statements, and have issued our report thereon dated June 22, 2018. The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions and tax increment financing. Our audit considered all of the listed categories. In connection with our audit, nothing came to our attention that caused us to believe that the City of Chanhassen, Minnesota failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Cities. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City of Chanhassen, Minnesota’s noncompliance with the above referenced provisions. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 22, 2018 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE To the Honorable Mayor and Members of the City Council City of Chanhassen, Minnesota We have audited the financial statements of the governmental activities, the business- type activities, each major fund and the aggregate remaining fund information of the City of Chanhassen, Minnesota for the year ended December 31, 2017. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated April 16, 2018. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Results Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2017. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were management’s estimate of the portion of construction projects which will be capitalized and estimates relating to the net pension liability. Estimates relating to construction projects are based on feasibility reports and estimates of the City Engineer. Estimates relating to the net pension liability are based on actuarial studies. We evaluated the key factors and assumptions used to develop these estimates in determining that they are reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Determining sensitivity is subjective, however, we City of Chanhassen, Minnesota Communication With Those Charged With Governance Page 2 believe the disclosures most likely to be considered sensitive are Note 8 – Defined Benefit Pension Plans and Note 18 – Subsequent Event. The financial statement disclosures are neutral, consistent and clear. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no corrected or uncorrected misstatements identified during the audit. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated June 22, 2018. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. City of Chanhassen, Minnesota Communication With Those Charged With Governance Page 3 Other Matters We applied certain limited procedures to management’s discussion and analysis, the budgetary comparison information, the schedule of funding progress, and the pension related information, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining and individual nonmajor fund financial statements and schedules which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory section, the statistical section or the other information, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance it. Restriction on Use This information is intended solely for the use of the City Council and management of the City of Chanhassen, Minnesota and is not intended to be, and should not be, used by anyone other than these specified parties. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 22, 2018 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor, Members of the City Council and Management City of Chanhassen, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Chanhassen, Minnesota, as of and for the year ended December 31, 2017, and the related notes to the financial statements, which collectively comprise the City of Chanhassen, Minnesota’s basic financial statements and have issued our report thereon dated June 22, 2018. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of Chanhassen, Minnesota’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Chanhassen, Minnesota’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City of Chanhassen, Minnesota’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Chanhassen, Minnesota’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 22, 2018 City of Chanhassen, Minnesota2017 Audit ReviewJuly 9, 2018David Mol, CPAPartnerAndy Hering, CPADirector1 Reports Issued by AuditorOpinion on the Fair Presentation of the Financial StatementsReport on Internal ControlsReport on Minnesota Legal Compliance Communication to Those Charged with Governance2 Opinion on Financial StatementsWhat did we do?•Determine the financial statements are presented in accordance with GAAP and free of material misstatement.How did we do it?•Audit Standards–GAAS (AICPA)–GAGAS (GAO)What is the result?•A “clean” or Unmodified opinion was issued on the 2017 financial statements.3 Excellence in Financial Reporting4The City has received this award for 25 consecutive years.The Award demonstrates the City’s commitmentto preparing Financial Statements that arecomprehensive, transparent and consistent withAccounting standards. Report on Internal ControlsWhat did we do?•We gained an understanding of internal controls in place and their effectiveness in order to design our audit proceduresWhat is the result?•No findings on internal control over financial reporting.5 Report on Minnesota Legal ComplianceWhat did we do?•Determine the City has complied with certain Minnesota Statutes / Laws that pertain to financial transactionsHow did we do it?•Select sample of transactions to test for compliance with statutory provisions.•Followed the audit guide published by the Office of the State Auditor. The guide consists of seven sections:– Conflicts of interest ‐ Public Indebtedness– Contracting bid laws ‐ Claims and disbursements– Miscellaneous provisions ‐ Tax increment– Depositories of public funds and investmentsWhat is the result?•No findings of noncompliance.6 Communication to Those Charged with GovernanceAccounting policies used and/or changed.•No changes for 2017Accounting estimates in the financial statements.•Capitalization of construction projects•Net pension liability–City’s proportionate share of PERA’s net pension liability ($5,050,000)–Fire Relief net pension liability ($522,000)No difficulties encountered in performing the audit.Financial statement adjustments identified during the audit•No material adjustmentsNo disagreements with management.Other Matters•More changes in accounting standards on the way.7 Summary of Financial Activity8Increase(Decrease) FundBonds Interfund in Fund BalanceFund Type Revenue Expenditures Issued Transfers Balance 12/31/17General$11,238,000 $10,758,000 $ - ($405,000) $75,000 $5,388,000Special Revenue238,000 194,000 - 1,000 45,000 568,000 Debt Service1,117,000 1,122,000 - - (5,000) 8,193,000 Capital Project4,525,000 6,462,000 - 1,579,000 (358,000) 7,136,000 Total $17,118,000 $18,536,000 $0 $1,175,000 ($243,000) $21,285,000Footnotes:General fund - see next slideCapital Project - 2017 expenditures include the following:2,006,000$ 2016 Street Reconstruction796,000$ Park Road overlay999,000$ 2017 Street Improvements217,000$ Great Plains Blvd260,000$ 2017 Sealcoat122,000$ Park Shelter Initiative416,000$ City Hall Exterior333,000$ TIF 5 decertification General Fund Budget Performance9BudgetBudget Actual VarianceRevenues $10,991,000 $11,238,000 $247,000Expenditures 10,991,000 10,758,000 233,000 - Revenues over (under) expenditures - 480,000 480,000 - Transfer out - (405,000) (405,000) - Net increase in fund balance - 75,000 75,000Fund balance - January 1 5,313,000Fund balance - December 31 $5,388,0002017 General Fund Balance Cash Flow Reserve10 General Fund Balance11 ‐ 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 5,500,000 6,000,000 ‐ 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 5,500,000 6,000,0002008 2009 2010 2011 2012 2013 2014 2015 2016 2017General Fund BalanceWorking Capital GoalAdditional Reserve GoalAvailable General Fund Balance Water Fund12 Sewer Fund13 Property Taxes by Jurisdiction14City22%ISD 11236%County36%Other 6% CITY COUNCIL STAFF REPORT Monday, July 9, 2018 Subject Powers Boulevard Pedestrian Crossing Study Section 5:00 P.M. WORK SESSION (FOUNTAIN CONFERENCE ROOM) Item No: A.2. Prepared By Paul Oehme, Director of Public Works/City Engineer File No: PW031A BACKGROUND On March 26, 2018, the City Council entered into a Joint Powers Agreement with Carver County to study pedestrian crossings on Powers Boulevard. Carver County and the City of Chanhassen have drafted a pedestrian crossing study for two crossings at the intersections of Powers Boulevard (CSAH 17) at Lake Lucy Road and Park Road. These locations have been identified by the city and county as areas of potential safety concern. In addition, residents and local businesses have also expressed concern about these crossings. The study has gathered traffic data, crash information and pedestrian movements at each crossing. Engineering analysis has also been completed which will be shared with the City Council. Several design alternatives have been reviewed with a preferred build concept identified at each intersection. The preferred build concept consists of enhanced geometric improvements and an overhead pedestrianactivated Rectangular Rapid Flashing Beacon (RRFB) system. The improvements are expected to improve pedestrian safety at each location by increasing driver awareness, reducing crossing distances, and improving sight lines. The crossing improvements at Lake Lucy Road are estimated to cost $264,000. The crossing improvements at Park Road are estimated to cost $200,000. Staff plans to discuss the findings of the study and review the preferred build enhanced crossings with the City Council. ATTACHMENTS: Concept Layout Information Why Lake Lucy Rd Crossing? •Identified by City & County •Concern from Local Residents •Safety Study Compliance Issues Powers Blvd. and Lake Lucy Lane Preferred Build Crossing Improvements •Pedestrian Refuge Median •Southbound Reduced from 3 to 2 Lanes •Overhead Flasher System •Advanced Flasher System •Enhanced Pavement Markings •Tree Trimming on West Side of Road •Traffic Calming Measures Before After Proposed Improvements Powers Blvd. and Lake Lucy Lane Powers Blvd. and Lake Lucy Lane Preferred Build Crossing Improvements Why Park Rd Crossing? •Identified by City & County •Primary crossing for IWCO employees •Poor compliance Park Rd Existing Conditions •Pole mounted Flasher System •6 Crossing Lanes for Pedestrians •40 mph speed limit Park Road Preferred Build Layout •Increased Median Width Reduce Crossing Distance •Reduce Lane Width •Overhead Pedestrian Activated Crosswalk Flasher System •Enhanced Pavement Markings Park Road Preferred Build Layout CITY COUNCIL STAFF REPORT Monday, July 9, 2018 Subject LongTerm Road Funding Needs for MSA, Local Road, and County Partnerships Section 5:00 P.M. WORK SESSION (FOUNTAIN CONFERENCE ROOM) Item No: A.3. Prepared By Paul Oehme, Director of Public Works/City Engineer File No: BACKGROUND The City of Chanhassen operates and maintains 112 miles of streets. Higher traffic volume streets have been designated collector roadways. The city has designated 22 miles of streets as collectors which generates needs to receive state aid funds from the Highway User Tax Distribution Fund. These funds help support the construction and maintenance of the collector streets. Stateaid funds can also be used to help pay for the city's share of County and State highway projects. Over the past 10 years, most of the Highway User Tax Distribution Fund the city has received has been used to paid for the city's share of the County and State highway projects. Two County street projects are planned in the near future which will be difficult to be paid for with just state aid funds. Carver County has programmed the reconstruction of Lyman Boulevard from Galpin Boulevard to TH 41 for 2019. The current project cost estimate is $13.9 Million and the city share of the project is estimated at $3.7 Million. Funding for the upgrade of Lyman Boulevard was agreed to by Carver County, City of Chaska and the City of Chanhassen in 1994 with a "Master Agreement". This agreement was updated in 2007 with a new "Master Agreement". The reconstruction and turnback of Galpin Boulevard north of TH 5 is estimated at $10 Million and the city share based on the County's cost participation policy is estimated at $3 Million. Carver County has indicated they are not willing to deviate from the County's cost share policy at this time. The city state aid funds are not sufficient to support the city's cost participation in the Lyman Boulevard and Galpin Boulevard projects. The city can advance five times the annual state aid allotment or up to $4,000,000. The city could advance state aid funds to pay for one of the County projects at this time but this would not allow any state aid funds to be used on collector streets for several years. Attached to this background is the collector roadway planned projects assuming no state aid funds would be used on any County or State projects for the next five years. Staff will be discussing options for County highway cost shares projects. Staff has updated the Local Street 10year Improvement plan assuming additional review through the franchise fee is obtained. This plan assumes the current assessment practice to benefiting property owners is still followed. CITY COUNCIL STAFF REPORTMonday, July 9, 2018SubjectLongTerm Road Funding Needs for MSA, Local Road, and County PartnershipsSection5:00 P.M. WORK SESSION(FOUNTAIN CONFERENCEROOM)Item No: A.3.Prepared By Paul Oehme, Director of PublicWorks/City Engineer File No: BACKGROUNDThe City of Chanhassen operates and maintains 112 miles of streets. Higher traffic volume streets have beendesignated collector roadways. The city has designated 22 miles of streets as collectors which generates needs toreceive state aid funds from the Highway User Tax Distribution Fund. These funds help support the construction andmaintenance of the collector streets. Stateaid funds can also be used to help pay for the city's share of County andState highway projects. Over the past 10 years, most of the Highway User Tax Distribution Fund the city has receivedhas been used to paid for the city's share of the County and State highway projects.Two County street projects are planned in the near future which will be difficult to be paid for with just state aid funds.Carver County has programmed the reconstruction of Lyman Boulevard from Galpin Boulevard to TH 41 for 2019.The current project cost estimate is $13.9 Million and the city share of the project is estimated at $3.7 Million.Funding for the upgrade of Lyman Boulevard was agreed to by Carver County, City of Chaska and the City ofChanhassen in 1994 with a "Master Agreement". This agreement was updated in 2007 with a new "MasterAgreement". The reconstruction and turnback of Galpin Boulevard north of TH 5 is estimated at $10 Million and thecity share based on the County's cost participation policy is estimated at $3 Million. Carver County has indicated theyare not willing to deviate from the County's cost share policy at this time.The city state aid funds are not sufficient to support the city's cost participation in the Lyman Boulevard and GalpinBoulevard projects. The city can advance five times the annual state aid allotment or up to $4,000,000. The city couldadvance state aid funds to pay for one of the County projects at this time but this would not allow any state aid fundsto be used on collector streets for several years. Attached to this background is the collector roadway plannedprojects assuming no state aid funds would be used on any County or State projects for the next five years. Staff willbe discussing options for County highway cost shares projects. Staff has updated the Local Street 10year Improvement plan assuming additional review through the franchise fee isobtained. This plan assumes the current assessment practice to benefiting property owners is still followed. ATTACHMENTS: Revolving Assessment Fund Scenerio 1 Revolving Assessment Fund Scenerio 2 Lyman Boulevard Cost Share Estimate County Roads Future Funding Needs 5Year Collector Street Improvement Plan 10Year Local Street Improvement Plan State Aid Funding Balance Franchise Fee Funding Scenarios CARVER COUNTY - CSAH 18 (LYMAN BLVD) IMPROVEMENTS From TH 41 to CSAH 15 Preliminary Cost Summary ASSUMPTIONS: TH 41 Roundabout Included No Federal Funding Assistance Transportation Economic Development (TED) Funding Assistance - Approved ($1.5M): Applies to TH 41 improvements, TH 41 R/W ROADWAY R/W UTILITIES ADMIN(1) 1,430,000$ 1,200,000$ 526,000$ 720,000$ 195,000$ 183,000$ 5,400,000$ 2,300,000$ 1,540,000$ Non-Participating - Fiber Optic (Carver County) 300,000$ 60,000$ 7,550,000$ 3,695,000$ 300,000$ 2,309,000$ Total: GRANTS COOP AGREEMENT TH 41 Reconstruction 49.65%710,000$ MnDOT 710,000$ MAX LS 1,430,000$ TOTAL TH 41 49.65% COOP FUNDING SUBTOTAL 710,000$ 720,000$ REMAINING TH 41 RECONSTRUCTION TED FUNDS TH 41 Reconstruction 208.33%1,500,000$ MnDOT 1,500,000$ LS 720,000$ TOTAL TH 41 208.33% TED FUNDING SUBTOTAL 1,500,000$ 780,000$ REMAINING TH 41 RECONSTRUCTION -$ TH 41 construction costs covered under TED with money remaining for R/W acquistion. 720,000$ 5,400,000$ 300,000$ SUBTOTAL:6,420,000$ CARVER COUNTY TH 41 Reconstruction 100%-$ -$ CSAH 18 Reconstruction - West of TH 41 100%720,000$ 720,000$ CSAH 18 Reconstruction - East of TH 41 50%5,400,000$ 2,700,000$ Right Of Way - East of TH 41 50%2,300,000$ 1,150,000$ Right Of Way - West of TH 41 100%195,000$ 195,000$ Right Of Way - TH 41 (after apply remaining TED funds)100%420,000$ 420,000$ Engineering / Construction Admin - East of TH 41 50%1,540,000$ 770,000$ Engineering / Construction Admin - West of TH 41 & TH 41 100%709,000$ 709,000$ CARVER COUNTY TOTAL 6,664,000$ CHASKA TH 41 Reconstruction 0%-$ -$ CSAH 18 Reconstruction - West of TH 41 0%720,000$ -$ CSAH 18 Reconstruction - East of TH 41 10%5,400,000$ 540,000$ Utilities (Chaska)100%300,000$ 300,000$ Right Of Way - East of TH 41 10%2,300,000$ 230,000$ Right Of Way - West of TH 41 0%1,395,000$ -$ Right Of Way - TH 41 0%1,200,000$ -$ Engineering / Construction Admin - East of TH 41 10%1,540,000$ 154,000$ Engineering / Construction Admin - West of TH 41 & TH 41 0%1,395,000$ -$ Engineering / Construction Admin - Utilities 100%60,000$ 60,000$ CHASKA TOTAL 1,284,000$ CHANHASSEN TH 41 Reconstruction 0%-$ -$ CSAH 18 Reconstruction - West of TH 41 0%720,000$ -$ CSAH 18 Reconstruction - East of TH 41 40%5,400,000$ 2,160,000$ Right Of Way - East of TH 41 40%2,300,000$ 920,000$ Right Of Way - West of TH 41 0%1,395,000$ -$ Right Of Way - TH 41 0%1,200,000$ -$ Engineering / Construction Admin - East of TH 41 40%1,540,000$ 616,000$ Engineering / Construction Admin - West of TH 41 & TH 41 0%1,395,000$ -$ CHANHASSEN TOTAL 3,696,000$ TOTAL PROJECT COST 13,854,000$ (1)ESTIMATED AT 20% FOR ENGINEERING, CONSTRUCTION INSPECTION, RIGHT OF WAY SERVICES MnDOT Cooperative Agreement Funding - Approved ($710k): applies to TH Eligible Construction Items (R/W & Engineering not included) Utilities (Chaska) $13,854,000 ESTIMATED CONSTRUCTION COSTS AFTER APPLYING TED GRANT & COOP AGREEMENT Non-Participating - Watermain Replacement (Chaska) Subtotals: CSAH 18 Reconstruction - East of TH 41 ESTIMATED PROJECT COSTS TH 41 Reconstruction CSAH 18 Reconstruction - West of TH 41 CSAH 18 Reconstruction - East of TH 41 TH 41 Reconstruction CSAH 18 Reconstruction - West of TH 41 COST PARTICIPATION - TH 41 & CSAH 18 SRF Consulting Group, Inc Last Update: 6/12/18 H:\Projects\09000\9008\HI-MU\EXCEL\Estimate\180612_9008_FundingScenario.xlsx OHW 877.0 OHW 699.2 OHW 896.3 OHW 865.3 OHW 944.5 OHW 956.1 OHW 881.8 OHW 955.5 OHW 993.6 OHW945.2 OHW 932.77 OHW 929.8 Lotus Lake Lake R iley Lake Minn ewashta Lake Lucy Rice Lake Lake Susan LakeAnn Lake Virginia Lak eHarrison R iceMarshLake Clasen Lake Lake St J oe ChristmasLake Lyman Blv d ( C S AH1 8 ) Lyman Blvd (CSAH 18)Pione e r Trail (C S AH 14)(C S A H 6 1 )F ly in g C lo u dD rivePowersBlvd(C.R.17)AudubonRoad(CSAH15)State Highway101Hwy 1 0 1GreatPlainsBlvd Hwy 101Great P l a insBlvdState Hwy 5 State Hwy 5Arb oretum Bo ulevard Highway 41GalpinBlvd.(C.R.117)State Hwy 5State H w y 7Hazeltine Blvd (Hwy 41)Chanhassen Rd. Hwy. 101AudubonRoad(C S A H 61 )F ly in g C lo u d D rMinnewashtaPkwyGalpinBlvd(C.R.15)£¤212 £¤212 £¤212 PowersBlvd(C.R.17)Bluff Creek DrBluffCreekBlvd 1,500 0 1,500 3,000750 Feet Ü Legend Proposed MSA Projects 2019 2020 2021 2022 Date : 6/13/2018 K:\NickLH\Projects\PW \Engineering\For Paul\2018\June\Street Planning 2018\2018MSAProjects.m xd Mun icip al State Aid Construction Projects OHW 877.0 OHW 699.2 OHW 896.3 OHW 865.3 OHW 944.5 OHW 956.1 OHW 881.8 OHW 955.5 OHW 993.6 O HW945.2 OHW 932.77 OHW 929.8 Lotus Lake Lake Riley Lake Minnewash ta Lake Lucy Rice Lake Lake Susan Lak eAnn Lake Virginia LakeHarrison RiceMarshLake Clasen Lake Lake St Jo e ChristmasLake Ly man Blv d ( C S AH1 8 ) Lyman Blvd (CSAH 18)Pione e r Trail (C S AH 14)(C S A H 6 1 )F ly in g C lo u dD rivePowersBlvd(C.R.17)AudubonRoad(CSAH15)State High way 101Hwy 1 0 1GreatPlainsBlvd Hwy 101Great P l a insBlvdState Hwy 5 State Hwy 5Arb oretum Bo ulevard Highway 41GalpinBlvd.(C.R.117)State Hwy 5State H w y 7Hazeltine Blvd (Hwy 41)Chanhassen Rd. Hwy. 101AudubonRoad(C S A H 61 )F ly in g C lo u d D rMinnewashtaPkwyGalpinBlvd(C.R.15)£¤212 £¤212 £¤212 PowersBlvd(C.R.17)Bluff Creek DrBluffCreekBlvd Ü Legend Proposed Projects Overlay 2020 Overlay 2022 Overlay 2024 Overlay 2026 Overlay 2027 Overlay 2028 Overlay 2029 Recon 2019 Recon 2021 Recon 2023 Recon 2025 Recon 2026 Recon 2027 Date : 6/29/2018 K:\NickLH\Projects\PW \Engineering\For Paul\2018\June\Street Planning 2018\Planning N ew Street Projects_V5.mxd Proposed 10 Year Street CIP 0 4,000 8,0002,000 Feet 6/7/2018 G:\ENG\state-aid\MSA Projected Fund Balance alt sen 1 2019 City of Chanhassen, City # 194 Municipal State Aid Construction Fund Account Estimated Yearly Expenditures and Balances Assumes State Aid has suffictent funds to Advance Maximum Advancement $4M Year 2018 2019 2020 2021 2022 Beginning Year Balance -$634,944 $10,256 -$1,384,544 -$2,579,344 -$2,974,144 Allocation $905,200 $905,200 $905,200 $905,200 $905,200 Yearly Programmed Expenditure $260,000 $2,300,000 $2,100,000 $1,300,000 $1,900,000 Year Ending Balance $10,256 -$1,384,544 -$2,579,344 -$2,974,144 -$3,968,944 Lake Drive E Bluff Creek Drive Market Blvd Pleasant View Road $1,100,000 $1,500,000 $600,000 $1,900,000 TH 5 Imp. $12,000 Minnewashta Pkwy Lake Lucy Road Lake Drive & Great Plains $1,200,000 $600,000 $700,000 Park Road $248,000 Pleasant View Road (Powers to TH 101) Market Blvd. Imp. (78th to TH 5) Lake Drive E ( Dakota to Great Plains) Great Plains south of TH 5 Bluff Creek Drive Lake Lucy Road (TH 41 to Galpin) Projects Park Road Imp. TH 5 Imp. Lake Drive Imp. (Dell to Dakota) Minnewashta Parkway CITY COUNCIL STAFF REPORT Monday, July 9, 2018 Subject Key Financial Stragegy: Economic DevelopmentConsider Economic Development Practices Policy Section 5:00 P.M. WORK SESSION (FOUNTAIN CONFERENCE ROOM) Item No: A.4. Prepared By Chelsea Petersen, Assistant City Manager File No: SUMMARY This item is being presented as a follow up to the May 29, 2018 City Council work session. Several business subsidy policies and criteria are attached for City Council consideration, as well as a previous draft update of our existing policy. DISCUSSION Staff is looking for discussion and feedback from City Council on whether they would like to update or further modify the existing business subsidy practices. ATTACHMENTS: Chanhassen DRAFT Policy Chaska Policy Shakopee Policy Minnetonka Policy Elk River Policy City Council Work Session Item from May 29, 2018 CITY OF CHANHASSEN BUSINESS SUBSIDY CRITERIA Approved October 11, 1999 Amended April 28, 2003 Amended ___________, 2016 1 CITY OF CHANHASSEN BUSINESS SUBSIDY CRITERIA Policy and Criteria for Business Subsidy GENERAL POLICY The City Council of the City of Chanhassen has the power, should it deem necessary, to grant business subsidies. The fundamental purpose of Business Subsidy Criteria in Chanhassen is to encourage desirable and affordable housing that would not otherwise occur “but for” the assistance provided by the City of Chanhassen Business Subsidy Criteria. This Business Subsidy Criteria shall be used as a guide in processing and reviewing applications requesting business subsidy. PROJECT SELECTION CRITERIA Business Subsidies can benefit the community by providing a broad range of affordable housing opportunities. The Council reserves the right to approve or reject business subsidies on an individual basis. Highest Priority Shall Be Given to Projects Which Include: 1. Compatibility of the proposed project with the City’s overall development plans and objectives. 2. Broad range of housing opportunities such as affordable housing. 3. Minimal impact on City service needs. 4. High quality of the facility to be built. 5. Increase in Tax Base: While an increase in the tax base cannot be the sole grounds for granting a subsidy, the EDA believes it is a necessary condition for any subsidy. 6. Economic Development: Projects should promote one or more of the following: • Encourage economic and commercial diversity within the community; • Provide basic goods and services, increase the range of goods and services available, or encourage fast-growing businesses; • Promote redevelopment objectives and removal of blight, including pollution cleanup; • Promote additional or spin-off development within the community; • Encourage full utilization of existing or planned infrastructure improvements. 2 PROJECT REQUIREMENTS 1. Applicant at all times should retain and be assisted by qualified financial consultants and/or underwriters, and legal counsel. 2. Construction of the project shall not be commenced until the City has given preliminary approval to the application for financing. 3. The City reserves the right to deny any application for financing at any stage of the proceedings prior to adoption of the final approval authorizing issuance of the bonds. 4. The City reserves the right to select a third party administrator to assist in the management of the process. 5. Development must be of the highest quality with high quality building materials and landscaping as agreed between the City and the Developer. 6. Developer must pay all costs of establishing the district unless the City agrees to allow costs to come out of the district. 7. Local requirements may be more stringent than State statute as applies to TIF. 8. Project meets “but for” analysis and statutory qualifications (Exhibit A). 9. All projects must be consistent with Chanhassen’s Comprehensive Plan and any other similar plan or guide for development of the community. ACTIVITIES TO BE CONSIDERED FOR FINANCING 1. Any subsidy granted by the city will be subject to the requirement of a public hearing, if necessary, and must be approved by the Chanhassen City Council. 2. It will be necessary for both the grantee and the EDA (City of Chanhassen) to comply with the reporting and monitoring requirements of the Act. 3. Land write down 4. Costs of streets and utilities 5. Demolition and relocation costs 6. City costs such as trunk utility costs, street costs, and MSA reimbursement 7. Extraordinary landscaping and lighting 8. Soil corrections 3 APPLICATION PROCESS 1. The application process must be completed in accordance with TIF application procedures (Exhibit B). 2. Applicant shall make an application for TIF usage on forms available from the City. 3. The application will include (if appropriate): a. Statement of Public Purposes b. Description of Project c. Plans and Drawings of Project d. Description of Company e. Legal Opinions f. Investment Bank Letter of Feasibility g. Market Analysis h. Pro Forma Analysis i. Financial Statements j. Zoning and Planning Analysis k. Application Fee l. Demonstration of past successful general development capability as well as specific capability in the type and size of development proposed. m. Other Documentation Requested by the City 4. The City’s Business Subsidy program will be administered by the City of Chanhassen’s Economic Development Authority (EDA). The applicant shall submit a completed application and a $2,000 non-refundable application fee. The application fee shall be paid to the City of Chanhassen at the time a final Business Subsidy application is submitted. At the time a final Business Subsidy application is submitted, the applicant shall also deliver to the City a deposit in the amount of $10,000. The purpose of this deposit is to reimburse the City for costs and expenses incurred in connection with preparation of the development agreement and the carrying out of all actions necessary in the fulfillment of the City’s obligations. Any part of the deposit not needed for those purposes shall be promptly returned to the Redeveloper not later than the date of issuance of the Certificate of Completion, or within 15 days following the termination of the Development Agreement for failure to close. It is understood the deposit is not a limitation on the Redeveloper’s obligation to reimburse the City for such costs; and the Redeveloper shall pay the City for any such costs in excess of the deposit within 30 days following a written request to do so. 5. City staff will review the data and make preliminary recommendations to the City Council as to compliance of the application and proposed project with City objectives and criteria/Strategic Plan. 6. Formal evaluation of the application will include, in addition to items subject to preliminary review, review of applicable credit analysis, credit enhancement and legal compliance. Formal recommendation will then be made to the City Council. 4 7. After evaluation of the formal recommendation, the City Council will consider final approval of the establishment of the Business Subsidy and hold the appropriate hearings. 8. All applications and supporting materials and documents shall become the property of the City. 5 CITY OF CHANHASSEN APPLICATION FOR BUSINESS SUBSIDY Business Name: Address: Location of Proposed Development: Type (Partnership, etc.): Nature of Business: Telephone: Project Cost Breakdown: $ $ $ $ Total: $ Date: HISTORY OF APPLICANT 1. Have you ever filed bankruptcy? Yes____ No____ If yes, provide details on separate sheet. 2. Have you ever defaulted on any loan commitment? Yes____ No____ If yes, provide details on separate sheet. 3. Have you ever applied for conventional financing for the project? Yes____ No____ If yes, provide details on separate sheet. If no, why not? 6 4. List financial references: (Name/Address/Contact) a. b. c. 5. Other information pertinent to your application: 6. Name of Counsel: 7 INFORMATION CONCERNING APPLICANT’S PROPOSED PROJECT 1. Is the proposed project a new facility or rehabilitation and/or expansion of existing facility? 2. Industrial/Commercial: 3. What is the present employment of your firm? 4. What will the employment be at completion of project? 5. Estimated Project Cost? 6. What is the principal business or product of the company? 7. Potential other use of proposed development? 8. Will this development attract other related industries? Yes____ No____ If yes, how? 9. What are the proposed financing arrangements? 8 INFORMATION CONCERNING APPLICANT’S PROPOSED HOUSING PROJECT 1. Is the proposed housing project a new facility or rehabilitation and/or expansion of existing facility? 2. Housing Type (single family, multi-family, apartments, condominiums, etc.): 3. Number of units: 4. Number of bedrooms in each unit: 5. Sale price of the units: OR 6. Rental price of the units: 7. Estimated total project cost and breakdown of overall development costs? 8. Who are you principally marketing your product to? 9. How long do you think it will take to sell or rent your product? 10. Do you have linkages/contacts with Chanhassen businesses? Yes____ No____ If yes, please explain. (Reason: To determine if you are meeting the local business needs) 11. What are the proposed financing arrangements? 12. How are you proposing to meet alternate transportation needs? 9 EXHIBIT A SAMPLE “BUT-FOR” ANALYSIS WITH NO BUSINESS SUBSIDY WITH BUSINESS SUBSIDY Sources and Uses Sources and Uses SOURCES SOURCES Mortgage 9,600,000 8,667,000 Equity 2,400,000 2,400,000 Tax Increment 0 933,000 TOTAL SOURCES $12,000,000 $12,000,000 USES USES Land 1,500,000 1,500,000 Site Work 300,000 300,000 Soil Correction 468,000 468,000 Demolition 100,000 100,000 Relocation 65,000 65,000 Subtotal Land Costs $2,433,000 $2,433,000 Construction 6,750,000 6,750,000 Finish Manufacturing 250,000 250,000 Subtotal Construction Costs $7,000,000 $7,000,000 Soft Costs 350,000 350,000 Taxes 35,000 35,000 Finance Fees 850,000 850,000 Project Manager 542,000 542,000 Developer Fee 540,000 540,000 Contingency 250,000 250,000 Subtotal Soft Costs $2,567,000 $2,567,000 TOTAL USES $12,000,000 $12,000,000 Income Statement Income Statement SF per SF Total SF Per SF Total Rent-Space 1 100,000 $8.00 $800,000 100,000 $8.00 $800,000 Rent-Space 2 25,000 $8.00 $212,000 25,000 $8.00 $212,000 Rent-Space 3 25,000 $9.00 $225,000 25,000 $9.00 $225,000 Other 0 $0.00 0 0 $0.00 0 $1,237,500 $1,237,500 Mortgage 20 Term $1,051,646 20 Term $949,439 9.00% Interest 9.00% Interest $9,600,000 $8,667,000 Net Income $185,854 $288,061 Total Return on Equity 7.74% 12.00% 10 “BUT-FOR” ANALYSIS WORKSHEET WITH NO BUSINESS SUBSIDY WITH BUSINESS SUBSIDY Sources and Uses Sources and Uses SOURCES SOURCES Mortgage Equity Tax Increment TOTAL SOURCES USES USES Land Site Work Soil Correction Demolition Relocation Subtotal Land Costs Construction Finish Manufacturing Subtotal Construction Costs Soft Costs Taxes Finance Fees Project Manager Developer Fee Contingency Subtotal Soft Costs TOTAL USES Income Statement Income Statement SF per SF Total SF Per SF Total Rent-Space 1 Rent-Space 2 Rent-Space 3 Other Mortgage Net Income Total Return on Equity 11 I hereby certify the above financial information is true and accurate. _______________________________________ Signature _______________________________________ Title _______________________________________ Date 12 EXHIBIT B CITY OF CHANHASSEN APPLICATION PROCEDURES FOR BUSINESS SUBSIDY 1. Applicant shall meet with City staff to discuss the scope of the project, public assistance being requested, time schedule and other information as may be necessary. 2. Following an initial meeting, applicant shall complete a Business Subsidy application. The completed application shall be submitted to the Executive Director of the Economic Development Authority. 3. The application shall be reviewed by City staff on a preliminary basis as to the feasibility of the project. City staff shall prepare a report on the project. 4. The application shall be placed on an EDA agenda for concept review. The applicant may make a presentation of the project at that time. City staff will present its preliminary findings. 5. The following items must accompany the application: a. $2,000 application fee b. Completed “but-for” worksheet c. $10,000 application deposit d. Statement of Public Purpose e. Description of Project f. Plans and Drawing of Project g. Company Background Material h. Letter of Feasibility i. Market Analysis j. Pro Forma Analysis k. Financial Statements l. Zoning and Comprehensive Plan Analysis m. Other Pertinent Information 6. Following the necessary analysis of the application by City staff, a report shall be prepared and presented to the EDA for formal action. If the application is approved, City staff will be directed to undertake the following steps: a. Prepare a redevelopment agreement between the City of Chanhassen and the Developer; b. Prepare or modify the redevelopment plan and TIF plan if required. 7. If zoning amendments or Planning Commission action is required as part of the project, the appropriate actions shall be taken prior to final consideration of the redevelopment agreement. 13 8. Applicant must follow all city development review processes (e.g. site plan, platting, rezoning, PUD, etc.) before final Business Subsidy application may be approved. If you have any questions concerning the Business Subsidy application process, please contact: City of Chanhassen EDA Executive Director 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 (952) 227-1119 g:\admin\cp\business subsidy\city of chanhassen updated business subsidy plan.docx Business Incentive Programs Chaska has several business incentive programs tailored to further attract desired businesses to the community and to help fill any financial gap with expansion. In addition, City officials work closely with County, Regional, State, and Federal colleagues with all components of the approval process. There are many examples in Chaska of successful companies such as Beckman Coulter, UnitedHealthGroup, Stream Data, and Bailiwick, where City officials have partnered with other government entities. More specifically, over the past decade we have received well over $10 million dollars in grants to help facilitate economic development activities. Based on the specific needs of each business, City staff works as an advocate in putting together a business assistance incentive package to ensure success. Some of the most popular programs include: City Incentives • Tax Increment Financing---for brownfield or redevelopment projects, the City is able to use the new taxes that are generated to help off-set site development expenditures such as grading, utilities, demolition, environmental remediation, etc. • Tax Abatement---The City offers new businesses/expansion tax abatement for a total of three times the annual total of new property taxes generated to help off-set site preparation costs. What does this amount to? Depending on the assessed value of the property, incentive amounts could range from $50,000 to $3,000,000 over the course of 20 years. • Chaska Electric “Energy Retrofit Program”---For properties within its electric territory, the City of Chaska offers lighting retrofit, variable frequency drives, and custom retrofit incentive programs to businesses to promote energy efficiency. Rebate amounts can be as high as $150,000. • Chaska Electric “Energy New Construction Program”---For properties within its electric territory, the City of Chaska offers lighting rebates for high efficiency lighting, variable frequency drives, and custom new construction incentive programs to businesses to promote energy efficiency. Rebate amounts can be as high as $150,000. County Programs • Carver County Business Loan Fund--- Carver County offers up to $500,000 in low interest loans. The intent of the initiative is to provide attractive capital to successful and financially strong Carver County businesses helping them grow and expand their investment and work force. Eligible expenses include construction and equipment costs. State Programs • Minnesota Investment Fund--- This State of Minnesota incentive offers up to $1,000,000 in low interest and forgivable loans. The intent of the initiative is to provide attractive capital to successful and financially strong businesses helping them grow and expand their investment and work force. Eligible expenses include construction and equipment costs. • Innovative Business Development and Infrastructure Grant---A state-sponsored program that provides up to $500,000 in reimbursable public infrastructure costs for private development. Eligible expenses include: stormwater systems, utility connections, parking and street improvements. • Job Skills Training---This program, offered by the State of Minnesota, provides up to $400,000 in grants for the training and/or retraining of workers in conjunction with an accredited educational institution. This program does require a match from the company which is generally covered by the company paying the employees to attend the training. • Job Creation Fund---While the details are still being worked out, this program, offered by the State of Minnesota, will provide funding for projects that include a high number and high-wage jobs. This program will commence in 2014. Federal Programs • Foreign Trade Zone---The City has also in one of the few defined foreign trade zones within the State. This incentive allows for duty elimination, inverted tariff relief, and ad valorem tax exemptions on the imported and exported goods that are manufactured here. https://www.chaskamn.com/397/Business-Incentive-Programs June 21, 2016 Page 1 City of Shakopee, Minnesota BUSINESS SUBSIDY POLICY 1) POLICY PURPOSE For the purposes of this document, the term “City” includes the Shakopee City Council, staff, the Economic Development Authority, advisory boards and commissions, financial consultants and legal counsel. Economic development incentives are financial tools that enable the City to provide opportunities and benefits for its businesses and residents. Incentives can take a variety of forms, including, but not limited to, cash, debt financing, tax and fee waivers, credits and rebates. The City of Shakopee provides economic development incentives in order to achieve its long-range vision of creating a diverse and sustainable economic base. A sustainable economic base is achieved in part through the creation and retention of quality, high paying jobs. A diverse and sustainable economy offers opportunity for improved quality of life for the residents of Shakopee. Economic development projects may also achieve other worthwhile goals. For instance, some projects provide value to the community in the forms of infrastructure improvements, stabilization of business districts or neighborhoods, or concentration of selected industries. This document sets forth the specific criteria the City uses to evaluate a request for Business Subsidy. In adopting these criteria, it is the intent of the City to comply with Minnesota Statutes, Sections 116J.993-116J.995 as amended (the Act). The City hereby adopts the definitions contained in the Act for application of the criteria, and they are incorporated herein by reference. The City has adopted this policy and these criteria after a public hearing in accordance with the Act. The City reserves the right to approve or reject projects on a case-by-case basis, taking into consideration established policies, project criteria, and demand on City services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of business assistance to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. The City can deviate from this policy for projects that supersede the objectives identified herein. Any applicant who is not in good standing with the City, in regards to licenses, fees or other specific charges, will not be considered for business subsidies. The City may charge a fee for requests under this policy, and these fees will be adopted annually during the fee schedule review. June 21, 2016 Page 2 2) BUSINESS SUBSIDY OBJECTIVES As a matter of adopted policy, the City will consider offering a business subsidy to assist private development projects that achieve one or more of the following objectives: • To increase the City’s tax base. • To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. Preference will be given to higher paying jobs that also provide benefits such as health care coverage. • To encourage new head of household job creation paying at least $19.00/hour (200% of the state minimum wage), exclusive of benefits. Jobs to be retained are not required to meet the above wage standard. After a public hearing, the City may establish wage goals for new jobs to be created that vary from the above standard, and take into account these additional factors; o The size of the business and its potential to create higher paying jobs in the future; o Local economic conditions; • To support projects that provide value in the forms of needed transportation and other utility infrastructure improvements that would be completed in conjunction with the project. • To encourage additional unsubsidized private development in the area, either directly or indirectly through “spin off” development. • To facilitate the development process and to achieve development on sites which would not otherwise be developed but for the use of a business subsidy. • To remove blight and/or encourage redevelopment of commercial and industrial areas that will result in high-quality redevelopment and private reinvestment. • To offset increased costs of redevelopment (i.e. contaminated site clean-up) over and above the costs normally incurred in development. • To create opportunities for affordable housing and/or a diversification of housing stock available within the community. • To support a project that will improve the quality of life in the City by providing a desirable good or service and addressing an unmet demand in the community. • To contribute to the implementation of other public policies, as adopted by the City from time to time, such as the promotion of quality urban or architectural design, energy conservation, and decreasing capital and/or operating costs of local government. • To support the retention and/or adaptive re-use of buildings of historical or architectural significance. • To promote revitalization and redevelopment in the Main Street Corridor. June 21, 2016 Page 3 3) ECONOMIC DEVELOPMENT INCENTIVE PROGRAMS Criteria for these programs are at the discretion of the governing body and may include additional policies and procedures. a. Tax Abatement: The City of Shakopee is granted the power to utilize tax abatement by Minnesota Statutes 469.1812 through 469.1816 as amended and the City of Shakopee Tax Abatement Policy approved on March 18, 2014, authorized by EDA Resolution No. 2014-3 and City Council Resolution No. 7435. The fundamental purpose of tax abatement in Shakopee is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided through the tax abatement. The City utilizes “Pay-As-You-Go” Tax Abatement, which relies on the developer to pay for the up-front project costs with reimbursement from tax abatement. b. Tax Increment Financing: The City of Shakopee is granted the power to utilize TIF by the Minnesota Tax Increment Financing Act, Minnesota Statutes 469.174 through 469.1794 as amended and the City of Shakopee Tax Increment Financing Policy approved on March 18, 2014, authorized by EDA Resolution No. 2014-2 and City Council Resolution No. 7434. The fundamental purpose of tax increment financing in the City of Shakopee is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided through TIF. The City utilizes “Pay-As-You-Go” TIF, which relies on the developer to pay for the up-front project costs with reimbursement from tax increment. c. Metropolitan Council Sewer Availability Charge (SAC) Credit: When new construction or a change in use of a property requires additional sanitary sewer capacity, a fee is charged by the Metropolitan Council-Environmental Services. The fee is based on the Metropolitan Council’s determination of the number of sewer availability charge (SAC) units. d. City of Shakopee Sanitary Sewer Availability Charge (SAC) Credit: In 1994, the City adopted access fees for the sanitary sewer system (SAC). Those fees are used for construction of other MCES interceptors and long-term maintenance of the City sanitary sewer system. For any construction project or change in use, the City SAC is the same as the number of units determined by the Metropolitan Council. However, City fees will be imposed only for the units resulting from an expansion or a change of use that requires additional charges. e. Minnesota Investment Fund: The City of Shakopee is granted the power to utilize the Minnesota Investment Fund Program by Minnesota Statute 116J.8731 as amended. f. Commercial Exterior Improvement Program: The City of Shakopee is granted the power to utilize the Commercial Exterior Improvement Program by the Municipal Commercial Rehabilitation Loan Program, Minnesota Statute 469.184 as amended. June 21, 2016 Page 4 g. Property Sales: The City of Shakopee may negotiate the sale price of property owned by the City or EDA for new or expanding businesses and/or multi-family housing developments. h. Bonds: The City of Shakopee, Minnesota (the “City”) has the authority to issue revenue bonds pursuant to Minnesota Statutes, Sections 469.152 to 469.1651 (the “Industrial Development Act”), Minnesota Statutes, Chapter 462C (the “Housing Act”) and the City of Shakopee Private Activity Revenue Bond Policy approved on June 18, 2013, authorized by City Council Resolution No. 7318. The City Council of the City will consider the issuance of private activity bonds (both taxable and tax-exempt) to finance the following types of projects; manufacturing/industrial facilities, multifamily housing, health care facilities, other projects on behalf of 501(c)(3) organizations and other projects authorized by state statutes and federal law. In extraordinary circumstances, the City Council of the City may consider and approve the issuance of Private Activity Bonds by the Economic Development Authority for the City of Shakopee (the “EDA”). 4) APPLICATION PROCESS a. The applicant will complete and submit the City's Application for Business Subsidy along with the required application fee (refer to the current year’s adopted fee schedule). The application fee covers the City's outside legal counsel review and financial analysis costs. The applicant will also provide any additional information requested by the City. The applicant will be liable for any additional costs beyond the initial deposit. All materials submitted to the City in connection with a business subsidy application shall become the property of the City and is subject to data privacy law. b. City staff or the City's agent shall review the application materials and make a preliminary recommendation to the City regarding the completeness of the application, whether the application meets the goals of this policy, and whether the application complies with the criteria established in the incentive program’s policy. c. When necessary, Public Hearing Notices are published and sent to the county and/or school board. d. In the event that the City concurs with the recommendation above, the City will consider the application during a public meeting. The City will grant final approval or denial of the proposal. e. Additional agreements and program requirements (including annual reporting) may be necessary depending on the form of business subsidy and/or the value of the award, as defined in Minnesota Business Subsidy Statute, Sections 116J.993-116J.995 as amended (the Act). 2019-2023 ECONOMIC IMPROVEMENT PROGRAM ECONOMIC IMPROVEMENT PROGRAM 2019-2023 CITY OF MINNETONKA Adopted June 4, 2018 2019-2023 ECONOMIC IMPROVEMENT PROGRAM Table of Contents Chapter 1: Policy Economic Improvement Policy ……………………………………………………… 1 Chapter 2: Housing Housing Chapter Summary…………………………………………………………… 3 CDBG Administration………………………………………………………………….. 4 Small Projects Rehabilitation Program (Emergency Repair Program)…………… 5 Fair Housing……………………………………………………………………………. 6 Homes Within Reach………………………………………………………………….. 7 Housing Improvement Areas (HIA)…………………………………………………… 8 Minnetonka Home Enhancement……………………………………………………. 9 Public Services…………………………………………………………………………. 10 Tax Exempt Financing/Conduit Debt………………………………………………… 11 Affordable Housing via TIF Pooling (Blvd Gardens)…………………..…………… 12 Affordable Housing via TIF Pooling (Beacon Hill) …………………………………. 13 Welcome to Minnetonka………………………………………………………………. 14 Employer Assisted Housing…………………………………………………………… 15 Next Generation Program…………………………………………………………....... 16 Chapter 3: Business Business Chapter Summary………………………………………………………….. 18 Fire Sprinkler Retrofit………………………………………………………………….. 19 Grants…………………………………………………………………………………… 20 Common Bond/Industrial Revenue Bonds………………………………………….. 21 GreaterMSP…………………………………………………………………………… 22 Minnesota Investment Fund/Job Creation Fund….………………………………… 23 Open To Business……………………………………………………………………… 24 Outreach………………………………………………………………………………… 25 Property Assessed Clean Energy……………………………………………………. 26 Economic Development Infrastructure Fund………………………………………… 27 TwinWest Chamber of Commerce……………………………………………………. 28 Economic Gardening…………………………………………………………………… 29 Special Service District………………………………………………………………… 30 SAC/REC Deferral Program ……………………………………………………........ 31 Chapter 4: Transit Transit Chapter Summary…………………………………………………………….. 33 Commuter Services……………………………………………………………………. 34 Transit Improvements………………………………………………………………….. 35 Chapter 5: Development and Redevelopment Development/Redevelopment Chapter Summary………………………………….. 37 Predevelopment………………………………………………………………………… 38 Village Center Studies/Comprehensive Plan…..……………………………………. 39 LRT Station Area Development……………………………………………………… 40 Strategic Marketing…………………………………………………………………….. 41 City-Owned Properties………………………………………………………………… Future HRA Levy Projects……………………………………………………………. 42 43 Chapter 6: TIF Districts TIF Administration……………………………………………………………………… 45 Beacon Hill TIF District………………………………………………………………… 46 Boulevard Gardens TIF District………………………………………………………. 47 Glenhaven TIF District…………………………………………………………………. 48 Tonka on the Creek TIF District (The Overlook)…………………………………….. 49 Applewood Pointe TIF District…………………………………………………………. 50 Rowland Housing TIF District (At Home)…………………………………………….. 51 Chapter 7: Tax Abatement Ridgedale………………………………………………………………………………... 53 Chapter 8: Funding Sources and Expenditure Projections Fund Descriptions……………………………………………………………………… 55 Expenditures by Category and by Fund……………………………………………... 56 Development Fund Funding Sources and Expenditures Projections…………….. 57 HRA Levy Funding Sources and Expenditure Projections………………………… Livable Communities Funding Sources and Expenditure Projections..………….. 59 61 CDBG Funding Sources and Expenditure Projections…………………………….. 62 TIF Pooling Funding Sources and Expenditure Projections………………………. 64 Total 10-year Funding Sources and Expenditure Projections……………………. 65 Beacon Hill TIF District Fund Balance Analysis……………………………………. 66 Boulevard Gardens TIF District Fund Balance Analysis…………………………… 68 Glenhaven TIF District Fund Balance Analysis…………………………………….. 70 Chapter 9: Affordable Housing Goals Affordable Housing Goals……………………………………………………………... 73 Affordable Housing Income Limits……………………………………………………. 76 Glossary Glossary of terms……………………………………………………………………… 77 Economic Improvement Program Policy The Economic Improvement Program (EIP) is the city’s long-term plan for housing, economic development, redevelopment, and transit programs that promote economic viability for the citizens and businesses of Minnetonka. Funding Categories The EIP covers a broad range of community development activities. Funding categories include: 1.Projects and programs which encourage diversity and broaden choices in types, sizes, and prices of the city’s housing stock to meet the needs of the aging population and to attract younger residents. 2.Projects that support existing business retention and expansion, attract new businesses, and allow the city to remain economically competitive. 3.Projects which enhance resident mobility by pursuing opportunities and solutions to improve transit service. 4.Activities that promote the vitality of the city through development and redevelopment. Planning Principles •The EIP will support achievement of the city’s Comprehensive Plan and long- term Strategic Goals. •The EIP will be updated annually to reflect changes in programs, demographics, private housing stock, business needs, and the overall economic climate. •The EIP allows flexibility, and may be amended during the year if necessary, in order to act upon unforeseen opportunities that may arise which enhance economic viability. •Development of the EIP will be consistent with the annual operating budget. Future staffing and other budgetary impacts are projected and will be included in operating budget forecasts. 1 HOUSING MINNETONKA ECONOMIC IMPROVEMENT PROGRAM 2 HOUSING CHAPTER SUMMARY Projects and programs which encourage diversity and broaden choices in types, sizes, and prices of the city’s housing stock to meet the needs of the aging population and to attract younger residents. The city currently has 10 programs in place to assist in the construction, maintenance, and renewal of housing in the city. An additional two programs are in the conceptual phase and will be explored for further consideration. •The total five-year estimated cost of the programs is $10,453,979. Program 2019 2020 2021 2022 2023 5-Year Total CDBG Administration 10,000 8,000 6,000 0 0 $24,000 Small Projects 80,000 60,000 40,000 0 0 $180,000 Fair Housing 800 600 400 0 0 $1,800 Homes Within Reach 100,000 25,000 25,000 25,000 25,000 $200,000 Housing Improvement Areas 3,930,000 0 2,000,000 0 0 $5,930,000 Minnetonka Home Enhancement 50,000 50,000 50,000 50,000 50,000 $250,000 Public Services 14,000 11,000 8,000 0 0 $33,000 Tax Exempt Financing/Conduit Debt 0 0 0 0 0 $0 Affordable Housing via TIF Pooling 1,765,179 600,000 600,000 620,000 0 $3,585,179 Welcome to Minnetonka 50,000 50,000 50,000 50,000 50,000 $250,000 $5,999,979 $804,600 $2,779,400 $745,000 $125,000 $10,453,979 Conceptual Programs Employer Assisted Hsg $0 Next Generation Program $0 Programs in green=funding/program is expected to continue Programs in yellow=funding/program is uncertain for a number of reasons Programs in red=funding/program is ending •Programs funded by Community Development Block Grant (CDBG) program are expected to be eliminated or restructured in the near future due to decreases and potential elimination of the CDBG program at the federal level. •The 2018/2019 allocation for Homes within Reach is anticipated to be funded through the HRA levy. •In 2017, The Livable Communities Account received a repayment in the amount of approximately $400,000 as a results of the sale of Minnetonka Heights. 3 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 1-Housing Description The Community Development Block Grant (CDBG) program is a federally-funded program, administered at the local level. SCHEDULING AND PROJECT STATUS: This is an on-going program. The CDBG program year runs July 1 to June 30, which is different than the city’s fiscal year. Project #Housing-01 Priority Yellow Justification Based upon the needs, priorities, and benefits to the community, CDBG activities are developed and the division of funding is determined at a local level. All funded activities must meet at least one of the three national objectives: -Benefit low and moderate income persons -Help prevent and/or eliminate slums and/or blight -Meet other community development needs of particular urgency PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS: Comprehensive Plan-Provide city services and collaborate with outside agencies and the private sector to leverage additional services that reinforce the city's values. Strategic Plan-Initiating programs and policies that broaden housing choices to both meet the needs of our aging population and attract young residents. KEY MEASURES N/A Budget Impact/Other This funding is to repay the staff time involved for the overall administration of the CDBG program. In 2018, the city joined the county CDBG program administration activities such as IDIS reporting, monitoring, marketing, fair housing activities, and ongoing program administration are now completed by Hennepin County. It is expected that CDBG funds will be eliminated or restructured at some time in the near future by the federal government. For purposes of this report, we assume phased out of the program by 2022. Beginning on July 1, 2018, the CDBG funding will flow directly to the county for the administration of Minnetonka's programming. Useful Life N/A Project Name CDBG Administration Category Housing Type Program Key Measures Key Measures Program Administration Hours Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 24,00010,000 8,000 6,000 0 0Program Cost 10,000 8,000 6,000 0 0 24,000Total Total2019 2020 2021 2022 2023Funding Sources 24,00010,000 8,000 6,000 0 0CDBG 10,000 8,000 6,000 0 0 24,000Total City of Minnetonka 2018-2022 EIP 4 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 1-Housing Description The Small Projects loan program (previously called the Emergency Repair Program) offers ten-year, no interest deferred loans up to $15,000. The loan amount was increased in 2018 to respond to increased cost of repairs. Between 2005 - 2017 the maximum loan amount for the program was capped at $5,000. SCHEDULING AND PROJECT STATUS: This is an ongoing program. New applications are only accepted during certain periods of time. A new round of applications will open in April 2018. Typical projects include furnaces, window, and roof replacement. The CDBG program year is July 1 to June 30, which is different than the city's fiscal year. Project #Housing-03 Priority Yellow Justification Households up to 80% of area median income qualify for the $15,000 Small Projects Program, which allows for housing repairs and maintenance. Additions and aesthetic improvements are not allowed under the program. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS: Comprehensive Plan-Promote housing maintenance programs that improve the livability of existing residential dwelling units in a cost effective manner. Strategic Plan-Initiate programs and policies to broaden housing choices to meet the needs of our aging population and attract young residents. KEY MEASURES Households Assisted 2015 2016 2017 2018 2019 2020 2021 2022 2023 47 25 14 10 10 10 8 8 8 Budget Impact/Other Beginning on July 12018, Hennepin County staff will oversee the entire program from application, to project management to signing of the loan documents. The administrative costs associated with the program are 13% of the rehabilitation program fund for the 2018 program year. With the declining CDBG funds, less emphasis will be placed on this program, which will decrease assistance to households. However, with nearly 222 outstanding loans in the portfolio several loan repayments are expected each year, which will add additional funding to the loan pool to provide additional loans. It is expected that CDBG funds will be eliminated or restructured in the near future by the federal government. The program would be expected to end at about that time unless new funding is identified. For purposes of this report, staff assumes a phase out of the program by 2022. Beginning on July 1, 2018, the CDBG funding will flow directly to the county for the administration of Minnetonka's programming. Useful Life N/A Project Name Small Projects Program Category Housing Type Program Key Measures Key Measures Households Assisted Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 180,00080,000 60,000 40,000 0 0Program Cost 80,000 60,000 40,000 0 0 180,000Total Total2019 2020 2021 2022 2023Funding Sources 180,00080,000 60,000 40,000 0 0CDBG 80,000 60,000 40,000 0 0 180,000Total City of Minnetonka 2018-2022 EIP 5 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 1-Housing Description As part of the city’s CDBG allocation, the city must participate in and further fair housing activities. This is accomplished by participating in the Hennepin County Consortium and Fair Housing Implementation Council. The city has been directly providing funds for fair housing since it became an entitlement community in 2005. The city is working with Hennepin County Consortium to coordinate a collaborate fair housing strategy. SCHEDULING AND PROJECT STATUS This is an ongoing program. The CDBG program year runs July 1 to June 30, which is different than the city’s fiscal year. Project #Housing-04 Priority Yellow Justification To further fair housing and remove impediments to fair housing within the city. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS: Comprehensive Plan-Provide city services and collaborate with outside agencies and the private sector to leverage additional services that reinforce the city's values. Strategic Plan-Initiating programs and policies that broaden housing choices to both meet the needs of our aging population and attract young residents. KEY MEASURES (Program year is July 1 to June 30) The city participates in Fair Housing Implementation Council efforts to further fair housing activities. Participation in fair housing activities is a requirement of receiving funds from the U.S Department of Housing and Urban Development. Budget Impact/Other Typically, one percent of the city’s CDBG annual allocation is contributed to the Hennepin County Consortium. There is no staff time provided for this program, with the exception of review and feedback on information provided by the consortium and the Fair Housing Implementation Council. It is expected that CDBG funds will be eliminated or restructured in the near future by the federal government. The program would be expected to end at about that time unless new funding is identified. For purposes of this report, it is assumed that the program will phase out by 2022. Beginning on July 1, 2018, the CDBG funding will flow directly to the county for the administration of Minnetonka's programming. Useful Life N/A Project Name Fair Housing Category Housing Type Program Key Measures Key Measures Education/Information Sessions Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 1,800800 600 400 0 0Program Cost 800 600 400 0 0 1,800Total Total2019 2020 2021 2022 2023Funding Sources 1,800800 600 400 0 0CDBG 800 600 400 0 0 1,800Total City of Minnetonka 2018-2022 EIP 6 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 1-Housing Description Homes Within Reach (also known as the West Hennepin Affordable Housing Land Trust) is a non-profit community land trust that creates and preserves affordable homeownership opportunities in suburban Hennepin County. SCHEDULING AND PROJECT STATUS This program is ongoing. Depending on the level of commitment by the city and other matching funds, Homes Within Reach anticipates adding one to two new permanently affordable owner-occupied units to the city each year. Project #Housing-05 Priority Red Justification In an effort to promote long-term affordable, scattered-site housing, while maximizing the cost-effectiveness of public investment, the community land trust model was presented as a tool in 2000 to help the city increase its amount of long-term affordable housing. The Homes Within Reach program provides single-family, permanently affordable, homeownership opportunities to those at 80% AMI or less. Minnetonka’s funds will be used to leverage and match other county, regional, and state funds. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Creating partnerships with other agencies to ensure the longevity of affordable housing. Strategic Plan-Initiate programs and policies to broaden housing choices to meet the needs of our aging population and attract young residents. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total HWR units in Minnetonka 54 55 56 57 58 58 58 58 58 Budget Impact/Other Homes Within Reach requests funding through the non-profit funding process each year. Growth in long term affordable units is important, but there should be some adjustment to the city’s commitment to ensure it is sustainable. After 2017, the Livable Communities Account is no longer available. An EDAC subcommittee met in 2014 and recommended that HWR funding be decreased beginning in 2017. An annual maintenance fee will be collected beginning in 2020 to assist with ongoing maintenance and operations. The proposed funding source for ongoing maintenance is the HRA levy. Useful LifeProject Name Homes Within Reach Category Housing Type Program Key Measures Key Measures HWR units in Minnetonka Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 200,000100,000 25,000 25,000 25,000 25,000Program Cost 100,000 25,000 25,000 25,000 25,000 200,000Total Total2019 2020 2021 2022 2023Funding Sources 200,000100,000 25,000 25,000 25,000 25,000HRA Levy 100,000 25,000 25,000 25,000 25,000 200,000Total City of Minnetonka 2018-2022 EIP 7 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 1-Housing Description Minnesota law provides a mechanism termed Housing Improvement Area (HIA) which allows cities to help arrange and finance rehabilitation on owner-occupied residential buildings, such as condominiums or townhouses. SCHEDULING AND PROJECT STATUS The council adopted an HIA policy in November 2011. The first HIA was adopted in early 2012. It is expected that interest in this program will grow as condo and townhouse developments age. State legislation for HIA's sunsets on June 30, 2028. Project #Housing-06 Priority Yellow Justification The program is intended to serve aging multi-family housing by providing a financing structure to address major building investments. The program would also ensure, going forward, that the association is able to correct the financing of long-term capital expenditures. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Continue to collaborate with lenders or other agencies that offer programs for home rehabilitation. Strategic Plan-Initiating programs/policies to broaden housing choices to meet the needs of our aging population and attract young residents. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Units Assisted 0 0 0 164 0 0 100 0 0 Budget Impact/Other The HIA program is administered by staff who work on various parts of the project ranging from program information to HIA requests. Once an HIA request is received, staff time is committed to preparing a resolution, ordinance, development agreement, and determining fees. Costs to cover staff time for the HIA application are covered through an application fee and through a per unit administrative fee for time in administering the assessment. A risk of the HIA program is pay-back of the assessment. However, because it is assessed on the property taxes, it will be paid back even if there is foreclosure of the property. In August 2017, the city council approved an Housing Improvement Area for Cloud 9 for up to $3.93 million to repair the curtain wall and make upgrades to the elevators and the HVAC system. The city will issue bonds rather than the utilize the development fund to finance the project. Useful Life N/A Project Name Housing Improvement Areas Category Housing Type Maintenance Key Measures Key Measures Units Assisted Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 5,930,0003,930,000 0 2,000,000 0 0Construction/Maintenance 3,930,000 0 2,000,000 0 0 5,930,000Total Total2019 2020 2021 2022 2023Funding Sources 000000Development Fund 5,930,0003,930,000 0 2,000,000 0 0Revenue Bonds 3,930,000 0 2,000,000 0 0 5,930,000Total City of Minnetonka 2018-2022 EIP 8 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 1-Housing Description The Minnetonka Home Enhancement program (MHEP) offers up to $15,000 through a low-interest loan for housing maintenance, repair, green investments, and some additions. The interest rate in 2018 is 3.225% (Annual Percentage Rate based on $15,000 for 10 years). SCHEDULING AND PROJECT STATUS The program began June 2011. This is an ongoing program. Project #Housing-08 Priority Yellow Justification Minnetonka’s housing stock is aging. Nearly two-thirds of the city’s homes were built between 1950 and 1970, and over 75% of the housing stock is 30 years or older. Many of these homes now need repairs for windows, roofs, and heating systems. The MHEP targets households up to 120% area median income with loans for rehabilitation and other housing maintenance activities for housing valued at $300,000 or less. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Promote housing maintenance programs to improve the livability of residential dwelling units in a cost effective manner. Strategic Plan-Initiate programs/policies to broaden housing choices to meet the needs of our aging population and attract young residents. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Loans Made 5 3 1 3 4 4 4 4 4 Loans Defaulted 0 0 0 0 0 0 0 0 0 Budget Impact/Other In 2017, the city ended the contract with the Greater Metropolitan Housing Corporation (GMHC) to administer the Welcome to Minnetonka program on behalf of the city. In January 2018, the city entered into a new contract with the Center for Energy and Environment. It is unlikely that this program will become self-sustaining. While there are loan paybacks put back into the program, another $75,000 was added in 2018 (split with the Welcome to Minnetonka program) to continue to make new loans. Project funding amounts may change as a sliding scale approach is used with this and the Welcome to Minnetonka program to allow flexibility to meet demands of the programs. Since there is a fund balance in the program from previous years allocations, the expenditures and sources are shown as zero above until the funds are used. Staff will be reviewing the program guidelines over the next year to determine if any changes need to be made. Useful Life N/A Project Name Minnetonka Home Enhancement Category Housing Type Program Key Measures Loans Defaulted Key Measures Loans Made Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 250,00050,000 50,000 50,000 50,000 50,000Program Cost 50,000 50,000 50,000 50,000 50,000 250,000Total Total2019 2020 2021 2022 2023Funding Sources 250,00050,000 50,000 50,000 50,000 50,000HRA Levy 50,000 50,000 50,000 50,000 50,000 250,000Total City of Minnetonka 2018-2022 EIP 9 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 1-Housing Description Up to 15 percent of the city’s Community Development Block Grant funds can be used to fund public services (non-profits). The public service agencies programs must meet one of the three CDBG national objectives. SCHEDULING AND PROJECT STATUS Public services funded by CDBG funds are selected during the non-profit funding review completed by the EDAC each October. Projects then commence in July the following year. The CDBG program year runs July 1 to June 30, which is different than the city’s fiscal year. Project #Housing-10 Priority Yellow Justification Public Service agencies provide a number of services, such as foreclosure prevention, information and referral, and senior home improvement services. Clients must be Minnetonka residents at 80% of area median income or less. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Provide city services and collaborate with outside agencies and the private sector to leverage additional services that reinforce the city's values. Strategic Plan-Initiating programs and policies that broaden housing choices to both meet the needs of our aging population and attract young residents. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 Individuals Assisted 696 508 676 700 700 700 N/A N/A Budget Impact/Other In 2018, the city joined the Joint Urban County CDBG Program. Funding for public service agencies is being considered through a coordinated RFP process. In 2018, the following previously funded public service agencies, serving Minnetonka residents, applied for funding through the coordinated RFP Process: CAP-HC, ICA, ResourceWest, TreeHouse and Senior Community Services H.O.M.E. program, and HOME Line. In addition, YMCA was recommended funding for Youth Programming in Minnetonka. Hennepin County will consider approval of funding awards in May/June 2018 and HUD approval of awards will be announced in June/July 2018. It is expected that CDBG funds will be eliminated or restructured in the near future by the federal government. For purposes of this report, we assume phased out of the program by 2021. Beginning on July 1, 2018, the CDBG funding will flow directly to the county for the administration of Minnetonka's programming. Useful Life N/A Project Name Public Services Category Housing Type Program Key Measures Key Measures Individuals Assisted Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 33,00014,000 11,000 8,000 0 0Program Cost 14,000 11,000 8,000 0 0 33,000Total Total2019 2020 2021 2022 2023Funding Sources 33,00014,000 11,000 8,000 0 0CDBG 14,000 11,000 8,000 0 0 33,000Total City of Minnetonka 2018-2022 EIP 10 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 1-Housing Description Cities, under State Statute Sections 469.152 to 469.165 and Chapter 462C, have the authority to issue tax exempt financing for industrial development, health care facilities and multi-family housing. In 1984 the city council adopted a council policy to guide the city in requests. A revised council policy was adopted in 2015. Examples of projects include St. David's Center building updates (2014) and Elmbrooke Townhomes (2017). Host approval can also be given for projects where financing is issued by another city (example: Hammer Residences and Eagle Ridge Academy (2015 and 2016). SCHEDULING AND PROJECT STATUS Projects are reviewed to determine if they meeting council policy guidelines and if the city has enough annual financing available. Projects are then brought forward after this review. It is anticipated that the city will not have capacity to finance projects in 2018 and 2019. Project #Housing-11 Priority Green Justification To attract/promote economically sound industry, commerce, and health care, as well as for housing projects for low/moderate income and elderly persons. Tax exempt financing is used on a selective basis to encourage development offering a benefit to the city as a whole. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan- -Support and encourage housing options that are attractive to a wide variety of age and income levels of residents. -Facilitate connections between local businesses and programs that provide incentives and assistance for business retention and recruitment. Strategic Plan- -Initiating programs and policies that broaden housing choices to meet both the needs of our aging population and attract young residents. -Supporting business retention and expansion and attracting new businesses to help our private sector be economically competitive. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Projects Considered 2 2 2 0 0 2 2 2 2 Projects Implemented 2 2 2 0 0 2 2 2 2 Business projects 2 0 1 0 0 1 1 1 1 Housing projects 0 2 1 0 0 1 1 1 1 Budget Impact/Other Work on Tax Exempt Financing projects is completed by the city’s legal counsel and financial consultants. Application ($3500) and administrative fees (1/8 of 1% of financing amount) cover the city’s expenses, and most often, ending in positive income for the city. Useful Life N/A Project Name Tax-Exempt Financing/Conduit Debt Projects Category Housing Type Program Key Measures Businesses Assisted Key Measures Projects Assisted Key Measures Projects Considered Key Measures Housing Projects Assisted Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Other 000000Total City of Minnetonka 2018-2022 EIP 11 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 1-Housing Description TIF pooling is a way, under state statute, to use excess tax increment dollars from a district to invest in affordable housing projects in other areas of the city. SCHEDULING AND PROJECT STATUS The dollars must be expended by 2021. It is expected that a majority of the funds will be used in 2017-2022 in connection to LRT related projects. The Ridge was the first project funded (2012) with $1,025,000 in funds. In 2017, the city council committed $1,209,000 to Shady Oak Apartments and discussed providing up to $556,179 for the Mariner. Project #Housing-12 Priority Green Justification Pooling allows a percentage (35%) of the total increment generated by the district over its entire life to be used for tax credit eligible housing projects anywhere in the city. Depending on property values over the remaining 12 years of the district, the pooling dollars available during this time frame are estimated to be $6.44 million. These funds are required to be spent according to an amended TIF plan, which can take place as projects are proposed. The current fund balance is estimated at $3.754 million. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Continue working with developers to include affordable housing in their developments, where appropriate. Strategic Plan-Initiating programs and policies that broaden housing choices to both meet the needs of our aging population and attract young residents. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Projects Considered 0 0 2 1 1 1 1 1 0 Projects Assisted 0 1 2 0 1 1 1 1 0 Affordable Units 0 27 104 50 45 40 30 30 30 Budget Impact/Other The use of pooling dollars does not affect staffing. If pooling dollars are not used, the dollars return to the appropriate taxing jurisdictions. The funds are coming from the Boulevard Gardens TIF district. Useful Life N/A Project Name Affordable Housing via TIF Pooling/Blvd Gardens Category TIF Type Construction Key Measures Projects Assisted Key Measures Affordable Units Created Key Measures Key Measures Projects Considered Total2019 2020 2021 2022 2023Expenditures 3,585,1791,765,179 600,000 600,000 620,000 0Other 1,765,179 600,000 600,000 620,000 0 3,585,179Total Total2019 2020 2021 2022 2023Funding Sources 3,585,1791,765,179 600,000 600,000 620,000 0TIF Pooling 1,765,179 600,000 600,000 620,000 0 3,585,179Total City of Minnetonka 2018-2022 EIP 12 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 1-Housing Description TIF pooling is a way, under state statute, to use excess tax increment dollars from a district to invest in affordable housing projects in other areas of the city. SCHEDULING AND PROJECT STATUS The developer's TIF note was repaid in August 2017. The council should consider wether or not to use the pooled TIF that will be generated between 201-2021 for future affordable housing projects. The dollars must be expended by 2022. Project #Housing-13 Priority Yellow Justification Pooling allows a percentage (35%) of the total increment generated by the district over its entire life to be used for tax credit eligible housing projects anywhere in the city. Depending on property values over the remaining 3 years of the district, the pooling dollars available during this time frame are estimated to be $702,000. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Continue working with developers to include affordable housing in their developments, where appropriate. Strategic Plan-Initiating programs and policies that broaden housing choices to both meet the needs of our aging population and attract young residents. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Projects Considered N/A N/A N/A 0 0 0 0 0 0 Projects Assisted N/A N/A N/A 0 0 0 0 0 0 Affordable Units N/A N/A N/A 0 0 0 0 0 0 Budget Impact/Other The use of pooling dollars does not affect staffing. If pooling dollars are not used, the dollars return to the appropriate taxing jurisdictions. The funds are coming from the Beacon Hill TIF district. Useful Life N/A Project Name Affordable Housing vis TIF Pooling/Beacon Hill Category Housing Type Conceptual Key Measures Projects Assisted Key Measures Affordable Units Created Key Measures Key Measures Projects Considered Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 702,000234,000 234,000 234,000 0 0TIF Pooling 234,000 234,000 234,000 0 0 702,000Total City of Minnetonka 2018-2022 EIP 13 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 1-Housing Description The Welcome to Minnetonka program provides up to $10,000 through a low-interest loan for down payment and closing cost assistance. The Center for Energy and Environment administers the program. SCHEDULING AND PROJECT STATUS The program began June 2011. This is an ongoing program. Project #Housing-14 Priority Yellow Justification The Welcome to Minnetonka program is marketed to first-time homebuyer households earning up to 120% area median income with down payment and closing cost assistance. Those participating in the program provide at least 25% of the required down payment or closing costs. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Provide services that support residents to maintain attractiveness as a balanced community that is economically diverse. Strategic Plan-Initiate programs/policies to broaden housing choices to meet the needs of our aging population and attract young residents. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Loans Made 1 5 1 4 4 4 4 4 4 Loans Defaulted 0 0 0 0 0 0 0 0 0 Budget Impact/Other In 2017 the city ended the contracts with the Greater Metropolitan Housing Corporation (GMHC) to administer the Welcome to Minnetonka program on behalf of the city. In January 2018, the city entered into a contract with the Center for Energy and Environment to administer the program. Due to the slow uptake and lowering the interest rate to 1%, it's unlikely that this program will become self-sustaining. While there were loan paybacks put back into the program, another $75,000 was added in 2018 (split with the Minnetonka Home Enhancement Program) to continue to make new loans. Funding amounts may change as a sliding scale approach is used with this program and the Minnetonka Home Enhancement program to allow flexibility to meet demands. Staff will be reviewing the program guidelines over the next year to determine if any changes need to be made. Useful Life N/A Project Name Welcome to Minnetonka Loan Program Category Housing Type Program Key Measures Loans Defaulted Key Measures Loans Made Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 250,00050,000 50,000 50,000 50,000 50,000Program Cost 50,000 50,000 50,000 50,000 50,000 250,000Total Total2019 2020 2021 2022 2023Funding Sources 250,00050,000 50,000 50,000 50,000 50,000HRA Levy 50,000 50,000 50,000 50,000 50,000 250,000Total City of Minnetonka 2018-2022 EIP 14 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 1-Housing Description Employer assisted housing programs can take many different forms; however, generally it focuses on local businesses and how to create housing opportunities within the city for their employees. The program requires business support. SCHEDULING AND PROJECT STATUS This is a new concept that has not yet been explored or developed by city staff; however, the SWLRT Community Works project, as part of their housing strategy has recommended collaboration with local employers on new housing opportunities. Project #Housing-15 Priority n/a Justification The Opportunity City Pilot Program and a University of Minnesota Resilient Communities Program student project recommended exploring opportunities to collaborate with businesses to better understand housing needs and evaluate links between employment wages and housing values. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Support existing businesses and collaborate with businesses to determine services, employee housing and transportation needs. Strategic Plan-Initiating programs and policies that broaden housing choices to both meet the needs of our aging population and attract young residents. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Households Assisted N/A N/A N/A N/A N/A N/A N/A N/A N/A Budget Impact/Other There will need to be staff time committed to learning more about different aspects of a program such as this. There is no funding source at this time to fund the program. The SWLRT Community Works Housing Strategy developed objectives with one being developing new housing opportunities. One of the ways identified was working with employers along the line to help fund new housing. Useful Life N/A Project Name Employer-Assisted Housing Category Housing Type Conceptual Key Measures Key Measures Households Assisted Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Unfunded 000000Total City of Minnetonka 2018-2022 EIP 15 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 1-Housing Description A next generation program would purchase homes from seniors, perform rehabilitation as necessary, and sell on the market as affordable units. SCHEDULING AND PROJECT STATUS This is a new concept that has not yet been explored or developed. Initial council feedback has suggested that this program target a different audience such as those at 80 to 110% AMI. Project #Housing-16 Priority n/a Justification As the city’s population ages, more seniors will be looking for alternative housing options to the single-family home. This program would assist seniors in the sale of their home, perform any deferred rehabilitation, and then assist young families by selling them at an affordable price. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Support existing businesses and collaborate with businesses to determine services, employee housing and transportation needs. Strategic Plan-Initiating programs and policies that broaden housing choices to both meet the needs of our aging population and attract young residents. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Households Assisted N/A N/A N/A N/A N/A N/A N/A N/A N/A Budget Impact/Other There will need to be staff time committed to learning more about different aspects of a program such as this. There is no funding source at this time to fund the program. Useful Life N/A Project Name Next Generation Program Category Housing Type Conceptual Key Measures Key Measures Households Assisted Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Unfunded 000000Total City of Minnetonka 2018-2022 EIP 16 BUSINESS MINNETONKA ECONOMIC IMPROVEMENT PROGRAM 17 BUSINESS CHAPTER SUMMARY Projects that support existing business retention and expansion, attract new businesses, and allow the city to remain economically competitive. For the 2019-2023 Economic Improvement Program, there are eleven business programs, and another two under conceptual review. •The total five-year estimated cost of the programs is $2,692,000. Program 2019 2020 2021 2022 2023 5-Year Total Fire Sprinkler Retrofit 50,000 50,000 50,000 50,000 50,000 $250,000 Pass-Through Grants 200,000 200,000 200,000 200,000 200,000 $1,000,000 CommonBond/Ind Rev 0 0 0 0 0 $0 GreaterMSP 25,000 25,000 25,000 25,000 25,000 $125,000 MIF/JCF 200,000 200,000 200,000 300,000 200,000 $1,100,000 Open to Business 15,000 15,000 15,000 15,000 15,000 $75,000 Outreach 25,000 25,000 25,000 25,000 25,000 $125,000 PACE 0 0 0 0 0 $0 EDIF 0 0 0 0 0 $0 TwinWest 3,000 3,000 3,000 4,000 4,000 $17,000 SAC/REC Program 0 0 0 0 0 $0 $518,000 $518,000 $518,000 $619,000 $519,000 $2,692,000 Conceptual Programs Economic Gardening $0 Special Service Districts $0 Programs in green=funding/program is expected to continue Programs in yellow=funding/program is uncertain for a number of reasons Programs in red=funding/program is ending •Several programs, such as the Grants, Common Bond fund, and Minnesota Investment Fund are inter-agency/consortium efforts that have funding sources that originate from other agencies, flow through the city, and then go to the business. •The city’s role in business development in the past was more reactive, typically responding only when requested to do so. In more recent years, the city has been slowly investing in more programs for businesses, such as the Open to Business programs. 18 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 2-Business Description Minnesota law (State Statute 429) gives cities the authority to specially assess the cost of installing fire sprinkler systems for existing buildings. The City Council adopted Council Policy 5.2 in 1986 setting criteria for the use of this authority. In 2018, Copper Cow utilized the program to retrofit its building located at 5445 Eden Prairie Road. SCHEDULING AND PROJECT STATUS This program is ongoing, and use of this program is made by property owner petition. Project #Business-01 Priority Yellow Justification The fire sprinkler retrofit program is intended to assist in the public safety and protection of commercial buildings. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Enhance personal and business safety. Strategic Plan-Supporting business retention and expansion and attracting new businesses to help our private sector be economically competitive. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Businesses Assisted 0 0 0 1 1 1 1 1 1 Budget Impact/Other Special assessments cannot last more than 10 years. The risk with this program is for the assessment to be paid back on the intended schedule. These dollars are financed through the special assessment fund. There is some limited staff time involved once the petition is received and for the assessment. Useful Life N/A Project Name Fire Sprinkler Retrofit Category Business Type Construction Key Measures Key Measures Buildings Assisted Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 250,00050,000 50,000 50,000 50,000 50,000Construction/Maintenance 50,000 50,000 50,000 50,000 50,000 250,000Total Total2019 2020 2021 2022 2023Funding Sources 250,00050,000 50,000 50,000 50,000 50,000Special Assessment Construction Fund 50,000 50,000 50,000 50,000 50,000 250,000Total City of Minnetonka 2018-2022 EIP 19 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 2-Business Description Grants are available from county and regional agencies to facilitate development, redevelopment, housing, and environmental cleanup. SCHEDULING AND PROJECT STATUS Grants are dependent upon the types of projects occurring. Most grants require the funds to be spent within three years of award. In 2017, Metropolitan Council awarded the Mariner project $1,876,500 through the Livable Communities LCDA/TOD fund and $210,000 through the Local Housing Initiatives Account (LHIA). In addition, Homes Within Reach received $67,500 through the LHIA fund. These grants have a spend down deadline of December 2020. Project #Business-02 Priority Green Justification Grant opportunities assist in filling gaps in the financing of complex development, redevelopment, housing, and environmental cleanup projects. Most programs require the city to serve as the grant applicant, meaning that even if the developer/others apply for the grant, that it is to be awarded to the city, which then passes on the funds to the project. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan- -Ensure the longevity of affordable housing through city programs and partnerships with other public, non-profit, and private entities. -Facilitate connections between local businesses and programs that provide incentives/assistance for business retention and recruitment. Strategic Plan-Actively promoting the vitality of designated village centers, which integrate uses and connect people to commercial, residential, employment, and public activities. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Projects Assisted 1 1 1 3 1 0 1 1 1 Business projects 0 1 0 1 1 0 0 1 0 Housing projects 1 0 1 2 0 0 1 0 1 Housing units 30 0 45 60 0 0 60 0 55 *Note: some of the projects are counted in more than one year. Budget Impact/Other If the city is the applicant, there is staff time to prepare the grant application, administer the grant and grant-funded activities, as well as any follow- up audits and paperwork generally required by most programs. For pass-through grants, the staff is the facilitator in requesting the funds. The funds indicated are potential sources depending upon requests. Useful LifeProject Name Grants Category Business Type Program Key Measures Businesses Assisted Key Measures Projects Assisted Key Measures Housing Units Assisted Key Measures Housing Projects Assisted Total2019 2020 2021 2022 2023Expenditures 1,000,000200,000 200,000 200,000 200,000 200,000Other 200,000 200,000 200,000 200,000 200,000 1,000,000Total Total2019 2020 2021 2022 2023Funding Sources 1,000,000200,000 200,000 200,000 200,000 200,000Development Fund 200,000 200,000 200,000 200,000 200,000 1,000,000Total City of Minnetonka 2018-2022 EIP 20 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 2-Business Description The Common Bond fund and Industrial Revenue Bonds are sources of funding for industrial/manufacturing businesses that are expanding or relocating. SCHEDULING AND PROJECT STATUS There have been no previous projects, nor are any contemplated at this time. The city has previously used Industrial Revenue Bonds by giving host approval to another city to issue the bonds. The Common Bond fund, which is applied for and administered through the City of Minneapolis/Hennepin County has been explored by several Minnetonka businesses, but none have moved forward. Project #Business-03 Priority Yellow Justification This program is to assist those manufacturing/industrial businesses with funding support for land acquisition, new facility construction, additions, renovations, and purchase of production equipment. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Facilitate connections between local businesses and various programs that provide incentives and financial assistance for business retention and recruitment. Strategic Plan-Support business retention and expansion and attract new businesses to help our private sector be economically competitive. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Business Contacts 0 0 0 0 0 0 0 0 1 Businesses Assisted 0 0 0 0 0 0 0 0 1 Budget Impact/Other There is minimal staff work involved with either of these programs. The Common Bond fund is administered through a Hennepin County/City of Minneapolis partnership, but requires city council approval. All Industrial Revenue Bonds require city council approval. No funds flow through the city for the Common Bond fund. Useful Life N/A Project Name Common Bond/Industrial Revenue Bond Category Business Type Program Key Measures Business Contacts Key Measures Businesses Assisted Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Other 000000Total City of Minnetonka 2018-2022 EIP 21 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 2-Business Description GreaterMSP is the regional economic development organization for the Twin Cities metropolitan area. They partner to help provide a vision and agenda for regional economic development as well as to brand and market the region. GreaterMSP offers services in business retention and expansion, data tools and research, manufacturing assistance, small business assistance, and technology assistance. SCHEDULING AND PROJECT STATUS This is an on-going program. The city became a member in 2013. Project #Business-04 Priority Green Justification Greater MSP is an economic development tool for Minnetonka’s current and future businesses, and provides resources and connections that have not been previously available. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Facilitate connections between local businesses and various programs that provide incentives and financial assistance for business retention and recruitment. Strategic Plan-Support business retention and expansion and attracting new businesses to help our private sector be economically competitive. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Business Projects 4 3 1 2 2 1 1 2 2 Media Headlines 25 35 33 40 40 40 40 40 40 Budget Impact/Other Public Sector memberships are a three year, $25,000 per year commitment, which would be reviewed annually with the city budget for renewal. Useful Life N/A Project Name GreaterMSP Category Business Type Program Key Measures Key Measures Business Contacts Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 125,00025,000 25,000 25,000 25,000 25,000Program Cost 25,000 25,000 25,000 25,000 25,000 125,000Total Total2019 2020 2021 2022 2023Funding Sources 125,00025,000 25,000 25,000 25,000 25,000Development Fund 25,000 25,000 25,000 25,000 25,000 125,000Total City of Minnetonka 2018-2022 EIP 22 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 2-Business Description The Minnesota Investment Fund (MIF) and Job Creation Fund (JCF) are Department of Employment and Economic Development programs that provides funds to cities, who then loan the funds to businesses, to assist in expansion. The business is then required to create a minimum number of jobs at a certain wage level. The city and EDA authority may each authorize one application per year for each of the programs. SCHEDULING AND PROJECT STATUS The city has received four MIF awards, one each for Cargill, Nestle and IMRIS, and NatureWorks. Two additional applications were submitted to DEED in 2016 but the applicants decided to withdraw the applications. Project #Business-06 Priority Yellow Justification MIF is a business and economic development program, focusing on industrial, manufacturing, and technology related industries. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Facilitate connections between local businesses and various programs that provide incentives and financial assistance for business retention and recruitment. Strategic Plan-Support business retention and expansion and attract new businesses to help our private sector be economically competitive. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Applications Submitted 0 3 0 1 1 1 1 1 1 Businesses Assisted 0 1 0 1 1 1 1 1 1 Budget Impact/Other Application for the MIF program is a collaborative effort between the city and the business, with staff contributing approximately 80 hours of time per application. Staff must also assist in the distribution and repayment of funds, as well as reporting requirements. Funding is dependent upon the state. A portion of the loan paid back by the business may be allowed to stay at the local level to facilitate business programs. All funds are reimbursement and show a net zero impact on the budget. Useful Life N/A Project Name MIF/JCF Projects Category Business Type Program Key Measures Applications Submitted Key Measures Businesses Assisted Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 1,100,000200,000 200,000 200,000 300,000 200,000Construction/Maintenance 200,000 200,000 200,000 300,000 200,000 1,100,000Total Total2019 2020 2021 2022 2023Funding Sources 1,100,000200,000 200,000 200,000 300,000 200,000Development Fund 200,000 200,000 200,000 300,000 200,000 1,100,000Total City of Minnetonka 2018-2022 EIP 23 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 2-Business Description The Minnetonka Open to Business program, in collaboration with the Metropolitan Consortium of Community Developers, provides one-on-one technical assistance customized to meet the needs of small businesses. SCHEDULING AND PRORJECT STATUS The program began in 2011 and is ongoing. The contract is reviewed on an annual basis. Project #Business-07 Priority Green Justification The Open to Business program assists small business owners and potential entrepreneurs, while filling a need in business programming not available previously. Assistance is given in planning and organizing business ventures, financial management, marketing and regulatory compliance. A small loan fund is also available to access the capital to grow their business. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Provide services that support residents and businesses to maintain attractiveness as a balanced community that is economically diverse. Strategic Plan-Support business retention and expansion and attract new businesses to help our private sector be economically competitive. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Businesses Assisted 36 33 22 47 49 50 50 50 50 Tech. Assist. Hours 125 157 190 175 175 175 175 175 175 Loans Made 1 0 1 4 4 4 4 4 4 Budget Impact/Other The Minnetonka Open to Business program is provided collaboratively with the MCCD. The MCCD provides the technical assistance, while the city assists in marketing the program. City staff spends approximately 40 hours per year with this program. Useful Life N/A Project Name Open to Business Category Business Type Program Key Measures Businesses Assisted Key Measures Technical Assistance Hours Key Measures Key Measures Loans Made Total2019 2020 2021 2022 2023Expenditures 75,00015,000 15,000 15,000 15,000 15,000Program Cost 15,000 15,000 15,000 15,000 15,000 75,000Total Total2019 2020 2021 2022 2023Funding Sources 75,00015,000 15,000 15,000 15,000 15,000Development Fund 15,000 15,000 15,000 15,000 15,000 75,000Total City of Minnetonka 2018-2022 EIP 24 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 2-Business Description Business outreach will take a more proactive approach in contacting businesses. SCHEDULING AND PROJECT STATUS Staff is coordinating through "Sales Force", which is an online tool for cities, chambers and GreaterMSP to enter business contacts. Project #Business-08 Priority Green Justification Business outreach in the past has been reactive to business needs. This outreach is another tool in creating a more proactive approach in supporting business retention and expansion. Business retention and expansion efforts are part of a collaborative effort between staff and Twin West Chamber, Grow Minnesota, and GreaterMSP. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Promote public involvement by residents and businesses, and actively communicate city values and services. Strategic Plan-Supporting business retention and expansion and attracting new businesses to help our private sector be economically competitive. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Business Contacts N/A 25 80 35 40 40 40 40 40 Business Visits N/A N/A 7 8 8 8 8 8 8 Budget Impact/Other Funds are budgeted for a business survey and newsletter. Future uses of funding could include business centric events as noted in the Business Development Strategy. Outreach will be coordinated with GreaterMSP and TwinWest Chamber. Useful LifeProject Name Outreach Category Business Type Program Key Measures Key Measures Business Contacts Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 125,00025,000 25,000 25,000 25,000 25,000Program Cost 25,000 25,000 25,000 25,000 25,000 125,000Total Total2019 2020 2021 2022 2023Funding Sources 125,00025,000 25,000 25,000 25,000 25,000HRA Levy 25,000 25,000 25,000 25,000 25,000 125,000Total City of Minnetonka 2018-2022 EIP 25 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 2-Business Description In 2010, as part of the jobs bill, state legislation was passed that included provisions for the Property Assessed Clean Energy (PACE) program. PACE allows for the voluntary creation of programs by local governments to help businesses finance renewable energy and energy efficient improvements. The program is repaid by businesses through a special property tax assessment. SCHEDULING AND PROJECT STATUS The City Council approved a Joint Powers Agreement with the St. Paul Port Authority (SPPA) in July 2014 to implement the PACE program in Minnetonka. Staff markets the program with commercial, office and multi-family property owners. Project #Business-09 Priority Green Justification The legislation was adopted in 2010, and has been used by approximately 10 Minnesota communities. This program may help to provide another financing tool to the city's toolbox for local businesses. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan--Facilitate connections between local businesses and various programs that provide incentives and financial assistance for business retention and recruitment. Strategic Plan-Supporting business retention and expansion and attracting new businesses to help our private sector be economically competitive. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Businesses Assisted 0 0 0 0 0 0 0 0 0 Budget Impact/Other The funds for the PACE program come from the SPPA, therefore, the financing that will flow through the city’s funds, both the special assessment revenue in from participants and payments out to SPPA, would simply appear as offsetting financial statements in the city’s records. Delinquency by the participant will be handled like any other property tax obligation, where the amount due runs with the property. Useful Life N/A Project Name Property Assessed Clean Energy Category Business Type Program Key Measures Key Measures Businesses Assisted Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Other 000000Total City of Minnetonka 2018-2022 EIP 26 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 2-Business Description The Economic Development Infrastructure Fund is a new program offered by Hennepin County. Up to $500,000 is available in grant funding to municipalities to support business recruitment and expansion through investments in infrastructure. Projects must be outside of priority transit corridors, such as the Green Line Extension. SCHEDULING AND PROJECT STATUS. This is a pilot program. Project #Business-10 Priority Green Justification The Economic Development Infrastructure Fund will assist businesses that are new or expanding and have a financial need due to extraordinary costs such as demolition, site clearance, soil stabilization and utilities. The business must expend at least $500,000 in property improvements and create at least 10 new permanent, full time jobs. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-In order to maintain and perhaps enhance its current economic vitality, the city in the future will need to consider and promote: business outreach and retention activities. Strategic Plan-Supporting business retention and expansion and attracting new businesses to help our private sector be economically competitive. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Businesses Assisted 0 0 0 0 0 0 0 0 0 Budget Impact/Other Staff time would be required to work with the business to apply for the program and to administer the funds. The city would be a pass through of the funds. Useful LifeProject Name Economic Development Infrastructure Fund Category Business Type Program Key Measures Key Measures Buildings Assisted Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Other 000000Total City of Minnetonka 2018-2022 EIP 27 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 2-Business Description TwinWest is the local Chamber of Commerce. SCHEDULING AND PROJECT STATUS This is an ongoing program. Project #Business-11 Priority Green Justification The city is a member of TwinWest, which allows the city to connect with area businesses. Additionally, TwinWest advocates for a number of issues which the city is involved with, such as Southwest LRT. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Maintain a partnership with the TwinWest Chamber and collaborate with other agencies to recognize existing and new businesses. Strategic Plan-Support business retention and expansion and attracting new businesses to help our private sector be economically competitive. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Minnetonka business members N/A N/A 75 75 100 100 100 115 115 Business visits N/A N/A 7 8 8 8 8 8 8 Budget Impact/Other Memberships are renewed on an annual basis. There may be other fees associated with membership throughout the year in order to attend events hosted by the Chamber. TwinWest annually sponsors the Minnetonka State of the City event, held in February. Useful LifeProject Name TwinWest Chamber of Commerce Category Business Type Program Key Measures Key Measures Minnetonka Businesses Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 17,0003,000 3,000 3,000 4,000 4,000Program Cost 3,000 3,000 3,000 4,000 4,000 17,000Total Total2019 2020 2021 2022 2023Funding Sources 17,0003,000 3,000 3,000 4,000 4,000General Fund 3,000 3,000 3,000 4,000 4,000 17,000Total City of Minnetonka 2018-2022 EIP 28 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 2-Business Description Hennepin County offers this program to assist medium size companies with growth potential. SCHEDULING AND PROJECT STATUS Originally, a pilot program, the Economic Gardening program is now a partnership between Hennepin, Anoka, Ramsey, Carver and Scott counties. 2017/2018 Minnetonka program participants include Burns Engineering and Sherburne Construction. Project #Business-12 Priority Green Justification Hennepin County is offering this as part of a partnership to help high-growth / high potential Stage II companies grow faster and create more jobs by providing CEO peer mentoring, stage-specific content and referral to relevant service providers. Stage II is defined as: 10-99 employees, more than $1M in revenue and having high-growth potential. There is no cost to the companies accepted for participation in the network. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-In order to maintain and perhaps enhance its current economic vitality, the city in the future will need to consider and promote business outreach and retention activities. Strategic Plan-Supporting business retention and expansion and attracting new businesses to help our private sector be economically competitive. KEY MEASURES 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Businesses Assisted 2 2 1 2 2 2 2 2 2 Budget Impact/Other The county is providing this service, but some of the 2015 and 2016 programs were held in the Minnetonka Community Center. If the program expands, cities may be asked to participate in the costs of the program. Useful Life N/A Project Name Economic Gardening Category Business Type Program Key Measures Key Measures Businesses Assisted Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Unfunded 000000Total City of Minnetonka 2018-2022 EIP 29 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 2-Business Description Minnesota law provides a mechanism termed Special Service District which allows cities to help arrange and finance a higher level of services, such a snow removal and lighting, for commercial and industrial properties. SCHEDULING AND PROJECT STATUS There are no areas in the city with a Special Service District at this time. This has been previously explored with the Minnetonka Boulevard/County Road 101 area. Must be initiated by property owners. State legislation for Special Service Districts sunsets on June 30, 2028. Project #Business-13 Priority n/a Justification The special service district provides the opportunity for commercial and industrial properties to be charged a fee to pay for a service that is not provided as a part of city services or at a level higher than what is being provided. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Provide city services and collaborate with outside agencies and the private sector to leverage additional services that reinforce the city's values. Strategic Plan-Support business retention and expansion and attract new businesses to help our private sector be economically competitive. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 SSDs Established 0 0 0 0 0 0 0 0 0 Budget Impact/Other Staff time is likely to be significant during the set up of the first special service district. There will be additional staff time needed annually to work with the businesses to determine the next year’s fee. The costs for all administrative time can be incorporated into the fees assessed on the businesses. Annually, there will be an outflow of funds to pay for the services, but they will all be recouped through assessments on the properties. Useful Life N/A Project Name Special Service District Category Business Type Conceptual Key Measures Key Measures SSDs Established Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Development Fund 000000Total City of Minnetonka 2018-2022 EIP 30 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 2-Business Description The goal of this program is to minimize the impact of the Metropolitan Council Sewer Availability Charge (SAC) and city's Sewer and Water Residential Equivalency Charges (REC's) to small businesses by allowing businesses to defer a portion of the repayment of fees over time. SCHEDULING AND PROJECT STATUS The program became available in June 2017. Project #Business-14 Priority n/a Justification The Metropolitan Council developed the SAC deferral program in 2012. The program was developed to encourage and help communities promote business development by deferring community SAC payment and city REC payments. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan - Facilitate connections between local businesses and various programs that provide incentives and financial assistance for business retention and recruitment. Strategic Plan - Supporting business retention and expansion and attracting new businesses to help our private sector be economically competitive. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Businesses Assisted N/A N/A 2 1 2 2 2 2 2 Budget Impact/Other Staff time will be required to work with the business to apply for the program. The repayments collected through this program will flow through city's utility fund for the Metropolitan Council's fees and the city's fees. Useful Life N/A Project Name SAC/REC Deferral Program Category Business Type Program Key Measures Key Measures Businesses Assisted Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Other 000000Total City of Minnetonka 2018-2022 EIP 31 TRANSIT MINNETONKA ECONOMIC IMPROVEMENT PROGRAM 32 TRANSIT CHAPTER SUMMARY Projects which enhance resident mobility by pursuing opportunities and solutions to improve transit service. The city’s role in transit in the past has been minimal as Metro Transit has been the provider of the city’s and the region’s transit system. In 2002, Minnetonka exercised its opt-out authority. It was determined at the time to be in the best interest of the city to have Metro Transit continue providing transit service for the community. In mid-2013, the city and Metro Transit renegotiated a contract in place providing more detail and clarity on the roles and responsibilities for both the city and Metro Transit. The city renegotiated the contract in 2017, which will be revisited again in 2020. In recent years the city’s role in transit has expanded as a more active participant in the city’s opt-out status as well as preparing for the Southwest LRT (Green Line Extension) line. • The total five-year estimated cost of the programs is $60,000. Program 2019 2020 2021 2022 2023 5-Year Total Commuter Services (494)12,000 12,000 12,000 12,000 12,000 $60,000 Transit Improvements 0 0 0 0 0 $0 $12,000 $12,000 $12,000 $12,000 $12,000 $60,000 Conceptual Programs City Owned Properties Future HRA Levy Projects Programs in green=funding/program is expected to continue Programs in yellow=funding/program is uncertain for a number of reasons Programs in red=funding/program is ending • All facets of transit, such as commuting, bus/dial-a-ride, and Light Rail Transit (LRT) are included. • The contract with Metro Transit for service will be renegotiated in 2020. 33 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 3-Transit Description Commuter Services is an outreach program of the I-494 Corridor Commission, which the city is a member of. The program seeks to reduce traffic congestion and promote alternative transportation options. Other cities include Bloomington, Richfield, Eden Prairie, and Edina. SCHEDULING AND PROJECT STATUS This is an ongoing program. Project #Transit-01 Priority Green Justification Commuter Services provides programs, such as commuter fairs, carpool facilitation, and other information on alternative transportation choices to Minnetonka residents and businesses. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Anticipate, plan for and collaborate with other agencies for local and regional transportation improvements and programs to lessen the impacts of congestion. Strategic Plan-Pursuing shared sub-regional transit solutions with neighboring communities to improve service within the area. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Business Contacts 182 170 191 190 190 190 190 190 190 Commuters Assisted 433 388 387 425 450 450 450 450 450 Budget Impact/Other One council member and one city staff member attend monthly meetings of the I-494 Corridor Commission. With preparation time, this is approximately 40 hours of staff time. Additionally, the city is required to be the treasurer of the Commission for two years, which commits additional finance staff time. This happens every 10 years as it rotates between member cities. Commuter Services is staffed separately, but coordinates with the city on events, such as the city-wide open house to promote their services. The city’s fee is a formula based on population. Useful Life N/A Project Name Commuter Services Category Transit Type Program Key Measures Commuters Assisted Key Measures Business Contacts Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 60,00012,000 12,000 12,000 12,000 12,000Program Cost 12,000 12,000 12,000 12,000 12,000 60,000Total Total2019 2020 2021 2022 2023Funding Sources 60,00012,000 12,000 12,000 12,000 12,000General Fund 12,000 12,000 12,000 12,000 12,000 60,000Total City of Minnetonka 2018-2022 EIP 34 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 3-Transit Description In 2002, Minnetonka exercised its opt-out authority and entered into an agreement for Metro Transit to continue to provide transit service in the city. The city has the ability, with notice, to terminate the current agreement. SCHEDULING AND PROJECT STATUS The Sector Study was completed December 2012 and suggested route changes from that study were implemented August 2013. The agreement will be was renegotiated in 2017 and has a three-year term. In 2017, Route 9 was enhanced to provide additional service offerings to downtown, the West End, and Ridgedale. The Route 9 enhancement resulted in a 3% ridership increase in 2017. Project #Transit-02 Priority Green Justification The service in Minnetonka has and continues to be focused on express route, peak service to downtown Minneapolis, with limited local and midday routes. Much of the transit design has to do with the low density of the city. The city may wish to retain some of its Motor Vehicle Sales Tax (MVST) money and provide more local service to better meet the needs of the community. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Encourage the expansion of multi-modal and transit services in the city with other government agencies to support resident and business transportation needs. Strategic Plan-Pursue shared sub-regional transit solutions with neighboring communities to improve service within the area. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Annual Bus Trips 110,938 110,938 114,350 111,500 112,500 114,000 115,000 115,000 115,000 Budget Impact/Other Staff time of approximately 40 to 80 hours per year will be spent attending quarterly meetings, marketing, and consulting with Metro Transit staff. Currently, the MVST revenues due to the city (~$4.4 million) go directly to the Metropolitan Council for transit service. Useful Life N/A Project Name Transit Improvements Category Transit Type Program Key Measures Key Measures Annual Bus Trips Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000MVST Revenue 000000Total City of Minnetonka 2018-2022 EIP 35 DEVELOPMENT AND REDEVELOPMENT MINNETONKA ECONOMIC IMPROVEMENT PROGRAM 36 DEVELOPMENT/REDEVELOPMENT CHAPTER SUMMARY Activities that promote the vitality of the city through development and redevelopment. For the 2019-2023 Economic Improvement Program, there are four development/redevelopment programs underway. •The total five-year estimated cost of the programs is $700,000. Program 2019 2020 2021 2022 2023 5-Year Total Pre development 50,000 50,000 50,000 50,000 50,000 $250,000 Village Center/Comp P 0 0 0 0 0 $0 LRT & Station Are as 75,000 75,000 75,000 75,000 75,000 $375,000 Strategic Marketing 0 0 25,000 25,000 25,000 $75,000 $125,000 $125,000 $150,000 $150,000 $150,000 $700,000 Conceptual Programs City owned properties Strategic Acquisition Programs in green=funding/program is expected to continue Programs in yellow=funding/program is uncertain for a number of reasons Programs in red=funding/program is ending •The Village Center studies, an outcome of the 2008 Comprehensive Plan update, are on hold while the Comprehensive Plan is updated. •Some of the pass-through grants identified in the business chapter may be geared towards development/redevelopment activities. •Costs may increase if the city wishes to take a more proactive role in development/redevelopment. •The LRT page reflects the commitment by the city towards the LRT project. Additional programs may be needed to help implement station area plans in the Shady Oak and Opus station areas. 37 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 4-Development & Redevelop Description The initial stages of development or redevelopment require extensive analysis, by the developer and the city, to determine if a project is viable. Analysis by the city includes financial readiness, design assistance, geotechnical data gathering, and preliminary work for TIF/tax abatement. SCHEDULING AND PROJECT STATUS This is an on-going program. Staff determines when it is appropriate to use for a potential redevelopment project. For example, initial TIF runs were done for the Tonka on the Creek, Shady Oak Apartments, The Mariner, and Dominium Apartments to determine if Tax Increment Financing would be feasible. Once it was determined that it was, and the developer moved forward as such, the developer was then responsible for paying all legal counsel and financial consultant expenses. Project #Dev/Redev-01 Priority Green Justification Predevelopment activities make the city development ready by preparing property for development or redevelopment. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Support existing commercial areas and encourage new development techniques that contribute to the vitality and diversity of the area. Strategic Plan-Actively promoting the vitality of designated village centers, which integrate uses and connect people to commercial, residential, employment, and public activities. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Projects Assisted 2 2 3 4 3 2 2 2 2 Projects Continued after Assistance 1 1 2 2 2 1 1 1 1 Budget Impact/Other Development projects can be time intensive for staff. The range per year is 500 to 1,000 hours depending on the request, number of meetings and type of assistance requested. The predevelopment funds will be used to hire consultants or others to complete work outside of staff’s expertise. Useful Life N/A Project Name Pre-Development Category Develop/Redevelopment Type Program Key Measures Projects Continued Key Measures Projects Assisted Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 250,00050,000 50,000 50,000 50,000 50,000Planning/Design 50,000 50,000 50,000 50,000 50,000 250,000Total Total2019 2020 2021 2022 2023Funding Sources 250,00050,000 50,000 50,000 50,000 50,000Development Fund 50,000 50,000 50,000 50,000 50,000 250,000Total City of Minnetonka 2018-2022 EIP 38 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 4-Development & Redevelop Description The village center studies take a look at each of the city’s thirteen designated village centers and create a guide for redevelopment. The following village centers have been completed: Minnetonka Mills, Opus, Hwy 7/101, Shady Oak, Ridgedale, and some Glen Lake. No other village centers will be completed at this time due to the Comprehensive Plan update process that began in 2016. Additional work may be completed after the update is completed. Project #Dev/Redev-02 Priority Green Justification The village center studies provide a guide to potential investors or developers to the organization of the property, general layout of building envelopes, and a defined range of uses. There is a strong emphasis on community engagement and realistic implementation strategies. The Comprehensive Plan is the city's policy framework to guide development, redevelopment and public services and programs for 30 years. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Guide development and redevelopment to ensure community vitality. Strategic Plan-Actively promoting the vitality of designated village centers, which integrate uses and connect people to commercial, residential, employment, and public activities. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Village Centers Studied 1 1 N/A TBD TBD TBD TBD TBD TBD Budget Impact/Other While a consultant(s) is brought on to assist with the project, there is staff time spent on the village center studies to prepare contracts, review plans, facilitate ideas, prepare for public meetings and attend public meetings. This work can range from 1500-1750 hours per year. There will be significant staff time when the Comprehensive Plan is updated, which began in 2017. Useful Life N/A Project Name Village Center Studies and Comprehensive Plan Category Develop/Redevelopment Type Program Key Measures Comprehensive Plan update Key Measures Village Centers Studied Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Planning/Design 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000HRA Levy 000000Total City of Minnetonka 2018-2022 EIP 39 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 4-Development & Redevelop Description Minnetonka has actively been planning for LRT since the early 2000's. By late 2017 SWLRT design was at 90% design and work on the infrastructure around the station areas continues to be discussed and added to when possible. As the LRT project progresses from design to construction there is a desire for redevelopment to occur around the city's station areas to make a more transit oriented area. Project #Dev/Redev-03 Priority Green Justification It is anticipated that because of limited county, regional and state resources, as well as the competition for these resources, that in order to assist in facilitating redevelopment in the LRT station areas, the city will need to provide resources of its own. Resources that are available as of 2016 include: Hennepin County Regional (Met Council) State Capital infrastructure (streets, etc.) LCDA-TOD fund Transit Improvement Area (unfunded) Transit Oriented Development fund TBRA-TOD fund Redevelopment grant Community Works funds Contamination Clean-Up and Investigation Affordable housing incentive fund Transportation Economic Development Environmental Response fund PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Encourage a greater density/intensity and mix of land uses where access is available and supported by regional transportation systems (such as LRT). Strategic Plan-Actively promoting the vitality of designated village centers, which integrate uses and connect people to commercial, residential, employment, and public activities. KEY MEASURES TBD Budget Impact/Other In July 2015 the city committed $2 million towards the LRT project. This is being initially funded through the Special Assessment Construction Fund. Partial payback will occur from HRA levy funds over a 10 year period for a total of $750,000. It is unknown what type of programs will need to be added and therefore additional budget impacts beyond the city's financial commitment to the LRT project are unknown. As programs are developed, staff time and future funding will need to be reviewed to determine a program's viability. Useful Life N/A Project Name LRT and LRT Station Area Development Category Develop/Redevelopment Type Construction Key Measures Key Measures Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 375,00075,000 75,000 75,000 75,000 75,000Program Cost 75,000 75,000 75,000 75,000 75,000 375,000Total Total2019 2020 2021 2022 2023Funding Sources 375,00075,000 75,000 75,000 75,000 75,000HRA Levy 75,000 75,000 75,000 75,000 75,000 375,000Total City of Minnetonka 2018-2022 EIP 40 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 4-Development & Redevelop Description Development of a marketing strategy to promote the city to current and future residents and businesses. SCHEDULING AND PROJECT STATUS The first step--a market assessment was completed in 2014. In 2018, the city officially launched the refreshed brand. Elements of the branding work included defining the city's personality through extensive outreach efforts, development of a brand manual and style guide, and a refreshed logo. Project #Dev/Redev-04 Priority n/a Justification Minnetonka is ideally located and in the past has been successful in attracting residents, as well as all types of businesses, including multi-national corporations without much need for promotion. As the economy changes and attracting residents and businesses becomes more competitive it will be necessary to develop a marketing strategy to better promote the city. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Provide regional leadership in promoting community facilities, programs and land uses that are diverse, inclusive, and supportive of residents and businesses. Strategic Plan-Actively promoting the vitality of designated village centers, which integrate uses and connect people to commercial, residential, employment, and public activities. KEY MEASURES TBD Budget Impact/Other Development of a marketing strategy will likely take significant time to develop--including time from both city staff and outside assistance. Funds were budgeted previously from the HRA Levy to begin the marketing project which resulted in the city pursuing a brand strategy. Staff is in the process of exploring a strategy aimed at marketing to prospective residents and small businesses. The strategic marketing page includes a proposed budget of $25,000 beginning in 2021 to support this effort. The general fund is the proposed funding source for the council to consider for this initiative. There is a fund balance of approximately $100,000 to assist with marketing priorities identified for 2019-2021. Useful Life N/A Project Name Strategic Marketing Category Develop/Redevelopment Type Program Key Measures Key Measures Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 75,0000 0 25,000 25,000 25,000Program Cost 0 0 25,000 25,000 25,000 75,000Total Total2019 2020 2021 2022 2023Funding Sources 75,0000 0 25,000 25,000 25,000General Fund 0 0 25,000 25,000 25,000 75,000Total City of Minnetonka 2018-2022 EIP 41 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 4-Development & Redevelop Description The city owns scattered site residential and commercial properties. These properties have been purchased over the years for a variety of reasons that includes potential for future redevelopment or meeting other city goals. SCHEDULING AND PROJECT STATUS This is an on-going project. Project #Dev/Redev-05 Priority n/a Justification The city-owned properties include: 4292 Oak Drive Lane (residential) 4312 Shady Oak Road (commercial) 5937 County Road 101 (residential) 5501 Baker Road (residential) 5432 Rowland Road (residential) 3441 Martha Lane (residential) PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Encourage a diversity of land uses within the city to ensure a broad range of housing and employment choice, shopping and other services for residents and businesses. Strategic Plan-Actively promoting the vitality of designated village centers, which integrate uses and connect people to commercial, residential, employment and public activities. KEY MEASURES TBD Budget Impact/Other There is some staff time every year devoted to the upkeep on the properties; however, a property manager is hired for properties where there are tenants, lessening the staff time required. The city also owns several parcels for purposes such as stormwater management, wetland preservation, parks, etc. Useful LifeProject Name City Owned Properties Category Develop/Redevelopment Type Conceptual Key Measures Key Measures Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Other 000000Total City of Minnetonka 2018-2022 EIP 42 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 4-Development & Redevelop Description Future HRA levy projects may include: Strategic Acquisition Project #Dev/Redev-06 Priority n/a Justification The future HRA levy page includes a placeholder for strategic acquisition of property. The program is currently conceptual. In the future, the council may want to consider an HRA of $100,000 per year to fund this initiative. Budget Impact/Other In the future, the council may want to consider an HRA levy of $100,000 per year to fund this initiative. Useful LifeProject Name Future HRA Levy projects Category Develop/Redevelopment Type Conceptual Key Measures Key Measures Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Program Cost 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000HRA Levy 000000Total City of Minnetonka 2018-2022 EIP 43 TAX INCREMENT FINANCING MINNETONKA ECONOMIC IMPROVEMENT PROGRAM 44 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 5-TIF Districts Description Any time a TIF district is formed, a development agreement is prepared between the city and the developer. Administration for both the TIF and the development agreement, over the life of the TIF district, is required. SCHEDULING AND PROJECT STATUS Administration and review of the existing development agreements and TIF districts is ongoing until the projects expire. New TIF districts are anticipated to be added as new redevelopment projects are proposed in anticipation of the LRT. Project #TIF-01 Priority Green Justification In some cases redevelopment projects need city assistance, such as in the form of Tax Increment Financing (TIF) in order for the project to be financially feasible. Anytime a TIF district is set-up there is a cost to the city for monitoring the project. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Encourage redevelopment projects that include mixed income housing, including affordable units, while balancing density and the preservation of natural resources. Strategic Plan- -Initiating programs and policies that broaden housing choices to both meet the needs of our aging population and attract young residents. -Actively promoting the vitality of designated village centers, which integrate uses and connect people to commercial, residential, employment and public activities. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Active TIF Districts 7 7 7 8 8 8 7 6 6 Budget Impact/Other Development agreements and TIF administration are staff led activities. The city regularly calls upon its financial consultants and legal counsel to assist in these matters. Staff time estimates are 520 hours. Useful Life N/A Project Name Development Agreement and TIF Administration Category TIF Type Program Key Measures Key Measures TIF Districts Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 640,000140,000 140,000 130,000 120,000 110,000Other 140,000 140,000 130,000 120,000 110,000 640,000Total Total2019 2020 2021 2022 2023Funding Sources 640,000140,000 140,000 130,000 120,000 110,000Development Fund 140,000 140,000 130,000 120,000 110,000 640,000Total City of Minnetonka 2018-2022 EIP 45 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 5-TIF Districts Description The Beacon Hill TIF district is a housing district approved on February 14, 1994 to construct a senior living facility that includes both senior housing (110 units) and an assisted living component (42 units). SCHEDULING AND PROJECT STATUS This TIF district was approved in 1994 and will expire in 2021. All of the original obligations were paid on the district by 2009. At that time though the EDA modified the district at that time to keep it open in order to keep the affordability in some of the units. With the revised contract stipulates the city extended the assistance for affordability, but reduces the percent of increment paid to the development, 90% for five years (2015) and decreases by 10% every year until 2020. The developer's note was paid in full in 2017. Project #TIF-02 Priority Yellow Justification The Beacon Hill TIF District was established to assist in the development of 152 total units, of which, 61 units are affordable to those at 60% AMI or less. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Support and encourage housing options that are attractive to a wide variety of age and income levels of residents. Strategic Plan-Initiating programs and policies that broaden housing choices to both meet the needs of our aging population and attract young residents. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Affordable Units 61 61 61 61 61 61 N/A N/A N/A Budget Impact/Other Staff, with occasional consultant assistance, oversees the administration of the TIF district. A portion of the tax increment is retained to cover administrative costs. More detailed information on the TIF district, its obligations, performance, and other development agreement compliance can be found in the 2016 TIF Management Report prepared by the Ehlers, Inc., the city's financial consultant. Useful Life N/A Project Name Beacon Hill TIF District Category TIF Type Program Key Measures Key Measures Affordable Units Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Program Cost 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Other 000000Total City of Minnetonka 2018-2022 EIP 46 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 5-TIF Districts Description The Boulevard Gardens TIF district was adopted December 11, 1995 to facilitate the redevelopment and affordable housing built at West Ridge Market, beginning in 1996. Over 500 housing units were created with over 200 of those units as affordable ownership and rental. West Ridge Market was one of the very first Metropolitan Council Livable Communities Demonstration projects. SCHEDULING AND PROJECT STATUS This TIF district was approved in 1995, and will expire in 2022. The developer's note was paid in full in 2011. The housing affordability, set at 30 years, will expire between 2025 and 2027 depending on the component. In 2010 a TIF plan modification was made using the "Jobs Bill" legislation to allow for special TIF pooling for affordable housing as well as $100,000 to pay for the utility costs associated with the construction of The Glenn by St. Therese in the Glenhaven TIF District. This district is the primary source of TIF pooling that is being utilized for affordable housing. Project #TIF-03 Priority Green Justification The development agreement expired with the final TIF payment in 2011. This district has a maximum life of 26 years. The city could use the cash balance to pool for other redevelopment eligible projects in the city if the TIF plan and the project areas are modified. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Support and encourage housing options that are attractive to a wide variety of age and income levels of residents. Strategic Plan-Initiating programs and policies that broaden housing choices to both meet the needs of our aging population and attract young residents. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Affordable Units 185 185 185 185 185 185 185 185 185 Budget Impact/Other Staff, with occasional consultant assistance, oversees the administration of the TIF district. More detailed information on the TIF district, its obligations, performance, and other development agreement compliance can be found in the 2016 TIF Management Report prepared by the Ehlers, Inc., the city's financial consultant. Useful Life N/A Project Name Boulevard Gardens TIF District Category TIF Type Program Key Measures Key Measures Affordable Units Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Other 000000Total City of Minnetonka 2018-2022 EIP 47 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 5-TIF Districts Description The Glenhaven TIF district is a renewal and renovation district approved on January 23, 2006. Special legislation was granted to the city in 2009 to extend the duration of the district by seven years to December 31, 2029. SCHEDULING AND PROJECT STATUS This TIF district was approved in 2006 and will expire in 2029. The first two phases of the project included: a mixed use apartment building with retail on the first floor and a senior housing rental community. The third phase, originally planned as a condominium building, was recently changed and a 54-unit cooperative was completed in 2017. TIF revenue bonds were issued in 2010 and have a lien on the current TIF revenues. Annually, after the bonds are paid, the excess increment will pay the city's $500,000 interfund loan. In 2017, the city allowed the bonds to be refinanced which resulted in interest savings that will repay the interfund loan by 2026 and provide approximately $366,000 at the end of the district for other redevelopment projects. Next, the developer's pay as you go note is paid, and once that is paid off, then the city will repay itself for costs associated with the Alano facility. Even with the third phase, it's not likely the developer's note or the city's costs with Alano will be repaid. Project #TIF-04 Priority Green Justification The Glenhaven TIF District was established to assist in the Glen Lake Redevelopment of housing and mixed use. There are 43 affordable units in the total development, affordable to those at 60% AMI or less. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Support and encourage housing options that are attractive to a wide variety of age and income levels of residents. Strategic Plan- -Initiating programs and policies that broaden housing choices to both meet the needs of our aging population and attract young residents. -Actively promote the vitality of designated village centers, which integrate uses and connect people to commercial, residential, employment, and public activities. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Affordable Units 43 43 43 43 43 43 43 43 43 Budget Impact/Other Staff, with occasional consultant assistance, oversees the administration of the TIF district. A portion of the tax increment is retained to cover administrative costs. More detailed information on the TIF district, its obligations, performance, and other development agreement compliance can be found in the 2016 TIF Management Report prepared by the Ehlers, Inc., the city's financial consultant. Useful Life N/A Project Name Glenhaven TIF District Category TIF Type Program Key Measures Key Measures Affordable Units Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Other 000000Total City of Minnetonka 2018-2022 EIP 48 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 5-TIF Districts Description The Tonka on the Creek TIF district is a housing district approved February 10, 2014. A 100-unit apartment building known as The Overlook, containing 20 affordable units, was constructed as part of the project. SCHEDULING AND PROJECT STATUS This TIF district was approved in 2014 and will end in 2042. Construction began in late 2014, and was completed in early 2016. Project #TIF-06 Priority Green Justification The Tonka on the Creek TIF District was established to assist in the development of an 100-unit apartment building, of which 20 units will be affordable to those at 50% AMI or less. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Support and encourage housing options that are attractive to a wide variety of age and income levels of residents. Strategic Plan-Initiating programs and policies that broaden housing choices to both meet the needs of our aging population and attract young residents. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Affordable Units N/A 20 20 20 20 20 20 20 20 Budget Impact/Other Staff, with occasional consultant assistance, oversees the administration of the TIF district. A portion of the tax increment is retained to cover administrative costs. More detailed information on the TIF district, its obligations, performance, and other development agreement compliance can be found in the 2016 TIF Management Report prepared by the Ehlers, Inc., the city's financial consultant. Useful Life N/A Project Name Tonka on the Creek TIF District (The Overlook)Category TIF Type Program Key Measures Key Measures Affordable Units Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Other 000000Total City of Minnetonka 2018-2022 EIP 49 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 5-TIF Districts Description The Applewood Pointe TIF district is a redevelopment TIF district approved August 2014. An 89-unit senior cooperative building (Applewood Pointe) containing 9 affordable units was constructed as part of the project. SCHEDULING AND PROJECT STATUS The TIF district was approved in 2014 and will end in 2041. Construction began in late 2015 and was completed in 2016. Project #TIF-07 Priority Green Justification The Applewood Pointe TIF District was established to assist in the development of an 89-unit senior cooperative building (Applewood Pointe), of which 9 units are affordable. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Support and encourage housing options that are attractive to a wide variety of age and income levels of residents. Strategic Plan-Initiating programs and policies that broaden housing choices to both meet the needs of our aging population and attract young residents. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Affordable Units N/A 9 9 9 9 9 9 9 9 Budget Impact/Other Staff, with occasional consultant assistance, oversee the administration of the TIF district. A portion of the tax increment is retained to cover administrative costs. Useful LifeProject Name Applewood Pointe TIF District Category TIF Type Program Key Measures Key Measures Affordable Units Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Other 000000Total City of Minnetonka 2018-2022 EIP 50 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 5-TIF Districts Description At Home apartments is a 106-unit apartment building that received TIF assistance through a housing TIF district. Twenty-one units are affordable to those at 50% AMI or less. SCHEDULING AND PROJECT STATUS The TIF district was approved in 2015 and will end in 2043. Construction began in 2015 and was completed in 2016. Project #TIF-08 Priority Green Justification This TIF district includes 21 of the 106 rental units affordable to those earning 50% AMI or less. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Support and encourage housing options that are attractive to a wide variety of age and income levels of residents. Strategic Plan-Initiating programs and policies that broaden housing choices to both meet the needs of our aging population and attract young residents. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 Affordable Units N/A 21 21 21 21 21 21 21 21 Budget Impact/Other Staff, with occasional consultant assistance, oversee the administration of the TIF district. A portion of the tax increment is retained to cover administrative costs. Useful LifeProject Name Rowland Housing TIF District (At Home)Category TIF Type Program Key Measures Key Measures Affordable Units Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total Total2019 2020 2021 2022 2023Funding Sources 000000Other 000000Total City of Minnetonka 2018-2022 EIP 51 TAX ABATEMENT MINNETONKA ECONOMIC IMPROVEMENT PROGRAM 52 Economic Improvement Program City of Minnetonka, Minnesota Contact Community Development 2019 2023 thru Department 6-Tax Abatement Description The Ridgedale Tax Abatement was approved in connection with the Ridgedale Mall expansion and pertains to the Macys, Nordstrom and mall properties. The funds are to be used for transportation improvements around the mall site and with public amenities on the site. SCHEDULING AND PROJECT STATUS The Ridgedale Tax Abatement project was approved in Spring 2013. Project #Abatement-1 Priority Green Justification The Ridgedale Tax Abatement will assist in financing the transportation and other public improvements that must be completed due to the Ridgedale Mall expansion. PROGRAM GOALS AND RELATIONSHIP TO OTHER PLANS Comprehensive Plan-Manage the impact of new development upon the local transportation system and encourage the use of Transportation Demand Management (TDM) and other traffic management techniques. Strategic Plan-Supporting business retention and expansion and attracting new businesses to help our private sector be economically competitive. KEY MEASURES 2015 2016 2017 2018 2019 2020 2021 2022 Property Value Increase 5.5% 5.3% 20% % XX INFORMATION WILL BE AVAILABLE BY JUNE Property Levy 0 $26,000 $81,000 $20,000 $135,600 $152,800 $170,600 $188,900 Budget Impact/Other Staff, with occasional consultant assistance, oversees the administration of the Tax Abatement. A portion of the abatement is retained to cover administrative costs. Useful Life N/A Project Name Ridgedale Category Tax Abatement Type Improvement Key Measures Property Levy Key Measures Property Value Increase Key Measures Key Measures Total2019 2020 2021 2022 2023Expenditures 000000Other 000000Total City of Minnetonka 2018-2022 EIP 53 FUNDING SOURCES AND EXPENDITURE PROJECTIONS MINNETONKA ECONOMIC IMPROVEMENT PROGRAM 54 FUND DESCRIPTIONS Development Fund (2018 estimated beginning fund balance): $2,995,000 The Development Fund was created with funds remaining after retiring the bonds of a single Tax Increment Finance (TIF) district in 1993. Under provisions of the TIF contract and law, the Development Fund may only be used for costs associated with Minnetonka's redevelopment and economic development activities. The city's Economic Development Authority initiates projects appropriate to these activities. Livable Communities Fund (2018 estimated beginning fund balance): $650,000 The Livable Communities fund was created after receiving special legislation to develop an account from the revenues of a closed Tax Increment Finance (TIF) district. The legislation specifically restricts the use of these funds for affordable housing programs. Standards for affordability are consistent with the Metropolitan Council's income, rent and sales price limits. In 2017, $400,000 was returned to from the sale of Minnetonka Heights. The original source of this funding indicated that the reuse of the funds must be utilized for affordable housing. Community Development Block Grant (CDBG) Since 1975, the Community Development Block Grant (CDBG) fund has accounted for revenues and expenditures made under the federal CDBG program. Minnetonka typically uses these funds for housing projects and programs (such as housing rehab, affordable housing, and supportive housing) and supportive services (such as senior chore programs, information and referral services and others). HRA Levy (Proposed for 2019): $300,000 Minnesota Statutes 469.033, Subd. 6 authorizes housing and redevelopment authorities (HRAs) the power to levy a tax upon all property within its district to finance housing and redevelopment programs subject to the consent of the city council. In 1988 and amended in 1994 and 2010, the Minnetonka City Council established the Economic Development Authority (EDA) of the City of Minnetonka and transferred to the EDA the control, authority and operation of all projects and programs of the city's HRA. The law and council resolutions further require the EDA to file a budget in accordance with the budget procedure of the city in the same manner as required of executive departments of the city. TIF Pooling (2018 estimated beginning fund balance): $3,754,000 Under the Minnesota Statutes Chapter 469, at least 75 percent of tax increment in a redevelopment tax increment financing (TIF) district must be spent on eligible activities within the district, leaving up to 25 percent of the funds to be pooled and therefore eligible to be spent outside of the district, but within the project area. An exception to the pooling funds is for affordable rental housing that meet federal housing tax credit guidelines. The city may choose to increase the pooling allowance to 35 percent, which can then go to finance certain affordable housing projects. 55 Category Program Total CDBG Devpt Fund HRA Levy Livable Com Fund TIF TIF Pooling Other Housing: CDBG Admin 6,000$ 10,000 Small Projects Program 80,000$ 80,000 Employer Assisted Hsg -$ Fair Housing 900$ 800 Homes Within Reach 100,000$ 100,000 Housing Improvement Areas 3,930,000$ 3,930,000$ Mtka Home Enhancement 50,000$ 50,000 Public Services 14,000$ 14,000 Next Generation Pgm -$ Tax Exempt Conduit Debt -$ TIF Pooling/Boulevard Gardens 1,765,179$ 1,765,179 Welcome to Minnetonka 50,000$ 50,000 Subtotal 5,999,979$ 104,800$ -$200,000$ -$-$1,765,179$ 3,930,000$ Business: Economic Gardening -$ Econ. Dev. Infrastructure -$ Fire Sprinkler Retrofit 50,000$ 50,000$ Common Bond/Ind Rev -$ Pass-Through Grants 200,000$ 200,000 GreaterMSP 25,000$ 25,000 MN Investment Fund 200,000$ 200,000 Open to Business 15,000$ 15,000 Outreach 25,000$ 25,000 PACE -$ Special Service Districts -$ TwinWest 3,000$ 3,000 SAC/REC Deferral Program -$ Subtotal 518,000$ -$440,000$ 25,000$ -$-$-$53,000$ Transit: Commuter Services 12,000$ 12,000 Transit Improvments -$ Subtotal 12,000$ -$-$-$-$-$-$12,000$ Devpt & Redevpt: Predevelopment 50,000$ 50,000 Village Center/Comp Plan -$ LRT and Station Area 75,000$ 75,000 Strategic Marketing -$ -$ City Owned Properties -$ Future HRA Levy Properties -$ Subtotal 125,000$ -$50,000$ 75,000$ -$-$-$-$ TIF Districts: Devpt Agmt & TIF Admin 140,000$ 140,000 Beacon Hill TIF District -$ Blvd Gardens TIF District -$ Glenhaven TIF District -$ Mtka Mills TIF District -$ Tonka on the Creek TIF District -$ Applewood Pointe TIF District -$ Rowland Housing TIF District -$ Subtotal 140,000$ -$140,000$ -$-$-$-$-$ Tax Abatement: Ridgedale -$ -$ -$ -$ -$ -$ -$ -$ Subtotal -$-$-$-$-$-$-$-$ TOTALS 6,794,979$ 104,800$ 630,000$ 300,000$ -$-$1,765,179$ 3,995,000$ SUMMARY TABLE Expenditures by Category & Fund EIP 2019 Fund 56 Economic Improvement ProgramCity of Minnetonka, MinnesotaSOURCES AND USES OF FUNDS2019 2028thruDevelopment FundSource2019 2020 2021 2022 2023 2024 2025 2026 2027 20282,955,000 2,929,500 2,904,000 2,878,500 2,645,000Beginning Balance2,424,500 2,389,000 2,363,500 2,338,000 2,312,500Revenues and Other Fund SourcesRevenue200,000 200,000 200,000 200,0000Boulevard Gardens Returned Levy Proceeds0000049,500 49,500 49,500 49,500 49,500Cedar Ridge Assessments49,500 49,500 49,500 49,500 49,500200,000 200,000 200,000 200,000 200,000Grants200,000 200,000 200,000 200,000 200,00015,000 15,000 15,000 15,000 20,000Interest Income15,000 15,000 15,000 15,000 15,000140,000 140,000 130,000 12,000 110,000TIFAdmin Revenue100,000 110,000 100,000 100,000 100,000604,500 604,500 594,500 476,500 379,500Total 364,500 374,500 364,500 364,500 364,5003,559,500 3,534,000 3,498,500 3,355,000 3,024,500Total Funds Available604,500 604,500 594,500 476,500 379,500Total Revenues and Other Fund Sources2,789,000 2,763,500 2,728,000 2,702,500 2,677,000364,500 374,500 364,500 364,500 364,500Expenditures and UsesCapital Projects & Equipment1-Housing00000Housing Improvement Areas00000Housing-0600000Total 0 00002-Business(200,000) (200,000) (200,000) (200,000) (200,000)Grants(200,000) (200,000) (200,000) (200,000) (200,000)Business-02(25,000) (25,000) (25,000) (25,000) (25,000)GreaterMSP(25,000) (25,000) (25,000) (25,000) (25,000)Business-04(200,000) (200,000) (200,000) (300,000) (200,000)MIF/JCF Projects00000Business-06(15,000) (15,000) (15,000) (15,000) (15,000)Open to Business(15,000) (15,000) (15,000) (15,000) (15,000)Business-07City of Minnetonka 2018-2022 EIP57 Development FundSource2019 2020 2021 2022 2023 2024 2025 2026 2027 202800000Special Service District00000Business-13(440,000) (440,000) (440,000) (540,000) (440,000)Total (240,000) (240,000) (240,000) (240,000) (240,000)4-Development & Redevelopment(50,000) (50,000) (50,000) (50,000) (50,000)Pre-Development(50,000) (50,000) (50,000) (50,000) (50,000)Dev/Redev-01(50,000) (50,000) (50,000) (50,000) (50,000)Total (50,000) (50,000) (50,000) (50,000) (50,000)5-TIF Districts(140,000) (140,000) (130,000) (120,000) (110,000)Development Agreement and TIF Administration(110,000) (110,000) (100,000) (100,000) (100,000)TIF-01(140,000) (140,000) (130,000) (120,000) (110,000)Total (110,000) (110,000) (100,000) (100,000) (100,000)(630,000) (630,000) (620,000) (710,000) (600,000)Total Expenditures and Uses(400,000) (400,000) (390,000) (390,000) (390,000)2,929,500 2,904,000 2,878,500 2,645,000 2,424,500Ending Balance(25,500) (25,500) (25,500) (233,500) (220,500)Change in Fund Balance(35,500) (25,500) (25,500) (25,500) (25,500)2,389,000 2,363,500 2,338,000 2,312,500 2,287,000City of Minnetonka 2018-2022 EIP58 Economic Improvement ProgramCity of Minnetonka, MinnesotaSOURCES AND USES OF FUNDS2019 2028thruHRA LevySource2019 2020 2021 2022 2023 2024 2025 2026 2027 2028300,000 312,000 349,000 386,000 423,000Beginning Balance460,000 497,000 534,000 646,000 758,000Revenues and Other Fund SourcesRevenue300,000 250,000 250,000 250,000 250,000Ad Valorem Tax Levy250,000 250,000 250,000 250,000 250,0002,000 2,000 2,000 2,000 2,000Investment Interest2,000 2,000 2,000 2,000 2,00010,000 10,000 10,000 10,000 10,000Loan paybacks10,000 10,000 10,000 10,000 10,000312,000 262,000 262,000 262,000 262,000Total 262,000 262,000 262,000 262,000 262,000612,000 574,000 611,000 648,000 685,000Total Funds Available312,000 262,000 262,000 262,000 262,000Total Revenues and Other Fund Sources722,000 759,000 796,000 908,000 1,020,000262,000 262,000 262,000 262,000 262,000Expenditures and UsesCapital Projects & Equipment1-Housing(100,000) (25,000) (25,000) (25,000) (25,000)Homes Within Reach(25,000) (25,000) (25,000) (25,000) (25,000)Housing-05(50,000) (50,000) (50,000) (50,000) (50,000)Minnetonka Home Enhancement(50,000) (50,000) (50,000) (50,000) (50,000)Housing-08(50,000) (50,000) (50,000) (50,000) (50,000)Welcome to Minnetonka Loan Program(50,000) (50,000) (50,000) (50,000) (50,000)Housing-14(200,000) (125,000) (125,000) (125,000) (125,000)Total (125,000) (125,000) (125,000) (125,000) (125,000)2-Business(25,000) (25,000) (25,000) (25,000) (25,000)Outreach(25,000) (25,000) (25,000) (25,000) (25,000)Business-08(25,000) (25,000) (25,000) (25,000) (25,000)Total (25,000) (25,000) (25,000) (25,000) (25,000)4-Development & RedevelopmentCity of Minnetonka 2018-2022 EIP59 HRA LevySource2019 2020 2021 2022 2023 2024 2025 2026 2027 202800000Village Center Studies and Comprehensive Plan00000Dev/Redev-02(75,000) (75,000) (75,000) (75,000) (75,000)LRT and LRT Station Area Development(75,000) (75,000) 0 0 0Dev/Redev-0300000Future HRA Levy projects00000Dev/Redev-06(75,000) (75,000) (75,000) (75,000) (75,000)Total (75,000) (75,000) 000(300,000) (225,000) (225,000) (225,000) (225,000)Total Expenditures and Uses(225,000) (225,000) (150,000) (150,000) (150,000)312,000 349,000 386,000 423,000 460,000Ending Balance12,000 37,000 37,000 37,000 37,000Change in Fund Balance37,000 37,000 112,000 112,000 112,000497,000 534,000 646,000 758,000 870,000City of Minnetonka 2018-2022 EIP60 Economic Improvement ProgramCity of Minnetonka, MinnesotaSOURCES AND USES OF FUNDS2019 2028thruLivable Communities FundSource2019 2020 2021 2022 2023 2024 2025 2026 2027 2028650,000 651,000 652,000 653,000 654,000Beginning Balance655,000 656,000 657,000 658,000 659,000Revenues and Other Fund SourcesRevenue1,000 1,000 1,000 1,000 1,000Interest Income1,000 1,000 1,000 1,000 1,0001,000 1,000 1,000 1,000 1,000Total 1,000 1,000 1,000 1,000 1,000651,000 652,000 653,000 654,000 655,000Total Funds Available1,000 1,000 1,000 1,000 1,000Total Revenues and Other Fund Sources656,000 657,000 658,000 659,000 660,0001,000 1,000 1,000 1,000 1,000651,000 652,000 653,000 654,000 655,000Ending Balance1,000 1,000 1,000 1,000 1,000Change in Fund Balance1,000 1,000 1,000 1,000 1,000656,000 657,000 658,000 659,000 660,000City of Minnetonka 2018-2022 EIP61 Economic Improvement ProgramCity of Minnetonka, MinnesotaSOURCES AND USES OF FUNDS2019 2028thruCDBGSource2019 2020 2021 2022 2023 2024 2025 2026 2027 20280 25,000 50,000 75,000 90,000Beginning Balance105,000 120,000 135,000 150,000 165,000Revenues and Other Fund SourcesRevenue104,800 79,600 54,40000federal grant0000025,000 25,000 25,000 15,000 15,000program income15,000 15,000 15,000 15,000 15,000129,800 104,600 79,400 15,000 15,000Total 15,000 15,000 15,000 15,000 15,000129,800 129,600 129,400 90,000 105,000Total Funds Available129,800 104,600 79,400 15,000 15,000Total Revenues and Other Fund Sources120,000 135,000 150,000 165,000 180,00015,000 15,000 15,000 15,000 15,000Expenditures and UsesCapital Projects & Equipment1-Housing(10,000) (8,000) (6,000)00CDBG Administration00000Housing-01(80,000) (60,000) (40,000)00Small Projects Program00000Housing-03(800) (600) (400)00Fair Housing00000Housing-04(14,000) (11,000) (8,000)00Public Services00000Housing-10(104,800) (79,600) (54,400)00Total 0 0000(104,800) (79,600) (54,400) 0 0Total Expenditures and Uses00000City of Minnetonka 2018-2022 EIP62 CDBGSource2019 2020 2021 2022 2023 2024 2025 2026 2027 202825,000 50,000 75,000 90,000 105,000Ending Balance25,000 25,000 25,000 15,000 15,000Change in Fund Balance15,000 15,000 15,000 15,000 15,000120,000 135,000 150,000 165,000 180,000City of Minnetonka 2018-2022 EIP63 Economic Improvement ProgramCity of Minnetonka, MinnesotaSOURCES AND USES OF FUNDS2019 2028thruTIF PoolingSource2019 2020 2021 2022 2023 2024 2025 2026 2027 20283,754,000 2,354,821 2,120,821 1,886,821 1,886,821Beginning Balance1,886,821 1,886,821 1,886,821 1,886,821 1,886,821Revenues and Other Fund SourcesRevenue600,000 600,000 600,000 620,0000Pooled TIF Funds00000600,000 600,000 600,000 620,0000Total 0 00004,354,000 2,954,821 2,720,821 2,506,821 1,886,821Total Funds Available600,000 600,000 600,000 620,0000Total Revenues and Other Fund Sources1,886,821 1,886,821 1,886,821 1,886,821 1,886,82100000Expenditures and UsesCapital Projects & Equipment1-Housing(1,765,179) (600,000) (600,000) (620,000)0Affordable Housing via TIF Pooling/Blvd Gardens00000Housing-12(234,000) (234,000) (234,000)00Affordable Housing vis TIF Pooling/Beacon Hill00000Housing-13(1,999,179) (834,000) (834,000) (620,000)0Total 0 0000(1,999,179) (834,000) (834,000) (620,000) 0Total Expenditures and Uses000002,354,821 2,120,821 1,886,821 1,886,821 1,886,821Ending Balance(1,399,179) (234,000) (234,000)00Change in Fund Balance000001,886,821 1,886,821 1,886,821 1,886,821 1,886,821City of Minnetonka 2018-2022 EIP64 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 TOTAL Method of Financing Development Account 630,000$ 630,000$ 620,000$ 710,000$ 600,000$ 400,000$ 400,000$ 390,000$ 390,000$ 390,000$ 5,160,000$ Livable Communities Account - - - - - - - - - - - Federal Grant (CDBG)104,800 79,600 54,400 - - - - - - - 238,800$ Ad Valorem Tax Levy 300,000 225,000 225,000 225,000 225,000 225,000 225,000 150,000 150,000 150,000 2,100,000$ Pooled TIF Funds 1,765,179 600,000 600,000 620,000 - - - - - - 3,585,179$ Revenue Bonds 3,930,000 - 2,000,000 - - - - - - - 5,930,000$ Other 65,000 65,000 90,000 91,000 91,000 66,000 66,000 66,000 66,000 66,000 732,000.00$ Total Funding Sources 6,794,979$ 1,599,600$ 3,589,400$ 1,646,000$ 916,000$ 691,000$ 691,000$ 606,000$ 606,000$ 606,000$ 17,745,979$ Expenditures Housing 5,999,979$ 804,600$ 2,779,400$ 745,000$ 125,000$ 125,000$ 125,000$ 125,000$ 125,000$ 125,000$ 11,078,979$ Business 518,000 518,000 518,000 619,000 519,000 319,000 319,000 319,000 319,000 319,000 4,287,000$ Transit 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 120,000$ Development/Redevelopment 125,000 125,000 150,000 150,000 150,000 125,000 125,000 50,000 50,000 50,000 1,100,000$ TIF Admin 140,000 140,000 130,000 120,000 110,000 110,000 110,000 100,000 100,000 100,000 1,160,000$ Total Expenditures 6,794,979$ 1,599,600$ 3,589,400$ 1,646,000$ 916,000$ 691,000$ 691,000$ 606,000$ 606,000$ 606,000$ 17,745,979$ EIP 2019-2028 All Categories Funding Sources and Expenditure Projections 65 Management Review & Analysis - Tax Increment Financing Districts September, 2016 City of Minnetonka, MN Page 19 CityofMinnetonka HousingTIFDistrictNo.2BeaconHill ORIGINAL HSS Geo.Enlargement InterestIncome 0.50% 1)Discusswithattorneyregardingtheuseofincrementforhousingafterobligationisfinished DistrictType Housing AdminExpense 3.00% 2)Mayneedabudgetmodificationbeforethedistrictexpires ProjectArea GlenLakeStation 3)Admin.Expenseiscurrently:foryear2016 8.5%AtorUnderLimit FiscalDisparities AElection CountyNumber 1458 FrozenRate UTA#1 132.577%0.000%0.000% UTA#2 0.000% UTA#3 0.000% CurrentYear 2016 First Receipt CityApproved CertRequest Certified LegalTerm ExpectedTerm TaxIncrement InterestIncome TOTALREVENUES Project Affordable Housing Paygo InterfundLoan AdminExpense OutsideDistrict TOTALEXPENSE OriginalBudget 1996 2/14/1994 4/19/1994 9/19/1994 12/31/2021 12/31/2021 ͲͲͲ CumulativeModified 4,256,0004,256,0002,106,000100,0001,400,000350,0003,956,0003,956,000 EndofDistrictProjectedActualTotal 4,236,3082,5824,238,890Ͳ1,065,0002,838,031 Ͳ332,949 Ͳ4,235,9804,235,980 Under/(Over)Budget 19,692(2,582)17,1102,106,000(965,000)(1,438,031) Ͳ17,051Ͳ(279,980)(279,980) Year Base Current FiscalDisparities Captured TaxIncrement Housing RehabLoan Repayments InterestIncome TOTALREVENUES Project Affordable Housing Paygo InterfundLoan AdminExpense OutsideDistrict TOTALEXPENSE 18 2013 Ͳ0.000% 2,549,940(2,303)2,547,6372,283,428190,2342,473,66273,975 19 2014 8,647150,489Ͳ141,842132.233% 186,887560187,447165,55318,689184,24277,180 20 2015 8,647161,889Ͳ153,242124.605% 190,26085190,345Ͳ160,204Ͳ19,026Ͳ179,23088,295 21 2016 8,647190,389Ͳ181,742120.496% 218,203441218,645Ͳ100,000152,475Ͳ15,000Ͳ267,47539,465 22 2017 8,647190,389Ͳ181,742120.496% 218,203197218,401Ͳ100,00076,371Ͳ15,000Ͳ191,37166,494 23 2018 8,647190,389Ͳ181,742120.496% 218,203332218,536Ͳ150,000Ͳ15,000Ͳ165,000120,030 24 2019 8,647190,389Ͳ181,742120.496% 218,203600218,804Ͳ150,000Ͳ15,000Ͳ165,000173,834 25 2020 8,647190,389Ͳ181,742120.496% 218,203869219,073Ͳ200,000Ͳ15,000Ͳ215,000177,907 26 2021 8,647190,389Ͳ181,742120.496% 218,203890219,093Ͳ200,000Ͳ15,000Ͳ215,000182,000 27 2022 ͲͲͲͲ0.000%Ͳ910910Ͳ165,000ͲͲ15,000Ͳ180,0002,910 4,236,3082,5824,238,890Ͳ1,065,0002,838,031Ͳ332,949Ͳ4,235,980 CASHFLOWPROJECTIONSROLLUP TIFPLANBUDGETANALYSIS TIFYear TAXCAPACITY CurrentLocal TaxRate Revenues Expenditures EndingBalance Decertifies Revenues Expenditures TotalBudget DISTRICTINFORMATION ASSUMPTIONS RECOMMENDATIONS ID 66 Management Review & Analysis - Tax Increment Financing Districts September, 2016 City of Minnetonka, MN Page 20 CityofMinnetonka HousingTIFDistrictNo.2BeaconHill PursuanttoM.S.469.176Subd.3: Adminlimitisbasedon: Expenses TEST 1:AdminperTIFPlan $350,000 Y TEST 2:EstimatedTIFAdminAllowable(10%) $360,600 EstimatedTotalTIFExpensesperTIFPlan $3,606,000 N TEST 3:CumulativeTIFAdminAllowable(10%) $390,303 PursuanttoM.S.469.1763Subd.2: TotalTIFExpensesfortheProject $3,903,031 N DistrictType: Housing Doesthissectionapply? Yes RESULTS:AdminperTIFPlan $350,000 CertificationRequestDate:4/19/1994 ActualAdminExpenses $332,949 DoesTIFPlanSpecifyAssistingHousingOutsideProjectArea?No AvailableAdmin $17,051 Ifso,WhatistheAdditional%AllowedinTIFPlan(Upto10%):0% ActualPercentage 8.5%TotalPooling%:25% TIFYear Year Admin.Expenses Total%Allowable CurrentYear Cummulative AdminCosts SpentOutside Cumulative Increment Generated Costs Authorized Required? Increment returned NetRetained P&IDueafter yearend Excess(NotExcess) 18 2013 190,2342,283,4288.3%2,549,9402,549,940190,234447,251Ͳ447,25173,9752,547,6373,956,000no 0 0 (1,408,363) 19 2014 208,9232,448,9818.5%186,8872,736,827208,923475,284Ͳ475,28477,1802,735,084 3,956,000 no 0 0 (1,220,916) 20 2015 227,9492,609,1858.7%190,2602,927,087227,949503,823Ͳ503,82388,2952,925,429 3,956,000 no 0 0 (1,030,571) 21 2016 242,9492,861,6608.5%218,2033,145,290242,949543,374Ͳ543,37439,4653,144,074 3,956,000 no 0 0 (811,926) 22 2017 257,9493,038,0318.5%218,2033,363,494257,949582,924Ͳ582,92466,4943,362,475 3,956,000 yes 3,362,475 0 (593,525) 23 2018 272,9493,188,0318.6%218,2033,581,697272,949622,475Ͳ622,475120,0303,581,010 3,956,000 yes 3,581,010 0 (374,990) 24 2019 287,9493,338,0318.6%218,2033,799,901287,949662,026Ͳ662,026173,8343,799,814 3,956,000 yes 3,799,814 0 (156,186) 25 2020 302,9493,538,0318.6%218,2034,018,104302,949701,577Ͳ701,577177,9074,018,887 3,956,000 yes 4,018,887 0 62,887 26 2021 317,9493,738,0318.5%218,2034,236,308317,949741,128Ͳ741,128182,0004,237,980 3,956,000 yes 4,237,980 0 281,980 27 2022 332,9493,903,0318.5%Ͳ4,236,308332,949726,128Ͳ4,238,890 3,956,000 yes 4,238,890 0 282,890 EXCESSINCREMENT ADMINISTRATIVEEXPENSETEST ADMINISTRATIVEEXPENSECALCULATION POOLINGCALCULATION(25%OutsideofDistrict) AccummulatedTotals TaxIncrement 25%forQualified Costs Availablefor Pooling 67 Management Review & Analysis - Tax Increment Financing Districts September, 2016 City of Minnetonka, MN Page 28 CityofMinnetonka TIFDistrict1Ͳ2BoulevardGardens ORIGINAL HSS Geo.Enlargement InterestIncome 0.50% DistrictType Redevelopment AdminExpense 4.00% ProjectArea DevelopmentDistrictNo1 3)Admin.Expenseiscurrently: 8.5%AtorUnderLimit FiscalDisparities AElection CountyNumber 1460 FrozenRate UTA#1 134.726% 0.000% 0.000% UTA#2 0.000% UTA#3 0.000% CurrentYear 2016 FirstReceipt CityApproved CertRequest Certified LegalTerm ExpectedTerm TaxIncrement Bonds InterestIncome TOTALREVENUES Project Paygo AdminExpense CountyAdmin Affordable Housing OutsideDistrict OtherExpense TOTALEXPENSE OriginalBudget 1997 12/11/1995 6/11/1996 7/2/1996 12/31/2022 12/31/2022 ͲͲͲ CumulativeModified 37,300,00019,300,000350,00056,950,00010,564,57826,650,0002,335,4226,400,00011,000,00056,950,00056,950,000 EndofDistrictProjectedActualTotal 39,491,518188,80239,680,321100,00016,692,8121,975,1765,6016,445,000290,35214,171,37939,680,32139,680,321 Under/(Over)Budget (2,191,518)161,19817,269,67910,464,5789,957,188360,246(5,601)(45,000)(290,352)(3,171,379)17,269,67917,269,679 Year Base Current Fiscal Disparities Captured TaxIncrement InterestIncome TOTALREVENUES Project Paygo AdminExpense CountyAdmin Affordable Housing OutsideDistrict Increment Returned TOTALEXPENSE 16 2012 ͲͲͲͲ0.000% 1,627,6018,4911,636,092143,4145,6011,025,000950,0002,124,015290,352 17 2013 Ͳ0.000% 1,779,294(6,936)1,772,358173,989950,0001,123,989938,721 18 2014 ͲͲͲͲ131.818% 1,831,29310,5881,841,88189,030991,0001,080,0301,700,572 19 2015 72,7501,573,468Ͳ1,500,718124.388% 1,855,74414,0571,869,801Ͳ90,674Ͳ949,0001,039,6742,530,699 20 2016 72,7501,623,624Ͳ1,550,874120.460% 1,860,54112,6531,873,194Ͳ74,4221,209,3521,283,7733,120,120 21 2017 72,7501,623,624Ͳ1,550,874120.460% 1,861,45715,6011,877,058Ͳ74,4582,400,000290,3521,209,9473,974,7581,022,421 22 2018 72,7501,623,624Ͳ1,550,874120.460% 1,861,4575,1121,866,569Ͳ74,458600,0001,209,9471,884,4061,004,584 23 2019 72,7501,623,624Ͳ1,550,874120.460% 1,861,4575,0231,866,480Ͳ74,458600,0001,209,9471,884,406986,659 24 2020 72,7501,623,624Ͳ1,550,874120.460% 1,861,4574,9331,866,391Ͳ74,458600,0001,209,9471,884,406968,644 25 2021 72,7501,623,624Ͳ1,550,874120.460% 1,861,4574,8431,866,301Ͳ74,458600,0001,209,9471,884,406950,539 26 2022 72,7501,623,624Ͳ1,550,874120.460% 1,861,4574,7531,866,210Ͳ74,458620,0001,209,9471,904,406912,344 27 2023 ͲͲͲͲ0.000%ͲͲͲͲ912,344912,344(0) 28 2024 ͲͲͲͲ0.000%ͲͲͲͲͲͲͲͲ(0) 39,491,518188,80239,680,321100,00016,692,8121,975,1765,6016,445,000290,35214,171,37939,680,321 CASHFLOWPROJECTIONSROLLUP TIFPLANBUDGETANALYSIS Decertifies Revenues Expenditures TotalBudget TIFYear TAXCAPACITY CurrentLocal TaxRate Revenues Expenditures EndingBalance DISTRICTINFORMATION ASSUMPTIONS RECOMMENDATIONS IDIDIDIDID 68 Management Review & Analysis - Tax Increment Financing Districts September, 2016 City of Minnetonka, MN Page 29 CityofMinnetonka TIFDistrict1Ͳ2BoulevardGardens PursuanttoM.S.469.176Subd.3: Adminlimitisbasedon:Expenses TEST 1:AdminperTIFPlan $2,335,422 Y TEST 2:EstimatedTIFAdminAllowable(10%) $5,461,458 EstimatedTotalTIFExpensesperTIFPlan $54,614,578 N TEST 3:CumulativeTIFAdminAllowable(10%) $3,770,514 PursuanttoM.S.469.1763Subd.2: TotalTIFExpensesfortheProject $37,705,144 N DistrictType: Redevelopment Doesthissectionapply? Yes RESULTS:AdminperTIFPlan $2,335,422 CertificationRequestDate:6/11/1996 ActualAdminExpenses $1,975,176 DoesTIFPlanSpecifyAssistingHousingOutsideProjectArea?Yes AvailableAdmin $360,246 Ifso,WhatistheAdditional%AllowedinTIFPlan(Upto10%):10% ActualPercentage 5.2%TotalPooling%:35% TIFYear Year Admin.Expenses Total%Allowable CurrentYear Cummulative AdminCosts SpentOutside Affordable Housing Affordable Housing Increment Generated CostsAuthorized Required? Increment returned NetRetained P&IDueafter yearend Excess(Not Excess) 16 2012 1,100,31217,894,0436.1%1,627,60120,995,9021,100,3124,148,664Ͳ15,049,330290,352850,8391,025,000 17 2013 1,274,30117,894,0437.1%1,779,29422,775,1961,274,301290,352Ͳ290,352290,3521,299,603Ͳ274,6031,772,35856,950,000no 0 0 (55,177,642) 18 2014 1,363,33117,894,0437.6%1,831,29324,606,4891,363,331290,352Ͳ290,352290,3521,851,525Ͳ826,5253,614,239 56,950,000 no 991,000 0 0 (53,335,761) 19 2015 1,454,00517,894,0438.1%1,855,74426,462,2331,454,005290,352Ͳ290,352290,3522,410,362Ͳ1,385,3625,484,040 56,950,000 no 949,000 0 0 (51,465,960) 20 2016 1,528,42717,894,0438.5%1,860,54128,322,7741,528,427290,352Ͳ290,352290,3522,987,129Ͳ1,962,1297,357,234 56,950,000 no 1,209,352 0 0 (49,592,766) 21 2017 1,602,88520,584,3957.8%1,861,45730,184,2311,602,885290,352290,352ͲͲ3,564,1812,400,000139,1819,234,292 56,950,000 no 1,209,947 0 0 (47,715,708) 22 2018 1,677,34321,184,3957.9%1,861,45732,045,6891,677,343ͲͲͲ4,141,233600,000116,23311,100,862 56,950,000 no 1,209,947 0 0 (45,849,138) 23 2019 1,751,80221,784,3958.0%1,861,45733,907,1461,751,802ͲͲͲ4,718,285600,00093,28512,967,342 56,950,000 no 1,209,947 0 0 (43,982,658) 24 2020 1,826,26022,384,3958.2%1,861,45735,768,6031,826,260ͲͲͲ5,295,336600,00070,33614,833,733 56,950,000 no 1,209,947 0 0 (42,116,267) 25 2021 1,900,71822,984,3958.3%1,861,45737,630,0611,900,718ͲͲͲ5,872,388600,00047,38816,700,033 56,950,000 no 1,209,947 0 0 (40,249,967) 26 2022 1,975,17623,604,3958.4%1,861,45739,491,5181,975,176ͲͲͲ6,449,440620,0004,44018,566,244 56,950,000 no 1,209,947 0 0 (38,383,756) 27 2023 1,975,17623,604,3958.4%Ͳ39,491,5181,975,176Ͳ6,449,440Ͳ4,44018,566,244 56,950,000 no 912,344 0 0 (38,383,756) 28 2024 1,975,17623,604,3958.4%Ͳ39,491,5181,975,176Ͳ6,449,440Ͳ4,44018,566,244 56,950,000 no 0 0 0 (38,383,756) EXCESSINCREMENT ADMINISTRATIVEEXPENSETEST ADMINISTRATIVEEXPENSECALCULATION POOLINGCALCULATION(35%OutsideofDistrict) AccummulatedTotals TaxIncrement 25%forQualified Costs" Availablefor Pooling 35%Availablefor Affordable Housing Qualified Redevelopment Costs 69 Management Review & Analysis - Tax Increment Financing Districts September, 2016 City of Minnetonka, MN Page 34 CityofMinnetonka Glenhaven ORIGINAL HSS Geo.Enlargement InterestIncome 0.50% 1) DistrictType RenewalandRenovation AdminExpense 4.00% 2) ProjectArea GlenLakeStation 3) Admin.Expenseiscurrently: foryear2016 8.2%AtorUnderLimit FiscalDisparities BElection CountyNumber 1463 FrozenRate UTA#1 99.282% 0.000% 0.000% UTA#2 0.000% UTA#3 0.000% CurrentYear 2016 First Receipt CityApproved CertRequest Certified LegalTerm ExpectedTerm TaxIncrement Bond InterestIncome TOTALREVENUES Paygo Project InterfundLoan Bond BondDiscount AdminExpense OutsideDistrict OtherExpense TOTALEXPENSE OriginalBudget 2007 1/23/2006 4/3/2006 6/2/2006 12/31/2029 12/31/2029 ͲͲͲ CumulativeModified 13,300,0007,000,00020,300,0001,500,0005,770,0002,000,0009,700,0001,330,00020,300,00020,300,000 EndofDistrictProjectedActualTotal 8,070,155 Ͳ45,6859,997,5575,612,272360,8952184,031,46559,500392,556 ͲͲ9,474,65610,456,906 Under/(Over)Budget 5,229,8457,000,000(45,685)10,302,443(4,112,272)5,409,1051,999,7825,668,535(59,500)937,444ͲͲ10,825,3449,843,094 Year Base Current FiscalDisparities Captured TaxIncrement Bond InterestIncome TOTALREVENUES Paygo Project InterfundLoan Bond BondDiscount AdminExpense OutsideDistrict Increment Returned TOTALEXPENSE 10 2013 ͲͲͲͲ0.000% 645,7452,380,0005,2243,030,9692,212,272240,43759,50092,2852,604,494426,475 11 2014 117,677484,21125,541340,993132.233% 330,1814,167334,348360,895220,71316,509598,117162,706 12 2015 117,677521,98232,251372,054124.605% 359,9282,829362,757Ͳ220,900Ͳ19,096ͲͲ239,996285,467 13 2016 117,677573,20931,696423,836120.496% 419,2781,427420,705300,000218220,813Ͳ16,771ͲͲ537,802168,370 14 2017 117,677573,20931,696423,836120.496% 419,278842420,120200,000220,450Ͳ16,771ͲͲ437,221151,269 15 2018 117,677645,57831,696496,205120.496% 490,869756491,625175,000219,813Ͳ19,635ͲͲ414,448228,446 16 2019 117,677645,57831,696496,205120.496% 490,8691,142492,011175,000218,901Ͳ19,635ͲͲ413,536306,922 17 2020 117,677645,57831,696496,205120.496%490,8691,535492,403150,000217,713Ͳ19,635ͲͲ387,348411,977 18 2021 117,677645,57831,696496,205120.496% 490,8692,060492,929200,000216,250Ͳ19,635ͲͲ435,885469,021 19 2022 117,677645,57831,696496,205120.496% 490,8692,345493,214200,000219,375Ͳ19,635ͲͲ439,010523,225 20 2023 117,677645,57831,696496,205120.496% 490,8692,616493,485200,000216,750Ͳ19,635ͲͲ436,385580,325 21 2024 117,677645,57831,696496,205120.496% 490,8692,902493,770200,000218,350Ͳ19,635ͲͲ437,985636,111 22 2025 117,677645,57831,696496,205120.496% 490,8693,181494,049250,000219,350Ͳ19,635ͲͲ488,985641,175 23 2026 117,677645,57831,696496,205120.496% 490,8693,206494,075300,000214,900Ͳ19,635ͲͲ534,535600,715 24 2027 117,677645,57831,696496,205120.496% 492,6423,004495,646300,000215,000Ͳ19,706ͲͲ534,706561,655 25 2028 117,677645,57831,696496,205120.496% 492,6422,808495,451300,000214,500Ͳ19,706ͲͲ534,206522,900 26 2029 117,677645,57831,696496,205120.496% 492,6422,615495,257300,000213,400Ͳ15,000ͲͲ528,400489,757 27 2030 ͲͲͲͲ0.000%Ͳ2,4492,449150,000303,850ͲͲͲ453,85038,356 28 2031 ͲͲͲͲ0.000%Ͳ192192ͲͲͲͲͲͲ38,548 29 2032 ͲͲͲͲ0.000%Ͳ193193ͲͲͲͲͲͲ38,740 30 2033 ͲͲͲͲ0.000%Ͳ194194ͲͲͲͲͲͲ38,934 CASHFLOWPROJECTIONSROLLUP EndingBalanceTIFYear TAXCAPACITY CurrentLocal TaxRate Revenues Expenditures Expenditures TotalBudget DISTRICTINFORMATION ASSUMPTIONS RECOMMENDATIONS TIFPLANBUDGETANALYSIS Decertifies Revenues IDIDIDIDID 70 Management Review & Analysis - Tax Increment Financing Districts September, 2016 City of Minnetonka, MN Page 35 CityofMinnetonka Glenhaven PursuanttoM.S.469.176Subd.3: Adminlimitisbasedon: Revenues TEST 1:AdminperTIFPlan $1,330,000 N TEST 2:EstimatedTIFAdminAllowable(10%) $1,330,000 EstimatedTotalTIFRevenuesperTIFPlan $13,300,000 N TEST 3:CumulativeTIFAdminAllowable(10%)$811,584 PursuanttoM.S.469.1763Subd.2: TotalTIFRevenuesfortheProject $8,115,840 Y DistrictType:RenewalandRenovation Doesthissectionapply?Yes RESULTS:CumulativeTIFAdminAllowable(10%) $811,584 CertificationRequestDate: 4/3/2006 ActualAdminExpenses $392,556 DoesTIFPlanSpecifyAssistingHousingOutsideProjectArea?No AvailableAdmin $419,028 Ifso,WhatistheAdditional%AllowedinTIFPlan(Upto10%):0% ActualPercentage 4.8%TotalPooling%:20% TIFYear Year Admin.Expenses Total%Allowable CurrentYear Cummulative AdminCosts SpentOutside Cumulative Increment Generated CostsAuthorized Required? Increment returned NetRetained P&IDueafter yearend Excess(Not Excess) 10 2013 92,285650,96914.2%645,745645,74592,28536,864Ͳ36,86436,8643,030,96920,300,000no 0 0 (17,269,031) 11 2014 108,794985,31711.0%330,181975,926108,79486,391Ͳ86,39186,3913,365,317 20,300,000 no 0 0 (16,934,683) 12 2015 127,8901,348,0749.5%359,9281,335,854127,890139,281Ͳ139,281139,2813,728,074 20,300,000 no 0 0 (16,571,926) 13 2016 144,6611,768,7798.2%419,2781,755,132144,661206,365Ͳ206,365168,3704,148,779 20,300,000 no 0 0 (16,151,221) 14 2017 161,4322,188,8997.4%419,2782,174,410161,432273,450Ͳ273,450151,2694,568,899 20,300,000 no 0 0 (15,731,101) 15 2018 181,0672,680,5246.8%490,8692,665,279181,067351,989Ͳ351,989228,4465,060,524 20,300,000 no 0 0 (15,239,476) 16 2019 200,7023,172,5356.3%490,8693,156,147200,702430,528Ͳ430,528306,9225,552,535 20,300,000 no 0 0 (14,747,465) 17 2020 220,3363,664,9396.0%490,8693,647,016220,336509,067Ͳ509,067411,9776,044,939 20,300,000 no 0 0 (14,255,061) 18 2021 239,9714,157,8675.8%490,8694,137,885239,971587,606Ͳ587,606469,0216,537,867 20,300,000 no 0 0 (13,762,133) 19 2022 259,6064,651,0815.6%490,8694,628,754259,606666,145Ͳ666,145523,2257,031,081 20,300,000 no 0 0 (13,268,919) 20 2023 279,2415,144,5665.4%490,8695,119,622279,241744,684Ͳ744,684580,3257,524,566 20,300,000 no 0 0 (12,775,434) 21 2024 298,8755,638,3365.3%490,8695,610,491298,875823,223Ͳ823,223636,1118,018,336 20,300,000 no 0 0 (12,281,664) 22 2025 318,5106,132,3865.2%490,8696,101,360318,510901,762Ͳ901,762641,1758,512,386 20,300,000 no 0 0 (11,787,614) 23 2026 338,1456,626,4605.1%490,8696,592,229338,145980,301Ͳ980,301600,7159,006,460 20,300,000 no 0 0 (11,293,540) 24 2027 357,8517,122,1065.0%492,6427,084,871357,8511,059,124Ͳ1,059,124561,6559,502,106 20,300,000 no 0 0 (10,797,894) 25 2028 377,5567,617,5575.0%492,6427,577,513377,5561,137,946Ͳ1,137,946522,9009,997,557 20,300,000 no 0 0 (10,302,443) 26 2029 392,5568,112,8134.8%492,6428,070,155392,5561,221,475Ͳ1,221,475489,75710,492,813 20,300,000 no 0 0 (9,807,187) 27 2030 392,5568,115,2624.8%Ͳ8,070,155392,5561,221,475Ͳ 28 2031 392,5568,115,4544.8%Ͳ8,070,155392,5561,221,475Ͳ 29 2032 392,5568,115,6474.8%Ͳ8,070,155392,5561,221,475Ͳ 30 2033 392,5568,115,8404.8%Ͳ8,070,155392,5561,221,475Ͳ AccummulatedTotals TaxIncrement 20%forQualified Costs Availablefor Pooling EXCESSINCREMENT ADMINISTRATIVEEXPENSETEST ADMINISTRATIVEEXPENSECALCULATION POOLINGCALCULATION(20%OutsideofDistrict) 71 AFFORDABLE HOUSING GOALS MINNETONKA ECONOMIC IMPROVEMENT PROGRAM 72 AFFORDABLE HOUSING GOALS Progress on the city’s affordable housing goals. In 1995, the Minnesota Legislature created the Livable Communities Act (LCA) to address the affordable and life-cycle housing needs in the Twin Cities metropolitan area. When the LCA was established, Minnetonka was one of the first communities to sign up to participate in the program. At that time, a series of affordable housing goals for the city was established for 1996 to 2010. The city has elected to continue to participate in the LCA program, establishing affordable and lifecycle housing goals for 2011 to 2020. 1995-2010 AFFORDABLE HOUSING GOALS Goals (1995-2010) Results Percent Achieved New Affordable Ownership Units 180 Units 202 112% New Affordable Rental Units 324 Units 213 66% New Rental Units (All) 540 Units 697 130% 1995-2010 New Affordable Ownership Units Project Year Completed Affordable Units EIP Program Used Gables of West Ridge Market 1996-1997 90 Boulevard Gardens TIF Habitat for Humanity 1999 4 None Ridgebury 2000 56 Ridgebury TIF The Enclave 2002 1 None The Sanctuary 2005-2007 3 -Grants -Homes Within Reach Lakeside Estates 2005 1 Homes Within Reach Cloud 9 Sky Flats 2006 34 Homes Within Reach Wyldewood Condos 2006 8 None Minnetonka Drive 2007 1 Homes Within Reach Deephaven Cove 2007 2 -Grants -Homes Within Reach Meadowwoods 2007/2008 2 Homes Within Reach 1995-2010 New Affordable Rental Units Project Year Completed Affordable Units EIP Program Used Excelsior Court Apartments 1996 24 West Ridge Retirement 1997 45 Boulevard Gardens TIF Boulevard Gardens 1997 46 Boulevard Gardens TIF Crown Ridge Apartments 1997 46 Boulevard Gardens TIF Minnetonka Mills 1997 30 Minnetonka Mills TIF Cedar Pointe Townhouses 1997 9 Cedar Pointe The Oaks at Glen Lake 2008 13 Glenhaven TIF 73 2011-2020 AFFORDABLE HOUSING GOALS Goals (2011-2020) Results Percent Achieved (to date) New Affordable Units (rental & ownership) 246 to 378 130 53% New Lifecycle Units 375 to 800 684 182% 2011-2020 New Affordable Units (rental and ownership) Project Year Completed Affordable Units EIP Program Used The Glenn by St. Therese 2011 30 Glenhaven TIF The Ridge 2013 51 TIF Pooling Tonka on the Creek 2016 20 Tonka on the Creek TIF At Home 2016 21 Rowland Housing TIF Cherrywood Pointe 2017 8 N/A Shady Oak Apartments 2017* 49 TIF Pooling The Mariner 2017* 55 TIF Pooling Opus Station Apartments Proposed 2018* 450 TIF Housing *Indicates projects that are approved, but not yet constructed therefore affordable and lifecycle units are not counted in 2011-2020 goals. 2011-2020 New Lifecycle Units Project Year Completed Lifecycle Units EIP Program Used The Glenn by St. Therese 2011 150 Glenhaven TIF The Ridge 2013 64 TIF Pooling Tonka on the Creek 2016 100 Tonka on the Creek TIF At Home 2016 106 Rowland Housing TIF Applewood Pointe 2017 89 Applewood Pointe TIF Lecesse* 2017 32 N/A Cherrywood Pointe 2017 2 N/A Zvago 2017 54 Glenhaven TIF *Indicates projects that are approved, but not yet constructed therefore affordable and lifecycle units are not counted in 2011-2020 goals. 74 The following is a list EIP programs and their contribution to the city’s affordable housing goals. PROGRAM AFFORDABLE HOUSING CONTRIBUTION Housing CDBG Program Administration No direct impact Emergency Repair Program No direct impact Employer Assisted Housing No direct impact Fair Housing No direct impact Homes Within Reach Preservation of affordable housing Housing Improvement Area (HIA) No direct impact Minnetonka Heights Apartments 172 affordable units participate in program Minnetonka Home Enhancement program No direct impact Owner-Occupied Housing Rehabilitation No direct impact Public Services No direct impact Next Generation Program Program could preserve affordable units Tax Exempt Financing Program may add or preserve affordable units TIF Pooling 51 units added through The Ridge Welcome to Minnetonka program No direct impact Business Economic Gardening No direct impact Fire Sprinkler Retrofit No direct impact Grants May assist with components of projects that have affordable units Industrial Revenue Bonds (Common Bond) No direct impact GreaterMSP No direct impact Minnesota Community Capital Fund (MCCF) No direct impact Minnesota Investment Fund (MIF) No direct impact Open to Business No direct impact Outreach No direct impact PACE No direct impact Economic Development Infrastructure No direct impact TwinWest No direct impact Transit Commuter Services No direct impact LRT No direct impact Transit Improvements No direct impact Redevelopment Predevelopment Projects May assist projects that are developing affordable housing Village Center Help to guide areas where affordable housing may be developed Tax Increment Financing (TIF) Development Agmt/TIF Admin No direct impact Beacon Hill TIF District 44 affordable units added in 1994 (prior to affordable housing goals). Preserved in 2010. Boulevard Gardens TIF District 227 affordable units added in 1996/1997 Glenhaven TIF District 43 affordable units added in 2008 and 2011 Minnetonka Mills TIF District 30 affordable units added in 1997. Even though district has expired, units remain affordable Tonka on the Creek TIF District 20 affordable units expected in 2015 Applewood Pointe TIF District 9 affordable units completed in 2017 (will not meet Met Council guidelines, therefore not included in goals) At Home Apartments 21 affordable units completed in 2016 Tax Abatement Ridgedale No direct impact 75 2018 AFFORDABLE HOUSING INCOME LIMITS 76 AFFORDABLE HOUSING GOALS GLOSSARY Community Development Block Grant (CDBG) A program through HUD assisting state and local governments with a variety of community development needs Department of Employment and Economic Development (DEED) A state agency assisting in economic development through programs targeting business recruitment, expansion and retention; workforce development; and community development Economic Development Advisory Commission (EDAC) An advisory commission to the city council on matters related to economic development, housing and redevelopment Economic Development Authority (EDA) An authority granted to local governments by the state for the purpose of conducting economic development, housing and redevelopment activities. EDAs have the ability to levy taxes Housing Improvement Area (HIA) A defined area in the city in which housing improvements to commonly owned space in condominium/townhouse developments may be financing with the assistance of a city through special assessments Housing and Redevelopment Authority (HRA) An authority granted to local governments by the state for the purpose of conducting housing and redevelopment activities Light Rail Transit (LRT) A mode of public transit where trains run in a separate right of way Livable Communities Act (LCA) A program adopted in 1995 by the Minnesota State Legislature and administered by the Metropolitan Council for purposes of increasing affordable housing and investing in local communities Metropolitan Council A regional policy-making body, planning agency and provider of services to guide growth in the Twin Cities metropolitan area Metro Transit The transit arm of the Metropolitan Council responsible for running the metropolitan area’s bus and train systems Minnesota Investment Fund (MIF) A business financing tool offered by DEED to help businesses locate or expand in Minnesota Property Assessed Clean Energy (PACE) A program that allows businesses to make clean energy investments in their businesses by financing the costs through a special assessment on the property Tax Abatement A temporary deferral of property taxes for purposes of stimulating economic development Tax Increment Financing (TIF) A financing tool where additional property taxes generated from a new development are captured and used for public purposes such as housing, removal of blight and employment opportunities U.S. Department of Housing and Urban Development (HUD) Established in 1965 as a cabinet-level federal agency that is responsible housing and community development activities 77 1 Tax Increment Financing Policy 2 Tax Increment Financing Policy Purpose The purpose of this policy is to ensure development receiving Tax Increment Financing (TIF) is consistent with the long-term city Comprehensive Plan, Strategic Plan, Mississippi Connections Plan and/or most recent Housing Study. This is a guide for processing and review of TIF applications. The City of Elk River shall utilize TIF to encourage desirable development or redevelopment that would not otherwise occur but for TIF. The city is empowered to utilize TIF by the Minnesota Tax Increment Financing Act, as amended in Minnesota Statutes 469-174 through 469-1794. The city provides the minimum amount of TIF at the shortest term required for a project to proceed. The city reserves the right to approve or reject projects on a case-by-case basis, taking into consideration established policies, project criteria, and demand on city services in relation to the potential benefits from the project. Projects meeting policy criteria are not guaranteed the award of TIF. Approval or denial of a certain project is not a precedent for approval or denial of another project. The City Council and Economic Development Authority and the Housing and Redevelopment Authority can deviate from this policy for projects that supersede the objectives identified herein. Authority Minnesota Statutes 469-174 through 469-1794 govern the use of TIF and exceed any issues that conflict with this policy. Public Purpose The City of Elk River will consider TIF for projects that achieve one or more of the following: 1. Demonstrate long-term benefits to the community. 2. Retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits through:  Diversification of the local economy  Significant addition of permanent, high-wage, full-time jobs  Addition of jobs attractive to those unemployed or underemployed 3. Significantly increases the city’s commercial and industrial tax base. 3 4. Demonstrates the ability to encourage unsubsidized private development through “spin off” development. 5. Facilitates the development process and achieves development on sites that would not develop “but for” the use of TIF. 6. Removes blight and/or encourages redevelopment of commercial and industrial areas resulting in high quality redevelopment and private reinvestment. 7. Offsets redevelopment costs (i.e. contaminated site cleanup) over and above the costs normally incurred in development. 8. Aids the implementation of the Mississippi Connections Plan. Policy Statements 1. The primary intent of TIF is direct funding for public improvements and secondarily for developer assistance. 2. The use of TIF shall be in accordance with state law. The more restrictive language will apply when a conflict exists between this policy and state law. 3. Projects must be consistent with the Comprehensive Plan and/or the Mississippi Connections Plan. 4. Projects must be consistent with the Strategic Plan for Economic Development and/or the most recent Housing Study. 5. Preferred projects promote the completion of major public improvement projects within the city such as the installation of trunk sewer and water lines and major transportation projects. 6. The level of assistance provided will be determined on a case-by-case basis as referenced in Public Purpose. Based on the extent to which the project achieves the policy statements (1-6 above), the city will consider TIF for projects in the following categories:  Manufacturing  Major office warehouse/production facilities  Research and development  Commercial projects encouraging substantial redevelopment of substandard properties  Housing needs identified in the most recent city housing study 4 1. Assistance for TIF is required to meet the uses identified by statute including, but not limited to the following:  Public improvements  Land acquisition and land write down  Loans  Site preparation and improvement  Demolition  Legal, administration, and engineering 2. The preferred method of TIF is pay-as-you-go for eligible costs as reimbursement, upfront financing maybe considered on a case-by-case basis. 3. A maximum of ten percent (10%) of any tax increment received from the district shall be retained by the city to reimburse administrative costs. 4. All TIF assistance must be accompanied by a signed development agreement including a minimum assessment value. The developer must provide additional financing guarantees to ensure completion of the project, including, but not limited to: letters of credit, personal guarantees, corporate guarantees, etc. 5. TIF District’s shall be limited to the minimum term necessary to meet the project needs. Only projects exceeding the objectives identified in this policy will be considered to exceed the following general thresholds:  Redevelopment District 15 Years (Max is 26)  Housing District 15 Years (Max is 26)  Soils Condition District 15 Years (Max is 21)  Renewal and Renovation District 10 Years (Max is 16)  Economic Development District 8 Years (Max is 9) 6. Policy Considerations  Each project is required to meet the “but-for” test to determine the need for and level of assistance. This test and the amount of tax increment generated determines the district’s term. It is difficult to facilitate a redevelopment, housing or soils condition district for less than the maximum term as the extraordinary costs involved are usually significant.  The term of the district could coincide with the amount of tax increment the city has to spend on its priorities within a project area.  Of all the TIF districts, the Economic Development District is most often the one limited to a lesser term. Economic Development Districts are really “incentive” districts where it is not so much the extraordinary costs as it is an “incentive” to get a business to locate in a community. In the other districts, the costs are easily identifiable and usually significant such as demolition, relocation, environmental remediation, and the cost differential between market rate and income/rent restricted housing. 5 7. Developers receiving TIF assistance shall provide a minimum of twenty percent (10%) cash equity investment in the project. TIF will not be used to supplant cash equity. 8. TIF will not be used in circumstances where land and/or property price is in excess of fair market value. A third-party appraiser agreed upon by the city and developer will determine the fair market value of the land. 9. The developer shall demonstrate a market demand for a proposed project. TIF shall not be used to support purely speculative projects. 10. The developer shall adequately demonstrate, to the city’s sole satisfaction, an ability to complete the proposed project based on past development experience, general reputation, and credit history, among other factors, including the size and scope of the proposed project. 11. For the purposes of underwriting the proposal, the developer shall provide any requested market, financial, environmental, or other data requested by the city or its consultants. 12. The city of Elk River shall only use TIF to encourage economic growth and development within the city limits. Application Process 1. Applicant submits a complete application and a $10,000 application deposit by the first Monday of the month. The application deposit will be used toward the cost of services provided in the evaluation of financial feasibility, establishment or modification of the district, and preparation of legal documents and agreements. An additional deposit of $10,000 shall be required for projects requiring statutory redevelopment substandard tests. The applicant shall reimburse the city for professional services in excess of the initial deposit. Deposit portions not utilized shall be refunded. 2. City staff reviews the application for completeness and submits the application to the city’s financial consultant for review and preparation of a financial analysis. 3. The Joint Finance Committee shall review the proposal’s financial strength and make a recommendation to the appropriate commission with findings of fact. 4. The appropriate authority reviews the proposal and the recommendation to determine conformance with this policy. The authority makes a recommendation to the City Council. 5. After meeting the statutory requirements for establishing the Tax Increment District, the City Council holds a Public Hearing and takes action on the proposal (Approximately 45-60 days). 6 APPLICATION FOR TAX INCREMENT FINANCING A. APPLICANT INFORMATION Name of Entity Address Primary Contact Address Phone Fax Email Brief description of the entity business, including history, principal product or service: Brief description of the proposed project: Attorney Name Address Phone Fax Email Accountant Name Address Phone Fax Email Contractor Name Address Phone Fax Email Engineer Name Address Phone Fax Email Architect Name Address Phone Fax Email 7 B. PROJECT INFORMATION 1. The project will be: _____ Redevelopment District _____ Housing District _____ Soils Condition District _____ Renewal and Renovation District _____ Economic Development District 2. The project will be: ___Owner Occupied ____Leased Space 3. Project Address Legal Description & Parcel Identification Number(s) 4. Site Plan and Preliminary Construction Plans Attached: ____ Yes ____ No 5. Amount of Tax Increment Requested for: Land Purchase $ Public Improvement $ Site Improvement $ 6. Current Real Estate Taxes on Project Site: $ Estimated Real Estate Taxes upon Completion: Phase I $ Phase II $ 7. Construction Start Date: Construction Completion Date: If Phased Project: Year ____ % Completed Year ___ % Completed 8 C. PUBLIC PURPOSE It is the policy of the City of Elk River that the use of Tax Increment Financing should result in a benefit to the public. Please indicate how this project will serve a public purpose. _____ Job Creation/Retention: _____ Number of existing jobs _____ Number of jobs created by project _____ Average hourly wage of jobs created/retained _____ New industrial development, which will result in additional private investment in the area. _____ Enhancement or diversification of the city’s economic base. _____ The project contributes to the fulfillment of the City’s Plan. _____ Removal of blight or the rehabilitation of a high profile or priority site. _____ Significantly increase the City’s tax base. _____ Other: 9 D. SOURCES & USES SOURCES NAME AMOUNT Bank Loan $ Other Private Funds $ Owner Cash Equity $ Fed Grant/Loan $ State Grant/Loan $ EDA Micro Loan $ Tax Increment $ ID Bonds $ TOTAL $ USES AMOUNT Land Acquisition $ Site Development $ Construction $ Machinery & Equipment $ Architectural & Engineering Fees $ Legal Fees $ Interest During Construction $ Debt Service Reserve $ Contingencies $ TOTAL $ 10 E. ADDITIONAL DOCUMENTATION AND CHECKLIST Applicants will also be required to provide the following documentation. _____A) Written business plan, including a description of the business, ownership/management, date established, products and services, and future plans _____B) Financial Statements for Past Two Years Profit & Loss Statement Balance Sheet _____C) Current Financial Statements Profit & Loss Statement to Date Balance Sheet to Date _____D) Two Year Financial Projections _____E) Personal Financial Statements of all Major Shareholders Current Tax Return _____F) Letter of Commitment from Applicant Pledging to Complete During the Proposed Project Timeline _____G) Letter of Commitment from the Other Sources of Financing, Stating Terms and Conditions of their Participation in Project _____H) Application deposit of $10,000, with any unused portion to be refunded. _____ I) Construction Plans and Itemized Project Construction Statement _____J) Attach the following documentation as Exhibits Exhibit A – Entity Documents Exhibit B – Description of Project Exhibit C – List of Shareholders/Partners Exhibit D – But-For Analysis Exhibit E – List of Prospective Lessees Exhibit F – Legal Description and PID Number(s) Note: All Major shareholders will be required to sign personal guarantees if up front financing of the project is required. 11 The undersigned certifies that all information provided in this application is true and correct to the best of the undersigned’s knowledge. The undersigned authorizes the City of Elk River to check credit references and verify financial and other information. The undersigned also agrees to provide any additional information as may be requested by the City after the filing of this application. Applicant Name Date 12 Tax Increment Financing Policy History Adopted by: On (date) Item # City Council 12/4/2017 EDA 11/20/2017 HRA 11/6/2017 Tax Abatement Policy & Application Amended: February 2014 Amended: May 2006 Amended: August 2002 Adopted: April 10, 2000 City of Elk River Economic Development Division 13065 Orono Parkway Elk River, MN 55330 763.635.1040 Page 2 of 14 Table of Contents I. Policy Purpose 3 II. Difference Between Tax Abatement & Tax Increment Financing 3 III. Objectives of Tax Abatement 3 IV. Policies for the Use of Tax Abatement 4 V. Project Qualifications 5 VI. Subsidy Agreement & Reporting Requirements 6 VII. Application Process for Tax Abatement 7 City of Elk River 7 Application to Other Jurisdictions 7 VIII. Application for Tax Abatement 8 Applicant Information 8 Project Information 9 Public Purpose 9 Sources & Uses 10 Additional Documentation and Checklist 11 IX. Sample But-For Analysis 12 X. Application Review Worksheet 13 XI. City of Elk River Business Subsidy Policy 15 Page 3 of 14 I. POLICY PURPOSE For the purposes of this document, the term “City” shall include the Elk River City Council, Economic Development Authority, and Housing and Redevelopment Authority. The purpose of this policy is to establish the City of Elk River’s position relating to the use of Tax Abatement for private development above and beyond the requirements and limitations set forth by State Law. This policy shall be used as a guide in the processing and review of applications requesting Tax Abatement assistance. The fundamental purpose of providing Tax Abatement in Elk River is to encourage desirable development or redevelopment that would not otherwise occur but-for the assistance provided through the Tax Abatement. The City of Elk River is granted the power to utilize Tax Abatement by Minnesota Statutes, Sections 469.1812 to 469.1815 (the “Minnesota Tax Abatement Act”), as amended. It is the intent of the City to provide the minimum amount of Tax Abatement, as well as other incentives, at the shortest term required for the project to proceed. Preference is given to projects in which the total amount of Tax Abatement request includes participation from the county. The City reserves the right to approve or reject projects on a case by case basis, taking into consideration established policies, project criteria, and demand on city services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of Tax Abatement to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. II. DIFFERENCE BETWEEN TAX ABATEMENT AND TAX INCREMENT FINANCING The primary difference between Tax Abatement and Tax Increment Financing (TIF) is the way in which the dollars are awarded to the project. When TIF is awarded to a project by the city, the other taxing jurisdictions (the school district and the county) are required to contribute their portion of the increased taxes to the project. Conversely, when Tax Abatement is requested, each political subdivision has the option of granting its portion of the increased taxes to the project. Subsequently, the dollars generated for the project with Tax Abatement are generally less than the dollars generated with TIF. III. OBJECTIVES OF TAX ABATEMENT As a matter of adopted policy, the City will consider using Tax Abatement to assist private development projects to achieve one or more of the following objectives:  To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits as defined in the City’s Business Subsidy Policy.  To enhance and diversify the City of Elk River’s economic base.  To encourage additional unsubsidized private development in the area, either directly or indirectly through “spin off” development. Page 4 of 14  To facilitate the development process and to achieve development on sites which would not be developed without Tax Abatement assistance.  To remove blight and/or encourage redevelopment of commercial and industrial areas in the city that result in high quality redevelopment and private reinvestment.  To offset increased costs of redevelopment (i.e. contaminated site clean up) over and above the costs normally incurred in development.  To create opportunities for affordable housing.  To contribute to the implementation of other public policies, as adopted by the city from time to time, such as the promotion of quality urban or architectural design, energy conservation, and decreasing capital and/or operating costs of local government.  To significantly increase the City of Elk River’s tax base. IV. POLICIES FOR THE USE OF TAX ABATEMENT a. Tax Abatement assistance will be provided to the developer upon receipt of taxes by the City, otherwise referred to as the pay-as-you-go method. Requests for up front financing will be considered on a case-by-case basis. b. Any developer receiving Tax Abatement assistance shall provide a minimum of ten percent (10%) owner cash equity investment in the project. c. Tax Abatement will not be used in circumstances where land and/or property price is in excess of fair market value. d. Developer shall be able to demonstrate a market demand for a proposed project. e. Tax Abatement will not be utilized in cases where it would create an unfair and significant competitive financial advantage over other projects in the area. f. Tax Abatement shall not be used for projects that would place extraordinary demands on city services or for projects that would generate significant environmental impacts. g. The developer must provide adequate financial guarantees to ensure completion of the project, including, but not limited to: minimum assessment agreements, letters of credit, personal guaranties, and etcetera. h. The developer shall adequately demonstrate, to the City’s sole satisfaction, an ability to complete the proposed project based on past development Page 5 of 14 experience, general reputation, and credit history, among other factors, including the size and scope of the proposed project. i. For the purposes of underwriting the proposal, the developer shall provide any requested market, financial, environmental, construction plans or other data requested by the City or its consultants. j. Tax Abatement proposals shall not be used to support speculative office projects. Speculative projects are defined as those projects which have pre- leasing agreements or letters of intent for less than 50% of the available space. In addition, leasable office projects must meet the following guidelines: 1. Evidence of the 50% occupancy must be reported to the Director of Economic Development six months following an issued Certificate of Occupancy. 2. Of the occupants certified at the six month period, 50% of the jobs must be considered “new” jobs to the City of Elk River, meaning jobs not located in the City at any time prior to occupying space in the project. 3. Business retention jobs will be considered on a one-for-one match to job creation only in cases where job loss is specific and demonstrable in accordance with the Minnesota Business Subsidy Law. Evidence may include documentation that the company will have to close involuntarily, or the company has received an attractive offer to move to another state or community. k. All Tax Abatement proposals shall optimize the private development potential of a site. V. PROJECT QUALIFICATIONS All Tax Abatement projects considered by the City of Elk River must meet each of the following requirements: a. The project shall meet at least one of the objectives set forth in Section III of this document. b. The use of Tax Abatement will be limited to:  Industrial development, expansion, redevelopment, or rehabilitation; or  Commercial redevelopment or rehabilitation; or  Research and development facilities that satisfy Business Park zoning requirements; or  Office facilities with a minimum new construction of 25,000 square feet; or  Residential development and redevelopment may be eligible for Tax Abatement under a separate set of policies and only with the recommendation of the HRA. Page 6 of 14 c. The developer shall demonstrate that the project is not financially feasible but-for the use of Tax Abatement. Evaluation of the project’s financial feasibility without Tax Abatement shall be provided by the City’s financial advisor on all requests of over $25,000 total public investment. d. The City will consider the use of Tax Abatement assistance for projects that may not meet the but-for and job creation criteria, but rather would be considered as a “location incentive”. These projects may result in other public benefits such as a significant tax base increase, the creation of higher paying jobs (at least twice the minimum hourly rate stated in the City’s Business Subsidy Policy), and is likely to assist in the marketing and attraction of additional desired developments. e. The project shall comply with all provisions set forth in the Minnesota Tax Abatement Law, Minnesota State Statutes 469.1812 to 469.1815, as amended. f. The project must be consistent with the City’s Comprehensive Plan, Land Use Plan, and Zoning Ordinances. g. The project shall serve at least two of the following public purposes:  Job creation or job retention.  Significantly increase the tax base.  Enhancement or diversification of the city’s economic base.  Development or redevelopment that will spur additional private investment in the area.  Fulfillment of defined city objectives, such as those identified in the Economic Development Strategic Plan or the City’s Comprehensive Plan, among others.  Removal of blight or the rehabilitation of a high profile or priority site. VI. SUBSIDY AGREEMENT & REPORTING REQUIRMENTS All developers/businesses receiving Tax Abatement assistance from the City of Elk River shall be subject to the provisions and requirements set forth by the City’s Business Subsidy Policy, and Minnesota Statutes Sections 116J.993 to 116J.995 (the “Minnesota Business Subsidy Law”). Page 7 of 14 VII. APPLICATION PROCESS FOR TAX ABATEMENT A. CITY OF ELK RIVER 1. Applicant submits the completed application along with a $5,000 application deposit, to be refunded for any portions not utilized if the tax increment project does not proceed. The application deposit will be used toward the cost of services provided in the evaluation of financial feasibility and preparation of legal documents and agreements. Projects that demand professional services in excess of the initial deposit shall be required to reimburse the City for the additional expenses. 2. City staff reviews the application and completes the Application Review Worksheet. 3. Results of the Worksheet are submitted to the appropriate governing authorities (EDA or HRA) for recommendation to the City Council of approval or denial of the request. 4. If preliminary approval is granted, all necessary notices, resolutions and agreements are prepared by City staff and/or consultants. 5. Public hearing(s) on the proposed request are held. 6. The City Council grants final approval or denial of the request. B. APPLICATIONS TO OTHER JURISDICTIONS It is recommended that applicants intending to seek Tax Abatement from Sherburne County and/or School District 728 make their applications to those bodies concurrent with their application to the City of Elk River. For more information on applying for Tax Abatement through Sherburne County and/or School District 728, contact: Sherburne County Administrator 763-241-2701 School District 728 Superintendent 763-241-3400 Page 8 of 14 VIII. APPLICATION FOR TAX ABATEMENT A. APPLICANT INFORMATION Name of Corporation/Partnership ___ Address ___________________________________________________________ Primary Contact _____________________________________________________ Address____________________________________________________________ Phone______________ Fax________________ Email______________________ Brief description of the corporation/partnership’s business, including history, principal product or service: Brief description of the proposed project: Attorney Name ________________________________________________________ Address______________________________________________________________ Phone _________________ Fax________________ Email_____________________ Accountant Name ______ Address Phone Fax Email ______ Contractor Name ______ Address Phone Fax Email _______ Engineer Name _______ Address Phone Fax Email ______ Architect Name ______ Address Phone Fax Email ______ Page 9 of 14 B. PROJECT INFORMATION 1. The project will be: ____Industrial: ____New Construction ____ Expansion Redevelopment / Rehab. Office/research facility that conforms to Business Park zoning standards ____Commercial Redevelopment/Rehabilitation ____Other 2. In addition to the City of Elk River, applicant is requesting Tax Abatement from: __ Sherburne County _ School District 728 3. The project will be: ___Owner Occupied ____Leased Space 4. Project Address Parcel Identification Number(s) 5. Site Plan and Construction Plans Attached: ____ Yes ____ No 6. Total Amount of Tax Abatement Requested: $ over years. City Portion: Annual $ Total $ County Portion: Annual $ Total $ ISD 728 Portion: Annual $ Total $ 7. Current Real Estate Taxes on Project Site: $ Estimated Real Estate Taxes upon Completion: Phase I $ Phase II $ 8. Construction Start Date: ______ Construction Completion Date: ____ If Phased Project: Year __ % Completed Year ______ % Completed C. PUBLIC PURPOSE It is the policy of the City of Elk River that the use of Tax Abatement should result in a benefit to the public. Please indicate how this project will serve a public purpose. ___Job Creation/Retention Number of existing jobs Number of jobs created by project Average hourly wage of jobs created/retained ___New industrial development which will result in additional private investment in the area. _Enhancement and/or diversification of the City of Elk River’s economic base. ___The project contributes to the fulfillment of the City’s Economic Development Strategic Plan. ___Removal of blight. ___Rehabilitation of a high profile or priority site. ___Significantly increase the City’s tax base. Page 10 of 14 D. SOURCES & USES SOURCES NAME AMOUNT Bank Loan $ Other Private Funds $ Owner Cash Equity $ Fed Grant/Loan $ State Grant/Loan $ EDA Micro Loan $ Tax Abatement $ ID Bonds $ TOTAL $ USES AMOUNT Land Acquisition $ Site Development $ Construction $ Machinery & Equipment $ Architectural & Engineering Fees $ Legal Fees $ Interest During Construction $ Debt Service Reserve $ Contingencies $ TOTAL $ Page 11 of 14 E. ADDITIONAL DOCUMENTATION AND CHECKLIST Applicants will also be required to provide the following documentation: A) Written business plan, including a description of the business, ownership/management, date established, products and services, and future plans B) Financial Statements for Past Two Years ______Profit & Loss Statement Balance Sheet C) Current Financial Statements ______Profit & Loss Statement to Date ______Balance Sheet to Date D) Two Year Financial Projections E) Personal Financial Statements of all Major Shareholders Profit & Loss ______Current Tax Return F) Letter of Commitment from Applicant Pledging to Complete During the Proposed Project Duration G) Letter of Commitment from the Other Sources of Financing, Stating Terms and Conditions of their Participation in the Project H) Non-refundable Application deposit of $5,000, with any unused portion to be refunded if project does not proceed I) Construction Plans and Itemized Project Construction Statement J) Attach the following documentation as Exhibits Exhibit A – Corporation/Partnership Description Exhibit B – Description of Project Exhibit C – List of Shareholders/Partners Exhibit D – But-For Analysis Exhibit E – List of Prospective Lessees Exhibit F – Legal Description and PID Number(s) Note: All Major shareholders will be required to sign personal guarantees and a minimum assessment agreement if up front financing of the project is required. The undersigned certifies that all information provided in this application is true and correct to the best of the undersigned’s knowledge. The undersigned authorizes the City of Elk River to check credit references, verify financial and other information, and share this information with other political subdivisions as needed. The undersigned also agrees to provide any additional information as may be requested by the City after the filing of this application. Applicant Name Date Page 12 of 14 IX. SAMPLE BUT-FOR ANALYSIS WITH NO WITH TAX ABATEMENT TAX ABATEMENT SOURCES AND USES SOURCES AND USES SOURCES SOURCES Mortgage 9,600,000 8,667,000 Equity 2,400,000 2,400,00 Tax Abatement 0 933,000 TOTAL SOURCES 12,000,000 12,000,000 USES USES Land 1,500,000 1,500,000 Site Work 300,000 300,000 Soil Correction 468,000 468,000 Demolition 100,000 100,000 Relocation 65,000 65,000 Subtotal Land Costs 2,433,000 2,433,000 Construction 6,750,000 6,750,000 Finish Manufacturing 250,000 250,000 Subtotal Construction Costs 7,000,000 7,000,000 Soft Costs 350,000 350,000 Taxes 35,000 35,000 Finance Fees 850,000 850,000 Project Manager 542,000 542,000 Developer Fee 540,000 540,000 Contingency 250,000 250,000 Subtotal Soft Costs 2,567,000 2,567,000 TOTAL USES 12,000,000 12,000,000 Income Statement Income Statement Sq. Ft. Per Sq. Ft. Sq. Ft. Per Sq. Ft. Rent-Space 1 100,000 $8.00 800,000 100,000 $8.00 800,000 Rent-Space 2 25,000 $8.50 212,500 25,000 $8.50 212,500 Rent-Space 3 25,000 $9.00 225,000 25,000 $9.00 225,000 Other 0 $0.00 0 0 $0.00 0 1,237,500 1,237,500 Mortgage 20 Term 1,051,646 20 Term 949,439 9.00% Interest 9.00% Interest 9,600,000 Principal 8,667,000 Principal Net Income 185,854 288,061 Total Return on Equity 7.74% 12.00% Page 13 of 14 X. TAX ABATEMENT APPLICATION REVIEW WORKSHEET 1. The project meets the criteria set forth in Section V of the Tax Abatement policy. a) Meets at least one of the objectives in Section III. b) Demonstrates need for Tax Abatement with the but-for analysis. c) Consistent with all city plans and ordinances. d) Serves at least two public purposes as defined in Section V(g). 2. Ratio of Private to All Public Investment in Project: Points: _____ $ Private Investment 5:1 5 $ Public Investment 4:1 4 Ratio Private: Public Financing 3:1 3 2:1 2 Less than 2:1 1 3. Job Creation in the City of Elk River: Points: _____ Number of new jobs as a result of the project. 25+ 5 Number of existing/retained jobs 20+ 4 Total 15+ 3 10+ 2 Less than 10 1 4. Ratio of Public Investment to Job Creation: Points: _____ $ Public Investment $8,000 or less 5 Number of new jobs created/retained $10,000 or less 4 $ of Public Investment per new job $12,000 or less 3 $15,000 or less 2 Over $15,000 1 5. Wage Level of new jobs created/retained Points: _____ Minimum hourly wage Over $21/ hour 5 of jobs created/retained: $18-21 / hour 4 $14-17 / hour 3 $10-13 / hour 2 Under $10 / hour 1 6. Project size: Points: _____ The project will result in the construction 40,000+ 5 of square feet 30,000+ 4 20,000+ 3 10,000+ 2 10,000 or less 1 TO BE COMPLETED BY CITY STAFF Page 14 of 14 7. Market Value/Tax Base Generation: Points: _____ The project will result in a per square foot Industrial Commercial estimated market value (land and building) $80/sf+ $110/sf+ 5 of $70/sf+ $100/sf+ 4 $60/sf+ $90/sf+ 3 $50/sf+ $80/sf+ 2 $40/sf+ $70/sf+ 1 8. Type of Project: Points: _____ 100% Owner Occupied 5 Mix Owner Occupied & Investment 4 Investment Property 3 9. Use: Points: _____ Industrial or Business Park Project 5 Commercial Rehabilitation/Redevelopment 4 10. Likelihood that the project will result in Points: _____ unsubsidized, spin-off development. High 5 Moderate 3 Low 1 11. Bonus Points Bonus Points: The project will be 100% Pay-as-you-go Tax Abatement 3 points The project contributes to the goals of Energy City. 2 points  Product promotes sensible use of energy, OR  Project utilizes significant energy efficient design &/or materials in construction. Sub - Total Points: _______ of a possible 45 points. Total Points: Overall project desirability: High 45-38 points Moderate 37-29 points Low 28-20 points Not Eligible 19-0 points Powered by Nature Economic Development Microloan Fund Policy & Guidelines And Application Amended: May 2011 November 18, 2013 July 2014 November 17, 2014 City of Elk River Economic Development Division 13065 Orono Parkway Elk River, MN 55330 763.635.1040 Page 2 of 17 ELK RIVER ECONOMIC DEVELOPMENT MICROLOAN FUND POLICY & GUIDELINES 1. PURPOSE The Economic Development Authority for the city of Elk River (EDA) recognizes the need to stimulate private sector investment into manufacturing and certain commercial facilities and equipment in order to create new jobs, boost productivity and retain existing jobs for local residents. Additionally, the need exists to encourage investment in the expansion and/or rehabilitation of commercial and retail buildings in order to maintain the economic viability of the City and in the Downtown District. Subsequently, the purpose of this program is to provide low interest, long- term (i.e. greater than one year) loans as incentives for new industrial and commercial development within the city of Elk River and to encourage commercial and retail business owners in the Downtown District to rehabilitate their existing buildings. 2. LOAN PROGRAMS In order to meet the economic and community development objectives of the EDA, four distinct loan programs exist within the Microloan Fund to promote business growth in Elk River. Industrial Incentive Program Purpose: The purpose of the Industrial Incentive Program is to encourage industrial and high technology business development that supports the tax base and brings quality jobs to the city. Amount: Up to $100,000 of secondary financing not to exceed 20% of the project cost. Equity: Must have private-sector commitments for 50% of the project cost. Borrower must provide 10% or more of project financing. Rate: Fixed; 2 points below the lowest prime rate published in the Wall Street Journal the day the loan is closed, or 3%, whichever is greater. Term: Financing with a balloon payment in 5-years. The balloon payment must not be longer than the balloon payment of the participating bank. Loans may be amortized up to the following limits: 20 years on real estate uses; 10 years on equipment uses. Extension: In the event that the Borrower is unable to obtain conventional financing to replace the Microloan at the end of five years, the loan Page 3 of 17 may be extended up to two additional years at a market rate of interest. Criteria: Borrower must be an industrial or high technology firm and create or retain one new full-time job for each $20,000 loaned within 2 years. Said jobs must pay a minimum wage of $10.00 per hour excluding benefits required by law. Loans of $75,000 or more shall meet the city of Elk River Business Subsidy Policy for the creation of new jobs at a minimum wage of $15.00 per hour excluding benefits required by law, as well as a 5-year location requirement. In the case where multiple sources of public financing are requested (e.g. Microloan and Tax Increment Financing) job creation goals shall not be double-counted. Borrower must comply with the provisions of the city’s Industrial and Business Park zoning ordinances as applicable. Downtown Revitalization Financing Program Purpose: The Downtown Revitalization Financing Program is available to business and property owners in the Downtown Area primarily for the rehabilitation and restoration of older buildings, as well as new business development. Non-profit organizations may be considered. The Downtown Area shall be described as that area in the attached Exhibit A. Amount: Up to $74,999 of secondary financing not to exceed 40% of the project cost. Equity: Must have private-sector commitments for 50% of the project cost. Borrower must provide 10% or more of project financing. Rate: Fixed at 2%. Term: Financing with a balloon payment in up to 5-years. Loans may be amortized up to the following limits: 20 years on real estate uses; 10 years on equipment uses. Extension: In the event that the Borrower is unable to obtain conventional financing to replace the Microloan at the end of five years, the loan may be extended up to two additional years at a market rate of interest. Criteria: At a minimum, 20% of Microloan dollars must be used for the improvement of the building façades, with exceptions to be Page 4 of 17 considered when it appears the façade improvements are not necessary. Financing of leasehold improvements will be considered at a limit of $25,000. Borrower must be located in the Downtown Area. Loans must be supported by sufficient collateral, which may include personal assets and guarantees. Energy Efficiency Improvement Program Purpose: The Energy Efficiency Improvements Program is available to property owners of commercial or industrial buildings in Elk River to provide capital to businesses to invest in energy efficiency and improve their profitability through reduced energy costs and enhance their ability to retain and create jobs. In addition, the program helps the city of Elk River use energy conservation as an economic development tool. Non-profit organizations may be considered. Amount: Applicants may apply for the cost of improvements up to $74,999 Eligible Uses: Energy efficiency measures installed in or on a building include: • Facility systems optimization (commissioning/re-commissioning) • Facility systems control improvements • Process efficiency improvements (CenterPoint Energy) • Lighting efficiency improvements • Heating, ventilation and air conditioning system modifications • Exterior envelope improvements • Motor and pump efficiency improvements • Ground-source heat pump systems used to heat or cool a facility • Installation of equipment or devices that use renewable energy sources to generate electricity or heat or cool a building including solar electricity (photovoltaic), wind turbine or solar thermal. Equity: Must have a minimum of 10% equity provided by the borrower. Rate: Fixed; 2 points below the lowest prime rate published in the Wall Street Journal the day the loan is closed, or 3%, whichever is greater. Term: The maximum maturity date will be determined by the useful life of the improvement and the energy payback achieved. For projects that have a shorter length of payback (2-5) years as calculated according to energy savings, the loans will have an initial maturity of up to 5 years from the date of closing. Longer life improvements (6-15 years) may apply for a longer maturity of up to 10 years. Page 5 of 17 Criteria: At least 50% of microloan funds should be spent on energy efficiency improvements. Applicant must agree to energy audits conducted under the utility company’s Conservation Improvement Program (CIP). If warranted, engineering studies then are performed on facilities with conservation opportunities under the utility company’s CIP Program. Energy efficiency is defined as improvements that are rebatable by the Elk River Municipal Utilities (ERMU) or the utility provider for the property if not ERMU. Proposed energy efficiency improvements that do not qualify for the utility’s prescriptive rebate program will be reviewed and approved by the utility company servicing the upgrade measures (e.g. Elk River Municipal Utilities, Connexus, CenterPoint) along with a letter indicating eligible utility rebates. Utility rebates as applicable will be assigned to the Elk River EDA and applied toward principal repayment of the loan. An Elk River Energy City Commission member will be asked to participate in the EDA Finance Committee review and recommendation of the application. The loans will be secured by personal and corporate guarantees, and if applicable a lien on equipment financed and subordinate mortgage on the property. Loans are not transferrable. Installation must be certified through a licensed contractor and electrician. New construction is eligible when participating with a utility company rebate program. Eligible costs shall include only incremental costs over industry design standards. Jobs Incentive Program Purpose: To assist existing businesses with expansion and attract new businesses to the City whose local operations will help expand the City’s economy through job retention and creation and maintain/grow the City’s tax base. The purpose of the Jobs Incentive Program is to encourage the creation of high paying and quality jobs to the city. Amount: Up to $200,000 of secondary financing not to exceed 20% of the project cost. Equity: Must have private-sector commitments for 50% of the project cost. Borrower must provide 10% or more of project financing. Rate: Fixed at 2%. Page 6 of 17 Term: Financing with a balloon payment in up to 5-years. Loans may be amortized up to the following limits: 20 years on real estate uses; 5 years on equipment uses. Extension: The loan term of 5 years may be extended by up to two additional years with approval from the EDA and City Council. Criteria: Borrower must create one new full-time job for each $20,000 loaned, retain one new full-time job for each $10,000 loaned, or combination of retainage and creation to meet the requirements. All new jobs must be created within 2 years and retained for the period of the loan. Said jobs must pay greater of $15.00 per hour or 150% of state or federal minimum wage, whichever is greater, exclusive of benefits required by law. Any loans shall meet the city of Elk River Business Subsidy Policy for the creation of new jobs, as well as a 5-year location requirement. In the case where multiple sources of public financing are requested (e.g. Microloan and Tax Increment Financing) job creation goals shall not be double-counted. Eligible Costs: Funds may be used by the borrower for costs related to job creation and retention as a result of the project as defined in the City’s Microloan Fund Policy. Eligible costs may include relocation costs that equal the lesser of $25,000 or 20% of total loan amount. Costs may also include actual incurred City fees associated with construction and/or development costs of the project and outstanding or pending assessments on properties where a business is to be located. In no circumstance may Jobs Incentive funds be used for restaurants, retail businesses, casinos, or sports facilities. 3. USES 1. Permitted Fund Uses: a. Building construction b. Land acquisition c. Machinery d. Furniture, fixtures, and equipment (FF&E) e. Renovation and modernization of buildings f. Exterior renovation of retail, commercial and industrial buildings g. Public infrastructure needed for economic development expansions h. Investment real estate with a minimum of 50% of the space pre-leased 2. Ineligible Fund Uses: a. Expenditures for the construction and/or renovation of residential units b. Working capital c. Refinancing of existing debt d. Inventory Page 7 of 17 4. BUSINESSES ELIGIBILITY Any project meeting the above criteria, and located or proposed to be located within the city limits of Elk River as defined by this program, may be eligible for an Economic Development Microloan as further defined herein: • Unless otherwise stated, business must be a for-profit corporation, partnership, or sole proprietorship. • Business must be a small business as defined by the Small Business Administration (SBA). • Business must have a positive net worth. • Religious, political, and pornographic enterprises are not eligible to use the Economic Development Microloan Fund. 5. MICROLOAN FUND TERMS & CONDITIONS Loan Structure All Economic Development Microloans shall be structured as participation loans and serviced by the project’s primary lending institution, rather than as a direct loan, unless otherwise approved by the EDA Finance Committee. Such an arrangement allows for the central distribution and collection of funds and simplifies the financing process for all parties involved. A participation agreement will be signed by the borrower, primary lender and the EDA. The EDA may require additional agreements to be signed by the borrower (i.e. security agreement, personal guarantees, business subsidy agreement). Simultaneous Microloans The simultaneous use of different Microloan Fund Programs by any one borrower or for any one project is prohibited. Loan Repayment Jobs Incentive funds, including principal and interest received may not be used to support restaurant, retail, casinos, or sports facilities. Call of Loan A loan shall become due and payable in full if a business relocates outside of the city of Elk River prior to the maturity date of the loan. Late Payment Charge A late payment charge of 8% of the installment amount may be enforced. 6. REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS All buildings which public funds will be used for construction or renovation are to be brought into conformance with city ordinances and state building codes. Repairs may include the following systems and portions of real property: a. Mechanical heating, plumbing, and electrical Page 8 of 17 b. Structural; including the facade of the structure and energy related improvements. c. Hook-up to city services (i.e. water, sewer) d. ADA (Americans with Disabilities Act) improvements 7. LOAN SECURITY AND GUARANTEES Applicant must be able to secure the loan by providing the EDA with a minimum of a subordinate mortgage upon the building and/or assets or other approved collateral. Applicant must demonstrate the financial means to repay the loans, as determined by the Economic Development Authority. Whenever possible, personal guarantees will be made part of any loan agreement. Key person life insurance may be required as determined by the EDA Finance Committee based on loan amount and company ownership partners. 8. TIMING OF PROJECT EXPENSES No project should commence until the Elk River Economic Development Authority has approved the loan application. Any costs incurred prior to the approval of the loan application are generally not eligible expenditures. No building construction should commence until the required city permits are secured. The applicant will be responsible for all legal, recording, and other fees required for protection of a security interest in the loan, payable by a non-refundable 1% processing fee, which is paid at the time of application. In addition to the non-refundable 1% processing fee, all legal and filing fees shall be paid by the borrower at loan closing. 9. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL 1. All applicants shall first contact a primary lending institution to determine if additional equity is needed, and if so, how much. 2. The applicant and the primary lender shall then meet with city staff to obtain information about the Microloan program, discuss the project, and obtain application forms. 3. The applicant shall complete and submit an application form to the city, along with a processing fee of 1% of the loan request. (The fee is used to cover processing expenses and will be returned only if application is denied.) The applicant must provide evidence of their ability to meet the equity requirements or provide a letter of commitment for conventional financing from the primary lending institution. Page 9 of 17 4. The EDA is a governmental entity and as such must provide public access to public data it receives. Data deemed by Applicant to be nonpublic data under State law should be so designated or marked by Applicant. See Minn. Sat. Sections 13.59, Subd. 1, respectively. 5. The application will be reviewed by the city staff to determine if it conforms to all city policies and ordinances and to consider the following: a. The availability and applicability of other governmental grants and/or loan programs. b. Whether the proposed project will result in conformance with building and zoning codes. c. Whether it is desirous and in the best interests of the public to provide funding for the project. 6. With written permission granted by the applicant, the application will be submitted by city Staff to the Small Business Development Center (SBDC) as advisory consult for staff and EDA Finance Committee. Applicant will be asked to execute a Release of Information form with SBDC. To make an appointment with the SBDC, call 320.308.4842. 7. The EDA Finance Committee and EDA Commissioners will review each application in terms of its consistency with the goals of the city’s Comprehensive Plan and Economic Development Strategic Plan and in relation to the project’s overall impact on the community’s economy. Downtown Revitalization Program applications will also be reviewed by a Housing & Redevelopment Authority Commissioner in conjunction with the EDA Finance Committee. Energy Efficiency Improvement Program applications will also be reviewed by an Energy City Commissioner in conjunction with the EDA Finance Committee. The EDA Finance Committee will evaluate the project application in terms of the following: a. Project Design - Evaluation of project design will include review of proposed activities, time lines and a capacity to implement. b. Financial Feasibility - Availability of funds, private involvement, financial packaging and cost effectiveness. • Appropriate ratio of private funds to Microloan funds. • Sufficient cash flow to cover proposed debt service as demonstrated by financial statements and projections. • Ability to demonstrate a positive net worth. • Letter of Commitment from applicant pledging to complete the project during proposed project duration, if the loan application is approved. • Letter of Commitment from other financing sources stating terms and conditions of their participation in the project if applicable. Page 10 of 17 • Sufficient collateral. c. All other information as required in the application and/or additional information as may be requested by the Economic Development Authority. d. Project compliance with all city codes and policies. e. Program Objectives - In addition to quality job and wage creation/retention requirements, the applicant must meet all Microloan Fund criteria and demonstrate how the proposed activities will meet at least one of the following objectives: • The project contributes to the fulfillment of the city’s approved and adopted economic development and/or redevelopment plans. • The project prevents or eliminates slums and blight. • The project increases the local tax base. • The project brings a structure into compliance with an existing building code violation. 8. A written request for an extension shall be accompanied by a copy of current financial statements and a $500 upfront processing fee. The processing fee is used to cover processing expenses and will be returned if request is denied. The application for an extension beyond the original term should include a letter of denial from a conventional lender. 9. The EDA Finance Committee will recommend the approval, denial, or request a resubmission. A recommendation from the Finance Committee will be forwarded to the EDA for final action. 10. LOAN POLICY REVIEW The above criteria will be reviewed on an annual basis to ensure that the policies reflected in this document are consistent with the economic development goals set forth by the city. 11. RIGHT OF REFUSAL The Elk River Economic Development Authority may deny any project which it deems inappropriate according to the guidelines established in this document. 12. COMPLIANCE WITH MN BUSINESS SUBSIDY LAW All developers/businesses receiving financial assistance from the City of Elk River shall be subject to the provisions and requirements set forth by the City’s Business Subsidy Policy as amended and Minnesota Statutes Sections 116J.993 to 116J.995 (the “Minnesota Business Subsidy Law”) Page 11 of 17 ELK RIVER ECONOMIC DEVELOPMENT MICROLOAN FUND APPLICATION 1. CONTACT INFORMATION Legal Name of Business: Project Site Address: City / State / Zip Contact Person(s) Business Phone Fax Home Phone Email Check One: Proprietor Corporation Partnership Social Security No. Federal ID # State ID # 2. NATURE OF LOAN REQUEST Which Micro-Loan Program are you applying for? Industrial Incentive Program Downtown Revitalization Financing Program Energy Efficiency Improvement Program Jobs Incentive Program Amount Requested: $ Total Project Cost: $ Type of project: New construction for a start-up business New construction for an existing business On site expansion Equipment purchase Remodeling: (circle one) Commercial / Retail / Industrial Other Page 12 of 17 Please give a brief summary of your business and its products or service: Please give a brief summary of the project: Please describe how this loan will impact your project: 3. FINANCING Project Costs Land $ Site improvements $ Buildings (attach plans & costs) $ Equipment/Machinery/Fixtures (attach list and estimated costs) $ Remodeling $ Industrial Inventory/Working Capital $ Other (attach description) $ Total Costs $ Comments: Page 13 of 17 Proposed Sources of Financing SOURCE NAME TERMS AMOUNT Bank Loan __________ $_________ Bank Loan __________ $_________ Other Private Funds __________ $_________ Applicant Contribution $_________ Other __________ $_________ Fed Grant/Loan __________ $_________ State Grant/Loan __________ $_________ EDA Microloan __________ $_________ Tax Increment Financing $ Tax Abatement $ Total Financing $_________ Collateral Assignments Lien Description of Collateral Position To Bank 1 To Bank 2 To Private Sources To Other Sources To Federal Govt To State To EDA Microloan Page 14 of 17 Value of Collateral Book Value Cost Existing Liens Land $_________ $___________ $__________ Buildings $_________ $___________ $__________ Machinery & Equip. $_________ $___________ $__________ Other__________ $_________ $___________ $__________ Other__________ $_________ $___________ $__________ 4. JOB & WAGE GOALS Present # of Employees_____________ Total Payroll_____________ Jobs To Be Created* Please provide the following information on jobs you expect to create within 2-years. Job Title Number of Jobs Average Hourly Wage Annual Salary Are the Jobs Permanent or Temporary? Expected Hiring Date *If loan is for job retention only, please explain in Business Plan. Program Objectives (Check all that apply) _____ The project contributes to the fulfillment of the city’s approved and adopted economic development and/or redevelopment plans. _____ The project prevents or eliminates slums and blight. _____ The project increases the local tax base. _____ The project brings a structure into compliance with an existing building code violation. Page 15 of 17 5. PROJECT CONTACTS Attorney Name Address Phone ______ Accountant Name ______ Address Phone Financing Sources (lenders, partners, etc…) Name ______ Address Phone Name ______ Address Phone Parent Company Name ______ Address Phone Others Name ______ Address Phone Name ______ Address Phone Page 16 of 17 6. ATTACHMENTS CHECK LIST Please attach the following: ______A) Written Business Plan: 1. Description of Business 2. Ownership 3. Management 4. Date Established 5. Products/Services 6. Future Plans _______B) Financial Statements for Past Two Years _______C) Financial Projections for Two Years _______D) Resume of Owner/Management _______E) Personal Financial Statements of Proprietor, Partners, Guarantors _______F) Letter of Commitment from Applicant Pledging to Complete During the Proposed Project Duration _______G) Letter of Commitment from the Other Sources of Financing, Stating Terms and Conditions of their Participation in Project _______H) Fee of 1% of amount of loan request 7. AGREEMENT I / We certify that all information provided in this application is true and correct to the best of my/our knowledge. I / We authorize the city of Elk River and the Finance Committee to check credit references and verify financial and other information. I / We agree to provide any additional information as may be requested by the city and the Finance Committee. APPLICANT SIGNATURE _______ BY DATE Page 17 of 17 Exhibit A: Downtown Area CITY COUNCIL STAFF REPORT Tuesday, May 29, 2018 Subject Key Financial Strategy: Economic Development Section 5:30 P.M. WORK SESSION Item No: A.1. Prepared By Todd Gerhardt, City Manager File No: ADM076 BACKGROUND The City Council wanted to take time this year to talk about "Local Economic Development." When discussing economic development programs, council must consider a local policy or practice to attract businesses, including possibly offering incentives. Some communities are increasingly involved in local economic development programs to seek an increase in local jobs, and expand their tax base through local incentives. DISCUSSION The incentive programs available to Chanhassen today are as follows: Tax Abatement (see Attachment #1). Carver County Community Development Program Community Growth Partnership Initiative (see Attachment #2). In some cases, Redevelopment Tax Increment Financing (see Attachment #3). Example: Venue/Aldi Development. I also wanted to give you a snapshot of how Chanhassen's tax rate and total taxable market value compares to our Key Financial Cities (see Attachment #4). We have also completed the following economic benchmarks: Total Employment Population Median Household Income Number of Households Based on these benchmarks, Chanhassen is in a really good position compared to the rest of the Key Financial Cities. We are either first or second in median household income and employment. For tax rate and taxable market value comparisons, we are first in tax rate of 23.854% for 2017, and first in total market value per capita at $147,529.49. In total taxable market value, Chanhassen is in second place after Shakopee; however, they have a population of 40,643 and their number of households is 13,692. Compare this to Chanhassen's population of 25,448 (a difference of 15,195) and number of households of 9,267 (a difference of 4,695) see Attachment #5. Finally, the City Council should discuss Business Subsidy Criteria (see Attachment #6). Staff is looking for feedback from the council about how or if they would like to proceed in using business subsidies and the desire to proceed with some type of criteria or not. Previous city councils have used business subsidies in the past. CITY COUNCIL STAFF REPORTTuesday, May 29, 2018SubjectKey Financial Strategy: Economic DevelopmentSection5:30 P.M. WORK SESSION Item No: A.1.Prepared By Todd Gerhardt, City Manager File No: ADM076BACKGROUNDThe City Council wanted to take time this year to talk about "Local Economic Development." When discussingeconomic development programs, council must consider a local policy or practice to attract businesses, includingpossibly offering incentives. Some communities are increasingly involved in local economic development programs toseek an increase in local jobs, and expand their tax base through local incentives.DISCUSSIONThe incentive programs available to Chanhassen today are as follows: Tax Abatement (see Attachment #1). CarverCounty Community Development Program Community Growth Partnership Initiative (see Attachment #2). In somecases, Redevelopment Tax Increment Financing (see Attachment #3). Example: Venue/Aldi Development. I alsowanted to give you a snapshot of how Chanhassen's tax rate and total taxable market value compares to our KeyFinancial Cities (see Attachment #4). We have also completed the following economic benchmarks: TotalEmployment Population Median Household Income Number of Households Based on these benchmarks, Chanhassenis in a really good position compared to the rest of the Key Financial Cities. We are either first or second in medianhousehold income and employment. For tax rate and taxable market value comparisons, we are first in tax rate of23.854% for 2017, and first in total market value per capita at $147,529.49. In total taxable market value,Chanhassen is in second place after Shakopee; however, they have a population of 40,643 and their number ofhouseholds is 13,692. Compare this to Chanhassen's population of 25,448 (a difference of 15,195) and number ofhouseholds of 9,267 (a difference of 4,695) see Attachment #5. Finally, the City Council should discuss Business Subsidy Criteria (see Attachment #6). Staff is looking for feedbackfrom the council about how or if they would like to proceed in using business subsidies and the desire to proceed with some type of criteria or not. Previous city councils have used business subsidies in the past. ATTACHMENTS: 1. Tax Abatement 2. Carver County CDA Community Growth Partnership Initiative Grant Application 3. Redevelopment Tax Increment Financing 4. Tax Rate and Total Market Value Comparison 5. Economic Benchmark 6. Business Subsidy Criteria City of Chanhassen Avienda Development - Potential City Tax Revenue Summary Use Sq/Ft or Units Per Sq/Ft or Unit Value Total Value Total Tax Capacity Less Fiscal Disparities Net Tax Capacity City Taxes (18.23% TC Rate) Office 150,000 150$ 22,500,000$ 450,000$ 168,780$ 281,220$ 51,279.55$ Lrg Retail 335,000 120$ 40,200,000$ 804,000$ 301,554$ 502,446$ 91,619.47$ Sm Retail 55,000 150$ 8,250,000$ 165,000$ 61,886$ 103,114$ 18,802.50$ MultiFam 225 130,000$ 29,250,000$ 365,625$ -$ 365,625$ 66,670.57$ MultiFam 250 130,000$ 32,500,000$ 406,250$ -$ 406,250$ 74,078.41$ TownHouses 38 150,000$ 5,700,000$ 71,250$ -$ 71,250$ 12,992.21$ Hotel 100 125,000$ 12,500,000$ 250,000$ 93,767$ 156,233$ 28,488.64$ TOTAL N/A N/A 150,900,000$ 2,512,125$ 625,987$ 1,886,138$ 343,931$ Assumptions 1. All development upon completion - no phasing incorporated into the figures 2. Assume base tax classificaiton for office/retail is C/I 3. Assume residential development is rental classification 4. Assumes current Pay 2017 city tax rate (rural) and Fiscal Disparities contribution rate Avienda Development - Potential City Franchise Fee Revenue Summary Use Sq/Ft or Units Fixed Fee Annual Fee Revenue Office 150,000 20.15$ 1,209$ Lrg Retail 335,000 175.75$ 10,545$ Sm Retail 55,000 6.75$ 729$ MultiFam 225 4.27$ 11,529$ MultiFam 250 4.27$ 12,810$ TownHouses 38 4.27$ 3,894$ Hotel 100 175.75$ 4,218$ TOTAL N/A N/A 44,934$ Assumptions 1. All development upon completion - no phasing incorporated into the figures 2. Assumes gas & electric classifcation by use and development pattern 3. Assumes proposed franchise fee as fixed monthly fee (model: Scenario A) 4. Assumes all multifamily at electric residential class; townhomes only with both gas and electric accounts 2.00 572.00 Residential Large Commercial N/A Estimated Electric and Gas Accounts 5.00 5.00 9.00 225.00 250.00 76.00 Classification Medium Commercial Large Commercial Small Commercial Residential Residential 6/19/2017 Base Value Assumptions - Page 1 Avienda Road Improvement Abatement City of Chanhassen City participation only ASSUMPTIONS AND RATES DistrictType:Abatement Current Total Local Tax Rate: 100.7609%Pay 2017 Current CityTax Rate (Rural)18.2347%Pay 2017 First Year Construction or Inflation on Value 2019 Current County Tax Rate 38.8508%Pay 2017 Inflation Rate - Every Year:0.00%Current School District No. 112 Tax Rate 37.0055%Pay 2017 Interest Rate 4.00%Current Other Tax Rate 6.6699%Pay 2017 State-wide Tax Rate (Comm./Ind. only used for total taxes)45.8020%Pay 2017 Present Value Date:1-Feb-18 Market Value Tax Rate (Used for total taxes)0.24963%Pay 2017 First Period Ending 1-Aug-18 Cashflow Assumes First Abatement 2021 PROPERTY TAX CLASSES AND CLASS RATES: Assumes Last Year of Abatement 2040 Exempt Class Rate (Exempt)0.00% Commercial Industrial Preferred Class Rate (C/I Pref.) Fiscal Disparities Election [Inside, Outside or NA]Inside First $150,000 1.50% Incremental or Total Fiscal Disparities Incremental Over $150,000 2.00% Fiscal Disparities Contribution Ratio 37.5067%Pay 2017 Commercial Industrial Class Rate (C/I)2.00% Fiscal Disparities Metro-Wide Tax Rate 150.0490%Pay 2017 Rental Housing Class Rate (Rental)1.25% Affordable Rental Housing Class Rate (Aff. Rental)0.75% Term of City Abatement 20 Non-Homestead Residential (Non-H Res.)1.25% Term of County Abatement 0 Homestead Residental Class Rate (Hmstd. Res.) Term of School District Abatement 0 First $500,000 1.00% School District No.TAG: 2508 112 Over $500,000 1.25% Total Years of Abatement:20 Agricultural Non-Homestead 1.00% Percentage Tax Year Property Current Class After Land Building Total Of Value Used Original Original Tax Original After Conversion Map #PID Owner Address Market Value Market Value Market Value for District Market Value Market Value Class Tax Capacity Conversion Orig. Tax Cap.Net Acreage 1 250230500 Level 7 Dev 3,403,200 0 3,403,200 100%3,403,200 Pay 2018 Ag Non-Homestead 34,032 Captured - 23.9 2 250230430 Level 7 Dev 1,723,100 0 1,723,100 100%1,723,100 Pay 2018 Ag Non-Homestead 17,231 Captured - 14.53 3 250230420 Level 7 Dev 429,800 0 429,800 100%429,800 Pay 2018 Non-H Res.5,373 Captured - 2.98 4 250230410 Level 7 Dev 2,090,000 0 2,090,000 100%2,090,000 Pay 2018 Ag Non-Homestead 20,900 Captured - 19.95 5 250230300 Level 7 Dev 6,596,000 0 6,596,000 100%6,596,000 Pay 2018 Ag Non-Homestead 65,960 Captured - 51.1 14,242,100 0 14,242,100 14,242,100 143,496 0 Base Values are for Pay 2018 from the County's website on 6.16.2017. BASE VALUE INFORMATION (Original Tax Capacity) Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\Chanhassen\Housing - Economic - Redevelopment\Pending Projects\Avienda\Chanhassen Road Improvement abatement model (Avienda).xls 6/19/2017 Base Value Assumptions - Page 2 Avienda Road Improvement Abatement City of Chanhassen City participation only Estimated Taxable Property Percentage Percentage Percentage Percentage First Year Market Value Market Value Market Tax Project Completed Completed Completed Completed Full Taxes Area/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./Units Value Class Tax Capacity 2019 2020 2021 2022 Payable A Retail 120 120 98,000 11,760,000 C/I 235,200 100%100%100%100%2021 B Retail 150 150 9,000 1,350,000 C/I 27,000 100%100%100%100%2021 C MultiFamily 130,000 130,000 225 29,250,000 Rental 365,625 100%100%100%100%2021 D Townhouses 150,000 150,000 38 5,700,000 Rental 71,250 0%0%100%100%2023 E Office 150 150 50,000 7,500,000 C/I 150,000 100%100%100%100%2021 F Retail 150 150 16,000 2,400,000 C/I 48,000 0%100%100%100%2022 G Office 150 150 50,000 7,500,000 C/I 150,000 0%0%100%100%2023 H Office 150 150 50,000 7,500,000 C/I 150,000 0%0%0%100%2024 I Retail 150 150 8,000 1,200,000 C/I 24,000 0%100%100%100%2022 J Retail 150 150 8,000 1,200,000 C/I 24,000 0%100%100%100%2022 K Retail 150 150 8,000 1,200,000 C/I 24,000 0%0%100%100%2023 L Retail 150 150 6,000 900,000 C/I 18,000 0%0%100%100%2023 M Retail 120 120 151,000 18,120,000 C/I 362,400 0%100%100%100%2022 N Retail 120 120 86,000 10,320,000 C/I 206,400 0%0%0%100%2024 O Hotel 125,000 125,000 100 12,500,000 C/I 250,000 0%0%0%100%2024 P MultiFamily 130,000 130,000 250 32,500,000 Rental 406,250 0%0%0%100%2024 TOTAL 150,900,000 2,512,125 Subtotal Residential 513 67,450,000 843,125 Subtotal Commercial/Ind.540,100 83,450,000 1,669,000 Note: 1. Market values are based upon estimates only and supplied development data. Values should be verified with assessor's office prior to committal. Total Fiscal Local Local Fiscal State-wide Market Tax Disparities Tax Property Disparities Property Value Total Taxes Per New Use Capacity Tax Capacity Capacity Taxes Taxes Taxes Taxes Taxes Sq. Ft./Unit Retail 235,200 88,216 146,984 148,103 132,367 107,726 29,356 417,552 4.26 Retail 27,000 10,127 16,873 17,002 15,195 12,367 3,370 47,933 5.33 MultiFamily 365,625 0 365,625 368,407 0 0 73,016 441,423 1,961.88 Townhouses 71,250 0 71,250 71,792 0 0 14,229 86,021 2,263.71 Office 150,000 56,260 93,740 94,453 84,418 68,703 18,722 266,296 5.33 Retail 48,000 18,003 29,997 30,225 27,014 21,985 5,991 85,215 5.33 Office 150,000 56,260 93,740 94,453 84,418 68,703 18,722 266,296 5.33 Office 150,000 56,260 93,740 94,453 84,418 68,703 18,722 266,296 5.33 Retail 24,000 9,002 14,998 15,113 13,507 10,992 2,996 42,607 5.33 Retail 24,000 9,002 14,998 15,113 13,507 10,992 2,996 42,607 5.33 Retail 24,000 9,002 14,998 15,113 13,507 10,992 2,996 42,607 5.33 Retail 18,000 6,751 11,249 11,334 10,130 8,244 2,247 31,956 5.33 Retail 362,400 135,924 226,476 228,199 203,953 165,986 45,233 643,371 4.26 Retail 206,400 77,414 128,986 129,968 116,159 94,535 25,762 366,423 4.26 Hotel 250,000 93,767 156,233 157,422 140,696 114,505 31,204 443,827 4,438.27 MultiFamily 406,250 0 406,250 409,341 0 0 81,129 490,470 1,961.88 TOTAL 2,512,125 625,987 1,886,138 1,900,489 939,287 764,435 376,689 3,980,901 Note: 1. Taxes and abatement will vary signficantly from year to year depending upon values, rates, state law, fiscal disparities and other factors which cannot be predicted. TAX CALCULATIONS PROJECT INFORMATION (Project Tax Capacity) Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\Chanhassen\Housing - Economic - Redevelopment\Pending Projects\Avienda\Chanhassen Road Improvement abatement model (Avienda).xls 6/19/2017 Tax Increment Cashflow - Page 3 Avienda Road Improvement Abatement City of Chanhassen City participation only 100%100%100% Project Original Fiscal Captured Combined City, County, Maximum Annual Semi Annual City Abatement County Abatement School Abatement Semi Annual Semi-Annual PERIOD Tax Tax Disparities Tax & School Gross Tax Gross Tax w/ Tax Rate w/ Tax Rate w/ Tax Rate Net Tax Present ENDING Tax Payment Capacity Capacity Incremental Capacity Tax Rate Abatement Abatement 18.2347%38.8508%37.0055%Abatement Value Yrs.Year Date - - - - - 08/01/18 - - - - - 02/01/19 - - - - - 08/01/19 - - - - - 02/01/20 777,825 - (154,603) 623,222 94.091%586,396 293,198 56,821 - - 56,821 51,465 0.5 2020 08/01/20 777,825 - (154,603) 623,222 94.091%586,396 293,198 56,821 - - 56,821 101,921 1 2020 02/01/21 1,236,225 - (326,533) 909,692 94.091%855,938 427,969 82,940 - - 82,940 174,125 1.5 2021 08/01/21 1,236,225 - (326,533) 909,692 94.091%855,938 427,969 82,940 - - 82,940 244,913 2 2021 02/01/22 1,499,475 - (398,546) 1,100,929 94.091%1,035,875 517,937 100,375 - - 100,375 328,902 2.5 2022 08/01/22 1,499,475 - (398,546) 1,100,929 94.091%1,035,875 517,937 100,375 - - 100,375 411,245 3 2022 02/01/23 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 549,551 3.5 2023 08/01/23 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 685,145 4 2023 02/01/24 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 818,080 4.5 2024 08/01/24 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 948,408 5 2024 02/01/25 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 1,076,181 5.5 2025 08/01/25 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 1,201,449 6 2025 02/01/26 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 1,324,260 6.5 2026 08/01/26 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 1,444,664 7 2026 02/01/27 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 1,562,706 7.5 2027 08/01/27 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 1,678,434 8 2027 02/01/28 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 1,791,893 8.5 2028 08/01/28 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 1,903,127 9 2028 02/01/29 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 2,012,180 9.5 2029 08/01/29 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 2,119,095 10 2029 02/01/30 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 2,223,913 10.5 2030 08/01/30 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 2,326,677 11 2030 02/01/31 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 2,427,425 11.5 2031 08/01/31 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 2,526,197 12 2031 02/01/32 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 2,623,033 12.5 2032 08/01/32 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 2,717,971 13 2032 02/01/33 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 2,811,046 13.5 2033 08/01/33 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 2,902,297 14 2033 02/01/34 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 2,991,759 14.5 2034 08/01/34 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 3,079,466 15 2034 02/01/35 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 3,165,454 15.5 2035 08/01/35 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 3,249,755 16 2035 02/01/36 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 3,332,404 16.5 2036 08/01/36 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 3,413,432 17 2036 02/01/37 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 3,492,871 17.5 2037 08/01/37 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 3,570,753 18 2037 02/01/38 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 3,647,107 18.5 2038 08/01/38 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 3,721,964 19 2038 02/01/39 2,512,125 - (625,987) 1,886,138 94.091%1,774,686 887,343 171,966 - - 171,966 3,795,354 19.5 2039 08/01/39 2,512,125 - (625,987) 1,886,138 94%1,774,686 887,343 171,966 - - 171,966 3,867,305 20 2039 02/01/40 Total 32,647,871 6,327,106 - - 6,327,106 Present Value From 02/01/2018 Present Value Rate 4.00%19,955,294 3,867,305 - - 3,867,305 Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\Chanhassen\Housing - Economic - Redevelopment\Pending Projects\Avienda\Chanhassen Road Improvement abatement model (Avienda).xls COMMUNITY GROWTH PARTNERSHIP GRANT APPLICATION Introduction. This application requests information about the redevelopment plan, project, and activities. The Redevelopment Plan question portion of the application refers to the entire redevelopment area. The project and activity question portion of the application refers to the specific work to be completed in the redevelopment plan area. General Information Project Name: Applicant City: Applicant Address: Application/Project Contact: Contact Email Address: Phone Number: Authorized Official(s) for Execution of Contracts (name and title): How much funding are you requesting? $ I. REDEVELOPMENT PLAN QUESTIONS 1. Describe the Redevelopment Plan including the city’s goals and need for the Redevelopment Area and anticipated businesses, housing units, and other proposed components. Attach a copy of Redevelopment Plan. 2. Has an end user committed to the redevelopment of the site? Yes No If yes, attach documentation of commitment. 3. Provide a brief history of the site including previous uses, activities, prior or existing contamination, and other attempts at redevelopment. 4. Describe redevelopment within the Redevelopment Plan that has already been completed or is currently underway. 1. Smart Growth: Describe how the Redevelopment Plan incorporates smart growth concepts, including proximity to public transit, pedestrian-friendly design, maximizing green space, mixed land uses, and community building elements. 2. Leverage: Itemize all other funding sources for the Redevelopment Plan. Please include all previously awarded CGP grants. Source of Funds Amount Committed Pending $ $ $ $ $ Total: $ 3. Itemize Redevelopment Plan expenses. Itemized Use of Funds/Expenses Amount Funding Source $ $ $ $ $ $ $ Total: $ 1. Environmental Benefits: Has the Redevelopment Plan area been found or suspected to be contaminated? Yes No Does your Redevelopment Plan include the cleanup of contaminated soils, hazardous waste or materials? Yes No If yes, please describe information on the type of cleanup, what measures have been taken to address the contamination, consultant reports, and/or Response Action Plan. Describe positive environmental impacts of the redevelopment plan. 2. Housing Affordability. Indicate the number of housing units planned in the Redevelopment Plan. Attach separate sheet if necessary. Total # of Units # of Owner Units # of Rental Units Proposed Rents/ Sales Prices Single Family $ Townhouse $ Apartments/Condominiums $ Duplexes $ Other $ Will any existing affordable housing be demolished? Yes No If yes, please explain: Will there be any mechanisms to ensure long-term affordability? Yes No If yes, please describe: 3. Economic Benefits What are the current property taxes for the Redevelopment Plan? $ Pay Year What will the estimated property tax be after redevelopment? $ Pay Year How was this figure determined? Who determined it? Project the number of new jobs created after redevelopment. Total new jobs = FTEs. Number of new jobs with wages greater than $14.00 per hour = Project the number of jobs retained after redevelopment. Total retained jobs = FTEs. Number of retained jobs with wages greater than $14.00 per hour = II. PROJECT AND ACTIVITY QUESTIONS Project site address(es): Acreage of site: Number of parcels: Is the Project site publicly or privately owned? Publicly Owned Privately Owned Current Project site owner(s): Current appraised or assessed value of the site: $ Projected appraised or assessed value of the site after Redevelopment: $ Attach the appraisal or assessor’s current and projected values. After Redevelopment is complete, will the Project site be publicly or privately owned? Publicly Owned Privately Owned Post-redevelopment Project site owner(s): When has/will the acquisition be completed? Legal description of Project site (may be separate attachment): 1. Describe the Project including location map, photos, and current and projected site plans. Maps should include property boundaries, north arrow, and bar scale. 2. Describe the Activities that are part of the Project. Is demolition of slum or blighted buildings or other structures an Activity of the Project? Yes No 3. How many residential buildings are on Project site? Commercial buildings? How many residential buildings are vacant? Commercial buildings? 4. Describe how the Project will make more efficient use of the site. 5. Leverage. Itemize all other funding sources for the Project and the Activities identified as part of the Project. Source of Funds Amount Committed Pending $ $ $ $ $ Total: $ Itemize Project expenses for each Activity. Be as detailed as possible. Project Activities/Expenses Costs Funding Source $ $ $ $ $ $ $ Total: $ 6. List other sources of funds requested or considered but not obtained for the Project and explain why they were not obtained, to the best of your knowledge. (The purpose of this question is to ensure all funds have been exhausted.) 7. IF the project includes property acquisition, clearance, and/or construction activities, describe how owners, tenants, and businesses will be temporarily or permanently relocated within the Redevelopment Plan. Attach relocation plan, if applicable. 8. Readiness to Proceed. Please provide detailed project timeline with all actions, phases, and anticipated dates for completion. 9. Please indicate whether any of the following entitlement or due diligence actions are required or have been completed for the Project: Zoning amendments or variances: Yes No If yes, Status: Comprehensive plan amendment: Yes No If yes, Status: Environmental review: Yes No If yes, Status: Market or feasibility study: Yes No If yes, Status: Proposed Downtown Redevelopment Tax Increment Financing (TIF) CITY COUNCIL MEETING MONDAY, SEPTEMBER 11, 2017 CONSIDERED ACTIONS: 1.Adopt a resolution approving modifications to Redevelopment Plan. 2.Approve the contract for Private Redevelopment between the EDA and Chanhassen Frontier LLC. 3.Approve the Public Improvement and Special Assessment Agreement. “VENUE/ALDI EXAMPLE” 1. Public Hearing to Establish TIF District No. 11 (Venue/Aldi) 252830020 251680031 252830031 What is a TIF District? Tax Increment Financing (TIF) is a public financing method that is used as a subsidy for redevelopment, infrastructure, and other community improvement projects in many countries, including the United States. Original Tax Capacity = $2,193,800 Current Value = $2,193,800 Prop. New Value = $24,338,410 How we plan to use the TIF funds: 1.Within the Tax Increment Financing District #11 (26-year redevelopment TIF district). 2.No more than 25% of the total increment generated from Tax Increment Financing District #11 can be spent within the Downtown Chanhassen Redevelopment Project Area (see map). 3.Because United Properties will benefit from the future Market Boulevard improvements, they will be assessed $2.1 million which will be paid for by the increment generated from TIF District #11. There is also $1.3 million worth of reimbursable expenses for the underground parking ramp, soil correction, and public improvements. What is the source of the $1.3 Million in TIF? The source of the $1.3 million in TIF comes from increment generated from the apartments and Aldi. The total proposed increment generated over 26 years is $7,605,939. (see table on next slide) Market Boulevard Improvements Proposed Cost Breakdown: Venue Special Assessment $2,100,000 Assessment Benefitting Property Owner along Market Boulevard $400,000 Municipal State Aid $900,000 TOTAL COSTS $3,400,000 Analysis of Redevelopment of the Frontier Building Frontier Property Currently After Redevelopment Market Value 2017 $2,193,800 $24,338,410 Total Tax $71,150 $442,883 City Portion of Total Taxes $5,851 Est. $70,000 WHAT IS EXCLUDED FROM TIF? Total Property Taxes $442,883 -Less Statewide Taxes 20,542 -Less Fiscal Disparities Adjustment 25,241 -Less Market Value Taxes 57,962 -Less Base Value Taxes 30,093 Annual Gross TIF $309,045 Who Has Received TIF Assistance? 90% of the businesses along West 78th Street and Market Boulevard have received TIF including the following: •Target •Byerlys •Market Square •Country Suites •Dinner Theatres •Colonial Square •Medical Arts Phases I and II •Axel’s •Town Square All businesses within the Chanhassen Lakes Business Park Almost all of the businesses within the Chanhassen Business Center Industrial Park PROPOSED MOTION: The Chanhassen City Council Adopts Resolution Approving Modification to Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area and Tax Increment Financing Plan No. 11 and; The contract for Private Redevelopment by and between the Chanhassen Economic Development Authority and Chanhassen Frontier, LLC and; Finally, Public Improvement and Special Assessment Agreement with Chanhassen Frontier, LLC. Change20132014201520162017RankAverageOver 5 YearsChanhassen28.2494947327.2386210824.633171624.2524915823.85464133First25.64568406-9.22%Chaska28.0752604926.5862947324.9282998226.1184070427.5640409926.65446061-5.06%Cottage Grove45.0458042843.8116992241.5913928243.1396705143.0116013343.32003363-3.83%Elk River50.37348.54447.1946.1746.19347.694-5.32%Inver Grove Heights46.31246.12848.13149.56451.64448.35584.41%Lino Lakes46.77446.68343.7746.01945.1445.6772-2.34%Prior Lake31.887230.735831.988431.952532.685131.8498-0.12%Rosemount48.86247.67645.15243.14941.83245.3342-7.22%Savage55.507655.277751.742549.905147.8404952.054678-6.22%Shakopee41.99641.436637.861837.901738.521539.54352-5.84%Stillwater61.5027045858.3592958554.9159059857.0164872556.9268488657.7442485-6.11%Average41.3830202342.17032953-4.26%Change20132014201520162017RankAverageOver 5 YearsChanhassen3,052,117,600 3,230,182,400 3,619,126,400 3,841,048,700 3,829,128,000 Second3,514,320,620 15.144%Chaska1,870,836,000 1,982,696,500 2,241,076,300 2,573,342,000 2,508,978,900 2,235,385,940 19.486%Cottage Grove2,410,395,000 2,512,979,300 2,796,700,300 2,878,628,800 2,973,737,400 2,714,488,160 12.616%Elk River1,617,442,900 1,641,360,700 1,754,483,500 1,846,327,700 1,929,048,470 1,757,732,654 8.674%Inver Grove Heights2,720,514,055 2,798,175,018 3,005,516,326 3,198,957,044 3,270,107,980 2,998,654,085 10.224%Lino Lakes1,519,857,242 1,509,921,169 1,694,366,064 1,699,288,883 1,808,417,118 1,646,370,095 8.324%Prior Lake2,372,776,200 2,445,568,700 2,620,934,100 2,842,299,000 2,933,817,200 2,643,079,040 11.392%Rosemount1,866,877,179 1,948,614,357 2,127,597,965 2,287,080,004 2,434,763,942 2,132,986,689 14.254%Savage2,311,627,400 2,434,515,600 2,658,879,100 2,799,512,900 2,957,985,300 2,632,504,060 13.881%Shakopee3,064,695,700 3,206,518,700 3,629,757,200 3,844,106,800 4,034,313,200 First3,555,878,320 16.027%Stillwater1,757,161,300 1,758,884,000 1,983,555,200 2,074,158,800 2,118,682,600 1,938,488,380 10.319%Average2,799,907,283 2,524,535,277 12.76%20132014201520162017RankAverageChanhassen 126,355.52 131,828.04 143,650.33 150,937.15 147,529.49 First140,060 Chaska 75,403.49 78,460.49 87,518.11 97,331.29 83,034.78 84,350 Cottage Grove 68,084.48 71,290.19 78,567.83 80,097.63 72,401.02 74,088 Elk RiverInver Grove HeightsLino Lakes 72,954.31 71,462.03 82,575.47 81,684.80 76,064.27 76,948 Prior Lake 97,955.51 98,172.24 104,632.28 111,375.35 100,591.30 102,545 Rosemount 82,586.91 86,643.59 92,335.65 97,078.82 90,429.07 89,815 Savage 80,817.66 83,812.98 88,558.46 92,438.93 85,462.68 86,218 Shakopee 79,189.06 81,130.45 90,171.34 94,582.26 86,854.42 86,386 Stillwater 92,628.43 93,102.05 100,412.84 105,324.67 94,137.37 97,121 Average92,945 93,059 TOTAL TAX CAPACITY RATE (not including emv based)TOTAL TAXABLE MARKET VALUEKFS Tax Rate & Total Taxable Market Value ComparisonTOTAL MARKET VALUE PER CAPITA Economic Benchmark 5/23/2018 2009 2010 2011 2012 2013 2014 2015 2016 RANK AVERAGE* Chanhassen Employment 11,215 10,950 11,371 13,141 13,381 14,452 14,822 15,283 2 14,910 Population 22,952 23,247 23,779 24,155 24,503 25,194 25,448 6 25,955 Median HH Income 98,913 100,284 102,700 104,244 105,563 108,078 110,569 115,449 1 117,615 Households 8,352 8,461 8,629 8,814 8,936 9,113 9,267 5 9,346 Chaska Employment 11,123 11,654 11,711 11,962 12,422 12,741 12,393 12,855 Population 23,770 24,002 24,211 24,811 25,270 25,607 26,439 4 26,820 Median HH Income 67,344 70,707 71,490 71,576 71,791 71,965 75,828 76,301 77,100 Households 8,816 8,874 8,941 9,143 9,278 9,492 9,823 4 9,967 Cottage Grove Employment 6,263 6,484 6,479 6,211 6,473 6,812 6,974 7,988 8,108 Population 34,589 34,828 35,187 35,403 35,250 35,596 35,939 2 36,132 Median HH Income 81,749 82,469 82,107 81,699 82,485 83,181 85,516 86,054 Households 11,719 11,804 11,896 11,959 11,869 12,040 12,169 2 12,233 Lino Lakes Employment 3,313 3,460 3,584 3,811 3,945 4,144 4,241 4,321 Population 20,216 20,505 20,625 20,833 21,129 20,519 20,803 20,887 Median HH Income 90,456 93,591 95,138 98,989 99,424 103,407 102,904 105,934 2 107,697 Households 6,174 6,275 6,323 6,382 6,374 6,412 6,529 6,580 Prior Lake Employment 7,766 7,852 7,997 8,161 8,176 8,130 8,317 8,317 Population 22,796 23,010 23,385 24,223 24,911 25,049 25,520 5 25,909 Median HH Income 89,428 90,360 89,805 93,219 93,897 95,692 96,405 101,128 3 102,666 Households 8,447 8,541 8,660 8,864 9,041 9,180 9,291 6 9,412 Rosemount Employment 6,721 7,014 6,925 7,158 8,108 8,482 8,164 7,258 Population 21,874 22,139 22,384 22,605 22,490 23,042 23,559 23,800 Median HH Income 81,558 82,395 84,395 84,325 85,348 86,845 90,448 92,939 94,445 Households 7,587 7,666 7,739 7,821 7,852 8,095 8,296 8,397 Savage Employment 6,753 6,792 7,007 7,123 7,327 7,660 7,601 8,477 Population 26,911 27,147 27,552 28,603 29,047 30,024 30,285 3 30,767 Median HH Income 90,833 89,183 91,361 92,224 91,146 94,432 94,620 97,584 98,784 Households 9,116 9,192 9,307 9,568 9,724 10,069 10,202 3 10,357 Shakopee Employment 18,831 19,304 18,876 18,972 19,665 21,004 22,346 1 25,930 Population 37,076 37,652 38,252 38,701 39,523 40,254 40,643 1 41,153 Median HH Income 77,742 77,018 78,028 78,713 78,540 79,670 78,731 79,648 80,024 Households 12,772 12,958 13,113 13,329 13,455 13,573 13,692 1 13,823 Stillwater Employment 9,628 9,463 9,583 9,640 9,599 9,591 9,819 10,105 Population 18,227 18,299 15,638 18,970 18,892 19,754 19,693 19,902 Median HH Income 69,873 70,090 70,131 69,937 67,012 75,200 76,970 79,293 80,608 Households 7,076 7,130 7,196 7,309 7,342 7,585 7,614 7,691 Sources: Minnesota State Demographer's Office Department of Employment and Economic Development *Based on average increase 2010 - 2016 C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\6BAA57C8-4CEE-4632-941D-6BCB749039E6\Chanhassen.868.1.Economic_Benchmark.xlsx CITY OF CHANHASSEN BUSINESS SUBSIDY CRITERIA Approved October 11, 1999 Amended April 28, 2003 Amended ___________, 2016 1 CITY OF CHANHASSEN BUSINESS SUBSIDY CRITERIA Policy and Criteria for Business Subsidy GENERAL POLICY The City Council of the City of Chanhassen has the power, should it deem necessary, to grant business subsidies. The fundamental purpose of Business Subsidy Criteria in Chanhassen is to encourage desirable and affordable housing that would not otherwise occur “but for” the assistance provided by the City of Chanhassen Business Subsidy Criteria. This Business Subsidy Criteria shall be used as a guide in processing and reviewing applications requesting business subsidy. PROJECT SELECTION CRITERIA Business Subsidies can benefit the community by providing a broad range of affordable housing opportunities. The Council reserves the right to approve or reject business subsidies on an individual basis. Highest Priority Shall Be Given to Projects Which Include: 1. Compatibility of the proposed project with the City’s overall development plans and objectives. 2. Broad range of housing opportunities such as affordable housing. 3. Minimal impact on City service needs. 4. High quality of the facility to be built. 5. Increase in Tax Base: While an increase in the tax base cannot be the sole grounds for granting a subsidy, the EDA believes it is a necessary condition for any subsidy. 6. Economic Development: Projects should promote one or more of the following: • Encourage economic and commercial diversity within the community; • Provide basic goods and services, increase the range of goods and services available, or encourage fast-growing businesses; • Promote redevelopment objectives and removal of blight, including pollution cleanup; • Promote additional or spin-off development within the community; • Encourage full utilization of existing or planned infrastructure improvements. 2 PROJECT REQUIREMENTS 1. Applicant at all times should retain and be assisted by qualified financial consultants and/or underwriters, and legal counsel. 2. Construction of the project shall not be commenced until the City has given preliminary approval to the application for financing. 3. The City reserves the right to deny any application for financing at any stage of the proceedings prior to adoption of the final approval authorizing issuance of the bonds. 4. The City reserves the right to select a third party administrator to assist in the management of the process. 5. Development must be of the highest quality with high quality building materials and landscaping as agreed between the City and the Developer. 6. Developer must pay all costs of establishing the district unless the City agrees to allow costs to come out of the district. 7. Local requirements may be more stringent than State statute as applies to TIF. 8. Project meets “but for” analysis and statutory qualifications (Exhibit A). 9. All projects must be consistent with Chanhassen’s Comprehensive Plan and any other similar plan or guide for development of the community. ACTIVITIES TO BE CONSIDERED FOR FINANCING 1. Any subsidy granted by the city will be subject to the requirement of a public hearing, if necessary, and must be approved by the Chanhassen City Council. 2. It will be necessary for both the grantee and the EDA (City of Chanhassen) to comply with the reporting and monitoring requirements of the Act. 3. Land write down 4. Costs of streets and utilities 5. Demolition and relocation costs 6. City costs such as trunk utility costs, street costs, and MSA reimbursement 7. Extraordinary landscaping and lighting 8. Soil corrections 3 APPLICATION PROCESS 1. The application process must be completed in accordance with TIF application procedures (Exhibit B). 2. Applicant shall make an application for TIF usage on forms available from the City. 3. The application will include (if appropriate): a. Statement of Public Purposes b. Description of Project c. Plans and Drawings of Project d. Description of Company e. Legal Opinions f. Investment Bank Letter of Feasibility g. Market Analysis h. Pro Forma Analysis i. Financial Statements j. Zoning and Planning Analysis k. Application Fee l. Demonstration of past successful general development capability as well as specific capability in the type and size of development proposed. m. Other Documentation Requested by the City 4. The City’s Business Subsidy program will be administered by the City of Chanhassen’s Economic Development Authority (EDA). The applicant shall submit a completed application and a $2,000 non-refundable application fee. The application fee shall be paid to the City of Chanhassen at the time a final Business Subsidy application is submitted. At the time a final Business Subsidy application is submitted, the applicant shall also deliver to the City a deposit in the amount of $10,000. The purpose of this deposit is to reimburse the City for costs and expenses incurred in connection with preparation of the development agreement and the carrying out of all actions necessary in the fulfillment of the City’s obligations. Any part of the deposit not needed for those purposes shall be promptly returned to the Redeveloper not later than the date of issuance of the Certificate of Completion, or within 15 days following the termination of the Development Agreement for failure to close. It is understood the deposit is not a limitation on the Redeveloper’s obligation to reimburse the City for such costs; and the Redeveloper shall pay the City for any such costs in excess of the deposit within 30 days following a written request to do so. 5. City staff will review the data and make preliminary recommendations to the City Council as to compliance of the application and proposed project with City objectives and criteria/Strategic Plan. 6. Formal evaluation of the application will include, in addition to items subject to preliminary review, review of applicable credit analysis, credit enhancement and legal compliance. Formal recommendation will then be made to the City Council. 4 7. After evaluation of the formal recommendation, the City Council will consider final approval of the establishment of the Business Subsidy and hold the appropriate hearings. 8. All applications and supporting materials and documents shall become the property of the City. 5 CITY OF CHANHASSEN APPLICATION FOR BUSINESS SUBSIDY Business Name: Address: Location of Proposed Development: Type (Partnership, etc.): Nature of Business: Telephone: Project Cost Breakdown: $ $ $ $ Total: $ Date: HISTORY OF APPLICANT 1. Have you ever filed bankruptcy? Yes____ No____ If yes, provide details on separate sheet. 2. Have you ever defaulted on any loan commitment? Yes____ No____ If yes, provide details on separate sheet. 3. Have you ever applied for conventional financing for the project? Yes____ No____ If yes, provide details on separate sheet. If no, why not? 6 4. List financial references: (Name/Address/Contact) a. b. c. 5. Other information pertinent to your application: 6. Name of Counsel: 7 INFORMATION CONCERNING APPLICANT’S PROPOSED PROJECT 1. Is the proposed project a new facility or rehabilitation and/or expansion of existing facility? 2. Industrial/Commercial: 3. What is the present employment of your firm? 4. What will the employment be at completion of project? 5. Estimated Project Cost? 6. What is the principal business or product of the company? 7. Potential other use of proposed development? 8. Will this development attract other related industries? Yes____ No____ If yes, how? 9. What are the proposed financing arrangements? 8 INFORMATION CONCERNING APPLICANT’S PROPOSED HOUSING PROJECT 1. Is the proposed housing project a new facility or rehabilitation and/or expansion of existing facility? 2. Housing Type (single family, multi-family, apartments, condominiums, etc.): 3. Number of units: 4. Number of bedrooms in each unit: 5. Sale price of the units: OR 6. Rental price of the units: 7. Estimated total project cost and breakdown of overall development costs? 8. Who are you principally marketing your product to? 9. How long do you think it will take to sell or rent your product? 10. Do you have linkages/contacts with Chanhassen businesses? Yes____ No____ If yes, please explain. (Reason: To determine if you are meeting the local business needs) 11. What are the proposed financing arrangements? 12. How are you proposing to meet alternate transportation needs? 9 EXHIBIT A SAMPLE “BUT-FOR” ANALYSIS WITH NO BUSINESS SUBSIDY WITH BUSINESS SUBSIDY Sources and Uses Sources and Uses SOURCES SOURCES Mortgage 9,600,000 8,667,000 Equity 2,400,000 2,400,000 Tax Increment 0 933,000 TOTAL SOURCES $12,000,000 $12,000,000 USES USES Land 1,500,000 1,500,000 Site Work 300,000 300,000 Soil Correction 468,000 468,000 Demolition 100,000 100,000 Relocation 65,000 65,000 Subtotal Land Costs $2,433,000 $2,433,000 Construction 6,750,000 6,750,000 Finish Manufacturing 250,000 250,000 Subtotal Construction Costs $7,000,000 $7,000,000 Soft Costs 350,000 350,000 Taxes 35,000 35,000 Finance Fees 850,000 850,000 Project Manager 542,000 542,000 Developer Fee 540,000 540,000 Contingency 250,000 250,000 Subtotal Soft Costs $2,567,000 $2,567,000 TOTAL USES $12,000,000 $12,000,000 Income Statement Income Statement SF per SF Total SF Per SF Total Rent-Space 1 100,000 $8.00 $800,000 100,000 $8.00 $800,000 Rent-Space 2 25,000 $8.00 $212,000 25,000 $8.00 $212,000 Rent-Space 3 25,000 $9.00 $225,000 25,000 $9.00 $225,000 Other 0 $0.00 0 0 $0.00 0 $1,237,500 $1,237,500 Mortgage 20 Term $1,051,646 20 Term $949,439 9.00% Interest 9.00% Interest $9,600,000 $8,667,000 Net Income $185,854 $288,061 Total Return on Equity 7.74% 12.00% 10 “BUT-FOR” ANALYSIS WORKSHEET WITH NO BUSINESS SUBSIDY WITH BUSINESS SUBSIDY Sources and Uses Sources and Uses SOURCES SOURCES Mortgage Equity Tax Increment TOTAL SOURCES USES USES Land Site Work Soil Correction Demolition Relocation Subtotal Land Costs Construction Finish Manufacturing Subtotal Construction Costs Soft Costs Taxes Finance Fees Project Manager Developer Fee Contingency Subtotal Soft Costs TOTAL USES Income Statement Income Statement SF per SF Total SF Per SF Total Rent-Space 1 Rent-Space 2 Rent-Space 3 Other Mortgage Net Income Total Return on Equity 11 I hereby certify the above financial information is true and accurate. _______________________________________ Signature _______________________________________ Title _______________________________________ Date 12 EXHIBIT B CITY OF CHANHASSEN APPLICATION PROCEDURES FOR BUSINESS SUBSIDY 1. Applicant shall meet with City staff to discuss the scope of the project, public assistance being requested, time schedule and other information as may be necessary. 2. Following an initial meeting, applicant shall complete a Business Subsidy application. The completed application shall be submitted to the Executive Director of the Economic Development Authority. 3. The application shall be reviewed by City staff on a preliminary basis as to the feasibility of the project. City staff shall prepare a report on the project. 4. The application shall be placed on an EDA agenda for concept review. The applicant may make a presentation of the project at that time. City staff will present its preliminary findings. 5. The following items must accompany the application: a. $2,000 application fee b. Completed “but-for” worksheet c. $10,000 application deposit d. Statement of Public Purpose e. Description of Project f. Plans and Drawing of Project g. Company Background Material h. Letter of Feasibility i. Market Analysis j. Pro Forma Analysis k. Financial Statements l. Zoning and Comprehensive Plan Analysis m. Other Pertinent Information 6. Following the necessary analysis of the application by City staff, a report shall be prepared and presented to the EDA for formal action. If the application is approved, City staff will be directed to undertake the following steps: a. Prepare a redevelopment agreement between the City of Chanhassen and the Developer; b. Prepare or modify the redevelopment plan and TIF plan if required. 7. If zoning amendments or Planning Commission action is required as part of the project, the appropriate actions shall be taken prior to final consideration of the redevelopment agreement. 13 8. Applicant must follow all city development review processes (e.g. site plan, platting, rezoning, PUD, etc.) before final Business Subsidy application may be approved. If you have any questions concerning the Business Subsidy application process, please contact: City of Chanhassen EDA Executive Director 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 (952) 227-1119 g:\admin\cp\business subsidy\city of chanhassen updated business subsidy plan.docx CITY COUNCIL STAFF REPORT Monday, July 9, 2018 Subject Approval of City Council Minutes dated June 25, 2018 Section CONSENT AGENDA Item No: D.1. Prepared By Nann Opheim, City Recorder File No: PROPOSED MOTION “The City Council approves the minutes dated June 25, 2018.” Council approval requires a Simple Majority Vote of members present. ATTACHMENTS: City Council Work Session Minutes dated June 25, 2018 City Council Summary Minutes dated June 25, 2018 City Council Verbatim Minutes dated June 25, 2018 CHANHASSEN CITY COUNCIL WORK SESSION JUNE 25, 2018 Mayor Laufenburger called the work session to order at 5:35 p.m. COUNCIL MEMBERS PRESENT: Mayor Laufenburger, Councilwoman Tjornhom, Councilman McDonald, and Councilman Campion COUNCIL MEMBERS ABSENT: Councilwoman Ryan STAFF PRESENT: Todd Gerhardt, Chelsea Petersen, Paul Oehme, Kate Aanenson, Todd Hoffman, Jill Sinclair, and Greg Sticha PUBLIC PRESENT: Don Vasatka 9120 Degler Circle Greg Hawks 1806 Colonial Lane #1 Jim Boettcher 7476 Crocus Court Cole Kelly 1556 Bluebill Trail Meredith Petouvis 7041 Mill Creek Lane Rick Echternacht 8746 Flamingo Drive KEY FINANCIAL STRATEGY: GREENSTEP CITIES PROGRAM. Todd Gerhardt provided background information on why this program was established. Jill Sinclair presented information on the research that has been done by staff and environmental commissioners to assist in determining if the City should move forward with participation in the GreenStep Cities program. Mayor Laufenburger and Councilman McDonald asked for clarification on the comments made by staff that there is no costs associated with this program. Todd Gerhardt highlighted projects that the City has already done that would qualify for credits. Keith Butcher continued highlighting success stories of cities who are currently using this program and reasons and steps needed to participate in the program. Mayor Laufenburger asked for feedback from Councilman Campion, who brought this item to the council after attending a League of Minnesota Cities conference. Councilwoman Tjornhom asked about the funding source for the GreenStep program, who will administer this program in the city, clarification on the benefits of the terms visibility, consistency, and transparency. Councilman McDonald expressed concern with hidden costs associated with getting into this program. Mayor Laufenburger reiterated that the City will not do anything different than it currently does other than being recognized and asked for clarification on 1) how much time staff will spend on administering this program, and 2) if is it worthwhile to join. He stated the next step is for council members to spend more time thinking about this program and asked staff to provide the list of 175 actions, what 41 items have been achieved, and projects that will be done in the City Council Work Session – June 25, 2018 2 future. Councilman Campion stated he did not understand the push back from council members on this program. KEY FINANCIAL STRATEGY: PARKS REPLACEMENT SCHEDULE. Todd Gerhardt provided background information on how this item became a key financial strategy. Adam Beer reviewed the proposed park replacement schedule of projects for 2019 through 2023. Mayor Laufenburger asked what changes will be used in future replacements and liability for the city having unsafe equipment. Greg Sticha explained potential funding options that can used to fund these projects. Mayor Laufenburger asked for clarification on how the levy will be established and the use of surplus funds. Council members agreed that they are not in favor of doing anything until after the public hearing is held on the use of franchise fees to fund roads. Todd Gerhardt stated that this item will move forward with the budget process. 2019 INITIAL BUDGET DISCUSSION. Greg Sticha reviewed initial estimates for 2019 budget items, new growth percentages, and asked for feedback from council members moving forward. Mayor Laufenburger asked if there were any concerns about reducing services or increasing services. Councilman Campion asked if large projects such as Avienda, Aldi/Venue, and Panera have been considered in the proposed budget numbers. Greg Sticha asked council members to email staff with any comments or questions. Mayor Laufenburger adjourned the work session at 7:00 p.m. Submitted by Todd Gerhardt City Manager Prepared by Nann Opheim CHANHASSEN CITY COUNCIL REGULAR MEETING SUMMARY MINUTES JUNE 25, 2018 Mayor Laufenburger called the meeting to order at 7:05 p.m. The meeting was opened with the Pledge to the Flag. COUNCIL MEMBERS PRESENT: Mayor Laufenburger, Councilwoman Tjornhom, Councilman McDonald, and Councilman Campion COUNCIL MEMBERS ABSENT: Councilwoman Ryan STAFF PRESENT: Todd Gerhardt, Chelsea Petersen, Kate Aanenson, Paul Oehme, Todd Hoffman and Roger Knutson PUBLIC PRESENT: Jon Gilbert 1641 Jeurissen Lane Gene Kotz Xcel Energy, Nicollet Mall, Minneapolis Jennifer Zbinden 6460 Bretton Way Mack Titus 2747 Century Trail Zhexin Zhang 1455 Bethesda Circle PUBLIC ANNOUNCEMENTS: Mayor Laufenburger invited all citizens to participate in the City’s 35th annual 4th of July celebration and outlined the schedule of events. CONSENT AGENDA: Councilman McDonald moved, Councilman Campion seconded to approve the following consent agenda items pursuant to the City Manager’s recommendations: 1. Approval of City Council Minutes dated June 11, 2018 2. Receive Planning Commission Minutes dated June 5, 2018 3. Receive Park and Recreation Commission Minutes dated May 22, 2018 4. Ordinance 633: Pervious Pavers City Code Amendment (Chapters 7 and 20) 5. Ordinance 634: Beekeeping (Amending City Code Chapters 4, 5, and 20) 6. Conditional Use Permit 2018-08: Approve Xcel Energy Transmission Line to be located south of the intersection of Audubon Road and Lyman Boulevard City Council Summary – June 25, 2018 2 All voted in favor and the motion carried unanimously with a vote of 4 to 0. VISITOR PRESENTATIONS. None. FIRE DEPARTMENT/LAW ENFORCEMENT UPDATE. Sergeant Tyler Stahn provided the monthly law enforcement statistics for the month of May, updates on training, community relations, staffing, and fireworks safety. Chief Don Johnson reiterated the need for fireworks safety before presenting the monthly statistics for calls for service, staffing, training and activities attended by members of the fire department. GALPIN BOULEVARD STUDY: ADOPT RESOLUTION IN SUPPORT OF STUDY FINDINGS. Paul Oehme presented the staff report on this item. Mayor Laufenburger asked for clarification on timing of the project and authorized city staff to negotiate with Carver County on an equitable cost split between the two agencies and terms for turnback for future improvements taking into account the newly enacted wheelage and sales tax increases. Resolution 2018-37: Councilman McDonald moved, Councilwoman Tjornhom seconded that the Chanhassen City Council adopts a resolution in support of the findings for Galpin Boulevard improvements between TH 5 and the north city limits. All voted in favor and the motion carried unanimously with a vote of 4 to 0. AVIENDA: APPROVE FINAL PLAT AND GRADING PERMIT. Kate Aanenson and Paul Oehme presented the staff report on this item. Mayor Laufenburger asked about review of the plans and the amount of dirt that will be removed from the site. Representing the applicant, Steve Sabraski from Professional Services discussed the amount of dirt being moved, explaining that they want to keep the site as balanced as possible, and the associated timeline to do the work. Councilwoman Tjornhom moved, Councilman Campion seconded that Chanhassen City Council approve the final plat and grading plan for Avienda subject to the following conditions: 1. Approval of the Storm Water Permit by the Riley-Purgatory-Bluff Creek Watershed District. 2. Meet all requirements of the WCA approval. 3. Receive approval of the plan set for grading and storm water by both the City and the Riley-Purgatory-Bluff Creek Watershed District. City Council Summary – June 25, 2018 3 4. Placement of Outlot A in a Conservation Easement. The City shall review the easement language. 5. Boundary of Outlot A shall be staked and inspected prior to grading. 6. Provide proof of withdrawal of the wetland banking credits from the banks once the withdrawal is completed. 7. Complete the Withdrawal of Banking Credits form for LGU review and signature. All voted in favor and the motion carried unanimously with a vote of 4 to 0. COUNCIL PRESENTATIONS. Mayor Laufenburger provided an update on the Chanhassen Red Birds. Councilman McDonald reminded everyone that foul balls are a dollar each. ADMINISTRATIVE PRESENTATIAONS. Todd Gerhardt congratulated the Chanhassen Dinner Theater on their 50th anniversary celebration with 1,000 former employees and actors in attendance. CORRESPONDENCE DISCUSSION. None. Councilwoman Tjornhom moved, Councilman McDonald seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 4 to 0. The City Council meeting was adjourned at 8:15 p.m. Submitted by Todd Gerhardt City Manager Prepared by Nann Opheim CHANHASSEN CITY COUNCIL REGULAR MEETING JUNE 25, 2018 Mayor Laufenburger called the meeting to order at 7:05 p.m. The meeting was opened with the Pledge to the Flag. COUNCIL MEMBERS PRESENT: Mayor Laufenburger, Councilwoman Tjornhom, Councilman McDonald, and Councilman Campion COUNCIL MEMBERS ABSENT: Councilwoman Ryan STAFF PRESENT: Todd Gerhardt, Chelsea Petersen, Kate Aanenson, Paul Oehme, Todd Hoffman and Roger Knutson PUBLIC PRESENT: Jon Gilbert 1641 Jeurissen Lane Gene Kotz Xcel Energy, Nicollet Mall, Minneapolis Jennifer Zbinden 6460 Bretton Way Mack Titus 2747 Century Trail Zhexin Zhang 1455 Bethesda Circle Mayor Laufenburger: Thank you and I wish to welcome all of you in the chambers, welcome to this City Council meeting as well as those of you who are watching on Mediacom cable television at home or via live web stream anywhere in Chanhassen, the city, the nation, the world for that matter so welcome to all of you. For the record Councilmember Elise Ryan is absent this evening. Excused absence but the remaining council members are all present. First action tonight is action on the agenda. Council members are there any modifications to the agenda as printed this evening? There being none we will proceed with the agenda as printed. PUBLIC ANNOUNCEMENTS: Mayor Laufenburger: First item on our agenda this evening is a public announcement. As I said today is June 25th. Just a little over a week away is the annual 4th of July celebration here in Chanhassen and I’m excited to invite everyone to the City of Chanhassen’s largest community event of the year. This is the 35th annual 4th of July celebration coming up. The celebration will be held June 2nd, 3rd and 4th. That’s Monday, Tuesday and Wednesday. The event is presented by the City of Chanhassen and sponsored by the 2018 Community Event Sponsors. On Monday July 2nd there will be a family night at the carnival from 3:00 to 10:00 p.m. Pony rides available from 3:00 to 8:00 p.m. On Tuesday, July 3rd activities begin at 3:00 p.m. and they include the Southwest Metro Chamber of Commerce Business Expo. The Rotary Club of Chanhassen presents the Taste of Chanhassen and the beer and wine garden. Carnival rides, concessions. Chanhassen City Council – June 25, 2018 2 There will be a kiddie parade. There will be skateboard competition. There will be live music from the band called Ragtown and the every popular street dance featuring Casablanca Orchestra from 7:00 to 11:00 p.m. and I believe this is the 21st year in a row for Casablanca, is that correct Mr. Hoffman? Todd Hoffman: Correct. Mayor Laufenburger: Now that’s on July 3rd. Just wait, there’s more. On Wednesday, July 4th the events start early again with the adult fishing contest at Lake Ann, and I’m amazed. I see about 40 people who come to that fishing contest every year and they catch fish in Lake Ann and I’ve always said that there are no fish in Lake Ann. Right Mr. Boettcher? Anyway, there’s a kids fishing contest. There’s a medallion hunt. There’s live music by American Bootleg. Carnival rides and concessions. Again the Rotary Club Taste of Chanhassen and the beer and wine garden. The Rotary Club of Chanhassen’s Classic Car Show. I think last year we had almost 80 vehicles if I’m not mistaken. And then of course at 2:30 is the parade sponsored by the Chanhassen Rotary Club. The continuation of the beer and wine garden of course. And just a fun event and I think we estimate there are as many as 25,000 or 30,000 people that line the parade route so if you’re interested in being the parade reach out to Rotary Club of Chanhassen. You can sign up for that. It’s always a fun thing. Kids. Animals. Bands. Flags waving everywhere. It’s a fun thing so be sure to join all of us then for a spectacular fireworks display over Lake Ann at 10:00 p.m. Bring your families, neighbors, friends for 3 days of fun and I look forward to seeing everyone there. 4th of July. Great event. It’s one of the signature events that happen here in Chanhassen. Contributes to the incredible quality of life that we have so that’s my public announcement tonight. CONSENT AGENDA: Councilman McDonald moved, Councilman Campion seconded to approve the following consent agenda items pursuant to the City Manager’s recommendations: 1. Approval of City Council Minutes dated June 11, 2018 2. Receive Planning Commission Minutes dated June 5, 2018 3. Receive Park and Recreation Commission Minutes dated May 22, 2018 4. Ordinance 633: Pervious Pavers City Code Amendment (Chapters 7 and 20) 5. Ordinance 634: Beekeeping (Amending City Code Chapters 4, 5, and 20) 6. Conditional Use Permit 2018-08: Approve Xcel Energy Transmission Line to be located south of the intersection of Audubon Road and Lyman Boulevard All voted in favor and the motion carried unanimously with a vote of 4 to 0. Chanhassen City Council – June 25, 2018 3 VISITOR PRESENTATIONS. None. FIRE DEPARTMENT/LAW ENFORCEMENT UPDATE. Mayor Laufenburger: Did you draw straws? Okay, I’ll let the law enforcement update occur first. This is a new face to us right? Sergeant Tyler Stahn: Yes sir. Mayor Laufenburger: Alright, give us your name here. Sergeant Tyler Stahn: My name is Tyler Stahn. Mayor Laufenburger: Alright, Tyler did Lieutenant Kittelson tell you about the harassment that the City Council gives all the rookies that come up here? Sergeant Tyler Stahn: I’m very well aware… Mayor Laufenburger: So then you’ll be ready for everything. Sergeant Tyler Stahn: That’s correct. Mayor Laufenburger: Nice to have you here. Sergeant Tyler Stahn: Thank you. Good evening Mr. Mayor and council members. I have the monthly law enforcement update for you this evening. With regards to the month of May, calls for service that we had, there were Group A crimes, 15 Group B crimes, 468 miscellaneous non- criminal incidents, 359 total traffic related calls, 87 administrative calls for a total of 969 calls for service. With regards to arrests, 35 individuals were arrested and charged with 56 crimes in 26 separate incidents. The leaders in those categories being 7 DUI arrests, 7 liquor law violations, and 4 drug related arrests. There were 71 citations issued and 194 verbal warnings given. Training update, the following staff recently completed the Minnesota Crisis Intervention Team Training June 4th through 8th. In attendance was myself, Deputy Travis Larson, Deputy Jonathon Howard, Deputy Mike Felt as well as Sergeant Bones and the remaining staff will complete the training September 24th through the 28th. With regards to community relations. Myself and my team completed a pedestrian safety detail on Powers Boulevard near Park Road on May 31st. We observed one violation within the hour that we were out there. We observed secondary violations in terms of speeding through the intersection during our timeframe while we were there. No citations were issued and educational enforcement was taken. Detective Charles Possard conducted a presentation at the Senior Center on June 11th that focused on fraud and scams that target seniors. Deputies and the community service officers worked traffic control for the Lake Minnetonka Triathlon on June 16th. Deputies worked at the Chanhassen Dinner Chanhassen City Council – June 25, 2018 4 Theater’s 50th anniversary on June 18th. Deputies attended the Night at the Red Birds on June 20th. Deputy Adam Hastings and Sergeant Jason Breunig will be conducting a fraud and scam presentation at Summerwood on June 27th. And then finally with regards to that I participated in the filming of a documentary for an opioid education and abuse prevention that was aimed at “combating the opioid epidemic through educational initiatives for young people”. This was stemming off of a few, many of you may recall beginning of 2016 a 20 year old male died in the city of a heroin overdoes and at the time I was an investigator and I had worked that case and I helped get that drug dealer caught so the mother of the decedent had started a non-profit which has really been picking up steam and she’s currently making a documentary and so that’s what that was for. Staffing update. Detective Charles Possard has resigned his position with the Sheriff’s office effective June 18th and Deputy Joe DeRosier who was assigned to the city last year will be replacing him beginning in mid-July. With regards to fireworks, the sheriff’s office would like to say that as a general rule if it flies or goes bang it’s probably illegal and it’s a reminder that the Fire Marshal or law enforcement may confiscate fireworks and it is a misdemeanor to sell, discharge or possess those fireworks. That concludes my report and I will stand for questions. Mayor Laufenburger: Alright, is it Sergeant is that correct? Sergeant Tyler Stahn: That’s correct. Mayor Laufenburger: Okay, Sergeant thank you. Any questions or comments from the council? No harassment whatsoever. Nice job Sergeant, thank you very much. Sergeant Tyler Stahn: Thank you. Mayor Laufenburger: Chief Johnson? Chief Don Johnson: Good evening Mayor and council. Before I start I’d like to add onto maybe answer one question about fireworks. If you buy it in this state it’s legal. If you don’t buy it in this state it probably isn’t so my only safety advice would be if it flies, once it takes off you can’t get it back so right now we’re very lucky to have some very wet conditions. With this week of warm weather we don’t know what we’re going to have around the 4th of July. Mayor Laufenburger: You can’t guarantee wet conditions. Chief Don Johnson: I cannot guarantee wet conditions so we will work with law enforcement in regards to fireworks complaints but we’d ask that the community be safe in however they choose to celebrate 4th of July. Fire department staffing is at 43. We had a very successful hiring period for our 2018 class. We did add 5 new firefighters to our rolls. Additionally we were able to reinstate a firefighter that moved out of the city for almost a year and with that we’ve added 2 firefighters to the Station 2 area. Additionally we’ve got a 20 year veteran that, Joe Brennan that will be leaving the department at the end of the month. I hope to see, bring him to council in the Chanhassen City Council – June 25, 2018 5 next couple of months and we can celebrate his 20 years of service to the citizens. We did also lose a 2017 hire. Had some changes in life and moved out of the city so overall I’m pretty pleased at where we’re at with staffing. Our numbers are solid. The group of 5 will start class in Edina starting July 31st so we’ve got them participating with us. You’ll see some new faces around 4th of July. We wanted to get them on in time to get them working for us so you’ll see some new faces around town for that. We continue to be extremely busy. We had 86 calls for service in May. If we stay on this the projection is to be around 850 calls which is 100 more than last year so we’re up about 13 percent and it’s across the board. It’s not one call or this type of call or that type of call. We’re just busy across the board. Within that month of May we had 41 EMS calls. That included 6 motor vehicle accidents. We responded to 4 fires. One in town here at the Chan View Apartments where there was a deck fire related to cigarette smoking and we responded to Excelsior, Victoria, and Chaska on 3 separate incidents for structure fires. As I said last month we’re still dealing with some citizen complaints as well as first responder complaints with illegal burning which would be violations of ordinances for our rec fires. Again reminding people that you can have a rec fire. Definition of a rec fire would be sitting around with your friends enjoying some libations and maybe having a hotdog or some S’mores. Not burning your entire yard contents and things like that. Mayor Laufenburger: Actually Chief let me stop you there. Isn’t there specific code instructions on what qualifies as a recreational fire? It’s like size of a campfire. Chief Don Johnson: Correct Mayor. 3 by 3 by 3. Mayor Laufenburger: There. Chief Don Johnson: At least 25 feet from combustibles so away from your house. Away from your fences that would be combustible and you can use clean wood so depending on the logs that you would use. No construction material. No painted, no treated materials. Those type of things that can’t be used for recreational fires. Mayor Laufenburger: Okay so just simply because you have a fire ring in your back yard or a concrete or metal, even though you have that you’re still subject to the restrictions of the size of this recreational fire. Chief Don Johnson: Correct. Means of extinguishment. It has to be manned and there has to be an adult so that’s. Mayor Laufenburger: Good, alright thank you for that clarification. Chief Don Johnson: So that’s our ordinance, correct Mayor. Training, June officers training. We had professional development and leadership. Right now you’ll see we have 4 or 5 cars turned over and we’re working on vehicle extrication out in the parking lot tonight. With that we had, we’ve had a very busy activities. Non-emergency response to the community. April 27th Chanhassen City Council – June 25, 2018 6 was the Chanhassen Elementary Color Run. May 28th the Legion Honor Guard with the cemetery visits. May 28th also, we staffed the City Memorial Day celebration. June 2nd was the Lion’s fundraising event at the Arboretum for juvenile hearing loss. We had our annual picnic on the 11th and our annual Black Hat on the 18th and celebrated the 5 of our probationary firefighters passing onto getting out of probation after 2 years. So far we’ve been inundated with getting ready for 4th of July so we’ll be out in force again for 4th of July, both with the parade, the street dance. Providing medical services. We’ll have duty crews working that night and work along with the sheriff’s office with the street dance and the parade. Also we’ve ramped up with our fire prevention activities we’ve actually started helping out with the businesses a lot with some of the other things that we can do. We assisted Lyman Lumber with fire drills for their employees for the first time in a significantly long time. We provided fire extinguisher training at Novaspect and we’ve already started our planning which a save the date would be September 24th for the fire department open house and that’s all for my report for the month. Mayor Laufenburger: Alright, thanks Chief. Council any questions or comments for the Chief? Chief you’re getting a new truck aren’t you? Ladder truck later this year. Chief Don Johnson: Correct Mayor. Mayor Laufenburger: Could you give us the status on that? Chief Don Johnson: Sure. We were notified that we would probably be taking delivery a month early at the end of August, which it was due in October 1st. We’ll have to go out for mid- construction inspection sometime around the end of July so they’re going to notify us when the truck is actually ready for that which means the cab, the back end utility portion and the turn table for the ladder will be all attached to the truck at that point so we’ll go out and, our team. The truck committee team will do a visual inspection and work through a couple other things with the builder at that time and take acceptance. Mayor Laufenburger: And I think I’ve read some reports that our current ladder truck may find a new home, is that correct? Chief Don Johnson: Correct. Todd Gerhardt, the City Manager and the City Administrator of Pine City did work out a deal for the purchase of Ladder 11. It works out well for them. They had a catastrophic failure and as you know it takes time to build the capital for some of these smaller communities to purchase a new ladder truck so I’m happy to say that Ladder 11 will get their community by while they’re in the planning phases so as soon as I have a hard date we’re going to get, we’ll let them take our truck to help out as the best we can so thanks to City Manager Gerhardt for working that out. Mayor Laufenburger: Alright. Thanks Chief. Appreciate your help. Chief Don Johnson: Thank you. Chanhassen City Council – June 25, 2018 7 Mayor Laufenburger: Good luck on the 4th of July. Chief Don Johnson: Appreciate it. We’ll see you out there Mayor, thank you. Mayor Laufenburger: Okay. GALPIN BOULEVARD STUDY: ADOPT RESOLUTION IN SUPPORT OF STUDY FINDINGS. Mayor Laufenburger: Alright next item on our agenda is new business. This is item number 1. I-1 is resolution on the Galpin Boulevard study. Is this your’s Mr. Oehme? Paul Oehme: It is. Mayor Laufenburger: Okay, good evening. Paul Oehme: Good evening Mayor, City Council members. This is an update and consideration of passing a resolution in support of the Galpin Boulevard scoping study findings so Jon Horn with Kimley-Horn and Association who has been helping the City on this project. He is under the weather tonight so he’s not being able to make it so I’ll just give a brief presentation on our findings and next steps. So this is the agenda that we’d like to follow tonight on just a brief background on the project itself. I know the council had reviewed the background and a lot of the information that’s being presented here tonight about a month ago in the May work session so I just wanted to highlight some of those, that information again. I would just like to update the council on our latest open house that we had with this project back on June 12th and we did have some good feedback received from the residents and that on this project. Reviewed the preliminary design recommendations for the intersections, pedestrian improvements and stormwater improvements and then we have updated the costs for the project. We’ll review those and then talk about potential next steps. So the project again is our improvements to Galpin Boulevard. Basically it’s limits are from Highway 5 all the way up to the north city limits shown here and it’s approximately a 2 mile corridor. The road currently is a 4 lane divided section of roadway from Highway 5 to that first block up to 78th Street and then north of there it’s a 2 lane rural section roadway all the way to the north city limits. Some existing sidewalks, trails are along the corridor and this roadway is potentially a turnback candidate from Carver County to the City of Chanhassen. Carver County currently owns, maintains, plows the road and this project if it moves forward potentially would give this section of road back to the city for us to maintain and operate. Then we’ll talk about the needs, need for improvements to meet the city standards so if the road were to be turned back to the City there’s the city standards that would have to be met in order for that to happen. So again the project, we did take traffic studies earlier in the year. Completed that. We did look at the existing roadway configurations and how it would function at an acceptable level potentially in 2040. We looked at you know potentially growth in the area. How would that impact traffic and congestion on this roadway. Chanhassen City Council – June 25, 2018 8 Intersection improvements. We did identify several intersections that potentially we’d like to consider for improvements. They include West 78th Street, Brinker Street, Lake Lucy Road. Those are the primary intersections that take the most traffic along Galpin Boulevard. So our open house again was held on June 12th at the Rec Center. Approximately 1,600 notices were mailed out for this meeting. We did have fairly good attendance, about 45 residents that came and viewed our displays and asked questions. We did receive 17 comment cards for the, at the open house and I believe most of those are included in your packet tonight for your review. And then overall we did find that there was general support for the improvements. Galpin Boulevard is in fairly poor condition right now. There are some things along the corridor that residents would like us to consider improving such as sight lines and drainage and those type of things. And there was support for the roundabouts at West 78th Street, Brinker Street and Lake Lucy Road so it’s kind of a general overview. Design considerations. Considerations at the north end of the corridor were also discussed heavily with a lot of the residents in that area. There is as you know as you’re going into Shorewood there’s a pretty steep grade there and the road is somewhat circuitous so we’re talking about how to make that section of the roadway safer. And then also support for trail improvements as well seemed to be a theme that resonated at the open house. So just a quick overview of the roundabout proposal. So roundabouts again are proposed at 3 intersections. Full roundabout would be at 78th Street and we’re looking at mini roundabouts at Brinker Street and Lake Lucy Road. Those are a lot smaller. About half the size of a regular roundabout. Doesn’t take as much right-of-way. They’re conducive to roadways that don’t have a lot of traffic but want to still calm intersections and for traffic in some of these neighborhoods so we thought this would be a good opportunity to consider those improvements at these intersections. Mini roundabouts are becoming more prevalent in the metro area in Minnesota and this is just something that we think should be considered. The proposed profile is shown here. I don’t expect anybody to see this or read it but this layout was included in the council packet. We did look at plan and profile views and tried to tweak the grades as much as we can under this scenario so we’re set up for potentially final design down the road. This layout does shown the roundabouts at 78th Street, Brinker Street and Lake Lucy Road. So just briefly the 3 intersections that we’re talking about for those improvements again. West 78th Street. This is showing the full roundabout improvements here. Would like to make trail improvements and trail crossing connections at the intersection here. The right-of-way at 78th Street is fairly well set up for a future roundabout. Typically you’d have to purchase more right-of-way at normal intersections for right-of-way improvements but the right-of-way was dedicated at this intersection back in when Highway 5 and 78th Street was improved for setting up for a roundabout. So the center of the roundabout again would be landscaped and similar to what you see on Bluff Creek Boulevard. It’d be kind of a similar layout. The intersection at Brinker Street. So north is to the right here. Brinker Street currently is, has a stop sign. Stop condition on Galpin Boulevard and just talking to Carver County Sheriff’s department that stop sign is not well adhered to I guess so we’re looking at different options there to still improve traffic circulation in the area. There is a park just to the west here that we want to make pedestrian connections to so the roundabout at this intersection would be conducive to achieving all those goals. Again the stop sign at this intersection is not warranted but we’d like to make some improvements to acknowledging that there is some pedestrian movements in this area and trying Chanhassen City Council – June 25, 2018 9 to calm the traffic at this location. Then at Lake Lucy Road, another mini roundabout would be proposed. Here this is currently a 4 lane, or 4 way stop intersection. Going through the traffic study the through movement on, or the movement on Galpin hearing north and south, that is under the analysis we took with the traffic was not warranted for a stop sign but it is for a mini roundabout so we’re, we’d like to consider that improvement with this project. Again trails on both sides of Lake Lucy Road up into Lake Lucy Road and then we’re looking at shifting over the trail to the east side of Galpin as opposed to the west side where it currently is today and I’ll run through that a little bit on our next slide. So again bicycle and pedestrian improvements were, was talked about heavily at the neighborhood meetings. Right now we’re looking at proposing a 10 foot wide trail along both sides of Galpin Boulevard from Highway 5 up to Lake Lucy Road. This 10 foot wide trail is consistent with our standard trail widths that we make improvements to throughout the community. Boulevard would be also, would be improved along with that proposed 10 foot trail along the east side of Lake Lucy Road north of Lake Lucy, north of Lake Lucy Road is a little bit of a change. We’re trying to tie into a proposed trail on Shorewood’s city limits north of this project where Shorewood’s going to be or planning to make trail improvements at that location all the way up to Highway 7 so we want to tie into their future infrastructure will be. And then we did hear from the community that on street bicycling is important for some so we’re looking at constructing a shoulder, a 5 to 6 foot wide shoulder in areas where we can or it’s conducive to that to assist on street bicyclists as well. And then we also looked at a grade separated pedestrian crossing at Galpin Boulevard and that is the next slide here. So hearing from the City Council and staff and some of the property owners here in knowing that area to the, on the east side of Galpin will potentially develop in the near future, a pedestrian underpass was looked at for a grade separated access to that development and then potentially over to Lake Ann and the park system at that location so staff did look at an underpass option which is located here. It’s basically halfway inbetween Hunter Drive and Longacres Drive. There’s kind of a dip in that road there. It’s right between two wetlands but the grade kind of lends itself to potentially an underpass at that location so the road I’ll show you on the next slide would have to be raised up about 17 feet from it’s current elevation at this location as it is today so there’s a lot of work that would have to be done to make that, the grade separation work. This drawing here shows kind of the cross section of what the road would look like. The dashed line here is what the existing grade of the road is today. We would put in, I think it’s a 12 foot high, 12 foot tall box culvert which is similar to what you, what is under 101 today. We have a lot of these throughout the community. We would have to, just due to the constraints of the right-of-way we’d have to build walls on both sides of the road here on the west side and on the east side and then the trail section along Galpin Boulevard would still follow the existing grade as much as possible. There would be potentially some additional retaining walls outside of the right-of-way just for those trail connections on both sides and double back the trail and not impact wetlands as well so. Storm drainage improvements. Todd Gerhardt: That’s not going to happen. Paul Oehme: It’s in our study and it’s up to the council if they want to go forward with it or not but it’s part of the study we were just looking at it. Chanhassen City Council – June 25, 2018 10 Mayor Laufenburger: But it’s not a part of the funding that you’ve identified is it? Paul Oehme: Right. It’s a separate line item. It’s something that we’ve studied. It’s a separate item so it’s not part of the funding package at this time. Mayor Laufenburger: Since we’ve stopped you on that. You mentioned that this is similar to one that’s under 101. Is this the one that Rice Marsh Lake trail or Bandimere? Paul Oehme: I would say it’s more similar to Bandimere. That’s one of our newer underpasses. The only difference with Bandimere Park access is there’s more right-of-way there so there’s less retaining walls on each side of the road there but that would be I think the closest box culvert to this one. Mayor Laufenburger: I’m thinking of the one on Minnewashta under Highway 5 at Minnewashta. Is that not as tall? Do you know? Paul Oehme: I’m not sure how tall that one is at Minnewashta. Yeah you’re right, I think that one is, that one might be 10 feet tall too so. Todd Gerhardt: And in either case Mayor, City Council members, the cost of the underpass is about $2.7 million dollars to build so I wanted to stop Paul to kind of not get your hopes up that we’re just going to slip an underpass in for a third of the price of the road so. Councilman Campion: Mr. Oehme, are underpasses significantly more expensive than an overpass? Paul Oehme: They depend. Overpasses, we looked at that too. I mean it would probably be a little bit cheaper than this. The problem with overpasses, they don’t get used as much. You have to go up and typically staircases or spiral so they’re a little bit more difficult. Especially in this situation where the right-of-way’s limited. You can’t just ramp up to it as easily so at this location it would be very problematic to go over Galpin. Councilman Campion: Okay. Mayor Laufenburger: And just to clarify the number, you said 2 million dollars? Todd Gerhardt: 2.7. Mayor Laufenburger: 2.7. A lot of people are thinking, that are watching here, 2.7 to put in a culvert. That seems like a lot of money but what you’re talking about is, we’ve got to raise the road to do that, correct? Chanhassen City Council – June 25, 2018 11 Paul Oehme: Right. Yep. Mayor Laufenburger: So and you don’t just raise the road right there. You have to raise the road for a long period of time. You mentioned because we don’t have as much right-of-way you couldn’t gradually slope things around and you would have to build a wall right? Paul Oehme: Right. Yeah there’s over 30,000 square feet of retaining wall that we’d have to build just to retain the road back up. Yeah and then you have to have the barrier up on top of the road so the cars don’t go off potentially onto the trail in the future so it’s very complicated. It’s complicated. It’s very expensive to put an underpass in where the grades aren’t really conducive to it. Mayor Laufenburger: So rather than a grade separated connection between Longacres development on the west to the potential future development on the east, on the Galpin property, we’re looking at a at grade connection. Paul Oehme: Yep, exactly. So at Hunter Drive and at Longacres it would be trail crossings potentially at those intersections. Also we had talked about Brinker Street at that intersection it would be a pedestrian crossing and then up at Lake Lucy Road there’d also be a crossing there as well. So one of the biggest challenges that we’ve found on this project was the stormwater management and when we go from a rural section roadway to urbanized section roadway we have to put in storm sewer. We have to treat the water for runoff and water quality so our analysis, we’d have to work with Minnehaha watershed district, Riley-Purgatory watershed district because the road’s, Galpin Boulevard is in both of those watershed districts. We’re looking at constructing 4 stormwater ponds along the corridor and then some other BMP’s along the corridor as well to try to treat the water as best as we can. Some easements, dedicating of right-of-way would also be required for those stormwater improvements. So this exhibit shows you basically where the stars are, the approximate location where those 4 ponds would be. One would be just on the northwest side of 78th Street and Galpin. Starred here so that would be at some sort of easement or land acquisition to acquire that. That’s privately held today. The next one would be closer to Sugarbush Park. That would be adjacent to the right-of-way at that park and then there’d be 2 ponds potentially on the east side of Galpin and we’d like to partner with potentially a developer at those locations when those pieces are, come in for development as well. So again this is to construct a stormwater system and try to treat the water as best as we can and try to capture the water before it ends up in people’s back yards. Again I briefly touched on this. North of Lake Lucy Road trail connections to Shorewood. Again we’d like to flip the trail from the west side of Galpin to the east side. There is currently a trail crossing at Pheasant Drive which is not a very safe crossing with the grades and the curve of the road at that location. And then we’re also looking at tweaking some of the grades just north of here as well coming down to Pheasant Hill Drive. That’s pretty steep. Steep road trying to flatten that area out a little bit as much as we can. So here’s the cost we have talked about. So we broke out the estimate for the road. For Galpin Boulevard into construction costs, contingencies. You know until we get the final design we always carry a contingency. Escalating construction costs. We Chanhassen City Council – June 25, 2018 12 estimate this project to be constructed in 2020. Right-of-way acquisitions that we’ll need for the ponds and some of the trails and just some of the strips, temporary easements that we’ll potentially need and then indirect costs that would pay for engineering. The wetlands. Other environmental studies. Soil investigations and those type of things so right now we’re estimating right around $10 million dollars for those improvements just for Galpin Boulevard. Carver County’s cost share policy right now is, they really don’t have a true cost share for turnback projects but if you just use the Carver County’s cost share policy for reconstruction the City would pay approximately a third of that cost of improvements. Now that’s not set in stone. I think there’s some negotiation there with the Carver County to see if we can you know refine that number a little bit more than that. So and then I also, we also talked about the trail underpass. It’s about $2.5, a little over $2.5 million dollars for that underpass so that’s not included in the cost right now for the project itself. It’s something separate. So for next steps, right now we’re asking the City Council to consider supporting the findings of this study and it doesn’t bind future councils to you know maybe switching out a roundabout to just a, some other intersection improvement. It just gives us support to move forward with talking to Carver County and trying to determine or negotiate an equitable cost split for those improvements. You know if staff is successful with those negotiations we want to draft up a joint powers agreement. That’s just an agreement between Carver County and the City determining what those turnback terms would be. And then at that time we could determine what the costs are and look at budgeting and programming those improvements for a future year and then after that we can start looking at right-of-way acquisitions and moving onto final design. So those are generally the next steps that we would be looking at after this study is completed. So with that that’s all the information that I had for you tonight. If there’s any questions I’d be more than happy to answer them. Mayor Laufenburger: Alright, any questions. Thank you Mr. Oehme. Any questions from council for Mr. Oehme? Paul would you just remind us, what’s the anticipated timing of this work being done? Paul Oehme: So the, what we’ve currently have tentatively programmed is construction start in 2020. There is potentially some developments along Galpin that would take place in the next few years so we don’t want to build Galpin until some of those developments are more or less in place. And also this is a large project for both Carver County and City of Chanhassen so we need to be mindful of the costs and budget wisely for those future improvements. So right now we’ve got it budgeted for 2020. It potentially could be moved up if funds are secured. Mayor Laufenburger: Alright. Todd Gerhardt: Paul in your slide it showed 2022. Paul Oehme: I’m sorry, 2022. Yeah you’re right. Thank you. Chanhassen City Council – June 25, 2018 13 Mayor Laufenburger: So 2022. That would be likely after the timeframe during which the developer of the Galpin property would likely have all of their infrastructure and the heavy equipment and stuff like that. Paul Oehme: Right all the utility work would be in at that time and their new roads, local roads would be constructed so all that heavy traffic wouldn’t beat up new section of Galpin so. Mayor Laufenburger: Okay. Mr. Oehme do you have information from Carver County as to how they intend to fund their portion of the Galpin Boulevard? Paul Oehme: They, it sounds like they, their main source of funding would be the wheelage tax. Mayor Laufenburger: And sales tax. Paul Oehme: And sales tax, I’m sorry. Yep. Mayor Laufenburger: Okay so this is the recently, the decision by the Carver County Board recently to impose, I think it’s doubling the wheelage tax on tabs and increasing the sales tax in Carver County by a half cent, is that correct? Paul Oehme: That’s correct. Mayor Laufenburger: Okay. And so do we have any idea Mr. Oehme or Mr. Gerhardt about how much of that sales tax comes from Chanhassen? I mean we’re the close, we’re tied. How close to tied with Chaska for the largest population. Do we have any information regarding how much of the sales tax comes from Chanhassen? Todd Gerhardt: From our research it shows about 46 percent comes from Chanhassen. Mayor Laufenburger: Okay. So I’ve done some calculation. That translates to the half cent sales tax in Chanhassen is about $2 million dollars a year that Chanhassen contributes to the county. Is the county aware of that amount of money that’s coming from Chanhassen to the county coffers? Are you aware of that Mr. Gerhardt? Do you know? Todd Gerhardt: I don’t think they’ve done a separate breakdown. They’re looking at projects on a need for improvement basis. Mayor Laufenburger: Okay, alright. Well I just think that if this resolution passes Mr. Oehme one of the language in the resolution is the council, let’s see. We authorize city staff to negotiate with Carver County an equitable cost split between the two agencies and terms for turnback for future improvements. I just think that it’s important that the county understands that Chanhassen is a significant contributor to the sales tax and I don’t have information on the wheelage tax and it would be important for them to know and understand that we have an expectation that those Chanhassen City Council – June 25, 2018 14 dollars comes back to work in Chanhassen where they’re sourced. And that would be important for them to know so make sure that that’s part of your discussions assuming that this resolution were to pass. Okay? Paul Oehme: Thank you. Mayor Laufenburger: And I realize that they’ve got to think about roads all over the county. I just think some consideration needs to be given as to where the source of the funds are. Okay. Todd Gerhardt: Yep. Mayor and council, your action on this resolution does not bind you to any agreement. That agreement still needs to come back for your approval. What you’re doing tonight is directing staff to negotiate and draft an agreement and bring it back for your consideration. Mayor Laufenburger: Okay. And I did hear you say Mr. Oehme that we’re adopting this study but if something were to change in the next 2 or 3 years that would cause us to reconsider the placement of roundabouts or even the existence of roundabouts, future council could take action on that is that correct? Paul Oehme: Absolutely. Yeah this resolution does not bind this council or any future council. Mayor Laufenburger: But it’s recognizing the merits of this study the way it was completed. Paul Oehme: That’s correct. Mayor Laufenburger: Okay, very good. Alright. Any further questions or comments or actions from the council? Councilman McDonald: Well Mr. Mayor. Mayor Laufenburger: Yes. Councilman McDonald: I would make the motion that the City Council adopts a resolution in support of the Galpin Boulevard study findings. Mayor Laufenburger: Okay, we have a motion. Is there a second? Councilwoman Tjornhom: Second. Mayor Laufenburger: Thank you Councilmember Tjornhom. Alright we have a motion to approve the resolution in support of the Galpin Boulevard study. Is there any further discussion? Chanhassen City Council – June 25, 2018 15 Resolution 2018-37: Councilman McDonald moved, Councilwoman Tjornhom seconded that the Chanhassen City Council adopts a resolution in support of the findings for Galpin Boulevard improvements between TH 5 and the north city limits. All voted in favor and the motion carried unanimously with a vote of 4 to 0. Mayor Laufenburger: That motion carries 4-0. Thank you Mr. Oehme. Thank you to Jon Horn. I hope that he feels better okay. AVIENDA: APPROVE FINAL PLAT AND GRADING PERMIT. Mayor Laufenburger: I’m guessing this is your’s Ms. Aanenson, is that right? Kate Aanenson: Yes it is. Thank you Mayor, members of the City Council. Again Avienda is proceeding with a final plat and grading permit. Typically these are put on consent agenda but we do have a lot of interest in where we are in the status of this project so I know there’s some neighbors here that are interested in following along so the applicant, Level 7 is asking for final plat and permission to grade on the site so the final plat at this time is only dedication of right-of- way and platting 6 outlots. Again the outlots do not give development rights but it does allow them to proceed with the grading and also gives us the conveyance of, a way of getting the conveyance of the conservation easement. So just to refresh everybody back in July, almost a year ago at this time the City Council did approve the request for the preliminary plat. You actually rezoned the PUD so we created the 17 lots and then we rezoned it to the regional commercial and we gave conditional use permit to encroach into the primary zone which was required for the extension of Bluff Creek Boulevard. We also gave a wetland alteration permit and I wanted to give a little bit more detail on that alteration permit because those are some of the terms of the conditions of the permit tonight and that was that there’s a 22.88 acres that will be conveyed in the, it’s in the Bluff Creek overlay district. In addition the $300,000 for the applicant to provide some improvements within the watershed district and we talked about those projects. Potential projects in this project area. They also have to complete the withdrawal of the backing credits for the LGU’s signature and then provide proof from the Minnesota Board of Water and Soil Resources for withdrawal of the banking credits. And then also engineered plans for the stormwater and they are working with that and that’s scheduled to go to the watershed district for their approval. So with that there are, these are the outlots that are on the plat and I’ll show those in a minute but this plat actually matches what was kind of in larger chunks. The approval of the different designs. As you know at their work session, one of your earlier work sessions this spring the Avienda team came forward and sais they do anticipate making changes to the PUD and again I want to publicly state that that process does require a public hearing at the Planning Commission and they will give you a recommendation as that comes forward but we wanted you to see those changes because that’s their intent to make changes on that plat so right now the rules that are in place are the ones that you approved almost a year ago today. So again this is the outlots are being recorded. The grading is only going on at this time and on the outlots. Again outlots do not have the ability to put a building on or anything like that. Again the PUD amendment would have to come forward. In addition to that any new buildings do Chanhassen City Council – June 25, 2018 16 require site plan approval. So this is the Outlot A, the 20.88 acres that’s required. That was a requirement of the city staff’s permit and also the watershed district permit for the grading. So with that I’ll turn it over to the City Engineer to talk a little bit about the grading and the stormwater. Paul Oehme: So thank you Ms. Aanenson. So this is a high level view of what the applicant is proposing for grading and to get that grading permit there’s a lot of calculations that have gone into this design. This is basically one of the most complicated stormwater developments that the City has looked at. Right now what the plan is for the developer is to mass grade, mass grade the sites and as Ms. Aanenson had indicated there was going to be several outlots when future building sites are developed but in order to, for the City and for the watershed district to understand how all the stormwater features and components can, are going to be constructed in the future we need to understand you know what interim stormwater systems will be in place until such time as each of those outlots are developed so potentially down the road if the road goes in and mass grading takes place, you know potentially a time lag of between maybe 3 to 5 years out before some of these outlots are developed so we need to still try to manage as best as we can the stormwater runoff from each of these outlots and the road as best as we can so. Mayor Laufenburger: Mr. Oehme are the red lines, are we looking at current topography or resulting topography? Paul Oehme: So this is proposed topography. The red lines are showing the proposed. The gray lines in the background, that’s existing. So in general the grading of the site is to cut the grades on the north end. Especially on the northeast end of the site and then fill on the south end and level that. That site off as much more than it is today. Basically build that grading plan so it generally flows from north to south but there’s all these systems. There’s all these red lines here are showing infiltration basins. Temporary infiltration basins throughout the site to capture that runoff from all those outlots and then also after the road is constructed some of these temporary basins will be used as stormwater ponds until such time as some of these outlots are developed and development takes place there then these systems are planned to go underground so there’s some pervious pavement systems that would be going in and some other infiltration basins that would be going in. It’s not your typical development where you just put in ponds and they stay there or are not going to be moved or reconstructed. A lot of these ponds are getting, are just basically temporary at this time and so again at such time as some of these outlots are developed. That’s what makes this system a lot more complicated than previous developments. So that’s basically what the grading plan has. There’s a lot of conditions that go along with the grading plan as outlined in your background. Some of the attachments so the stormwater management is key and the NPDES permit that goes along with that and will be key for us to manage. The grading permit does have some securities along with it that’s included in the grading plan so if the developer and the contractor isn’t doing what they should the City does have the right to use some of that security money to go in and fix problems as we see fit so. With that I’ll take it and turn it back to you. Chanhassen City Council – June 25, 2018 17 Kate Aanenson: I was just going to add on that too. So at this time it’s just grading. I know the residents would like to see the road get built but utilities and the road construction is not a part of the planned approval at this time so that would be a next step and different security is required for that so this is just the grading plan which is a lot of dirt work so that’s going to take a few months. So we anticipate, we have been working with the developer and coming back to you with a phasing plan and so you can see that. I think we have had a smaller version of this type of phasing plan if you look at Villages on the Pond where they did use some temporary storage ponds that ultimately became buildings so, but this is on a much bigger scale so but we’re ready to recommend approval and with that I will put a motion up for you for the City Council but we’d be happy to answer any questions that you might have. Mayor Laufenburger: Thank you Ms. Aanenson, Mr. Oehme. Council any questions for staff? Mr. Oehme I think this is you. Who has reviewed this plan on behalf of the City of Chanhassen? Paul Oehme: So many agencies have, well the watershed district specifically has reviewed the grading plan to date and they also have reviewed the stormwater calculations that go along with that. Infiltration rates. Their assumptions for how much infiltration we’re going to get through some of these basins. The City has also enlisted the help of WSB and Associates to help us review this system because it is quite complicated and intricate so we just wanted to make sure we’re doing our best job in terms of what the system will, make sure the system functions in it’s temporary format when all the grading is completed and all the roadway is in, and then looking at the holistic development after all the outlots are developed and making sure that system is going to be functioning as per designed. Mayor Laufenburger: Okay. And Paul, one thing I’m curious just as a citizen, I recognize that the topography, a lot of dirt needs to be moved from the northeast to the southeast and other areas. Give us a magnitude here. How much dirt is being moved and more importantly how much is going to be removed from the site? Do you have any estimate on that? Is that in this anywhere? Paul Oehme: Yeah I heard the number at one point in time and maybe the developer who is here tonight can answer the volume of material that’s going to be moved. I know it’s their intent is to try to balance the site as much as they can so remove the unsuitable soils. The organic soils but using the clay to, as much as they on site to build up those building pads and flatten out the site as much as they can because any dirt and material that they haul off site that’s going to cost the contractor lots of money so they want, the ideal, ideally is to try to balance the site as much as they can. Mayor Laufenburger: Okay. You mentioned the applicant is here. Would you like to introduce yourself to us? If you wouldn’t mind and stand for questions. State your name and address please. Chanhassen City Council – June 25, 2018 18 Steve Sabraski: Sure Mayor and council, I’m Steve Sabraski and I’m from Professional Services, 105 South Fifth Avenue, Suite 513, Minneapolis, Minnesota. Just to answer your question as to the amount of dirt that’s being moved, yeah there’s a lot of dirt that’s going to be moved on this site. And it is our intent to provide as close to a balanced site as possible. With that you know the site is currently an ag site right so there’s a lot of topsoil and the majority of the earth that is going to be removed from the site will consist of the topsoil. That number is somewhere in the range between 200,000 and 250,000 cubic yards is a very large amount. We’re going to retain as much of that as possible again to reuse that so we will have stockpiles which are indicated on the plan so we can use those for future development but yeah in the end, once the whole project is complete the bulk of that topsoil will be removed from the project. Mayor Laufenburger: Okay. Say your first name again? Steve Sabraski: Steve Sabraski. Mayor Laufenburger: Steve, so the citizens that will start seeing things happening there, in their mind they’ll be thinking about, first of all they’re be wow, something’s happening. Then secondly they’ll say wow, it’s still happening. And then thirdly they will say I wonder when this is going to stop so what can we tell the citizens about the elapsed time of all of the grading? You understand the question? Steve Sabraski: I understand, yes Mayor. So unfortunately I don’t have a totally completed construction timeframe but really we hope if we’re under construction later this summer that we can be done with or complete with the bulk of the grading activities at the end of next year. That’s the hope. There’s a lot of things that happen along the way. Weather plays a big influence around the construction schedule and of course development deals and those things that are being handled by the rest of the development team will also influence the timing of construction of those times as well but we hope to have the bulk of the grading done by the end of next year. It’s really about a year long process for the project. Mayor Laufenburger: Yeah it sounds like it. Steve Sabraski: Yeah. Mayor Laufenburger: And what’s the most immediate impact of that grading on the surrounding area? Steve Sabraski: Well Mayor we will most likely again the inbound and outbound you know trucks moving materials and things like that, and again those are, we’ve been specifically instructed not to impact the neighbors to the west so we don’t foresee any construction traffic going or coming from the west. So coming from the west side. Mayor Laufenburger: So you’re going to enter either from Sunset Drive on the north. Chanhassen City Council – June 25, 2018 19 Steve Sabraski: Exactly. Mayor Laufenburger: Or Powers Boulevard right? Steve Sabraski: Correct, yeah. Powers is probably going to be our main construction entrance point just because we’re close to the major highway system at that point. So we again we’re looking to minimize those efforts and restrict all construction traffic from the neighborhood. Mayor Laufenburger: Well just understand that there will be excitement when you start and then there will be disappointment when it goes beyond 2 weeks. Just understand that and so we’ll, and we expect that you will work with city staff to insure that steps are taken to be as least intrusive. We do know that the end game will be a wonderful, beautiful 118 acres but we’re going to have to go through some, a little bit of discomfort for a little while. We just, we understand that. Steve Sabraski: Thank you Mayor. Mayor Laufenburger: Okay, thank you very much Steve. Good luck to you. Let’s see, go ahead. Councilman Campion: Just one more question. Mayor Laufenburger: Sure go ahead. Councilman Campion: Mr. Oehme could you go back, Outlot A, where the conservation easement is being established, that’s in the lower left southwest corner right? Paul Oehme: Yep. Councilman Campion: Those two red outlined areas within what looked like the, if you go back, there. Are those holding ponds that are being established within that conservation easement or? Paul Oehme: No. Kate Aanenson: Those are outside. Councilman Campion: Those are outside? Kate Aanenson: Yes. Paul Oehme: Those are outside, right. Chanhassen City Council – June 25, 2018 20 Kate Aanenson: Yeah one of the conditions was, that’s why we wanted it in the outlot and that they stake that prior to grading so that’s an identified mark that, so they should be outside of that. Councilman Campion: Okay so nothing’s being changed in that? Paul Oehme: No. There’s no grading that takes place within the conservation easement. Councilman Campion: Okay, that’s it. Kate Aanenson: But for the road, right-of-way. Paul Oehme: This section. Mayor Laufenburger: Alright. Any further questions or discussion? Do we have a motion already? I didn’t think so. So does anybody wish to make a motion? Councilwoman Tjornhom: I’ll make a motion. Mayor Laufenburger: Go ahead Councilmember Tjornhom. Councilwoman Tjornhom: I’d like to make the motion that the City Council approves the final plat and grading permit for Avienda subject to the conditions of the staff report. Mayor Laufenburger: Is there a second? Councilman Campion: Second. Mayor Laufenburger: Alright, we have a motion and a second. Steve would you come back to the podium for just a second? Do you understand all the conditions of the staff report? Steve Sabraski: Yes I do Mr. Mayor and we agree with the conditions of approval. Mayor Laufenburger: Okay, alright. That’s important. Alright thank you very much. Any further discussion? Councilwoman Tjornhom moved, Councilman Campion seconded that Chanhassen City Council approve the final plat and grading plan for Avienda subject to the following conditions: 1. Approval of the Storm Water Permit by the Riley-Purgatory-Bluff Creek Watershed District. 2. Meet all requirements of the WCA approval. Chanhassen City Council – June 25, 2018 21 3. Receive approval of the plan set for grading and storm water by both the City and the Riley-Purgatory-Bluff Creek Watershed District. 4. Placement of Outlot A in a Conservation Easement. The City shall review the easement language. 5. Boundary of Outlot A shall be staked and inspected prior to grading. 6. Provide proof of withdrawal of the wetland banking credits from the banks once the withdrawal is completed. 7. Complete the Withdrawal of Banking Credits form for LGU review and signature. All voted in favor and the motion carried unanimously with a vote of 4 to 0. Mayor Laufenburger: That motion carries 4-0. Thank you staff very much. That concludes our business. COUNCIL PRESENTATIONS. Mayor Laufenburger: Any council presentations this evening? Well you’re looking for a baseball update I know. Well fortunately due to the successful work of Councilman Dan Campion and his son Aiden who threw the first pitch on last Wednesday’s game against the Dundas Dukes, the Chanhassen Red Birds pulled out a 4 to 3 victory at a walk off, that means before the final out right? The bottom of the ninth inning. It was a great ballgame. Great fun. We had close to 200 people on hand. Many people from the city as well as from the school district. It was really a great, great fun night so thanks to city staff for helping to coordinate and plan that. Thank you also to the Red Birds for pulling out a victory. And yesterday I happened to be in Hamburg where the Red Birds played in the Hamburg-Green Isle Miller Light Tourney and Thursday night they beat Waconia 1 to nothing. Saturday night they beat the Regal Eagles 4 to nothing. And yesterday they beat Blue Earth in the semi final game 9 to 3 and then they beat the New Prague Orioles 6 to 5 in a walk off fashion to capture the championship of the 2018 Hamburg-Green Isle Miller Light Tournament so this team is, they’re really fun to watch folks. If you get an opportunity to see the Red Birds play you’re going to see some young people and a couple of older ones as well that just really enjoy the game and they have fun and they continue to win. They did lose to Chaska a week ago on a Sunday game on Father’s Day but they’re a good team and the experience that you would have at Chanhassen’s High School Storm Red Bird Stadium is quite an experience. It’s just all American is what it is. So Mr. McDonald. Councilman McDonald: Yes Mr. Mayor I would like to add that this year all foul balls are a dollar so I think it’s worth everybody’s while. All you need is what, two foul balls and you’ve paid for the price of admission so. Chanhassen City Council – June 25, 2018 22 Mayor Laufenburger: Exactly. We especially like kids chasing the foul balls you know so if you’re, if you’re under care of your cardiologist you don’t want to go after these foul balls okay. Let the kids do it. Let them earn the dollar which contributes to their hotdog or their college education. Anyway that’s my Red Birds update for tonight. ADMINISTRATIVE PRESENTATIAONS. Mayor Laufenburger: Mr. Gerhardt any administrative presentations tonight? Todd Gerhardt: I have one. Last year we celebrated our 50th anniversary as being a city and I had the pleasure to work with the Rotary group at the Chanhassen Dinner Theater’s celebration of their 50th anniversary. Mayor Laufenburger: Wow. Todd Gerhardt: They invited 1,000 employees and actors, anybody that was associated with the Chanhassen Dinner Theater to attend and I think they got close to 1,000 people to attend. They had music under the tent. They took a group photo and I think it was in the Villager last Thursday so the Rotary did very well in beer sales. They had food trucks so I saw a lot of smiling faces, old friends connecting and that’s what was cool to see that history coming back together and so congratulations to the Chanhassen Dinner Theater for their 50th anniversary party last Monday. Mayor Laufenburger: And just to piggyback on that. That was June 18th and that was a party specifically for current and former employees. Actors and stuff. They have another event coming up in August. August 13th which is a gala. It’s a performance especially celebrating that. And then in October when they actually celebrate the precise day on which the Dinner Theater opened in 1968 so 50 years after that there’s another special performance so I would say citizens pay attention to what’s happening at Chanhassen Dinner Theater. You can see it by going to Chanhassendt.com and take it in. Really is a spectacular, Newsies is on right now. It’s a spectacular show and in October they switch to a new performance. I believe it’s Holiday Inn and so truly one of the unique landmarks in our community and it’s a landmark that’s not getting old. It’s getting younger all the time so take advantage of that. Thanks for bringing that up. Todd Gerhardt: Sure. Mayor Laufenburger: Anything else Mr. Gerhardt? Todd Gerhardt: That’s it. CORRESPONDENCE DISCUSSION. None. Chanhassen City Council – June 25, 2018 23 Councilwoman Tjornhom moved, Councilman McDonald seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 4 to 0. The City Council meeting was adjourned at 8:15 p.m. Submitted by Todd Gerhardt City Manager Prepared by Nann Opheim CITY COUNCIL STAFF REPORT Monday, July 9, 2018 Subject Receive Planning Commission Minutes dated June 19, 2018 Section CONSENT AGENDA Item No: D.2. Prepared By Nann Opheim, City Recorder File No: N/A PROPOSED MOTION “The City Council receives the Planning Commission minutes dated June 19, 2018.” Council approval requires a Simple Majority Vote of members present. ATTACHMENTS: Planning Commission Summary Minutes dated June 19, 2018 Planning Commission Verbatim Minutes dated June 19, 2018 CHANHASSEN PLANNING COMMISSION REGULAR MEETING SUMMARY MINUTES JUNE 19, 2018 Chairman Aller called the meeting to order at 7:00 p.m. MEMBERS PRESENT: Andrew Aller, Steve Weick, Nancy Madsen, John Tietz, and Mark Randall MEMBERS ABSENT: Mark Undestad and Michael McGonagill STAFF PRESENT: Sharmeen Al-Jaff, Senior Planner; MacKenzie Walters, Planner; and George Bender, Assistant City Engineer PUBLIC HEARING: 3861 RED CEDAR POINT ROAD: SUBDIVISION AND PRELIMINARY PLAT WITH VARIANCE. MacKenzie Walters presented the staff report on this item. Commissioner Madsen asked for clarification on the use of partial cul-de-sacs as it relates to lot widths. Tom Gonyea, representing Estate Development Corporation, explained how this subdivision will be a nice addition to the neighborhood. Chairman Aller opened the public hearing. No one spoke and the public hearing was closed. Tietz moved, Madsen seconded that the Chanhassen Planning Commission recommends that the City Council approve the preliminary plat for a two lot subdivision and a 10.04 foot lot frontage variance for Lot 1, Block 1, Red Cedar Point as shown on the plans dated May 15, 2018 subject to the following conditions of approval and adopts the Findings of Fact and Recommendation: Building: 1. Provide a 1:200 “clean” plat drawing. 2. Demolition permits required for the removal of any existing structures. 3. Buildings may be required to be designed by an architect and/or engineer as determined by the Building Official. 4. A final grading plan and soils report must be submitted to the Inspections Division before permits can be issued. 5. Retaining walls over four feet high require a permit and must be designed by a professional engineer. 6. Each lot must be provided with separate sewer and water services. Engineering: Planning Commission Summary – June 19, 2018 2 1. Drawing 4 – Site and Utility Plan: a) Change detail 1006 (Gate Valve and Box Installation) to detail 1005 (Water Service). b) Add City details 5202A (Bituminous Street Patching), 5203 (Curb and Gutter), 5208 (Concrete Driveway), 5209 (Bituminous Driveway), and 5221 (Tie Card). c) An abandoned watermain exists between the sanitary sewer and the watermain. Add note to make this known to the sanitary sewer and water installation contractor. 2. Drawing 5 – Grading, Drainage, and Erosion Control Plan: a) Add City details 5301 (Rock Construction Entrance) and 5302B (Erosion Control for Individual Lots) b) Provide geotechnical report. c) Include first floor elevation of buildings on adjacent lots. d) Existing and proposed elevations shall be shown at each lot corner and top of the curb at the lot line extension. e) Identify proposed soil stockpile locations. f) If importing or exporting soils for the development of the site is necessary, the applicant will be required to supply the City with a detailed haul route and traffic control plan. 3. SAC and WAC fees due at the rate in force at time of building permit application. Environmental Resources: 1. Tree protection fencing must be properly installed at the edge of the grading limits as shown on the plans dated 5/15/18. This must be done prior to any construction activities and remain installed until all construction is completed. Any trees lost to construction activities shall be replaced. 2. No equipment or materials may be stored within the tree protection area. 3. One tree must be planted in the front of each yard, as per city requirements. Parks: 1. Park dedication fees for one lot at the rate in force at the time of final plat approval. Planning: 1. An escrow of 110 percent of the estimated demolition costs for the demolition of the detached garage on lot 2, block 1 must be received, and the detached garage must be removed within four months of the approval of the final plat. Water Resources: Planning Commission Summary – June 19, 2018 3 1. All permits and approvals must be received from other regulatory agencies prior to issuing permits. 2. Must show existing and proposed drainage. 3. The applicant will need to pay the surface water management (SWMP) fee for 1.010 acres at the rate in force at the time of final plat approval. All voted in favor and the motion carried unanimously with a vote of 5 to 0. APPROVAL OF MINUTES: Commissioner Weick noted the verbatim and summary Minutes of the Planning Commission meeting dated June 5, 2018 as presented. COMMISSION PRESENTATIONS. None. ADMINISTRATIVE ITEMS. MacKenzie Walters provided a City Council action update and discussed future Planning Commission agenda items. Commissioner Madsen moved to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 5 to 0. The Planning Commission meeting was adjourned at 7:25 p.m. Submitted by Kate Aanenson Community Development Director Prepared by Nann Opheim CHANHASSEN PLANNING COMMISSION REGULAR MEETING JUNE 19, 2018 Chairman Aller called the meeting to order at 7:00 p.m. MEMBERS PRESENT: Andrew Aller, Steve Weick, Nancy Madsen, John Tietz, and Mark Randall MEMBERS ABSENT: Mark Undestad and Michael McGonagill STAFF PRESENT: Sharmeen Al-Jaff, Senior Planner; MacKenzie Walters, Planner; and George Bender, Assistant City Engineer PUBLIC HEARING: 3861 RED CEDAR POINT ROAD: SUBDIVISION AND PRELIMINARY PLAT WITH VARIANCE. Walters: Thank you very much. This is Planning Case 2018-10. It’s a subdivision with a lot width variance for 3861 Red Cedar Point Road. The applicant is requesting a 10.04 foot lot frontage variance for Lot 1, Block 1 in this proposed 2 lot subdivision. Thank you and Sharmeen has pointed I need to get it off our holding screen. Thank you for that. Right here you can see the proposed, the location for the subdivision. This is a little over an acre parcel in the Red Cedar Point neighborhood. The parcel is zoned residential single family. There’s a section of property zoned planned unit development residential to the north. With regards to the preliminary plat the minimum lot area required for residential single family zoning is 15,000 square feet. The proposed area for Lot 1, Block 1 is 20,417 and for Lot 2, Block 1 is 23,572. The proposed lot width for Lot 1 is 79.96 feet which would require a variance from the 90 foot standard. Lot 2 would meet that standard and both properties significantly exceed the 125 foot minimum depth. There are two other kind of miscellaneous code provisions that pertain to this case. The city code does not allow for the presence of an accessory use without a primary use so you can’t have a garage without a house on a lot and it does not allow for a single family dwelling without a 2 car garage. So in order to avoid creating a non-conformity with this subdivision the applicant will need to remove the existing garage and then construct a 2 car garage to serve the existing house which they’re proposing to retain. One of the other things we look at in a preliminary plat subdivision request is whether or not it meets the City’s tree preservation ordinance. The tree preservation ordinance requires a minimum canopy coverage of 35 percent. The property currently has 42 percent canopy coverage. The applicant is proposing to remove the trees here but has submitted lot cover calculations showing that the property would still have 36 percent so it meets that ordinance. They would be required to install one tree in the front yard if none are present under ordinance as well. The other thing we look at is whether or not they have access to park infrastructure. In this case the proposed subdivision would be served by both Roundhouse Park to the northwest and the Minnewashta park pedestrian trail Chanhassen Planning Commission – June 19, 2018 2 which is in green. In terms of utilities and access, the property has access off of Red Cedar Point Road so no new street would need to be constructed and it is served by city water and sewer. The existing house would continue to use it’s existing connections and the new house would need to tie into those lines. In terms of right-of-way streets and easements, the property has an existing 595 square foot easement for Red Cedar Point. The applicant will be dedicating 10 foot front and 5 foot side and rear drainage and utility easements. The City is not requesting the dedication of any existing right-of-way. As the report mentions Red Cedar Point Road is substandard with 50 feet of right-of-way instead of the traditionally, instead of the currently required 60. However because there is no opportunity for the other properties on the southeast to subdivide and there’s no way the City will ever be able to get that additional right-of-way we’re not going to be asking for any additional right-of-way at this time because we couldn’t find a way to widen the road. In terms of the requested variance, they are requesting a 10.04 foot front lot line width variance for Lot 1, Block 1. The justification is this is a pretty straight forward subdivision. If the applicant conducted a partial cul-de-sac configuration and they presented two they would be able to meet the requirements of the subdivision ordinance without needing the variance. They would have 90 feet front lot width. Because this property is located within the shoreland overlay district for both Lake St. Joe and Lake Minnewashta staff feels it’s important to do everything possible to minimize the creation of extra impervious surface and by granting this 10 foot variance staff estimated it would save about 1,500 to 2,000 square feet of impervious surface that’d be required to create the cul-de-sac and meet the subdivision requirements. The other alternative is a flat lot which would in itself require a variance from the city’s subdivision ordinance and also create lot lines that can cause issues down the road for future property owners. The proposed variance does still leave room for a 60 by 60 building pad and can accommodate the house and 2 car garage so it would be able to meet all current setbacks and looking through both properties within the 500 foot notification area and the neighborhood at large, there are numerous properties that do not meet the 90 foot lot width so it is in keeping with the character of the neighborhood. Staff did receive some comments and concerns from some of the neighbors. One of the concerns that was brought up was concern about establishing a precedent of not meeting lot width. Because lot width in this case could be met through the use of the eyebrow or partial cul-de-sac allowing the property to be subdivided without a variance we don’t believe this establishes a precedent that we’re not going to require properties to meet the lot width to be subdivided. With regards to future issues with setbacks, the parcel is able to meet the required side, front and rear setbacks. The applicant is not requesting a setback variance and staff would not recommend approval of any that were requested subsequently. The lot can accommodate a 60 by 60 building pad. It does meet the tree preservation ordinance requirements. If any trees are lost during construction they would need to be replaced. There have been some historic issues with erosion control in the neighborhood. Engineering and building will monitor those throughout the construction and have been made aware of that. Looking over the proposal for the variance and subdivision staff, as I kind of went through all these so I won’t go into too much detail but we do feel the variance is in keeping with the neighborhood. There are other properties including one adjacent to the west that have similar lot widths of around 80 feet. The subdivision can go forward without a variance with the use of a partial cul-de-sac and staff believes that minimizing impervious surface in the shoreland is of Chanhassen Planning Commission – June 19, 2018 3 greater importance than the 90 foot minimum lot width. And both lots are well in excess of the minimum lot area with over 20,000 square feet compared to the required 15,000. The subdivision meets all the requirements of city code and for that reason staff is recommending approval of preliminary plat with the variance. I’d be happy to take any questions at this time. Aller: Thank you. Does anybody have questions of staff? Seeing none we’ll have the, oh Commissioner Madsen. Madsen: MacKenzie I see that it says that they can build that partial cul-de-sac without any kind of variance so any development could just put a partial cul-de-sac on their lot off any road? Walters: Not necessarily. In this case they can do it and meet the 90 foot but yeah they could choose to dedicate the extra right-of-way to the City in order to meet that frontage. Madsen: And there’s no rules about having several partial cul-de-sacs on a road if various lots wanted to subdivide? Walters: I’ll defer to Sharmeen. She’s a little more familiar with that aspect of the ordinance. Al-Jaff: If you look at areas along Lake Lucy Road, that would be a perfect example. We have a few eyebrows that we look at the situation. Can they put a full pledged cul-de-sac? Does it make sense for them to put a full pledged cul-de-sac and if the answer is no, then we will allow an eyebrow. In this case they would be able to put in the entire bubble of a cul-de-sac. The way the ordinance reads is if that road is not going to go anywhere, let’s assume that there is a wetland further down, which is the case with this one, then they would be able to put a bubble for a cul-de-sac and would be able to meet the ordinance requirements by doing it. Madsen: Okay thank you. Al-Jaff: Sure. Aller: Any additional questions of staff? Okay we’ll have the applicant come forward and make a presentation should they decide to do so. Welcome sir. Tom Gonyea: Good evening Mr. Chair, members of the commission. Tom Gonyea representing Estate Development Corporation, 15250 Wayzata Boulevard in Minnetonka. You know I think MacKenzie went over the matter pretty well. I really don’t have too much to add to it. I think it’s going to be a nice addition to the area. The existing house that’s there is actually a nice house. The garage could use a little help so the proposal is to take the garage down and that’s going to sit on the proposed new lot but the house itself is actually in very good condition inside and out and adding a 2 car garage on should enhance the value of that quite a bit I guess so anyways if there’s any questions of council or staff. Chanhassen Planning Commission – June 19, 2018 4 Aller: Can you tell me how you come to the decision to subdivide as opposed to use an eyebrow or what did you use in making that decision? What were you looking at? Tom Gonyea: You know I guess we looked at it a few different ways. We looked at the flag lot option. There’s a potential to do that within the ordinance. We didn’t pursue it that much. And then we looked at the eyebrow and we came to the conclusion that it probably wasn’t worth adding the road. It was within the shoreland district and that was actually brought up you know between my engineer and Sharmeen are the ones that looked to that and it just kind of doesn’t need it. If you look at some of the other properties in the area it seems to work pretty well with the smaller lot width as it stands so I guess you know I felt it was probably a better way to do it. You’re not adding infrastructure. It’s less disruptive and it should provide a nice building pad for a nice house. Aller: Thank you. Any additional questions for the applicant? Tietz: Yeah just a question. Aller: Commissioner Tietz. Tietz: It looks like the, it says sample building. It looks like it’s more than a sample buildout. Is that a proposed house? It seems to just max the site. You really property line to property line is built within, is that what’s going to be proposed? Tom Gonyea: Mr. Chair, members of the commission. That’s truly proposed. I don’t have a house plan in mind at all. I haven’t selected a builder to build it. What they come up with for a final design certainly will meet the requirements but that is not representative of what will be built there. Tietz: Okay. Aller: Any additional questions? Thank you sir. Tom Gonyea: Thank you. Aller: Okay we’ll open up the public hearing portion of this item. Any individual wishing to speak either for or against the item can do so at this time. Seeing no one come forward we’ll close the public hearing portion of the item and open it up for commissioner comments. And potential action. I’ll start off by saying I think it’s great that it is being considered and that you have a homeowner and their representatives that come in and work with the City on a solution that is a better solution than one they can do anyway and on that fact alone I would almost give you the nod but it does fulfill all the other requirements for a variance in that it’s the nature of the piece of property itself and it’s a reasonable use of the property and the other items that we would be looking at but I certainly agree with the minimizing of the impervious surfaces that Chanhassen Planning Commission – June 19, 2018 5 would be used and the benefits to the shoreland management districts that were considered that it tips me in favor of approval and I’ll be voting that way so. Any additional comments? Concerns. Commissioner Tietz. Tietz: Just a, well just a observation. Obviously they want to maximize the lot for sale with new construction but it, the plans presented here limits any really further construction on, adjacent to the existing house. That 2 car garage kind of maxes out side to side you know lot setbacks so obviously they wanted to max the for sale site but you could have had 90 feet for the existing home and a reduced lot for the for sale site. And they still would have met all the standards. Just a comment. Weick: They still would have needed a variance right? Tietz: Yeah either way. Weick: You’re just saying switching. Tietz: It’s just flipping the 90 foot. Weick: I gotch ya, yeah. Aller: I guess I look at it that it should be presumed that a homeowner’s going to try to maximize the value of their property and maximize the space used so whatever is put on there we have representation in the city and they would have to come before us if they wanted a variance or to alter those setbacks when they’re in use and it sounds like most likely this board as established and the staff would not look favorably on that kind of request so. Any additional comments? Hearing none I’ll entertain a motion. Tietz: I’ll read it. Aller: Commissioner Tietz. Tietz: The Chanhassen Planning Commission recommends that the City Council approve the preliminary plat for a two lot subdivision and a 10.04 foot lot frontage variance for Lot 1, Block 1, Red Cedar Point as shown on the plans dated May 15, 2018 subject to the conditions of approval and adopts the Findings of Fact and Recommendation. Aller: I have a motion. Do I have a second? Madsen: Second. Aller: Having a valid motion by Commissioner Tietz and a second by Commissioner Madsen, any further discussion? Chanhassen Planning Commission – June 19, 2018 6 Tietz moved, Madsen seconded that the Chanhassen Planning Commission recommends that the City Council approve the preliminary plat for a two lot subdivision and a 10.04 foot lot frontage variance for Lot 1, Block 1, Red Cedar Point as shown on the plans dated May 15, 2018 subject to the following conditions of approval and adopts the Findings of Fact and Recommendation: Building: 1. Provide a 1:200 “clean” plat drawing. 2. Demolition permits required for the removal of any existing structures. 3. Buildings may be required to be designed by an architect and/or engineer as determined by the Building Official. 4. A final grading plan and soils report must be submitted to the Inspections Division before permits can be issued. 5. Retaining walls over four feet high require a permit and must be designed by a professional engineer. 6. Each lot must be provided with separate sewer and water services. Engineering: 1. Drawing 4 – Site and Utility Plan: a) Change detail 1006 (Gate Valve and Box Installation) to detail 1005 (Water Service). b) Add City details 5202A (Bituminous Street Patching), 5203 (Curb and Gutter), 5208 (Concrete Driveway), 5209 (Bituminous Driveway), and 5221 (Tie Card). c) An abandoned watermain exists between the sanitary sewer and the watermain. Add note to make this known to the sanitary sewer and water installation contractor. 2. Drawing 5 – Grading, Drainage, and Erosion Control Plan: a) Add City details 5301 (Rock Construction Entrance) and 5302B (Erosion Control for Individual Lots) b) Provide geotechnical report. c) Include first floor elevation of buildings on adjacent lots. d) Existing and proposed elevations shall be shown at each lot corner and top of the curb at the lot line extension. e) Identify proposed soil stockpile locations. f) If importing or exporting soils for the development of the site is necessary, the applicant will be required to supply the City with a detailed haul route and traffic control plan. 3. SAC and WAC fees due at the rate in force at time of building permit application. Environmental Resources: Chanhassen Planning Commission – June 19, 2018 7 1. Tree protection fencing must be properly installed at the edge of the grading limits as shown on the plans dated 5/15/18. This must be done prior to any construction activities and remain installed until all construction is completed. Any trees lost to construction activities shall be replaced. 2. No equipment or materials may be stored within the tree protection area. 3. One tree must be planted in the front of each yard, as per city requirements. Parks: 1. Park dedication fees for one lot at the rate in force at the time of final plat approval. Planning: 1. An escrow of 110 percent of the estimated demolition costs for the demolition of the detached garage on lot 2, block 1 must be received, and the detached garage must be removed within four months of the approval of the final plat. Water Resources: 1. All permits and approvals must be received from other regulatory agencies prior to issuing permits. 2. Must show existing and proposed drainage. 3. The applicant will need to pay the surface water management (SWMP) fee for 1.010 acres at the rate in force at the time of final plat approval. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Aller: The motion carries and then I would just tack on a little recommendation that a notation be made of the community’s request that we keep an eye on the silt fences and there’s a history in that area of having problems and it seems like the plan itself is doing a lot to protect the surface area and the surface water management and we should be doing our best to enforce those requirements as we are imposing them on the construction sites. Tom Gonyea: Thank you. APPROVAL OF MINUTES: Commissioner Weick noted the verbatim and summary Minutes of the Planning Commission meeting dated June 5, 2018 as presented. COMMISSION PRESENTATIONS. None. Chanhassen Planning Commission – June 19, 2018 8 ADMINISTRATIVE ITEMS. Aller: MacKenzie do we have an update? Walters: We do. So the first administrative presentation is the City Council action update. Just letting you know that the craft alcohol production ordinance, the daycare in office and institutional and on site pick up and drive up signs were all approved on the City Council consent agenda on Monday, June 11th so those are now in enforce. Aller: Awesome. Any future Planning Commission agenda items that we need to discuss for the record? Walters: Just letting you know that, well July 3rd there is no meeting so everyone gets to enjoy the holiday. On July 17th there were will be public hearings on the 2040 Comprehensive Plan. Not too much has changed since last time you saw it but we’ll go over what’s new. Potential for a PUD amendment for Avienda. No that was removed. Yeah sorry. Yeah that would not be happening on July 17th. I apologize for that. Control Concepts site plan review as submitted so that is on the schedule. And then the planned unit development concept review for the Galpin property which is now up on the website to go over and that would be the future agenda items. Aller: Awesome. So those individuals that at home or present that want to see what’s coming up please visit the website and take a look at those reports as they come in and the information, packets as presented so that you can ask questions as they arise. Any additional business? Tietz: Mr. Chairman? Aller: Yes Commissioner Tietz. Tietz: Could I just ask a question of MacKenzie. I don’t know MacKenzie have there been any updates on the Galpin property? New concepts? Any further discussions with city staff on what’s going on there? Walters: Not to my knowledge. Everything I’m aware of us receiving is up on the website so my recommendation would be look that over and contact Director Aanenson with any questions. Tietz: Yeah, okay. Thank you. Aller: Great, with no additional business to be had I’ll entertain a motion to adjourn. Commissioner Madsen moved to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 5 to 0. The Planning Commission meeting was adjourned at 7:25 p.m. Chanhassen Planning Commission – June 19, 2018 9 Submitted by Kate Aanenson Community Development Director Prepared by Nann Opheim CITY COUNCIL STAFF REPORT Monday, July 9, 2018 Subject Resolution 201838: Appoint Election Judges for State Primary and General Elections and Approve Rates of Pay Section CONSENT AGENDA Item No: D.3. Prepared By Kim Meuwissen, Office Manager File No: PROPOSED MOTION “The City Council approves a resolution appointing election judges and establishing their rates of pay.” Council approval requires a Simple Majority Vote of members present. DISCUSSION State law requires that the city council adopt a resolution appointing judges for the upcoming elections and establishing their rates of pay. Attached please find a list of people who have agreed to serve. The list was compiled using names submitted by the political parties, those who have served in the past, and those who have expressed interest. Additionally, the resolution allows staff some flexibility to recruit more judges if needed. The council must also establish the rates of pay for the judges. Per Minnesota Statute 204B.31, election judges shall receive at least the prevailing Minnesota minimum wage for each hour spent carrying out their duties at the polling places and in attending training sessions. The recommended rates are higher than for the 2016 elections as a result of the State of Minnesota increasing the minimum wage to $9.65 per hour. Staff recommends that the following hourly rates be established for 2018: Position 2016 Wage 2018 Wage Head Judge $11.50 $11.65 Asst. Head Judge $10.50 $10.65 Election Judge $9.50 $9.65 Student Judge Trainee*$8.50 $8.65 *Student Judge Trainees must be paid at least twothirds of minimum wage. RECOMMENDATION Staff recommends that the City Council approve the attached resolution appointing election judges for the Primary and General Elections and set the rates of pay as noted above. CITY COUNCIL STAFF REPORTMonday, July 9, 2018SubjectResolution 201838: Appoint Election Judges for State Primary and General Elections andApprove Rates of PaySectionCONSENT AGENDA Item No: D.3.Prepared By Kim Meuwissen, Office Manager File No: PROPOSED MOTION“The City Council approves a resolution appointing election judges and establishing their rates of pay.”Council approval requires a Simple Majority Vote of members present.DISCUSSIONState law requires that the city council adopt a resolution appointing judges for the upcoming elections and establishingtheir rates of pay. Attached please find a list of people who have agreed to serve. The list was compiled using namessubmitted by the political parties, those who have served in the past, and those who have expressed interest.Additionally, the resolution allows staff some flexibility to recruit more judges if needed.The council must also establish the rates of pay for the judges. Per Minnesota Statute 204B.31, election judges shallreceive at least the prevailing Minnesota minimum wage for each hour spent carrying out their duties at the pollingplaces and in attending training sessions. The recommended rates are higher than for the 2016 elections as a result ofthe State of Minnesota increasing the minimum wage to $9.65 per hour. Staff recommends that the following hourlyrates be established for 2018:Position 2016 Wage 2018 WageHead Judge $11.50 $11.65Asst. Head Judge $10.50 $10.65Election Judge $9.50 $9.65Student Judge Trainee*$8.50 $8.65*Student Judge Trainees must be paid at least twothirds of minimum wage.RECOMMENDATION Staff recommends that the City Council approve the attached resolution appointing election judges for the Primary and General Elections and set the rates of pay as noted above. ATTACHMENTS: Resolution 201838 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: July 9, 2018 RESOLUTION NO: 2018-38 MOTION BY: SECONDED BY: A RESOLUTION APPOINTING ELECTION JUDGES AND ESTABLISHING THEIR RATES OF PAY FOR THE PRIMARY ELECTION ON AUGUST 14, 2018 & THE GENERAL ELECTION ON NOVEMBER 6, 2018 WHEREAS, the City of Chanhassen is required by law to adopt a resolution appointing the election judges for the Primary and General Elections and establishing the rates of pay for such. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chanhassen that the election judges for said Elections are as listed on the attached Exhibit A, with the rate of pay established as follows: Position Wage Head Judge $11.65 Asst. Head Judge $10.65 Election Judge $9.65 Student Judge Trainee $8.65 Additionally, staff may recruit additional judges or reassign judges as may be necessary. Passed and adopted by the Chanhassen City Council this 9th day of July, 2018. ATTEST: Todd Gerhardt, City Manager Denny Laufenburger, Mayor YES NO ABSENT EXHIBIT A 2018 ELECTION JUDGES Precinct 1A Reuben Kelzenberg, Head Judge Mary Frerich, Assistant Head Judge Barbara Martini-Hectorne Anne Tabat Cathy Guthrie Andrew Aller Lois Anderson William Brechtel Sue Kelly Cheryl Ayotte Jay Johnson Precinct 1B Shirley Pzynski, Head Judge Grace Tripp, Assistant Head Judge Mary Moulton Joann Meyer Rick Engelhardt Linda Haight Tony Hallen Joanne Porter Kathryn Brunner Paul Craven Precinct 2A Anne Cecko, Head Judge John Price, Assistant Head Judge Barbara Solum Catherine Zimmerman Rebecca Varone Steven Friedrichs Wren Terpstra Catherine Lam Stephen Syverson Randy Cantin Suzanne Johnson Precinct 2B Debbie Michels, Head Judge Holly Rakocy, Assistant Head Judge Val MacLeod Paul Brady Rick Echternacht Susan Kibler Carol Buesgens Mary Jo Kamerud Mary Kraft Linda Mady Rebecca Rong Jean Hess Elizabeth Lepper Precinct 3 Ann Kleve, Head Judge Ken Larson, Assistant Head Judge Dorothy Downing Anthony Kramer Nancy Nelson Katie Franson Cheryl Geving Randee Diedrich Susan Winship Julie Terpstra Scott Vergin Ruth Amundson-Willms Terry Nicholson Precinct 4 Carlye Peterson-Bristor, Head Judge Jan Lundquist, Assistant Head Judge Mary Ann Carr Delores Smith Bev Gossard Rose Peitz Darlene Weisgram Melissa Young Darlene Kerber Connie Schibilla Sally Johnson Eugene Gagner Patrick Nailon Precinct 5 Jean Steckling, Head Judge Stephanie Unze, Assistant Head Judge Elizabeth Haak Donna Kniffen Theresa Thomas Nancy Obermeyer Jim Schindler Rolland Neve Frederick Potthoff III David Lepper Michelle Beddor Danise McMillen CITY COUNCIL STAFF REPORT Monday, July 9, 2018 Subject Approval of Retail OnSale Intoxicating Liquor Sales for OffPremise Consumption for Buy Chanhassen’s “Night on the Town” on Thursday, July 26, 2018 Section CONSENT AGENDA Item No: D.4. Prepared By Kim Meuwissen, Office Manager File No: LIQ Buy Chanhassen PROPOSED MOTION “The Chanhassen City Council approves the request from Buy Chanhassen to authorize participating onsale intoxicating liquor license holders to sell liquor for offpremise consumption at the “Night on the Town” Event between 6:30 pm and 10:00 pm on Thursday, July 26, 2018. Consumption will be allowed in Downtown Chanhassen as outlined on the map attached to the staff report. Approval is contingent upon the participating retail onsale intoxicating liquor establishments providing liquor liability insurance.” Council approval requires a Simple Majority Vote of members present. BACKGROUND Buy Chanhassen is requesting approval again this year to authorize participating onsale intoxicating liquor license holders to sell liquor to be consumed off premises during the hours of 6:30 pm to 10:00 pm on Thursday, July 26, 2018 in conjunction with the “Night on the Town” event. Offpremise consumption is limited to the area shown on the attached map. The map also shows the onsale liquor establishments that are authorized to sell liquor for offpremise consumption. The participating establishments will be required to provide liquor liability insurance for the event. RECOMMENDATION Staff recommends approval of Buy Chanhassen’s request to authorize the sale of onsale intoxicating liquor for off premise consumption. Approval is contingent upon the provision of liquor liability insurance from participating establishments. ATTACHMENTS: MN Statute 340A.404 subd.4 (b), Special Provisions and Community Festivals Map 340A.404 INTOXICATING LIQUOR; ON-SALE LICENSES Subd. 4.Special provisions; sports, conventions, or cultural facilities; community festivals. (a) The governing body of a municipality may authorize a holder of a retail on-sale intoxicating liquor license issued by the municipality or by an adjacent municipality to dispense intoxicating liquor at any convention, banquet, conference, meeting, or social affair conducted on the premises of a sports, convention, or cultural facility owned by the municipality or instrumentality thereof having independent policy-making and appropriating authority and located within the municipality. The licensee must be engaged to dispense intoxicating liquor at an event held by a person or organization permitted to use the premises, and may dispense intoxicating liquor only to persons attending the event. The licensee may not dispense intoxicating liquor to any person attending or participating in a youth amateur athletic event, for persons 18 years of age or younger, held on the premises. (b) The governing body of a municipality may authorize a holder of a retail on-sale intoxicating liquor license issued by the municipality to dispense intoxicating liquor off premises at a community festival held within the municipality. The authorization shall specify the area in which the intoxicating liquor must be dispensed and consumed, and shall not be issued unless the licensee demonstrates that it has liability insurance as prescribed by section 340A.409 to cover the event. Chanhassen Night on the Town July 26, 2018 6:30 PM to 10:00 PM Area Where Liquor Can Be Sold and Consumed Brindisi’s Pub (Chanhassen Dinner Theatres) Axel’s High Timber Lounge Kai’s Sushi Na’s Thai Café CITY COUNCIL STAFF REPORT Monday, July 9, 2018 Subject Approve Settlement Agreement with Mediacom Section CONSENT AGENDA Item No: D.5. Prepared By Greg Sticha, Finance Director File No: PROPOSED MOTION “The City Council approves the attached settlement agreement with Mediacom Minnesota LLC, for fiscal years 20152017 in the amount of $41,903.” Council approval requires a Simple Majority Vote of members present. BACKGROUND The franchise agreement with Mediacom undertakes an audit review every three years to check on appropriate charges and remittance of all franchise fees owed to the city. The city finance department contracted with Lewis & Associates to perform the audit again for the audit term of years 20152017. The result of that audit found small amounts of noncompliance/remittance of all franchise fees for the audit period covered. The total amount owed by Mediacom per Lewis & Associates audit was $41,903, of which Mediacom has already remitted $8,576 to the city. The remaining amount owed to the city and which will be paid upon approval of this agreement is $33,327. A copy of the audit as well as the agreement is attached for city council review. RECOMMENDATION Staff recommends the approval of the attached settlement agreement with Mediacom Minnesota LLC, for fiscal years 20152017 in the amount of $41,903. ATTACHMENTS: Audit Settlement Agreement SETTLEMENT AGREEMENT This Settlement Agreement (“Agreement”) is made and entered into as of this _____ day of __________, 2018, by and between the City of Chanhassen, Minnesota (“City”) and Mediacom Minnesota LLC (“Mediacom”). RECITALS WHEREAS, Mediacom operates a cable system in the City and pays franchise fees pursuant to a Cable Television Franchise Agreement (“Franchise”); and WHEREAS, the City has hired an accountant to conduct an audit of franchise fee payments for the time period starting January 1, 2015 and ending December 31, 2017 (the “Accounting Period”); and WHEREAS, Mediacom and the City now desire to conclude, settle, release and discharge once and forever, all rights, claims, causes of action, liabilities, disputes and demands arising out of or in any way relating to the franchise fees during the Accounting Period (“Claims”). NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby resolve: AGREEMENTS 1. The City hereby releases Mediacom, and all of its subsidiary companies, principals, officers, agents, attorneys, servants, employees (both permanent and temporary), successors and assigns and/or representatives from all Claims, in consideration for Mediacom making a payment of $41,903.00. 2. The parties hereby acknowledge that on June 8, 2018, Mediacom remitted a payment of $8,576 to the City. Within fifteen (15) days of the execution of this Agreement by the City, Mediacom will remit the remaining $33,327.00 to the City. 3. This Agreement is freely and voluntarily given by each party, without any duress or coercion, and after each party has consulted with its counsel. Each party has carefully and completely read all the terms and provisions of this Agreement. It is understood and agreed by the City and Mediacom that nothing herein shall be deemed to be an admission of liability by Mediacom with respect to the matter of this Agreement. Nothing herein shall be deemed to be a waiver of any rights or obligations that City and Mediacom have that are not otherwise specifically addressed in this Agreement. 4. This Agreement contains all the terms of the agreement between the City and Mediacom and may only be modified by a written agreement signed by both parties. 5. This Agreement, and any controversies arising hereunder, shall be interpreted and adjudicated in accordance with the laws of the State of Minnesota and venue for any actions brought under this Agreement shall be located in state or federal court within the State of Minnesota. 6. This Agreement may be executed in counterparts, each of which shall be deemed an original without the production of any of the others, but all of which shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Agreement as their free and voluntary acts and deeds, effective as of the date first above written. CITY OF CHANHASSEN, MINNESOTA By: _______________________________ Its: Mayor__________________ MEDIACOM MINNESOTA LLC By: ______________________________ Its: Group Vice President, Lakes Region CITY COUNCIL STAFF REPORT Monday, July 9, 2018 Subject Resolution 201839: Red Cedar Point – Approval of Preliminary and Final Plat with a Variance for a TwoLot Subdivision Section NEW BUSINESS Item No: H.1. Prepared By MacKenzie Walters, Assistant Planner File No: PC 201810 PROPOSED MOTION “The Chanhassen City Council approves the preliminary and final plat for Red Cedar Point, a twolot subdivision, and a 10.04foot lot frontage variance for Lot 1, Block 1 as shown in plans dated May 15, 2018, subject to conditions of approval, and adopts the Findings of Fact and Decision." Council approval requires a Simple Majority Vote of members present. SUMMARY The applicant is proposing to subdivide the existing lot located at 3861 Red Cedar Point Road to create two lots for singlefamily detached housing. The applicant intents to save the existing home and construct a new twocar attached garage to replace the detached garage. The applicant is requesting that the City Council concurrently approve the preliminary and final plat. The applicant also requests a 10.04foot variance from the Single Family Residential and Shoreland Management Districts’ required 90foot minimum lot width. The applicant could meet the required 90foot lot width for both lots through the use of a half culdesac (“eyebrow”); however, this would result in increased lot coverage. Access to the site provided is by Red Cedar Point Road. Sewer and water are available to the site. Staff is recommending approval of the request. The full staff report is provided as an attachment. BACKGROUND On June 19, 2018, the Chanhassen Planning Commission held a public hearing on the proposed preliminary plat and variance. No member of the public spoke regarding the proposal; however, one email expressing concern about the potential impact of establishing a precedent of allowing deviations from the city’s minimum lot widths on the neighborhood was submitted to the Planning Commission before the hearing. During the subsequent discussion of the preliminary plat and variance, Commissioner Madsen asked for clarification on the city’s policy regarding partial culdesacs. Senior Planner AlJaff stated that in cases where the applicant could install a full culdesac, but it would not make sense to do so, the city allows the use of partial culdesacs. Lake Lucy CITY COUNCIL STAFF REPORTMonday, July 9, 2018SubjectResolution 201839: Red Cedar Point – Approval of Preliminary and Final Plat with a Variancefor a TwoLot SubdivisionSectionNEW BUSINESS Item No: H.1.Prepared By MacKenzie Walters, Assistant Planner File No: PC 201810PROPOSED MOTION“The Chanhassen City Council approves the preliminary and final plat for Red Cedar Point, a twolot subdivision,and a 10.04foot lot frontage variance for Lot 1, Block 1 as shown in plans dated May 15, 2018, subject toconditions of approval, and adopts the Findings of Fact and Decision."Council approval requires a Simple Majority Vote of members present.SUMMARYThe applicant is proposing to subdivide the existing lot located at 3861 Red Cedar Point Road to create two lots forsinglefamily detached housing. The applicant intents to save the existing home and construct a new twocar attachedgarage to replace the detached garage. The applicant is requesting that the City Council concurrently approve thepreliminary and final plat.The applicant also requests a 10.04foot variance from the Single Family Residential and Shoreland ManagementDistricts’ required 90foot minimum lot width. The applicant could meet the required 90foot lot width for both lotsthrough the use of a half culdesac (“eyebrow”); however, this would result in increased lot coverage.Access to the site provided is by Red Cedar Point Road. Sewer and water are available to the site. Staff isrecommending approval of the request.The full staff report is provided as an attachment.BACKGROUNDOn June 19, 2018, the Chanhassen Planning Commission held a public hearing on the proposed preliminary plat andvariance. No member of the public spoke regarding the proposal; however, one email expressing concern about thepotential impact of establishing a precedent of allowing deviations from the city’s minimum lot widths on theneighborhood was submitted to the Planning Commission before the hearing.During the subsequent discussion of the preliminary plat and variance, Commissioner Madsen asked for clarification on the city’s policy regarding partial culdesacs. Senior Planner AlJaff stated that in cases where the applicant could install a full culdesac, but it would not make sense to do so, the city allows the use of partial culdesacs. Lake Lucy Road was cited as an example. The Planning Commission voted unanimously to recommend approval of the proposed preliminary plat and variance. The June 19, 2018 Planning Commission minutes are included in the Consent Agenda portion of this packet. DISCUSSION The proposed subdivision meets all of the city’s subdivision ordinance requirements, save that the proposed lot width for Lot 1, Block 1 does not meet the zoning code’s Single Family Residential and Shoreland Management District’s minimum lot width. The applicant could meet the required lot width though the use of either a flag lot, which requires a variance from the subdivision ordinance, or the use of a partial culdesac, which would not require any variances. The use of a partial culdesac would create a significant amount of unnecessary impervious surface within the Shoreland Management District. Staff believes that minimizing the amount of impervious surface near the city’s water resources is of greater importance than requiring the developer to utilize a lot configuration that meets the districts’ minimum lot width. Since the requested variance will prevent the creation of additional and unnecessary impervious surface within the shoreland management district and will result in more conventional lot configuration that is broadly in keeping with the overall aesthetics of the neighborhood, the Planning Commission and staff support the proposed variance. RECOMMENDATION Planning Commission and staff recommend that the Chanhassen City Council approve the preliminary and final plat for Red Cedar Point, a twolot subdivision, and a 10.04foot lot frontage variance for Lot 1, Block 1 as shown in plans dated May 15, 2018, subject to the conditions of approval, adoption of he resoluttion and adopts the Findings of Fact and Decision. Building : 1. Provide a 1:200 “clean” plat drawing. 2. Demolition permits are required for the removal of any existing structures. 3. Buildings may be required to be designed by an architect and/or engineer as determined by the Building Official. 4. A final grading plan and soils report must be submitted to the Inspections Division before permits can be issued. 5. Retaining walls over four feet high require a permit and must be designed by a professional engineer. 6. Each lot must be provided with separate sewer and water services. Engineering : 1. Drawing 4 – Site and Utility Plan: a) Change detail 1006 (Gate Valve and Box Installation) to detail 1005 (Water Service). b) Add City details 5202A (Bituminous Street Patching), 5203 (Curb and Gutter), 5208 (Concrete Driveway), 5209 (Bituminous Driveway), and 5221 (Tie Card). c) An abandoned watermain exists between the sanitary sewer and the watermain. Add note to make this known to the sanitary sewer and water installation contractor. 2. Drawing 5 – Grading, Drainage, and Erosion Control Plan: CITY COUNCIL STAFF REPORTMonday, July 9, 2018SubjectResolution 201839: Red Cedar Point – Approval of Preliminary and Final Plat with a Variancefor a TwoLot SubdivisionSectionNEW BUSINESS Item No: H.1.Prepared By MacKenzie Walters, Assistant Planner File No: PC 201810PROPOSED MOTION“The Chanhassen City Council approves the preliminary and final plat for Red Cedar Point, a twolot subdivision,and a 10.04foot lot frontage variance for Lot 1, Block 1 as shown in plans dated May 15, 2018, subject toconditions of approval, and adopts the Findings of Fact and Decision."Council approval requires a Simple Majority Vote of members present.SUMMARYThe applicant is proposing to subdivide the existing lot located at 3861 Red Cedar Point Road to create two lots forsinglefamily detached housing. The applicant intents to save the existing home and construct a new twocar attachedgarage to replace the detached garage. The applicant is requesting that the City Council concurrently approve thepreliminary and final plat.The applicant also requests a 10.04foot variance from the Single Family Residential and Shoreland ManagementDistricts’ required 90foot minimum lot width. The applicant could meet the required 90foot lot width for both lotsthrough the use of a half culdesac (“eyebrow”); however, this would result in increased lot coverage.Access to the site provided is by Red Cedar Point Road. Sewer and water are available to the site. Staff isrecommending approval of the request.The full staff report is provided as an attachment.BACKGROUNDOn June 19, 2018, the Chanhassen Planning Commission held a public hearing on the proposed preliminary plat andvariance. No member of the public spoke regarding the proposal; however, one email expressing concern about thepotential impact of establishing a precedent of allowing deviations from the city’s minimum lot widths on theneighborhood was submitted to the Planning Commission before the hearing.During the subsequent discussion of the preliminary plat and variance, Commissioner Madsen asked for clarificationon the city’s policy regarding partial culdesacs. Senior Planner AlJaff stated that in cases where the applicant couldinstall a full culdesac, but it would not make sense to do so, the city allows the use of partial culdesacs. Lake LucyRoad was cited as an example.The Planning Commission voted unanimously to recommend approval of the proposed preliminary plat and variance. The June 19, 2018 Planning Commission minutes are included in the Consent Agenda portion of this packet.DISCUSSIONThe proposed subdivision meets all of the city’s subdivision ordinance requirements, save that the proposed lot widthfor Lot 1, Block 1 does not meet the zoning code’s Single Family Residential and Shoreland Management District’sminimum lot width. The applicant could meet the required lot width though the use of either a flag lot, which requires avariance from the subdivision ordinance, or the use of a partial culdesac, which would not require any variances.The use of a partial culdesac would create a significant amount of unnecessary impervious surface within theShoreland Management District. Staff believes that minimizing the amount of impervious surface near the city’s waterresources is of greater importance than requiring the developer to utilize a lot configuration that meets the districts’minimum lot width. Since the requested variance will prevent the creation of additional and unnecessary impervioussurface within the shoreland management district and will result in more conventional lot configuration that is broadly inkeeping with the overall aesthetics of the neighborhood, the Planning Commission and staff support the proposedvariance.RECOMMENDATIONPlanning Commission and staff recommend that the Chanhassen City Council approve the preliminary and final plat forRed Cedar Point, a twolot subdivision, and a 10.04foot lot frontage variance for Lot 1, Block 1 as shown in plansdated May 15, 2018, subject to the conditions of approval, adoption of he resoluttion and adopts the Findings of Factand Decision.Building :1. Provide a 1:200 “clean” plat drawing.2. Demolition permits are required for the removal of any existing structures.3. Buildings may be required to be designed by an architect and/or engineer as determined by the Building Official.4. A final grading plan and soils report must be submitted to the Inspections Division before permits can be issued.5. Retaining walls over four feet high require a permit and must be designed by a professional engineer.6. Each lot must be provided with separate sewer and water services.Engineering :1. Drawing 4 – Site and Utility Plan:a) Change detail 1006 (Gate Valve and Box Installation) to detail 1005 (Water Service).b) Add City details 5202A (Bituminous Street Patching), 5203 (Curb and Gutter), 5208 (Concrete Driveway),5209 (Bituminous Driveway), and 5221 (Tie Card).c) An abandoned watermain exists between the sanitary sewer and the watermain. Add note to make this knownto the sanitary sewer and water installation contractor. 2. Drawing 5 – Grading, Drainage, and Erosion Control Plan: a) Add City details 5301 (Rock Construction Entrance) and 5302B (Erosion Control for Individual Lots). b) Provide geotechnical report. c) Include first floor elevation of buildings on adjacent lots. d) Existing and proposed elevations shall be shown at each lot corner and top of the curb at the lot line extension. e) Identify proposed soil stockpile locations. f) If importing or exporting soils for the development of the site is necessary, the applicant will be required to supply the City with a detailed haul route and traffic control plan. 3. SAC and WAC fees due at the rate in force at time of building permit application. Environmental Resources : 1. Tree protection fencing must be properly installed at the edge of the grading limits as shown on the plans dated 5/15/18. This must be done prior to any construction activities and remain installed until all construction is completed. Any trees lost to construction activities shall be replaced. 2. No equipment or materials may be stored within the tree protection area. 3. One tree must be planted in the front of each yard, as per city requirements. Parks: 1. Park dedication fees for one lot at the rate in force at the time of final plat approval. Planning : 1. An escrow of 110 percent of the estimated demolition costs for the demolition of the detached garage on Lot 2, Block 1 must be received, and the detached garage must be removed within four months of the approval of the final plat. Water Resources: 1. All permits and approvals must be received from other regulatory agencies prior to issuing permits. 2. Must show existing and proposed drainage. 3. The applicant will need to pay the surface water management (SWMP) fee for 1.010 acres at the rate in force at the time of final plat approval. CITY COUNCIL STAFF REPORTMonday, July 9, 2018SubjectResolution 201839: Red Cedar Point – Approval of Preliminary and Final Plat with a Variancefor a TwoLot SubdivisionSectionNEW BUSINESS Item No: H.1.Prepared By MacKenzie Walters, Assistant Planner File No: PC 201810PROPOSED MOTION“The Chanhassen City Council approves the preliminary and final plat for Red Cedar Point, a twolot subdivision,and a 10.04foot lot frontage variance for Lot 1, Block 1 as shown in plans dated May 15, 2018, subject toconditions of approval, and adopts the Findings of Fact and Decision."Council approval requires a Simple Majority Vote of members present.SUMMARYThe applicant is proposing to subdivide the existing lot located at 3861 Red Cedar Point Road to create two lots forsinglefamily detached housing. The applicant intents to save the existing home and construct a new twocar attachedgarage to replace the detached garage. The applicant is requesting that the City Council concurrently approve thepreliminary and final plat.The applicant also requests a 10.04foot variance from the Single Family Residential and Shoreland ManagementDistricts’ required 90foot minimum lot width. The applicant could meet the required 90foot lot width for both lotsthrough the use of a half culdesac (“eyebrow”); however, this would result in increased lot coverage.Access to the site provided is by Red Cedar Point Road. Sewer and water are available to the site. Staff isrecommending approval of the request.The full staff report is provided as an attachment.BACKGROUNDOn June 19, 2018, the Chanhassen Planning Commission held a public hearing on the proposed preliminary plat andvariance. No member of the public spoke regarding the proposal; however, one email expressing concern about thepotential impact of establishing a precedent of allowing deviations from the city’s minimum lot widths on theneighborhood was submitted to the Planning Commission before the hearing.During the subsequent discussion of the preliminary plat and variance, Commissioner Madsen asked for clarificationon the city’s policy regarding partial culdesacs. Senior Planner AlJaff stated that in cases where the applicant couldinstall a full culdesac, but it would not make sense to do so, the city allows the use of partial culdesacs. Lake LucyRoad was cited as an example.The Planning Commission voted unanimously to recommend approval of the proposed preliminary plat and variance. The June 19, 2018 Planning Commission minutes are included in the Consent Agenda portion of this packet.DISCUSSIONThe proposed subdivision meets all of the city’s subdivision ordinance requirements, save that the proposed lot widthfor Lot 1, Block 1 does not meet the zoning code’s Single Family Residential and Shoreland Management District’sminimum lot width. The applicant could meet the required lot width though the use of either a flag lot, which requires avariance from the subdivision ordinance, or the use of a partial culdesac, which would not require any variances.The use of a partial culdesac would create a significant amount of unnecessary impervious surface within theShoreland Management District. Staff believes that minimizing the amount of impervious surface near the city’s waterresources is of greater importance than requiring the developer to utilize a lot configuration that meets the districts’minimum lot width. Since the requested variance will prevent the creation of additional and unnecessary impervioussurface within the shoreland management district and will result in more conventional lot configuration that is broadly inkeeping with the overall aesthetics of the neighborhood, the Planning Commission and staff support the proposedvariance.RECOMMENDATIONPlanning Commission and staff recommend that the Chanhassen City Council approve the preliminary and final plat forRed Cedar Point, a twolot subdivision, and a 10.04foot lot frontage variance for Lot 1, Block 1 as shown in plansdated May 15, 2018, subject to the conditions of approval, adoption of he resoluttion and adopts the Findings of Factand Decision.Building :1. Provide a 1:200 “clean” plat drawing.2. Demolition permits are required for the removal of any existing structures.3. Buildings may be required to be designed by an architect and/or engineer as determined by the Building Official.4. A final grading plan and soils report must be submitted to the Inspections Division before permits can be issued.5. Retaining walls over four feet high require a permit and must be designed by a professional engineer.6. Each lot must be provided with separate sewer and water services.Engineering :1. Drawing 4 – Site and Utility Plan:a) Change detail 1006 (Gate Valve and Box Installation) to detail 1005 (Water Service).b) Add City details 5202A (Bituminous Street Patching), 5203 (Curb and Gutter), 5208 (Concrete Driveway),5209 (Bituminous Driveway), and 5221 (Tie Card).c) An abandoned watermain exists between the sanitary sewer and the watermain. Add note to make this knownto the sanitary sewer and water installation contractor.2. Drawing 5 – Grading, Drainage, and Erosion Control Plan:a) Add City details 5301 (Rock Construction Entrance) and 5302B (Erosion Control for Individual Lots).b) Provide geotechnical report.c) Include first floor elevation of buildings on adjacent lots.d) Existing and proposed elevations shall be shown at each lot corner and top of the curb at the lot line extension.e) Identify proposed soil stockpile locations.f) If importing or exporting soils for the development of the site is necessary, the applicant will be required tosupply the City with a detailed haul route and traffic control plan.3. SAC and WAC fees due at the rate in force at time of building permit application.Environmental Resources :1. Tree protection fencing must be properly installed at the edge of the grading limits as shown on the plans dated5/15/18. This must be done prior to any construction activities and remain installed until all construction iscompleted. Any trees lost to construction activities shall be replaced.2. No equipment or materials may be stored within the tree protection area.3. One tree must be planted in the front of each yard, as per city requirements.Parks:1. Park dedication fees for one lot at the rate in force at the time of final plat approval. Planning :1. An escrow of 110 percent of the estimated demolition costs for the demolition of the detached garage on Lot 2,Block 1 must be received, and the detached garage must be removed within four months of the approval of thefinal plat.Water Resources:1. All permits and approvals must be received from other regulatory agencies prior to issuing permits.2. Must show existing and proposed drainage. 3. The applicant will need to pay the surface water management (SWMP) fee for 1.010 acres at the rate in force at the time of final plat approval. ATTACHMENTS: Staff Report 3861 Red Cedar Point Variance Document 1810 Exhibit A Resolution Findings of Fact (Approval) Findings of Fact (Denial) Application for Development Review Subdivision and Final Plat Narrative May 15 Variance Narrative Final Plat Documents Engineering Memo Email from Resident CITY OF CHANHASSEN PC DATE: June 19, 2018 CC DATE: July 9, 2016 REVIEW DEADLINE: September 18, 2018 CASE #: 2018-10 BY: MW, SJ, VS SUMMARY OF REQUEST: Preliminary and final plat with variance for a 2 lot single-family residential subdivision. LOCATION: 3861 Red Cedar Point Road OWNER AND APPLICANT: Estate Development Corporation Tom Gonyea 15250 Wayzata Blvd. Suite 101 Wayzata, MN 55391 PRESENT ZONING: Single Family Residential District, RSF 2030 LAND USE PLAN: Residential Low Density ACREAGE: Gross: 1.024 acres DENSITY: Gross: 1.95 units/ac Net: 1.010 Net: 1.98 units/ac LEVEL OF CITY DISCRETION IN DECISION-MAKING: The city’s discretion in approving or denying a Preliminary and Final Plat is limited to whether or not the proposed plat meets the standards outlined in the Subdivision Regulations and Zoning Ordinance. If it meets these standards, the city must approve the preliminary plat. This is a quasi-judicial decision. The city’s discretion in approving or denying a Variance is limited to whether or not the proposed project meets the standards in the zoning code for a variance. The city has a relatively high level of discretion with a variance because the applicant is seeking a deviation from established standards. This is a quasi-judicial decision. Notice of this public hearing has been mailed to all property owners within 500 feet. PROPOSED MOTION: “The Chanhassen Planning Commission recommend that the City Council approves the preliminary and final plat for a 2 lot subdivision, and a 10.04-foot lot frontage variance for lot 1, block 1 Red Cedar Point as shown in plans dated May 15, 2018 subject to the conditions of approval and adopts the findings of fact and decision recommendation” (Note: A motion for denial and appropriate findings of fact are also included at the end of the report.) Planning Commission 3861 Red Cedar Point Road – Planning Case #2018-10 June 19, 2018 Page 2 of 10 PROPOSAL/SUMMARY The applicant is proposing to subdivide the existing lot to create 2 lots for a single-family detached housing. The applicant will demolish the existing detached garage and construct a new two car attached garage for the existing home, which will be retained. The applicant will request that the City Council concurrently approve the preliminary and final plat. The applicant is also requesting a variance from the Single Family Residential District’s required 90-foot minimum lot width. The applicant could meet the required 90-foot lot width for both lots through the use of a half-cul-de-sac (“eyebrow”); however, this would result in increased lot coverage. Access to the site provided by Red Cedar Point Road. Sewer and water are available to the site. Staff is recommending approval of the request. APPLICABLE REGULATIONS Chapter 18, Subdivisions Chapter 20, Article II, Division 3., “Variances” Chapter 20, Article VII, Zoning and water supply/sanitary provisions Chapter 20, Article XII, “RSF” Single Family Residential District Chapter 20, Article XIII, Division 1, Sec. 20-904 “Accessory Structures” Chapter 20, Article XIII, Division 1, Sec. 20-905 “Single-family dwellings” BACKGROUND Site Constraints The existing house was built in 1957, a detached garage is also present near the center of the property. Staff was unable to determine the construction date of the garage. The high point on the property is near the existing house with an elevation of 972. The low point on the property is southwest corner with an elevation of 954. The existing lot has 169.86 feet of frontage along Red Cedar Point Road and 44,584 square feet of lot area. The site has a net canopy coverage of 42 percent. This site is located within Lake Minnewashta and Lake St. Joe’s shoreland management districts. Planning Commission 3861 Red Cedar Point Road – Planning Case #2018-10 June 19, 2018 Page 3 of 10 No wetlands are present on the site. COMPREHENSIVE PLAN This area has land use classification of Residential Low Density in the city’s 2030 Comprehensive Plan. This classification requires net densities of between 1.2 – 4.0 units per acre. The applicant’s proposal has a net density of 1.98 units/acre which is consistent with the area’s land use plan. ZONING ORDINANCE The property is currently zoned Single Family Residential (RSF) District, and the applicant is not requesting a change to the parcel’s zoning. The proposed subdivision would require a variance from the zoning ordinance’s minimum lot width. VARIANCE The applicant’s proposed lot 1, block 1 would have a width of 79.96 feet, which is 10.04 feet less than the 90 feet required by sec. 20-615 and sec. 20-480 for properties zoned RSF within the shoreland management district. The applicant has demonstrated that the subdivision could meet the requirements of sec. 20-615 and sec. 20-480 either through the use of a flag lot (Concept C), which would require a variance from the city’s subdivision ordinance, or through the dedication of additional public right of way to create a partial cul-de-sac (Concepts A and B). Concept A Concept B Concept C Planning Commission 3861 Red Cedar Point Road – Planning Case #2018-10 June 19, 2018 Page 4 of 10 The intent of the zoning code’s minimum yard width requirement is to ensure that lots can accommodate a house and garage while meeting the districts 10-foot side yard setbacks. The applicant is proposing retaining the existing home on lot 1, block 1 and has conceptually shown that a two car garage can be added to the existing home while meeting the required 10-foot side yard setbacks. Proposed Layout The area around Red Cedar Point is one of the oldest in the city and it has many atypical lot configurations. The majority of properties within 500 feet of the applicant’s do meet the required minimum lot width; however, an adjacent property does have an estimated 80 feet of lot frontage. Outside of the 500-foot public notification area, though still within the general neighborhood, are numerous properties along Red Cedar Point road, South Cedar Drive, and Hickory Road that have lot widths significantly below what the applicant is proposing. A property with an approximately 80-foot lot width would not be out of character for the neighborhood. The proposed lot configuration, though it does not meet the district’s minimum standards, would be more in keeping with the neighborhood’s character than either a flag lot or a partial cul-de-sac solution. All of the proposed alternative configurations have significant drawbacks. In the case of concept C, the flag lot would create awkward lot lines that could cause conflict between future homeowners and a more staggered house setback from Red Cedar Point Road. The applicant would also need to apply for and receive a variance from the city’s subdivision ordinance in order to create the flag lot. For concepts A and B, the partial cul-de-sac would require the dedication of additional right of way to the city and the installation of additional impervious surface within that right of way. Staff estimates that concepts A and B would lead to the creation of between approximately 1,500 and 2,200 square feet of additional impervious surface. Since the property is located within Lake Minnewashsta and Lake St. Joe’s shoreland management district and no new stormwater management improvements are being proposed as part of this subdivision, staff believes it is important to take all possible steps to minimize the amount of new impervious surface generated by this subdivision. Water Resource and Planning staff believe that the shoreland management district’s goal of limiting the amount of impervious surface near water resources is of greater importance than the shoreland management district’s 90-foot minimum lot width. Since the requested variance will prevent the creation of additional and unnecessary impervious surface within the shoreland management district and will result in more conventional lot configuration that is broadly in keeping with the overall aesthetics of the neighborhood, staff recommends that the Planning Commission grant the requested variance. Planning Commission 3861 Red Cedar Point Road – Planning Case #2018-10 June 19, 2018 Page 5 of 10 PRELIMINARY AND FINAL PLAT New garage Planning Commission 3861 Red Cedar Point Road – Planning Case #2018-10 June 19, 2018 Page 6 of 10 SITE CONSTRAINTS Existing Home The applicant is proposing to retain the existing home which is located on the eastern side of the property on what will become lot 1, block 1. This home is currently being served by a detached garage located in the center of the property on what will become lot 2, block 1. Section 20-905 requires that all single-family dwellings be provided with at least a two-car garage, and Section 20-904 does not permit accessory structures without the permitted principal structure. The applicant is proposing demolishing the existing detached garage and constructing a new attached garage on lot 1, block 1 in order to comply with city code. Staff is recommending requiring an escrow to ensure that the garage on lot 2, block 1 is removed. The applicant will be required to provide a cost estimate for the removal of the structure and an escrow in the amount of 110 percent of the demolition cost estimate. GRADING, DRAINAGE & EROSION CONTROL No grading is required beyond what will be associated with demolishing the existing detached garage and screen porch, and constructing the new attached garage and new home. Erosion and sediment control will need to meet the city’s requirements. STORMWATER MANAGEMENT The proposed development should be designed to meet the city’s water quality and water quantity requirements. The proposed development will need to receive any and all required permits and meet the requirements of Minnehaha Creek Watershed District and Minnesota Department of Natural Resources. The applicant will need to pay the surface water management (SWMP) fee for 1.010 acres at the rate in force at the time of final plat approval. At today’s rate, that would be a payment of $8,160.80. RIGHT-OF-WAY, STREETS AND EASEMENTS The survey included all easements and right of way shown on the title search of the property dated April 15, 2018 from Stewart Title Guarantee Company. STREETS, DRIVEWAYS & SIDEWALK No new public roadways or walkways are required. Red Cedar Point Road provides right-of-way access to both proposed lots. The property has a 3.5-foot roadway easement that when added to the existing dedicated right of way provides a 50-foot right-of-way corridor for Red Cedar Point Road. While this does not meet the city’s current 60-foot right-of-way requirements, numerous roads in this area have a non-conforming 50-feet of dedicated right-of-way and the city does not believe it will be possible to acquire additional right-of-way from the other properties south of Red Cedar Point Rd. For these reasons, the city is not requiring the dedication of additional Planning Commission 3861 Red Cedar Point Road – Planning Case #2018-10 June 19, 2018 Page 7 of 10 public right-of-way. This will allow the right-of-way to remain consistent with the surrounding area. EASEMENTS The applicant is dedicating 5-foot side and rear, and 10-foot front lot line drainage and utility easements. Drainage and utility easements should be provided as illustrated in the preliminary plat dated May 15, 2018. UTILITIES Sanitary Sewer and Watermain No extension of any public sanitary sewer or watermain trunk lines is required. The existing home will continue to use the current water and sewer service from Red Cedar Point Road. The new home will require a new service connection to the available trunk sanitary sewer and watermain. The fees associated with the service connections will be $2,924.00. The city WAC and SAC fees related to the service connections will be collected with the building permit. LANDSCAPING AND TREE PRESERVATION Existing Canopy Coverage Proposed Canopy Coverage The site’s current estimated tree canopy coverage is 42 percent and the applicant is proposing to maintain a tree canopy coverage of 36 percent. Since this exceeds the City Code’s minimum standard of 35 percent tree canopy coverage, no replacement tree planting is required. The lots Planning Commission 3861 Red Cedar Point Road – Planning Case #2018-10 June 19, 2018 Page 8 of 10 will still be required to meet the city’s minimum requirement to have one tree located in the front yard. PARKS & RECREATION The property has access to the Minnewashta Parkway pedestrian trail and to Roundhouse Neighborhood Park. The applicant will need to pay park dedication fees for one lot at the rate in force at the time of final plat approval. At today’s rate, that would be a payment of a $5,800. This fee will be deposited in the city’s park and trail dedication fund for utilization on future park and trail improvements. COMPLIANCE TABLE Area (sq. ft.) Width (ft.) Depth (ft.) Hard Cover % / sq. ft. Notes Code 15,000 90 125 25 / 3,750 Lot 1 20,417 79.96* 253.09 5,104 Lot 2 23,572 90 255.06 5,893 ROW 595 Total 44,584 1.024 Setbacks: 30 feet front and rear; 10 feet side *Variance: 10.04-foot lot width variance for lot 1, block 1. RECOMMENDATION Staff recommends that the Chanhassen Planning Commission recommend that the City Council approves the preliminary and final plat for a 2 lot subdivision, and a 10.04-foot lot frontage variance for lot 1, block 1 Red Cedar Point as shown in plans dated May 15, 2018 subject to the conditions of approval and adopts the findings of fact and decision recommendation: Building: 1. Provide a 1:200 “clean” plat drawing. 2. Demolition permits required for the removal of any existing structures. 3. Buildings may be required to be designed by an architect and/or engineer as determined by the Building Official. Planning Commission 3861 Red Cedar Point Road – Planning Case #2018-10 June 19, 2018 Page 9 of 10 4. A final grading plan and soils report must be submitted to the Inspections Division before permits can be issued. 5. Retaining walls over four feet high require a permit and must be designed by a professional engineer. 6. Each lot must be provided with separate sewer and water services. Engineering: 1. Drawing 4 – Site and Utility Plan: a) Change detail 1006 (Gate Valve and Box Installation) to detail 1005 (Water Service). b) Add City details 5202A (Bituminous Street Patching), 5203 (Curb and Gutter), 5208 (Concrete Driveway), 5209 (Bituminous Driveway), and 5221 (Tie Card). c) An abandoned watermain exists between the sanitary sewer and the watermain. Add note to make this known to the sanitary sewer and water installation contractor. 2. Drawing 5 – Grading, Drainage, and Erosion Control Plan: a) Add City details 5301 (Rock Construction Entrance) and 5302B (Erosion Control for Individual Lots) b) Provide geotechnical report. c) Include first floor elevation of buildings on adjacent lots. d) Existing and proposed elevations shall be shown at each lot corner and top of the curb at the lot line extension. e) Identify proposed soil stockpile locations. f) If importing or exporting soils for the development of the site is necessary, the applicant will be required to supply the City with a detailed haul route and traffic control plan. 3. SAC and WAC fees due at the rate in force at time of building permit application. Environmental Resources: 1. Tree protection fencing must be properly installed at the edge of the grading limits as shown on the plans dated 5/15/18. This must be done prior to any construction activities and remain installed until all construction is completed. Any trees lost to construction activities shall be replaced. 2. No equipment or materials may be stored within the tree protection area. 3. One tree must be planted in the front of each yard, as per city requirements. Parks: 1. Park dedication fees for one lot at the rate in force at the time of final plat approval. Planning Commission 3861 Red Cedar Point Road – Planning Case #2018-10 June 19, 2018 Page 10 of 10 Planning: 1. An escrow of 110 percent of the estimated demolition costs for the demolition of the detached garage on lot 2, block 1 must be received, and the detached garage must be removed within four months of the approval of the final plat. Water Resources: 1. All permits and approvals must be received from other regulatory agencies prior to issuing permits. 2. Must show existing and proposed drainage. 3. The applicant will need to pay the surface water management (SWMP) fee for 1.010 acres at the rate in force at the time of final plat approval. Should the Planning Commission City Council deny the preliminary and final plat and variance request, it is recommended that the Planning Commission City Council adopt the following motion and attached Finding of Fact and Decision: “The Chanhassen Board of Appeals and Adjustments City Council denies the preliminary and final plat with a 10.04 lot width variance for lot 1, block 1, Red Cedar Point and adopts the attached Findings of Facts and Decisions.” ATTACHMENTS 1) Findings of Fact (Approval) 2) Findings of Fact (Denial) 3) Application for Development Review 4) Subdivision and Final Plat Narrative 5) May 15 Variance Narrative 6) Final Plat Documents 7) Engineering memo 8) Public Hearing Notice Documents g:\plan\2018 planning cases\18-10 3861 red cedar point rd subdivision & var\staff report red cedar point sub var_cc.doc 1 CITY OF CHANHASSEN CARVER COUNTY, MINNESOTA VARIANCE 2018-10 1. Permit. Subject to the terms and conditions set forth herein, the City of Chanhassen hereby grants the following variance: The Chanhassen City Council approves a 10.04-foot lot frontage variance for lot 1, block 1 Red Cedar Point. 2. Property. The variance is for the Red Cedar Point subdivision situated in the City of Chanhassen, Carver County, Minnesota, and legally described in Exhibit A. Dated: July 9th, 2018 CITY OF CHANHASSEN BY: (SEAL) Denny Laufenburger, Mayor AND: Todd Gerhardt, City Manager STATE OF MINNESOTA ) (ss COUNTY OF CARVER ) 2 The foregoing instrument was acknowledged before me this day of , 2018 by Denny Laufenburger, Mayor and Todd Gerhardt, City Manager, of the City of Chanhassen, a Minnesota municipal corporation, on behalf of the corporation and pursuant to authority granted by its City Council. NOTARY PUBLIC DRAFTED BY: City of Chanhassen 7700 Market Boulevard P.O. Box 147 Chanhassen, MN 55317 (952) 227-1100 Exhibit A That part of Government Lot 1, Section 8, Township 116 North, Range 23 West, Carver County, Minnesota, described as follows: Commencing at the Northwest comer of said Section 8; thence North 89 degrees 19 minutes 20 seconds East along the North line of said Section a distance of 670.0 feet; thence South 7 degrees 49 minutes 20 seconds West a distance of 720.0 feet to the centerline of Red Cedar Point Road; thence South 66 degrees 51 minutes 10 seconds East along said centerline a distance of222.0 feet to a point distant 576.4 feet Northwesterly of the East Line of said Government Lot 1, as measured along the centerline of said Red Cedar Point Road, said point being the actual point of beginning of the tract ofland to be described, and which point is also the Northeasterly comer of that tract ofland described in the first description appearing in Book 51 of Deeds, Page 884, office of the Register of Deeds, Carver County, Minnesota; thence continuing South 66 degrees 51 minutes 10 seconds East along said centerline of Red Cedar Point Road a distance of 197.0 feet; thence South 13 degrees 15 minutes 40 seconds West a distance of 254.25 feet; thence North 77 degrees 42 minutes 10 seconds West a distance of21 l.69 feet more or less to the Easterly Line of said tract as described in said Book 51 of Deeds, page 884; thence North 16 degrees 42 minutes 50 seconds East along said Easterly Line a distance of292.17 feet more or less to the actual point of beginning and there terminating. Excepting therefrom that part taken for Red Cedar Point Road. Except all that part of the above described land lying Easterly of the West line of the tract ofland described in Certificate of Title No. 5187, Files of Registrar of Titles, Carver County, Minnesota, which tract ofland is described as follows: All that part of Government Lot 1, Section 8, Township 116 North, Range 23 West, described as follows: Commencing at the Northwest comer of said Section 8; thence east on the North Line of said Section a distance of 670 feet to the center line of Glencoe Road; thence South 8 degrees 56 minutes West along the center of Glencoe Road for a distance of713.4 feet to the intersection of the center line of said Glencoe Road with the center line of Red Cedar Point Road; thence South 65 degrees 56 minutes east along the center line of said Red Cedar Point Road a distance of 619 feet to the initial point of beginning of the land to be described; thence South 33 degrees 25 minutes west for a distance of210 feet; thence North 90 degrees 00 minutes west 166.90 feet to a point; thence northeasterly on a line having a bearing of North 16 degrees 10 minutes east a distance of273.77 feet; more or less, to the center line of said Red Cedar Point Road; thence southeasterly on the center line of said Red Cedar Point Road a distance of 224.17 feet, more or less, to the place of beginning, all in Carver County, State of Minnesota, excepting therefrom that part taken for said Red Cedar Point Road. CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: RESOLUTION NO: MOTION BY: SECONDED BY: A RESOLUTION APPROVING A FINAL PLAT WITH A VARIANCE CREATING RED CEDAR POINT. WHEREAS, Estate Development Corporation has requested a subdivision of the property located at 3681 Red Cedar Point Road into two single-family lots with areas of 20,417 square feet and 23,572 square feet; and WHEREAS, the proposed subdivision complies with all requirements of the Chanhassen City Code. WHEREAS, the Chanhassen Planning Commission held a public hearing on June 19, 2018 and found the plan consistent with the Chanhassen Comprehensive Plan and Chanhassen Zoning Ordinance and recommended approval of the subdivision. NOW, THEREFORE, BE IT RESOLVED that the Chanhassen City Council hereby approves the final plat with a variance for Red Cedar Point, creating two lots subject to the following conditions: Building: 1. Provide a 1:200 “clean” plat drawing. 2. Demolition permits required for the removal of any existing structures. 3. Buildings may be required to be designed by an architect and/or engineer as determined by the Building Official. 4. A final grading plan and soils report must be submitted to the Inspections Division before permits can be issued. 5. Retaining walls over four feet high require a permit and must be designed by a professional engineer. 6. Each lot must be provided with separate sewer and water services. Engineering: 1. Drawing 4 – Site and Utility Plan: a) Change detail 1006 (Gate Valve and Box Installation) to detail 1005 (Water Service). b) Add City details 5202A (Bituminous Street Patching), 5203 (Curb and Gutter), 5208 (Concrete Driveway), 5209 (Bituminous Driveway), and 5221 (Tie Card). c) An abandoned watermain exists between the sanitary sewer and the watermain. Add note to make this known to the sanitary sewer and water installation contractor. 2. Drawing 5 – Grading, Drainage, and Erosion Control Plan: a) Add City details 5301 (Rock Construction Entrance) and 5302B (Erosion Control for Individual Lots) b) Provide geotechnical report. c) Include first floor elevation of buildings on adjacent lots. d) Existing and proposed elevations shall be shown at each lot corner and top of the curb at the lot line extension. e) Identify proposed soil stockpile locations. f) If importing or exporting soils for the development of the site is necessary, the applicant will be required to supply the City with a detailed haul route and traffic control plan. 3. SAC and WAC fees due at the rate in force at time of building permit application. Environmental Resources: 1. Tree protection fencing must be properly installed at the edge of the grading limits as shown on the plans dated 5/15/18. This must be done prior to any construction activities and remain installed until all construction is completed. Any trees lost to construction activities shall be replaced. 2. No equipment or materials may be stored within the tree protection area. 3. One tree must be planted in the front of each yard, as per city requirements. Parks: 1. Park dedication fees for one lot at the rate in force at the time of final plat approval. Planning: 1. An escrow of 110 percent of the estimated demolition costs for the demolition of the detached garage on lot 2, block 1 must be received, and the detached garage must be removed within four months of the approval of the final plat. Water Resources: 1. All permits and approvals must be received from other regulatory agencies prior to issuing permits. 2. Must show existing and proposed drainage. 3. The applicant will need to pay the surface water management (SWMP) fee for 1.010 acres at the rate in force at the time of final plat approval. Passed and adopted by the Chanhassen City Council this 9th day July of 2018. ATTEST: _______________________________ _____________________________ Todd Gerhardt, City Clerk/Manager Denny Laufenburger, Mayor YES NO ABSENT CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA FINDINGS OF FACT AND DECISION IN RE: Application of Red Cedar Point Addition Planning Case 18-10 On June 19, 2018, the Chanhassen Planning Commission met at its regularly scheduled meeting to consider the application of a Preliminary Plat to Subdivide a 1.02 Acre Lot into two (2) single- family lots with a variance, Red Cedar Point. The Planning Commission conducted a public hearing on the proposed development which was preceded by published and mailed notice. The Planning Commission heard testimony from all interested persons wishing to speak and recommended approval of the preliminary plat and variance. On July 9, 2018, the Chanhassen City Council met at its regularly scheduled meeting to consider the application of a Preliminary and Final Plat to Subdivide a 1.02 Acre Lot into two (2) single-family lots with a variance, Red Cedar Point and now makes the following: FINDINGS OF FACT 1. The proposed subdivision is consistent with the zoning ordinance; Finding: The subdivision meets all the requirements of the RSF, Residential Single Family District and the zoning ordinance if the lot width variance is approved. 2. The proposed subdivision is consistent with all applicable city, county and regional plans including but not limited to the city's comprehensive plan; Finding: The proposed subdivision is consistent with the comprehensive plan and subdivision ordinance. 3. The physical characteristics of the site, including but not limited to topography, soils, vegetation, susceptibility to erosion and siltation, susceptibility to flooding, and storm water drainage are suitable for the proposed development; Finding: The proposed site is suitable for development subject to the conditions specified in this report 4. The proposed subdivision makes adequate provision for water supply, storm drainage, sewage disposal, streets, erosion control and all other improvements required by this chapter; Finding: The proposed subdivision is served by adequate urban infrastructure. 5. The proposed subdivision will not cause environmental damage; Finding: The proposed subdivision will not cause significant environmental damage subject to conditions of approval. The proposed subdivision contains adequate open areas to accommodate house pads. 6. The proposed subdivision will not conflict with easements of record. Finding: The proposed subdivision will not conflict with existing easements, but rather will expand and provide all necessary easements. 7. The proposed subdivision is not premature. A subdivision is premature if any of the following exists: a. Lack of adequate storm water drainage. b. Lack of adequate roads. c. Lack of adequate sanitary sewer systems. d. Lack of adequate off-site public improvements or support systems. Finding: The proposed subdivision will have access to public utilities and streets. 8. Variances. – Section 20-58 of the City Code provides the following criteria for the granting of a variance: a. Variances shall only be permitted when they are in harmony with the general purposes and intent of this Chapter and when the variances are consistent with the comprehensive plan. Finding: The intent of the zoning code’s minimum lot width is to ensure sufficient space for a building pad that can accommodate a house and garage while meeting the district’s 10-foot side yard setbacks. The proposed lot width of 79.96’ is still able to accommodate the 60-foot by 60-foot building pad required by ordinance. Additionally, property has an existing house which is configured in such a way as to accommodate a home and garage within the side yard setbacks. Due to the presence and configuration of the existing home the requested variance is in harmony with the general purposes and intent of this chapter. b. When there are practical difficulties in complying with the zoning ordinance. "Practical difficulties," as used in connection with the granting of a variance, means that the property owner proposes to use the property in a reasonable manner not permitted by this Chapter. Practical difficulties include, but are not limited to, inadequate access to direct sunlight for solar energy systems. Finding: In order to comply with the minimum lot width stipulated in the zoning code, atypical lot configurations would be required. These configurations would result in unnecessary public right of way dedications and increased impervious surfaces within the shoreland management district. The applicants proposed lot dimensions and use for the property is reasonable and would be permitted, but for the reduced lot width on block 1, lot 1. c. That the purpose of the variation is not based upon economic considerations alone. Finding: The variance request is not solely based upon economic considerations. d. The plight of the landowner is due to circumstances unique to the property not created by the landowner. Finding: The existing lot was created prior to current single-family residential district zoning standards. e. The variance, if granted, will not alter the essential character of the locality. Finding: Granting the variance would allow for the property to be subdivided in a manner consistent with the neighborhoods existing development pattern. Multiple properties in the vicinity do not meet the district’s minimum lot width. Additionally, several of the proposed alternatives that would not require a variance would result in a subdivision with features that are atypical for this neighborhood. f. Variances shall be granted for earth sheltered construction as defined in Minnesota Statutes Section 216C.06, subdivision 14, when in harmony with this Chapter. Finding: This does not apply to this request. 9. The planning report Planning Case 18-10, dated June 19, 2018, prepared by MacKenzie Walters, et al, is incorporated herein. DECISION “The Chanhassen City Council approves the preliminary and final plat for a two- lot subdivision, and a 10.04-foot lot frontage variance for Lot 1, Block 1, Red Cedar Point as shown in plans dated May 15, 2018, subject to conditions of approval. ADOPTED by the City Council this 9th day of July, 2018. CITY OF CHANHASSEN BY:___________________________________ Denny Laufenburger, Mayor g:\plan\2018 planning cases\18-10 3861 red cedar point rd subdivision & var\findings of fact (approval)_cc.doc CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA FINDINGS OF FACT AND DECISION IN RE: Application of Red Cedar Point Addition Planning Case 18-10 On June 19, 2018, the Chanhassen Planning Commission met at its regularly scheduled meeting to consider the application of a Preliminary Plat to Subdivide a 1.02 Acre Lot into two (2) single- family lots with a variance, Red Cedar Point. The Planning Commission conducted a public hearing on the proposed development which was preceded by published and mailed notice. The Planning Commission heard testimony from all interested persons wishing to speak and recommended approval of the preliminary plat and variance. On July 9, 2018, the Chanhassen City Council met at its regularly scheduled meeting to consider the application of a Preliminary and Final Plat to Subdivide a 1.02 Acre Lot into two (2) single-family lots with a variance, Red Cedar Point and now makes the following: FINDINGS OF FACT 1. The proposed subdivision is consistent with the zoning ordinance; Finding: The subdivision as proposed does not meet the requirements of the Single-Family Residential District. A variance from the district’s minimum lot widths required. 2. The proposed subdivision is consistent with all applicable city, county and regional plans including but not limited to the city's comprehensive plan; Finding: The proposed subdivision is consistent with the comprehensive plan and subdivision ordinance. 3. The physical characteristics of the site, including but not limited to topography, soils, vegetation, susceptibility to erosion and siltation, susceptibility to flooding, and storm water drainage are suitable for the proposed development; Finding: The proposed site is suitable for development subject to the conditions specified in this report 4. The proposed subdivision makes adequate provision for water supply, storm drainage, sewage disposal, streets, erosion control and all other improvements required by this chapter; Finding: The proposed subdivision is served by adequate urban infrastructure. 5. The proposed subdivision will not cause environmental damage; Finding: The proposed subdivision will not cause significant environmental damage subject to conditions of approval. The proposed subdivision contains adequate open areas to accommodate house pads. 6. The proposed subdivision will not conflict with easements of record. Finding: The proposed subdivision will not conflict with existing easements, but rather will expand and provide all necessary easements. 7. The proposed subdivision is not premature. A subdivision is premature if any of the following exists: a. Lack of adequate storm water drainage. b. Lack of adequate roads. c. Lack of adequate sanitary sewer systems. d. Lack of adequate off-site public improvements or support systems. Finding: The proposed subdivision will have access to public utilities and streets. 8. Variances. – Section 20-58 of the City Code provides the following criteria for the granting of a variance: a. Variances shall only be permitted when they are in harmony with the general purposes and intent of this Chapter and when the variances are consistent with the comprehensive plan. Finding: The intent of the zoning code’s minimum lot width is to allow for an adequately sized front yard and sufficient spacing between residential driveways. Allowing the creation of new lot that does not meet the district’s minimum lot width would not be in line with the intent of the district. b. When there are practical difficulties in complying with the zoning ordinance. "Practical difficulties," as used in connection with the granting of a variance, means that the property owner proposes to use the property in a reasonable manner not permitted by this Chapter. Practical difficulties include, but are not limited to, inadequate access to direct sunlight for solar energy systems. Finding: The homeowner has shown multiple concept subdivisions that could comply with the district’s requirements. The inability create the preferred configuration for the lots is not a practical difficulty. c. That the purpose of the variation is not based upon economic considerations alone. Finding: The variance request is not solely based upon economic considerations. d. The plight of the landowner is due to circumstances unique to the property not created by the landowner. Finding: The existing lot was created prior to current single-family residential district zoning standards. e. The variance, if granted, will not alter the essential character of the locality. Finding: Granting the variance would not alter the essential character of the locality. f. Variances shall be granted for earth sheltered construction as defined in Minnesota Statutes Section 216C.06, subdivision 14, when in harmony with this Chapter. Finding: This does not apply to this request. 9. The planning report Planning Case 18-10, dated June 19, 2018, prepared by MacKenzie Walters, et al, is incorporated herein. DECISION “The Chanhassen City Council denies the preliminary and final plat for a two-lot subdivision, and a 10.04-foot lot frontage variance for Lot 1, Block 1, Red Cedar Point as shown in plans dated May 15, 2018. ADOPTED by the City Council this 9th day of July, 2018. CITY OF CHANHASSEN BY:___________________________________ Denny Laufenburger, Mayor g:\plan\2018 planning cases\18-10 3861 red cedar point rd subdivision & var\findings of fact (denied)_cc.doc From: Susan Moe <scmillion@yahoo.com> Sent: Sunday, June 17, 2018 1:31 PM To: Walters, MacKenzie <MWalters@ci.chanhassen.mn.us> Subject: 3861 Red Cedar Point Road Subdivision and Variance Request Dear Ms. Walters, I live on the west boundary of the property that is proposed for subdivision. I have read the materials on the City's website and reviewed the plot plans and survey. As a resident of a neighborhood with large lots I am concerned that this could set a precedent for dividing other lots if the city is not planning to stick with the minimum lot widths. I also expect the City to enforce all setbacks for the new home and other buildings and also enforce the tree protection ordinance. Lastly, there have several recent building projects in the Minnewashta Pkwy area where substantial quantities of soil have washed onto city streets and into the storm sewer and nearby lakes and wetlands due to poor enforcement of the erosion control regulations. The silt fences and other systems have been poorly installed and then not maintained until the property has been re- vegetated. Thank you, Susan Moe 952 474-2236 7161 Minnewashta Pkwy Excelsior, MN 55331 CITY COUNCIL STAFF REPORT Monday, July 9, 2018 Subject Review of Claims Paid 07092018 Section CORRESPONDENCE DISCUSSION Item No: K.1. Prepared By Greg Sticha, Finance Director File No: SUMMARY The following claims are submitted for review on July 9, 2018: Check Numbers Amounts 167324 – 167395 $152,363.28 ACH Payments $1,207,650.58 Total All Claims $1,360,013.86 ATTACHMENTS: Check Summary Check Summary ACH Check Detail Check Detail ACH Accounts Payable User: Printed: dwashburn 7/2/2018 9:37 AM Checks by Date - Summary by Check Number Check No Check DateVendor NameVendor No Void Checks Check Amount AppAme Apple American Group 06/21/2018 0.00 8,991.58167324 ASPMIL ASPEN MILLS 06/21/2018 0.00 30.08167325 BCATRA BCA 06/21/2018 0.00 45.00167326 BERCOF BERRY COFFEE COMPANY 06/21/2018 0.00 437.89167327 BITROA BITUMINOUS ROADWAYS INC 06/21/2018 0.00 7,751.27167328 BONPLU BONFES PLUMBING & HEATING 06/21/2018 0.00 94.90167329 BroGar Brookside Garden Center, Inc.06/21/2018 0.00 202.50167330 CLACCO CLASS C COMPONENTS INC 06/21/2018 0.00 190.51167331 CONPLA Consolidated Plastics Company 06/21/2018 0.00 225.78167332 CORMAI CORE & MAIN LP 06/21/2018 0.00 641.56167333 CulBot Culligan Bottled Water 06/21/2018 0.00 95.06167334 EDESEN Eden Prairie Senior Center 06/21/2018 0.00 100.00167335 EXCFIR EXCELSIOR FIRE DISTRICT 06/21/2018 0.00 8,512.00167336 FANCOR FANTASY CORRAL 06/21/2018 0.00 450.00167337 GFJED G.F. JEDLICKI INC 06/21/2018 0.00 57,201.50167338 GRELAK GREAT LAKES COCA-COLA DISTRIBUTION LLC06/21/2018 0.00 414.54167339 GROTEC Groove Tech of MN Inc 06/21/2018 0.00 5,122.00167340 HENTEC Hennepin Technical College 06/21/2018 0.00 305.00167341 HOLMCHRI Christopher Holm 06/21/2018 0.00 300.00167342 ICMART ICMA RETIREMENT AND TRUST-457 06/21/2018 0.00 1,445.83167343 JAGCOM Jaguar Communications Inc 06/21/2018 0.00 65.92167344 JarvTim Timothy J. Jarvis 06/21/2018 0.00 500.00167345 KNOBUI KNOBLAUCH BUILDERS LLC 06/21/2018 0.00 2,500.00167346 LANSALAN ALAN LANGSETH 06/21/2018 0.00 220.50167347 LANEQ1 Lano Equipment 06/21/2018 0.00 250.00167348 LotPri Lotus Print Group, Inc.06/21/2018 0.00 1,008.03167349 MADGAL MADDEN GALANTER HANSEN LLP 06/21/2018 0.00 210.75167350 FavrKati Katie Mathews 06/21/2018 0.00 275.00167351 FavrKati Katie Mathews 06/21/2018 0.00 200.00167352 MinuPre Minuteman Press 06/21/2018 0.00 16.00167353 MCMA MN CITY/COUNTY MGMT ASSOC.06/21/2018 0.00 55.00167354 MOOMED MOORE MEDICAL 06/21/2018 0.00 83.16167355 MunEme Municipal Emergency Services 06/21/2018 0.00 8.96167356 MutcMarc Marc S. Mutchler 06/21/2018 0.00 500.00167357 ShaMde SMSC Organics Recycling Facility 06/21/2018 0.00 141.21167358 SpeScr Spectrum Screen Printing Inc 06/21/2018 0.00 1,560.66167359 TheGar The Garden By The Woods 06/21/2018 0.00 512.00167360 THEMED THE MEDICINE SHOW 06/21/2018 0.00 650.00167361 VENWOR VenuWorks of Burnsville LLC 06/21/2018 0.00 100.00167362 WINGRICH RICHARD WING 06/21/2018 0.00 100.00167363 WINTMELA Melanie Winters 06/21/2018 0.00 250.00167364 BCATRA BCA 06/28/2018 0.00 15.00167365 BILLSUSA SUSAN BILL 06/28/2018 0.00 81.75167366 BuyCha Buy Chanhassen, Inc.06/28/2018 0.00 135.00167367 CLACCO CLASS C COMPONENTS INC 06/28/2018 0.00 57.72167368 COMASP Commercial Asphalt Co 06/28/2018 0.00 1,163.88167369 ContEngi Contech Engineered Solutions LLC 06/28/2018 0.00 420.00167370 Page 1AP Checks by Date - Summary by Check Number (7/2/2018 9:37 AM) Check No Check DateVendor NameVendor No Void Checks Check Amount CORMAI CORE & MAIN LP 06/28/2018 0.00 5,550.03167371 DEPVEH Department of Vehicle Services 06/28/2018 0.00 24.00167372 EESUNI EESCO UNITED ELECTRIC 06/28/2018 0.00 3,330.45167373 FerEnt Ferguson Enterprises, Inc. #1657 06/28/2018 0.00 152.00167374 FlePri FleetPride, Inc.06/28/2018 0.00 135.66167375 FraAnn Annette Fragale 06/28/2018 0.00 255.75167376 GFOA GFOA 06/28/2018 0.00 435.00167377 HartCom Hartman Companies 06/28/2018 0.00 2,695.00167378 LANEQ1 Lano Equipment 06/28/2018 0.00 15,449.00167379 LindScot Scott Lindberg 06/28/2018 0.00 280.00167380 FavrKati Katie Mathews 06/28/2018 0.00 154.66167381 MJMPRO MJM Productions, Inc.06/28/2018 0.00 10,500.00167382 MNTRAN MN DEPT OF TRANSPORTATION 06/28/2018 0.00 928.62167383 OutDes Outdoor Designs & Service 06/28/2018 0.00 862.02167384 POST POSTMASTER 06/28/2018 0.00 671.89167385 PRASYS PRACTICAL SYSTEMS 06/28/2018 0.00 5.00167386 PREFEN PREMIER FENCE INC 06/28/2018 0.00 915.00167387 RILBUS RILEY BUS SERVICE INC 06/28/2018 0.00 700.00167388 RUEGJERR JERRY RUEGEMER 06/28/2018 0.00 400.00167389 SHEWIL SHERWIN WILLIAMS 06/28/2018 0.00 940.88167390 SIGSIG Signation Sign Group 06/28/2018 0.00 100.00167391 SIGNSO SIGNSOURCE 06/28/2018 0.00 2,563.50167392 SpeScr Spectrum Screen Printing Inc 06/28/2018 0.00 744.78167393 TFOFIN TFORCE FINAL MILE 06/28/2018 0.00 182.50167394 TheMus The Mustard Seed, Inc.06/28/2018 0.00 750.00167395 Report Total (72 checks): 152,363.28 0.00 Page 2AP Checks by Date - Summary by Check Number (7/2/2018 9:37 AM) Accounts Payable Checks by Date - Summary by Check User: dwashburn Printed: 7/2/2018 9:37 AM Check No Vendor No Vendor Name Check Date Void Checks Check Amount ACH Z-ACT1TA Act 1 Talent 06/15/2018 0.00 4,783.90 ACH Z-AFFBUT AffordableButtons.com 06/15/2018 0.00 56.45 ACH Z-ALLMED Allied Medical Training 06/15/2018 0.00 695.00 ACH Z-AMAZON Amazon 06/15/2018 0.00 985.58 ACH Z-AMEFLA American Flag & Banner Company Inc 06/15/2018 0.00 412.15 ACH Z-APELAM Apex Lamps 06/15/2018 0.00 160.06 ACH Z-APPLE Apple.com 06/15/2018 0.00 599.15 ACH Z-ASPMIL Aspen Mills 06/15/2018 0.00 77.95 ACH Z-ASSNMN Association of MN Emergency Managers 06/15/2018 0.00 65.00 ACH Z-BEELIG Bees Lighting 06/15/2018 0.00 99.45 ACH Z-BRIDGE Bridge 06/15/2018 0.00 31.68 ACH Z-CARCOU Carver County Environmental Center 06/15/2018 0.00 226.00 ACH Z-CHAFLO Chanhassen Floral 06/15/2018 0.00 259.00 ACH Z-COSTCO Costco Wholesale 06/15/2018 0.00 44.72 ACH Z-CUBFOO Cub Foods 06/15/2018 0.00 196.12 ACH Z-DANSOU Dan's Southside Marine 06/15/2018 0.00 12.01 ACH Z-DOLTRE Dollar Tree Stores Inc 06/15/2018 0.00 18.40 ACH Z-EPISPO Epic Sports 06/15/2018 0.00 146.43 ACH Z-EVEMAP EverMap 06/15/2018 0.00 149.00 ACH Z-FREGRI Freddy's Grille 06/15/2018 0.00 7.00 ACH Z-GERTEN Gertens 06/15/2018 0.00 665.00 ACH Z-GRAVIE Grand View Lodge 06/15/2018 0.00 10.00 ACH Z-GTSEDU GTS Education Events 06/15/2018 0.00 65.00 ACH Z-HACCOM Hach Company 06/15/2018 0.00 743.78 ACH Z-HOLINN Holiday Inn & Suites 06/15/2018 0.00 562.85 ACH Z-HOMDEP Home Depot 06/15/2018 0.00 175.17 ACH Z-HYVEE Hy-Vee 06/15/2018 0.00 21.66 ACH Z-ICMA ICMA 06/15/2018 0.00 700.00 ACH Z-INNLIG Innovative Lighting 06/15/2018 0.00 26.88 ACH Z-ITAGRE Itasca Greenhouse 06/15/2018 0.00 28.00 ACH Z-JIMJOH Jimmy Johns 06/15/2018 0.00 94.82 ACH Z-KWITRI Kwik Trip 06/15/2018 0.00 15.96 ACH Z-LEGGRI Legacy Grille 06/15/2018 0.00 27.00 ACH Z-LOGME LogMeIn Inc 06/15/2018 0.00 947.33 ACH Z-LUNBYE Lunds & Byerly's 06/15/2018 0.00 139.69 ACH Z-MAGNET magnets.com 06/15/2018 0.00 312.40 ACH Z-MAGHOT Magnolia Hotel 06/15/2018 0.00 1,009.44 ACH Z-MANPLU ManagerPlus Solutions LLC 06/15/2018 0.00 499.00 ACH Z-MNNAT Minnesota Native Landscapes 06/15/2018 0.00 81.22 ACH Z-MNSTAT Minnesota State Horticutural Society 06/15/2018 0.00 62.00 ACH Z-MNBOA MN Board of AELSLAGID 06/15/2018 0.00 122.50 ACH Z-MYBIND MyBinding.com 06/15/2018 0.00 220.60 ACH Z-OFFMAX Office Max/Office Depot 06/15/2018 0.00 105.23 ACH Z-OLDCHI Old Chicago 06/15/2018 0.00 19.11 ACH Z-OTCBRA OTC Brands Inc 06/15/2018 0.00 27.49 ACH Z-PERKIN Perkins 06/15/2018 0.00 43.00 ACH Z-PILDRY Pilgrim Dry Cleaners 06/15/2018 0.00 6.00 Page 1 of 3 Check No Vendor No Vendor Name Check Date Void Checks Check Amount ACH Z-PIZZAI Pizzaioli 06/15/2018 0.00 67.38 ACH Z-POTBEL Potbelly Sandwich Shop 06/15/2018 0.00 170.84 ACH Z-PUBSUR Public Surplus 06/15/2018 0.00 38.00 ACH Z-R&BRES R&B Restaurant 06/15/2018 0.00 8.40 ACH Z-RECASN Recycling Association of Minnesota 06/15/2018 0.00 300.00 ACH Z-ROSCAN Rosalita's Cantina 06/15/2018 0.00 16.50 ACH Z-ROTCLU Rotary Club 06/15/2018 0.00 106.00 ACH Z-SAMCLU Sam's Club 06/15/2018 0.00 210.76 ACH Z-SENLAN Sensible Land Use Coalition 06/15/2018 0.00 88.00 ACH Z-SMASIG SmartSign 06/15/2018 0.00 98.00 ACH Z-SUBWAY SUBWAY 06/15/2018 0.00 241.25 ACH Z-TARGET Target 06/15/2018 0.00 26.39 ACH Z-THEGAR The Garden By The Woods 06/15/2018 0.00 38.48 ACH Z-THEMUS The Mustard Seed 06/15/2018 0.00 224.41 ACH Z-TIGCHE TigerChef 06/15/2018 0.00 0.00 ACH Z-UOFM U of M Contlearning 06/15/2018 0.00 240.00 ACH Z-UOFMPA U of M Parking Trans 06/15/2018 0.00 6.00 ACH Z-USABLU USABlueBook 06/15/2018 0.00 628.52 ACH Z-VARIDE VARIDESK LLC 06/15/2018 0.00 510.00 ACH ACTMIN ACTA MINNESOTA-JEFF ENGEL 06/21/2018 0.00 1,650.00 ACH CAMBAR CAMPION BARROW & ASSOCIATES 06/21/2018 0.00 2,125.00 ACH carcou Carver County 06/21/2018 0.00 918,382.50 ACH Choice Choice, Inc. 06/21/2018 0.00 197.86 ACH DelDen Delta Dental 06/21/2018 0.00 2,441.30 ACH Avesis Fidelity Security Life 06/21/2018 0.00 156.13 ACH HAWCHE HAWKINS CHEMICAL 06/21/2018 0.00 9,290.78 ACH HeaStr Health Strategies 06/21/2018 0.00 1,247.50 ACH IMPPOR IMPERIAL PORTA PALACE 06/21/2018 0.00 775.00 ACH IndPla Indelco Plastics Corporation 06/21/2018 0.00 4,268.99 ACH InnOff Innovative Office Solutions LLC 06/21/2018 0.00 252.28 ACH AlHiJuli Juli Al-Hilwani 06/21/2018 0.00 34.50 ACH KATFUE KATH FUEL OIL SERVICE 06/21/2018 0.00 3,282.35 ACH KIMHOR KIMLEY HORN AND ASSOCIATES INC 06/21/2018 0.00 16,097.84 ACH LYMLUM LYMAN LUMBER 06/21/2018 0.00 729.65 ACH MinnVall Minnesota Valley Testing Laboratories, Inc. 06/21/2018 0.00 252.50 ACH MVEC MN VALLEY ELECTRIC COOP 06/21/2018 0.00 89.42 ACH PRALAW PRAIRIE LAWN & GARDEN 06/21/2018 0.00 4.51 ACH SPRPCS SPRINT PCS 06/21/2018 0.00 103.44 ACH SunLif Sun Life Financial 06/21/2018 0.00 1,345.07 ACH DAHLTERR TERRY DAHL 06/21/2018 0.00 408.00 ACH UniFar United Farmers Cooperative 06/21/2018 0.00 47.94 ACH UNIWAY UNITED WAY 06/21/2018 0.00 28.40 ACH VESSCO VESSCO INC 06/21/2018 0.00 25,845.00 ACH WATSON WATSON COMPANY 06/21/2018 0.00 231.91 ACH WMMUE WM MUELLER & SONS INC 06/21/2018 0.00 3,207.34 ACH WSB WSB & ASSOCIATES INC 06/21/2018 0.00 36,094.20 ACH XCEL XCEL ENERGY INC 06/21/2018 0.00 146.35 ACH 3DSPE 3D SPECIALTIES 06/28/2018 0.00 211.32 ACH AllTra All Traffic Solutions 06/28/2018 0.00 3,000.00 ACH AFLAC American Family Life Assurance Company of Columbus 06/28/2018 0.00 39.78 ACH LANZBOB BOB LANZI 06/28/2018 0.00 294.00 ACH ColLif Colonial Life & Accident Insurance Co 06/28/2018 0.00 202.08 ACH DIAVOG DIAMOND VOGEL PAINTS 06/28/2018 0.00 403.50 ACH EMEAPP EMERGENCY APPARATUS MAINT. INC 06/28/2018 0.00 1,325.00 ACH FergEnte Ferguson Waterworks #2516 06/28/2018 0.00 1,421.54 ACH HAWCHE HAWKINS CHEMICAL 06/28/2018 0.00 39,546.20 ACH IMPPOR IMPERIAL PORTA PALACE 06/28/2018 0.00 4,737.80 Page 2 of 3 Check No Vendor No Vendor Name Check Date Void Checks Check Amount ACH IndPla Indelco Plastics Corporation 06/28/2018 0.00 674.86 ACH InnOff Innovative Office Solutions LLC 06/28/2018 0.00 284.81 ACH JasEng Jasper Engineering & Equipment Co 06/28/2018 0.00 262.06 ACH MailEnte Maile Enterprises Inc. 06/28/2018 0.00 3,345.92 ACH MINGER MINGER CONSTRUCTION 06/28/2018 0.00 61,404.20 ACH MVEC MN VALLEY ELECTRIC COOP 06/28/2018 0.00 136.10 ACH NAPA NAPA AUTO & TRUCK PARTS 06/28/2018 0.00 314.47 ACH NeeFou Neenah Foundry Co. 06/28/2018 0.00 8,948.32 ACH PALMPAUL PAUL PALMER 06/28/2018 0.00 98.00 ACH DaniReem Reem Danial 06/28/2018 0.00 225.40 ACH STRGUA STRATOGUARD LLC 06/28/2018 0.00 160.00 ACH UniFar United Farmers Cooperative 06/28/2018 0.00 372.80 ACH WarLit Warning Lites of Minnesota, Inc. 06/28/2018 0.00 734.70 ACH WATSON WATSON COMPANY 06/28/2018 0.00 557.86 ACH WMMUE WM MUELLER & SONS INC 06/28/2018 0.00 1,116.27 ACH WSB WSB & ASSOCIATES INC 06/28/2018 0.00 3,424.75 ACH XCEL XCEL ENERGY INC 06/28/2018 0.00 26,897.97 Report Total: 0.00 1,207,650.58 Page 3 of 3 Accounts Payable Check Detail-Checks User: dwashburn Printed: 07/02/2018 - 9:42 AM Name Check Da Account Description Amount Apple American Group 06/21/2018 101-1210-3226 Refund liquor license - restaurant closed 8,991.58 Apple American Group 8,991.58 ASPEN MILLS 06/21/2018 101-1220-4240 Leather Belt 30.08 ASPEN MILLS 30.08 BCA 06/21/2018 101-1120-4300 Background Investigation 45.00 BCA 06/28/2018 101-1120-4300 Background Investigation 15.00 BCA 60.00 BERRY COFFEE COMPANY 06/21/2018 101-1170-4110 Coffee, Hot Cocoa 62.80 BERRY COFFEE COMPANY 06/21/2018 101-1170-4110 Coffee 353.74 BERRY COFFEE COMPANY 06/21/2018 101-1170-4110 Coffee 21.35 BERRY COFFEE COMPANY 437.89 BILL SUSAN 06/28/2018 101-1560-4380 April mileage to New Ulm 81.75 BILL SUSAN 81.75 BITUMINOUS ROADWAYS INC 06/21/2018 410-0000-4706 Round House Park Improvements 7,751.27 BITUMINOUS ROADWAYS INC 7,751.27 BONFES PLUMBING & HEATING 06/21/2018 101-0000-2033 Permit Overpayment Refund - 8572 Chan Hills Dr S 94.90 BONFES PLUMBING & HEATING 94.90 Brookside Garden Center, Inc.06/21/2018 101-1550-4150 Mulch-Western Red Cedar bulk 202.50 Brookside Garden Center, Inc. 202.50 Buy Chanhassen, Inc.06/28/2018 101-1110-4370 Luncheon 15.00 Buy Chanhassen, Inc.06/28/2018 101-1120-4370 Luncheon 45.00 Buy Chanhassen, Inc.06/28/2018 101-1130-4370 Luncheon 15.00 Buy Chanhassen, Inc.06/28/2018 101-1160-4370 Luncheon 15.00 Buy Chanhassen, Inc.06/28/2018 101-1220-4370 Luncheon 15.00 Buy Chanhassen, Inc.06/28/2018 101-1420-4370 Luncheon 15.00 Buy Chanhassen, Inc.06/28/2018 101-1520-4370 Luncheon 15.00 Buy Chanhassen, Inc. 135.00 CLASS C COMPONENTS INC 06/21/2018 101-1320-4140 Earplugs 129.04 CLASS C COMPONENTS INC 06/21/2018 101-1320-4140 Earplugs 61.47 Accounts Payable - Check Detail-Checks (07/02/2018 - 9:42 AM)Page 1 of 6 Name Check Da Account Description Amount CLASS C COMPONENTS INC 06/28/2018 101-1320-4240 Self Wicking Birdseye Mesh, Silver Glass Bead Reflective 57.72 CLASS C COMPONENTS INC 248.23 Commercial Asphalt Co 06/28/2018 420-0000-4751 Rec Wear, Wear Rec 1,163.88 Commercial Asphalt Co 1,163.88 Consolidated Plastics Company 06/21/2018 101-1250-4130 13X18 MINIGRIP BAG 4MIL 225.78 Consolidated Plastics Company 225.78 Contech Engineered Solutions LLC 06/28/2018 101-1550-4120 ES ACC GB TRASH RACK BLACK 15" 420.00 Contech Engineered Solutions LLC 420.00 CORE & MAIN LP 06/21/2018 601-6032-4300 Minnewashta Manor Street project 16-01 31.37 CORE & MAIN LP 06/21/2018 700-0000-4552 #60 SCREW VLV BOX, 26T TOP SECT THRD 584.73 CORE & MAIN LP 06/21/2018 700-0000-4150 4 CORR POLY INTERNAL CPLG, POLYTAPE 100' 25.46 CORE & MAIN LP 06/28/2018 700-0000-4550 Lid Cover, Gaskets, Valve, Riser, Box Water, Pipe 4,773.87 CORE & MAIN LP 06/28/2018 700-0000-4550 Madallion, O-Ring, Bolts, Nuts, Sfty Flg 776.16 CORE & MAIN LP 6,191.59 Culligan Bottled Water 06/21/2018 101-1220-4300 Water/June 2018 equipment rental 95.06 Culligan Bottled Water 95.06 Department of Vehicle Services 06/28/2018 101-1220-4140 8 Fire plates for new fire vehicles 24.00 Department of Vehicle Services 24.00 Eden Prairie Senior Center 06/21/2018 101-1560-4300 Treasure Island Casino Trip 100.00 Eden Prairie Senior Center 100.00 EESCO UNITED ELECTRIC 06/28/2018 701-0000-4551 Panel View Plus/Micrologix 3,330.45 EESCO UNITED ELECTRIC 3,330.45 EXCELSIOR FIRE DISTRICT 06/21/2018 101-1220-4070 2nd Quarter Fire Dept Admin Services 8,512.00 EXCELSIOR FIRE DISTRICT 8,512.00 FANTASY CORRAL 06/21/2018 101-1613-4300 4th of July Celebration-Petting Zoo 450.00 FANTASY CORRAL 450.00 Ferguson Enterprises, Inc. #1657 06/28/2018 700-0000-4150 1.6 GPF 111 ROYAL 1.6 FV W/SWT 152.00 Ferguson Enterprises, Inc. #1657 152.00 FleetPride, Inc.06/28/2018 101-1370-4170 Fluid Diesel Exhaust 55 Gallon 135.66 FleetPride, Inc. 135.66 Fragale Annette 06/28/2018 101-1539-4300 Line Dancing 255.75 Accounts Payable - Check Detail-Checks (07/02/2018 - 9:42 AM)Page 2 of 6 Name Check Da Account Description Amount Fragale Annette 255.75 G.F. JEDLICKI INC 06/21/2018 700-7050-4751 Galpin Blvd Watermain Improvements 57,201.50 G.F. JEDLICKI INC 57,201.50 GFOA 06/28/2018 101-1130-4301 CAFR Certificate Program Review 435.00 GFOA 435.00 GREAT LAKES COCA-COLA DISTRIBUTION LLC06/21/2018 101-1540-4130 Pop, Fruit drinks, Water 414.54 GREAT LAKES COCA-COLA DISTRIBUTION LLC 414.54 Groove Tech of MN Inc 06/21/2018 601-6033-4300 Chanhassen Mill and Overlay Crosswalks - Park Rd 5,122.00 Groove Tech of MN Inc 5,122.00 Hartman Companies 06/28/2018 720-0000-4300 7 - Spruce Norway 8' 2,695.00 Hartman Companies 2,695.00 Hennepin Technical College 06/21/2018 101-1220-4370 EMS Skills Training - Jim Van Asten 305.00 Hennepin Technical College 305.00 Holm Christopher 06/21/2018 101-1620-4300 KleinBank Summer Concert Series - Chris Holm 300.00 Holm Christopher 300.00 ICMA RETIREMENT AND TRUST-457 06/21/2018 101-0000-2009 6/22/18 ID #304303 1,114.58 ICMA RETIREMENT AND TRUST-457 06/21/2018 210-0000-2009 6/22/18 ID #304303 25.00 ICMA RETIREMENT AND TRUST-457 06/21/2018 700-0000-2009 6/22/18 ID #304303 152.51 ICMA RETIREMENT AND TRUST-457 06/21/2018 701-0000-2009 6/22/18 ID #304303 152.48 ICMA RETIREMENT AND TRUST-457 06/21/2018 720-0000-2009 6/22/18 ID #304303 1.26 ICMA RETIREMENT AND TRUST-457 1,445.83 Jaguar Communications Inc 06/21/2018 700-7043-4310 STANDARD FIBER BUS LINE WITH INCL FEAT 65.92 Jaguar Communications Inc 65.92 Jarvis Timothy J.06/21/2018 101-1613-4300 4th of July Celebration - Ragtown 500.00 Jarvis Timothy J. 500.00 KNOBLAUCH BUILDERS LLC 06/21/2018 815-8226-2024 As-Built Escrow - 300 Preserve Court 2,500.00 KNOBLAUCH BUILDERS LLC 2,500.00 LANGSETH ALAN 06/21/2018 101-1766-4300 Adult Softball Umpire 220.50 LANGSETH ALAN 220.50 Lano Equipment 06/21/2018 700-0000-4410 Rental - Bobcat Excavator 250.00 Lano Equipment 06/28/2018 701-7025-4705 T770 Bobcat 3,639.70 Accounts Payable - Check Detail-Checks (07/02/2018 - 9:42 AM)Page 3 of 6 Name Check Da Account Description Amount Lano Equipment 06/28/2018 700-7025-4705 T770 Bobcat 3,639.70 Lano Equipment 06/28/2018 400-0000-4705 T590 Bobcat 4,510.90 Lano Equipment 06/28/2018 400-0000-4705 S570 Bobcat 3,658.70 Lano Equipment 15,699.00 Lindberg Scott 06/28/2018 101-1220-4370 4 - BLS instructor course class 280.00 Lindberg Scott 280.00 Lotus Print Group, Inc.06/21/2018 101-1220-4240 Chanhassen Fire Dept Tee shirts 1,008.03 Lotus Print Group, Inc. 1,008.03 MADDEN GALANTER HANSEN LLP 06/21/2018 101-1140-4302 Labor Relations Services - May 2018 210.75 MADDEN GALANTER HANSEN LLP 210.75 Mathews Katie 06/21/2018 101-0000-1027 Petty Cash - 4th of July Celebration Kiddie Games 275.00 Mathews Katie 06/21/2018 101-0000-1027 Petty Cash - 4th of July Celebration Change for T-Shirts 200.00 Mathews Katie 06/28/2018 101-1616-4130 Snacks, Sunscreen, Purell, Band-Aids, Tape, Markers, Folders,etc 154.66 Mathews Katie 629.66 Minuteman Press 06/21/2018 101-1170-4110 250 Business Cards 16.00 Minuteman Press 16.00 MJM Productions, Inc.06/28/2018 101-1613-4300 4th of July - Audio Production,Video wall Switchers, Computers 10,500.00 MJM Productions, Inc. 10,500.00 MN CITY/COUNTY MGMT ASSOC.06/21/2018 101-1120-4370 2018 ICMA Annual Conference Group Dinner - C Petersen 55.00 MN CITY/COUNTY MGMT ASSOC. 55.00 MN DEPT OF TRANSPORTATION 06/28/2018 601-6033-4300 Material Testing & Inspection/Concrete Plant Inspections 928.62 MN DEPT OF TRANSPORTATION 928.62 MOORE MEDICAL 06/21/2018 101-1220-4130 Gloves 83.16 MOORE MEDICAL 83.16 Municipal Emergency Services 06/21/2018 101-1220-4530 Shipping cost - SCBA Repair/Scott Repair 8.96 Municipal Emergency Services 8.96 Mutchler Marc S.06/21/2018 101-1613-4300 4th of July Celebration - American Bootleg 500.00 Mutchler Marc S. 500.00 Outdoor Designs & Service 06/28/2018 101-1320-4150 Double mailbox stand accident - Hill St. mailbox 862.02 Outdoor Designs & Service 862.02 POSTMASTER 06/28/2018 700-0000-4330 Postage 335.95 Accounts Payable - Check Detail-Checks (07/02/2018 - 9:42 AM)Page 4 of 6 Name Check Da Account Description Amount POSTMASTER 06/28/2018 701-0000-4330 Postage 335.94 POSTMASTER 671.89 PRACTICAL SYSTEMS 06/28/2018 101-0000-2033 Overpayment - refund permit# 2018-01642 5.00 PRACTICAL SYSTEMS 5.00 PREMIER FENCE INC 06/28/2018 101-1320-4150 Snow Plow Damage - Cedar Posts, Caps, Pickets 915.00 PREMIER FENCE INC 915.00 RILEY BUS SERVICE INC 06/28/2018 101-1560-4300 bus service 700.00 RILEY BUS SERVICE INC 700.00 RUEGEMER JERRY 06/28/2018 101-0000-1027 Petty Cash - Lake Ann Concession 2nd Register 400.00 RUEGEMER JERRY 400.00 SHERWIN WILLIAMS 06/28/2018 101-1320-4120 QP Repair Kit 88.01 SHERWIN WILLIAMS 06/28/2018 701-0000-4150 Blue, Green and Red 639.60 SHERWIN WILLIAMS 06/28/2018 700-0000-4550 POLANE RETRDR REDCR 87.45 SHERWIN WILLIAMS 06/28/2018 701-0000-4120 7316 WB APWA BRILLNT 125.82 SHERWIN WILLIAMS 940.88 Signation Sign Group 06/28/2018 101-0000-2033 Overpayment - refund permit # 2018-01648 100.00 Signation Sign Group 100.00 SIGNSOURCE 06/28/2018 720-7202-4300 Signs for Protected Conservation Area 396.50 SIGNSOURCE 06/28/2018 422-0000-4704 Vehicle Graphics - Chevy Tahoe 2,167.00 SIGNSOURCE 2,563.50 SMSC Organics Recycling Facility 06/21/2018 101-1320-4150 Stumps Root Wads Inbound 141.21 SMSC Organics Recycling Facility 141.21 Spectrum Screen Printing Inc 06/21/2018 101-1540-4240 Lake Ann - Tees, Tank Tops, LS Tee, Hoody 200.00 Spectrum Screen Printing Inc 06/21/2018 101-1600-4240 Tees, Tank Tops, LS Tee, Hoody 1,228.88 Spectrum Screen Printing Inc 06/21/2018 101-1600-4240 Volunteer Shirts - Neon Orange 131.78 Spectrum Screen Printing Inc 06/28/2018 101-1800-4240 Tees, Hoodies 145.00 Spectrum Screen Printing Inc 06/28/2018 101-1530-4240 Tees, Hoodies 173.28 Spectrum Screen Printing Inc 06/28/2018 101-1530-4240 Polos, Sweatshirts, LS Tees, Tees 326.72 Spectrum Screen Printing Inc 06/28/2018 101-1530-4130 Polos, Sweatshirts, LS Tees, Tees 99.78 Spectrum Screen Printing Inc 2,305.44 TFORCE FINAL MILE 06/28/2018 700-0000-4300 REGCAR Public Works to MN Valley Testing Lab 182.50 TFORCE FINAL MILE 182.50 The Garden By The Woods 06/21/2018 101-1550-4120 Ornamental, Annual, Patio Pot 90.00 The Garden By The Woods 06/21/2018 101-1550-4120 Plants 422.00 Accounts Payable - Check Detail-Checks (07/02/2018 - 9:42 AM)Page 5 of 6 Name Check Da Account Description Amount The Garden By The Woods 512.00 THE MEDICINE SHOW 06/21/2018 101-1613-4300 4th of July Celebration-The Medicine Show 650.00 THE MEDICINE SHOW 650.00 The Mustard Seed, Inc.06/28/2018 720-7202-4300 Tree Coupons 750.00 The Mustard Seed, Inc. 750.00 VenuWorks of Burnsville LLC 06/21/2018 101-1560-4300 Deposit - for 1/8/19 lunch/show tickets - Church Basement Ladies 100.00 VenuWorks of Burnsville LLC 100.00 WING RICHARD 06/21/2018 101-1220-4350 Station 2 Cleaner - May 2018 100.00 WING RICHARD 100.00 Winters Melanie 06/21/2018 815-8202-2024 Erosion Escrow - 3648 Strawberry Lane 250.00 Winters Melanie 250.00 152,363.28 Accounts Payable - Check Detail-Checks (07/02/2018 - 9:42 AM)Page 6 of 6 Accounts Payable Check Detail-ACH User: dwashburn Printed: 07/02/2018 - 9:43 AM Name Check D Account Description Amount 3D SPECIALTIES 06/28/2018 101-1320-4240 Safety glasses 211.32 3D SPECIALTIES 211.32 Act 1 Talent 06/15/2018 101-1535-4300 Dance Competition Entries 4,783.90 Act 1 Talent 4,783.90 ACTA MINNESOTA-JEFF ENGEL 06/21/2018 101-1538-4300 Tae Kwon Do 1,650.00 ACTA MINNESOTA-JEFF ENGEL 1,650.00 AffordableButtons.com 06/15/2018 101-1560-4120 Buttons for Chan-O-Laires 56.45 AffordableButtons.com 56.45 Al-Hilwani Juli 06/21/2018 101-1533-4300 Personal Training 34.50 Al-Hilwani Juli 34.50 All Traffic Solutions 06/28/2018 101-1310-4300 Renewal: App/Traffic Suite/Equip Mgmt/Reporting/Image Mgmt/Alert 3,000.00 All Traffic Solutions 3,000.00 Allied Medical Training 06/15/2018 101-1220-4370 EMR Self-Paced course 695.00 Allied Medical Training 695.00 Amazon 06/15/2018 700-0000-4550 Cartridge/Filter, Respirator 46.41 Amazon 06/15/2018 700-0000-4240 Polo shirt -16.98 Amazon 06/15/2018 701-0000-4240 Polo shirt -16.97 Amazon 06/15/2018 101-1530-4130 Ice Packs 51.63 Amazon 06/15/2018 101-1220-4120 Pre-Blended Fuel 37.57 Amazon 06/15/2018 101-1220-4120 4 Cycle Ethanol Free Fuel 111.44 Amazon 06/15/2018 101-1220-4120 Foam Ear Plugs 56.22 Amazon 06/15/2018 701-0000-4150 Ear Plugs-corded 47.00 Amazon 06/15/2018 700-0000-4150 Anti-Seize Lubricant 158.75 Amazon 06/15/2018 701-0000-4260 Belt Tension Tester 30.18 Amazon 06/15/2018 700-0000-4240 Steel Toe Work Boots 59.72 Amazon 06/15/2018 701-0000-4240 Steel Toe Work Boots 59.71 Amazon 06/15/2018 400-4126-4703 (3) Mouse, cleaning wipes 69.06 Amazon 06/15/2018 101-1160-4530 Label Writer 77.60 Amazon 06/15/2018 400-4126-4703 Ipad Case 18.95 Amazon 06/15/2018 400-4126-4703 Adapter/Charger and screen protectors 28.94 Amazon 06/15/2018 400-4126-4703 Ipad case, Glue tape 26.93 Amazon 06/15/2018 101-1560-4120 Beverage Dispenser on Stand w/spout 34.99 Accounts Payable - Check Detail-ACH (07/02/2018 - 9:43 AM)Page 1 of 12 Name Check D Account Description Amount Amazon 06/15/2018 101-1170-4110 Hot Cocoa Mix 10.58 Amazon 06/15/2018 400-4126-4703 HP Tranciever, Camera Covers 93.85 Amazon 985.58 American Family Life Assurance Company of Columbus06/28/2018 101-0000-2008 June 2018 premium 39.78 American Family Life Assurance Company of Columbus 39.78 American Flag & Banner Company Inc 06/15/2018 700-7043-4150 Roof and Side Mounts, Flags, Poles 412.15 American Flag & Banner Company Inc 412.15 Apex Lamps 06/15/2018 101-1160-4530 NEC NP06LP 160.06 Apex Lamps 160.06 Apple.com 06/15/2018 400-4126-4703 Ipad cellular, Apple pencil 599.15 Apple.com 599.15 Aspen Mills 06/15/2018 101-1220-4240 RK Patent Oxford Shoes 77.95 Aspen Mills 77.95 Association of MN Emergency Managers 06/15/2018 101-1220-4360 AMEM Membership 65.00 Association of MN Emergency Managers 65.00 Bees Lighting 06/15/2018 700-0000-4510 Quantum Red LED Exit 99.45 Bees Lighting 99.45 Bridge 06/15/2018 101-1130-4370 Food 31.68 Bridge 31.68 CAMPION BARROW & ASSOCIATES 06/21/2018 101-1220-4300 May 2018 MN Public Safety Fire Services Testing 2,125.00 CAMPION BARROW & ASSOCIATES 2,125.00 Carver County 06/21/2018 101-1210-4300 1st Half 2018 Police Contract 918,282.50 Carver County 06/21/2018 101-1210-4300 Liquor License Background Investigation-High Timber Lounge 100.00 Carver County 918,382.50 Carver County Environmental Center 06/15/2018 700-0000-4350 Business Electron 7.00 Carver County Environmental Center 06/15/2018 101-1160-4300 Recycled computers/parts/monitors 219.00 Carver County Environmental Center 226.00 Chanhassen Floral 06/15/2018 101-1534-4130 Recital Flowers 204.00 Chanhassen Floral 06/15/2018 101-1110-4370 Jodi Sarles Father's Funeral - flowers 55.00 Chanhassen Floral 259.00 Choice, Inc.06/21/2018 101-1220-4350 cleaning 4/16-5/11 197.86 Accounts Payable - Check Detail-ACH (07/02/2018 - 9:43 AM)Page 2 of 12 Name Check D Account Description Amount Choice, Inc. 197.86 Colonial Life & Accident Insurance Co 06/28/2018 101-0000-2008 June premium 60.72 Colonial Life & Accident Insurance Co 06/28/2018 700-0000-2008 June premium 70.68 Colonial Life & Accident Insurance Co 06/28/2018 701-0000-2008 June premium 70.68 Colonial Life & Accident Insurance Co 202.08 Costco Wholesale 06/15/2018 101-1560-4130 Grapes, Celery, organic cuke, Asn Cppd Kit 44.72 Costco Wholesale 44.72 Cub Foods 06/15/2018 101-1430-4300 Clementines, Grapes, almonds 19.24 Cub Foods 06/15/2018 101-1560-4130 Mayo, Cheese, Deli 6.52 Cub Foods 06/15/2018 101-1560-4130 Mayo, Tomato, Crsnts 24.95 Cub Foods 06/15/2018 101-1560-4130 Dressing, Coleslaw, Napkins, Vanilla sandwich 22.12 Cub Foods 06/15/2018 700-7019-4150 Paper Towels 19.32 Cub Foods 06/15/2018 101-1220-4290 Folger KCups 35.59 Cub Foods 06/15/2018 720-7202-4130 Tumblers, Water, Napkins, Coffee, Tea, Juice 68.38 Cub Foods 196.12 DAHL TERRY 06/21/2018 101-1538-4300 Tae Kwon Do 9.00 DAHL TERRY 06/21/2018 101-1539-4300 Tae Kwon Do 399.00 DAHL TERRY 408.00 Danial Reem 06/28/2018 101-1539-4300 Zumba class 225.40 Danial Reem 225.40 Dan's Southside Marine 06/15/2018 101-1550-4120 Bearing, Handle Assy 12.01 Dan's Southside Marine 12.01 Delta Dental 06/21/2018 101-0000-2013 dental insurance - July 2018 1,723.25 Delta Dental 06/21/2018 101-0000-2013 dental insurance - July 2018 cobra 30.20 Delta Dental 06/21/2018 700-0000-2013 dental insurance - July 2018 279.10 Delta Dental 06/21/2018 701-0000-2013 dental insurance - July 2018 248.91 Delta Dental 06/21/2018 720-0000-2013 dental insurance - July 2018 159.84 Delta Dental 2,441.30 DIAMOND VOGEL PAINTS 06/28/2018 420-0000-4751 WHITE MN ACR TRF FD 403.50 DIAMOND VOGEL PAINTS 403.50 Dollar Tree Stores Inc 06/15/2018 101-1537-4130 Clay pots, Hose, Starter trays, construction paper 18.40 Dollar Tree Stores Inc 18.40 EMERGENCY APPARATUS MAINT. INC 06/28/2018 101-1220-4530 NFPA Pump Test Engine 209 E11 265.00 EMERGENCY APPARATUS MAINT. INC 06/28/2018 101-1220-4530 NFPA Pump Test Engine 211 E21 265.00 EMERGENCY APPARATUS MAINT. INC 06/28/2018 101-1220-4530 NFPA Pump Test Engine 212 E12 265.00 EMERGENCY APPARATUS MAINT. INC 06/28/2018 101-1220-4530 NFPA Pump Test Ladder 228 L11 265.00 EMERGENCY APPARATUS MAINT. INC 06/28/2018 101-1220-4530 NFPA Pump Test Mini Pumper Engine 213 265.00 Accounts Payable - Check Detail-ACH (07/02/2018 - 9:43 AM)Page 3 of 12 Name Check D Account Description Amount EMERGENCY APPARATUS MAINT. INC 1,325.00 Epic Sports 06/15/2018 101-1806-4130 Stop Watches, Whistles, Basketballs 61.55 Epic Sports 06/15/2018 101-1807-4130 Stop Watches, Whistles, Basketballs 61.54 Epic Sports 06/15/2018 101-1530-4130 Stop Watches, Whistles, Basketballs 23.34 Epic Sports 146.43 EverMap 06/15/2018 400-4126-4703 Auto Mail merge plug in for Adobe 149.00 EverMap 149.00 Ferguson Waterworks #2516 06/28/2018 700-0000-4250 5/8x3/4 T10 MTR ECDR USG INSIDE 1,421.54 Ferguson Waterworks #2516 1,421.54 Fidelity Security Life 06/21/2018 101-0000-2007 vision insurance - July 2018 111.62 Fidelity Security Life 06/21/2018 700-0000-2007 vision insurance - July 2018 23.88 Fidelity Security Life 06/21/2018 701-0000-2007 vision insurance - July 2018 17.94 Fidelity Security Life 06/21/2018 720-0000-2007 vision insurance - July 2018 2.69 Fidelity Security Life 156.13 Freddy's Grille 06/15/2018 101-1120-4370 MCMA Lunch 7.00 Freddy's Grille 7.00 Gertens 06/15/2018 101-1550-4150 100 6" Tulip Passionale - purple 665.00 Gertens 665.00 Grand View Lodge 06/15/2018 101-1120-4370 MCMA lodging 10.00 Grand View Lodge 10.00 GTS Education Events 06/15/2018 101-1410-4370 2018 Land Use Workshop - Michael McGonagill 65.00 GTS Education Events 65.00 Hach Company 06/15/2018 700-7043-4150 Chlorine, Fluoride, Test 492.02 Hach Company 06/15/2018 700-0000-4150 Presence/Absence w/mug 141.37 Hach Company 06/15/2018 700-7043-4150 Ammonium Hydroxide, Bottle wash 110.39 Hach Company 743.78 HAWKINS CHEMICAL 06/21/2018 700-7019-4160 LPC-9 Corrosion Inhibitor 9,290.78 HAWKINS CHEMICAL 06/28/2018 700-7019-4160 Azone 4,962.90 HAWKINS CHEMICAL 06/28/2018 700-7043-4160 Hydrofluosilicic Acid, Corrosion Inhibitor, Sodium Permanganate 34,583.30 HAWKINS CHEMICAL 48,836.98 Health Strategies 06/21/2018 101-1220-4300 Preplacement Med, Drug Screen, Mask Fit, Mantoux, etc 1,095.00 Health Strategies 06/21/2018 101-1120-4300 Physician Consult 152.50 Health Strategies 1,247.50 Accounts Payable - Check Detail-ACH (07/02/2018 - 9:43 AM)Page 4 of 12 Name Check D Account Description Amount Holiday Inn & Suites 06/15/2018 101-1120-4370 MMCI Clerk Training Year II - hotel stay 562.85 Holiday Inn & Suites 562.85 Home Depot 06/15/2018 700-7019-4150 Water Hammer Arrestor Tee 37.60 Home Depot 06/15/2018 700-0000-4150 Valve, Pipe nipple, Hex bushing 55.18 Home Depot 06/15/2018 700-0000-4150 Adpt, Pipe nipple, Coupling 47.02 Home Depot 06/15/2018 101-1160-4260 Ratchet, Wrench 35.37 Home Depot 175.17 Hy-Vee 06/15/2018 101-1120-4370 Donuts/Fruit 21.66 Hy-Vee 21.66 ICMA 06/15/2018 101-1120-4360 ICMA membership 700.00 ICMA 700.00 IMPERIAL PORTA PALACE 06/21/2018 101-1550-4400 Portable Rest Rooms-March 2018 775.00 IMPERIAL PORTA PALACE 06/28/2018 101-1550-4400 Portable Rest Rooms - May 2018 4,737.80 IMPERIAL PORTA PALACE 5,512.80 Indelco Plastics Corporation 06/21/2018 700-7043-4150 Bushing, Connector, Union Tee 196.87 Indelco Plastics Corporation 06/21/2018 700-7019-4550 Replace Flange on Inlet Weir, Install PVC Support 4,072.12 Indelco Plastics Corporation 06/28/2018 700-0000-4550 MPT Elbow, Connectors 259.13 Indelco Plastics Corporation 06/28/2018 700-7043-4120 Tee, Connectors, Elbows, Bushing 328.01 Indelco Plastics Corporation 06/28/2018 700-7043-4120 Drain Tank, Bushing 87.72 Indelco Plastics Corporation 4,943.85 Innovative Lighting 06/15/2018 101-1220-4140 Sidemarker Amber Lens 26.88 Innovative Lighting 26.88 Innovative Office Solutions LLC 06/21/2018 101-1170-4110 Paper, Tape, Staples 150.77 Innovative Office Solutions LLC 06/21/2018 101-1170-4110 Creamer, Paper, Clipboard 101.51 Innovative Office Solutions LLC 06/28/2018 101-1170-4110 Envelopes, Pens, Folders, Fasteners 77.34 Innovative Office Solutions LLC 06/28/2018 101-1170-4110 Flags, Pads, Books, Pads, Notes, Paper 175.81 Innovative Office Solutions LLC 06/28/2018 101-1170-4110 Labels 31.66 Innovative Office Solutions LLC 537.09 Itasca Greenhouse 06/15/2018 720-7202-4130 Arbor Day Seedlings shipping 28.00 Itasca Greenhouse 28.00 Jasper Engineering & Equipment Co 06/28/2018 700-7043-4120 4 PIN CBLE FOR M12 CONNECTORS 262.06 Jasper Engineering & Equipment Co 262.06 Jimmy Johns 06/15/2018 101-1110-4370 Sandwiches, chips, cookies 94.82 Jimmy Johns 94.82 KATH FUEL OIL SERVICE 06/21/2018 101-1370-4170 Oil Master, Grease, Clean Fee 3,282.35 Accounts Payable - Check Detail-ACH (07/02/2018 - 9:43 AM)Page 5 of 12 Name Check D Account Description Amount KATH FUEL OIL SERVICE 3,282.35 KIMLEY HORN AND ASSOCIATES INC 06/21/2018 400-0000-1155 Private Dev Field Observ - svc through 4/30/18 2,322.50 KIMLEY HORN AND ASSOCIATES INC 06/21/2018 601-6040-4752 Galpin Blvd Reconstruct - svc through 4/30/18 13,775.34 KIMLEY HORN AND ASSOCIATES INC 16,097.84 Kwik Trip 06/15/2018 101-1220-4290 Long call - water 15.96 Kwik Trip 15.96 LANZI BOB 06/28/2018 101-1766-4300 Adult Softball Umpire - 12 Games 294.00 LANZI BOB 294.00 Legacy Grille 06/15/2018 101-1120-4370 Lunch w/ Justin, Brett W and Brett H 27.00 Legacy Grille 27.00 LogMeIn Inc 06/15/2018 101-1160-4300 GoToMyPC Annual Renewal 689.76 LogMeIn Inc 06/15/2018 101-1160-4300 JoinMe Annual Renewal 257.57 LogMeIn Inc 947.33 Lunds & Byerly's 06/15/2018 101-1560-4130 Italian Pasta 93.65 Lunds & Byerly's 06/15/2018 101-1220-4290 Gatorade 24.77 Lunds & Byerly's 06/15/2018 101-1220-4290 Juice, Bakery 21.27 Lunds & Byerly's 139.69 LYMAN LUMBER 06/21/2018 410-0000-4710 Foxwoods project 117.56 LYMAN LUMBER 06/21/2018 410-0000-4710 Foxwoods project 621.97 LYMAN LUMBER 06/21/2018 410-0000-4710 Foxwoods Bridge 240.00 LYMAN LUMBER 06/21/2018 410-0000-4710 Foxwoods Project 156.77 LYMAN LUMBER 06/21/2018 410-0000-4710 Foxwoods Project -565.37 LYMAN LUMBER 06/21/2018 410-0000-4710 Foxwoods Project 158.72 LYMAN LUMBER 729.65 magnets.com 06/15/2018 101-1620-4130 4X5 Full Color Indoor Magnet 312.40 magnets.com 312.40 Magnolia Hotel 06/15/2018 101-1130-4370 Robie's - meal 30.63 Magnolia Hotel 06/15/2018 101-1130-4370 5/5/18 Hotel stay 300.90 Magnolia Hotel 06/15/2018 101-1130-4370 5/6/18-5/8/18 Hotel stay 677.91 Magnolia Hotel 1,009.44 Maile Enterprises Inc.06/28/2018 700-0000-4550 4' Stainless steel hydrant markers 3,345.92 Maile Enterprises Inc. 3,345.92 ManagerPlus Solutions LLC 06/15/2018 101-1160-4220 ManagerPlus Pro Annual Renewal 499.00 Accounts Payable - Check Detail-ACH (07/02/2018 - 9:43 AM)Page 6 of 12 Name Check D Account Description Amount ManagerPlus Solutions LLC 499.00 MINGER CONSTRUCTION 06/28/2018 720-7025-4752 Lake Lucy Drainage Improvements 61,404.20 MINGER CONSTRUCTION 61,404.20 Minnesota Native Landscapes 06/15/2018 720-7202-4300 MNL Pollinator Mix - Dry to Mesic 81.22 Minnesota Native Landscapes 81.22 Minnesota State Horticutural Society 06/15/2018 720-7202-4360 Membership 62.00 Minnesota State Horticutural Society 62.00 Minnesota Valley Testing Laboratories, Inc.06/21/2018 720-0000-4300 testing 252.50 Minnesota Valley Testing Laboratories, Inc. 252.50 MN Board of AELSLAGID 06/15/2018 101-1310-4370 Certificate Renewal 122.50 MN Board of AELSLAGID 122.50 MN VALLEY ELECTRIC COOP 06/21/2018 101-1350-4320 electricity charges 5/7/18-6/7/18 89.42 MN VALLEY ELECTRIC COOP 06/28/2018 101-1350-4320 electricity charges 102.43 MN VALLEY ELECTRIC COOP 06/28/2018 101-1350-4320 electricity charges 33.67 MN VALLEY ELECTRIC COOP 225.52 MyBinding.com 06/15/2018 101-1170-4110 2 sided standard laminate roll set 188.56 MyBinding.com 06/15/2018 101-1170-4110 Black Leather Grain Poly Covers 32.04 MyBinding.com 220.60 NAPA AUTO & TRUCK PARTS 06/28/2018 101-1550-4120 Oil and Air Filters, Tire Patch 99.75 NAPA AUTO & TRUCK PARTS 06/28/2018 101-1250-4140 Serpentine Belt 36.99 NAPA AUTO & TRUCK PARTS 06/28/2018 700-0000-4140 Oil Filter 2.67 NAPA AUTO & TRUCK PARTS 06/28/2018 101-1320-4140 Oil and Fuel Filters 57.07 NAPA AUTO & TRUCK PARTS 06/28/2018 101-1420-4140 Brake Caliper w/hardware 256.90 NAPA AUTO & TRUCK PARTS 06/28/2018 101-1320-4120 Hydraulic and Oil filters -138.91 NAPA AUTO & TRUCK PARTS 314.47 Neenah Foundry Co.06/28/2018 701-0000-4551 Solid Platen LD 8,948.32 Neenah Foundry Co. 8,948.32 Office Max/Office Depot 06/15/2018 700-0000-4150 Binders 35.26 Office Max/Office Depot 06/15/2018 400-4126-4703 Cables, car chargers 69.97 Office Max/Office Depot 105.23 Old Chicago 06/15/2018 101-1120-4370 MMCI Clerk Training Year II 19.11 Old Chicago 19.11 OTC Brands Inc 06/15/2018 101-1600-4130 Crayons 33.02 Accounts Payable - Check Detail-ACH (07/02/2018 - 9:43 AM)Page 7 of 12 Name Check D Account Description Amount OTC Brands Inc 06/15/2018 101-1600-4130 Crayons -5.53 OTC Brands Inc 27.49 PALMER PAUL 06/28/2018 101-1766-4300 Adult Softball Umpire - 4 games 98.00 PALMER PAUL 98.00 Perkins 06/15/2018 101-1120-4370 Update Workman Callister 43.00 Perkins 43.00 Pilgrim Dry Cleaners 06/15/2018 101-1612-4130 Easter 6.00 Pilgrim Dry Cleaners 6.00 Pizzaioli 06/15/2018 101-1220-4290 Long call - Pizza 67.38 Pizzaioli 67.38 Potbelly Sandwich Shop 06/15/2018 101-1220-4290 Hiring Panel food 52.24 Potbelly Sandwich Shop 06/15/2018 101-1110-4370 City Council dinner 118.60 Potbelly Sandwich Shop 170.84 PRAIRIE LAWN & GARDEN 06/21/2018 101-1220-4120 Connector 4.51 PRAIRIE LAWN & GARDEN 4.51 Public Surplus 06/15/2018 101-0000-2033 Auction# 2048178 38.00 Public Surplus 38.00 R&B Restaurant 06/15/2018 101-1120-4370 Carver Cty Managers Monthly update - meal 8.40 R&B Restaurant 8.40 Recycling Association of Minnesota 06/15/2018 720-7201-4360 Membership 300.00 Recycling Association of Minnesota 300.00 Rosalita's Cantina 06/15/2018 101-1130-4370 Meal 16.50 Rosalita's Cantina 16.50 Rotary Club 06/15/2018 101-1120-4370 Monthly fee - T Gerhardt 53.00 Rotary Club 06/15/2018 101-1520-4360 Monthly fee - T Hoffman 53.00 Rotary Club 106.00 Sam's Club 06/15/2018 101-1560-4130 LEMONADE, AP 24 QT MIF, LAYSREG50CTF 25.94 Sam's Club 06/15/2018 101-1560-4130 STRBRY BUNDF, COLESLAW, MM 9 OZ CUP, DRESSING, LETTUCE 44.99 Sam's Club 06/15/2018 101-1430-4300 Water, Variety Pacf 21.92 Sam's Club 06/15/2018 101-1600-4130 Mixed Minisf 16.08 Sam's Club 06/15/2018 101-1560-4130 Mixed Minisf, Lemon Bundt, Coleslaw 101.83 Accounts Payable - Check Detail-ACH (07/02/2018 - 9:43 AM)Page 8 of 12 Name Check D Account Description Amount Sam's Club 210.76 Sensible Land Use Coalition 06/15/2018 101-1420-4370 Member Luncheon - Kate and Sharmeen 88.00 Sensible Land Use Coalition 88.00 SmartSign 06/15/2018 700-7043-4150 Empty and Full Cylinder 98.00 SmartSign 98.00 SPRINT PCS 06/21/2018 700-0000-4310 monthly charges 51.72 SPRINT PCS 06/21/2018 701-0000-4310 monthly charges 51.72 SPRINT PCS 103.44 STRATOGUARD LLC 06/28/2018 101-1160-4300 ProofPoint Email Filtering Service - July 160.00 STRATOGUARD LLC 160.00 SUBWAY 06/15/2018 101-1560-4130 Senior program 241.25 SUBWAY 241.25 Sun Life Financial 06/21/2018 101-1120-4040 Life insurance - July 29.90 Sun Life Financial 06/21/2018 101-1130-4040 Life insurance - July 20.59 Sun Life Financial 06/21/2018 101-1160-4040 Life insurance - July 10.53 Sun Life Financial 06/21/2018 101-1250-4040 Life insurance - July 45.72 Sun Life Financial 06/21/2018 101-1310-4040 Life insurance - July 27.65 Sun Life Financial 06/21/2018 101-1320-4040 Life insurance - July 47.34 Sun Life Financial 06/21/2018 101-1370-4040 Life insurance - July 18.60 Sun Life Financial 06/21/2018 101-1520-4040 Life insurance - July 15.35 Sun Life Financial 06/21/2018 101-1530-4040 Life insurance - July 6.03 Sun Life Financial 06/21/2018 101-1600-4040 Life insurance - July 9.58 Sun Life Financial 06/21/2018 101-1700-4040 Life insurance - July 2.39 Sun Life Financial 06/21/2018 101-1550-4040 Life insurance - July 37.26 Sun Life Financial 06/21/2018 101-1420-4040 Life insurance - July 31.95 Sun Life Financial 06/21/2018 101-1430-4040 Life insurance - July 1.98 Sun Life Financial 06/21/2018 210-0000-4040 Life insurance - July 7.65 Sun Life Financial 06/21/2018 720-7201-4040 Life insurance - July 2.34 Sun Life Financial 06/21/2018 720-7202-4040 Life insurance - July 2.34 Sun Life Financial 06/21/2018 101-1170-4040 Life insurance - July 5.31 Sun Life Financial 06/21/2018 101-1220-4040 Life insurance - July 18.45 Sun Life Financial 06/21/2018 701-0000-4040 Life insurance - July 33.71 Sun Life Financial 06/21/2018 700-0000-4040 Life insurance - July 44.69 Sun Life Financial 06/21/2018 720-0000-4040 Life insurance - July 16.06 Sun Life Financial 06/21/2018 101-0000-2011 Life insurance - July 663.79 Sun Life Financial 06/21/2018 210-0000-2011 Life insurance - July 6.00 Sun Life Financial 06/21/2018 700-0000-2011 Life insurance - July 103.76 Sun Life Financial 06/21/2018 701-0000-2011 Life insurance - July 103.76 Sun Life Financial 06/21/2018 720-0000-2011 Life insurance - July 32.34 Sun Life Financial 1,345.07 Target 06/15/2018 701-0000-4530 Batteries 26.39 Accounts Payable - Check Detail-ACH (07/02/2018 - 9:43 AM)Page 9 of 12 Name Check D Account Description Amount Target 26.39 The Garden By The Woods 06/15/2018 720-7202-4300 Ornamental, Annual 38.48 The Garden By The Woods 38.48 The Mustard Seed 06/15/2018 410-0000-4701 Royal Red Norway Maple 159.99 The Mustard Seed 06/15/2018 720-7202-4300 Planters, Legacy Pot 111.13 The Mustard Seed 06/15/2018 720-7202-4300 Legacy Pot - return -46.71 The Mustard Seed 224.41 TigerChef 06/15/2018 700-0000-4510 LED Exit Sign 154.15 TigerChef 06/15/2018 700-0000-4510 LED Exit Sign - item cancelled -154.15 TigerChef 0.00 U of M Contlearning 06/15/2018 101-1250-4370 Course Soils CE 240.00 U of M Contlearning 240.00 U of M Parking Trans 06/15/2018 101-1120-4370 LMC Loss Control Workshop parking 6.00 U of M Parking Trans 6.00 United Farmers Cooperative 06/21/2018 720-7202-4320 UREA 50# BAG, ACE COW MANURE 47.94 United Farmers Cooperative 06/28/2018 700-0000-4530 RXLOOP Trimmer 359.95 United Farmers Cooperative 06/28/2018 101-1550-4120 Flangette 12.85 United Farmers Cooperative 420.74 UNITED WAY 06/21/2018 101-0000-2006 PR Batch 00422.06.2018 United Way 28.40 UNITED WAY 28.40 USABlueBook 06/15/2018 701-0000-4551 Submers Caged Level Transmittr 628.52 USABlueBook 628.52 VARIDESK LLC 06/15/2018 400-0000-4703 Standing Desk 510.00 VARIDESK LLC 510.00 VESSCO INC 06/21/2018 700-7050-4300 Liquid chemical feed pumps for the West Water Treatment Plant 25,845.00 VESSCO INC 25,845.00 Warning Lites of Minnesota, Inc.06/28/2018 700-0000-4150 Rollup 48" Road Closed, Crossbraces 328.00 Warning Lites of Minnesota, Inc.06/28/2018 101-1320-4120 Cone Collar 6in, 4in 78.70 Warning Lites of Minnesota, Inc.06/28/2018 101-1320-4120 Rollup 48" Road Closed, Crossbraces 328.00 Warning Lites of Minnesota, Inc. 734.70 WATSON COMPANY 06/21/2018 101-1540-4130 Lake Ann Concession Supplies 231.91 WATSON COMPANY 06/28/2018 101-1540-4130 Lake Ann Concession Supplies 557.86 Accounts Payable - Check Detail-ACH (07/02/2018 - 9:43 AM)Page 10 of 12 Name Check D Account Description Amount WATSON COMPANY 789.77 WM MUELLER & SONS INC 06/21/2018 720-7025-4751 Chan Hill Pond - Pond Excavation 520.00 WM MUELLER & SONS INC 06/21/2018 720-7025-4751 Chan Hill Pond - Pond Excavation 224.00 WM MUELLER & SONS INC 06/21/2018 720-7025-4751 Chan Hill Pond - Pond Excavation 489.86 WM MUELLER & SONS INC 06/21/2018 720-7025-4751 Chan Hill Pond - Pond Excavation 208.88 WM MUELLER & SONS INC 06/21/2018 720-7025-4751 Chan Hill Pond - Pond Excavation 1,764.60 WM MUELLER & SONS INC 06/28/2018 420-0000-4751 Asphalt Plant 684.14 WM MUELLER & SONS INC 06/28/2018 700-0000-4552 Utilities 116.13 WM MUELLER & SONS INC 06/28/2018 420-0000-4751 Asphalt Plant 316.00 WM MUELLER & SONS INC 4,323.61 WSB & ASSOCIATES INC 06/21/2018 700-7050-4752 West Water Treatment Plant - svc through April 2018 23,718.45 WSB & ASSOCIATES INC 06/21/2018 601-6032-4752 Street Reconstruction Proj 16-01 - svc through April 2018 7,580.50 WSB & ASSOCIATES INC 06/21/2018 601-6033-4752 Park Road Mill and Overlay - svc through April 2018 2,426.50 WSB & ASSOCIATES INC 06/21/2018 720-0000-4300 Avienda Development Stormwater Review - svc through April 2018 2,368.75 WSB & ASSOCIATES INC 06/28/2018 701-0000-4300 OMS Sewer Televising History Import - svc from April 2018 156.00 WSB & ASSOCIATES INC 06/28/2018 101-1310-4300 OMS Pavement Distress History Import - svc from April 2018 780.00 WSB & ASSOCIATES INC 06/28/2018 101-1310-4300 2018 GIS Support Services - svc from April 2018 312.00 WSB & ASSOCIATES INC 06/28/2018 700-7050-4752 West Water Treatment Plant-svc from April 2018 634.00 WSB & ASSOCIATES INC 06/28/2018 601-6039-4752 Lake Drive East Street Improvements-svc from April 2018 1,297.75 WSB & ASSOCIATES INC 06/28/2018 700-7050-4752 West Water Treatment Plant-svc from March 2018 245.00 WSB & ASSOCIATES INC 39,518.95 XCEL ENERGY INC 06/28/2018 700-0000-4320 electricity charges 5/07/18-6/14/18 9,652.33 XCEL ENERGY INC 06/28/2018 700-0000-4320 electricity charges 4/25/18-6/16/18 94.37 XCEL ENERGY INC 06/28/2018 701-0000-4320 electricity charges 4/25/18-6/16/18 6,257.97 XCEL ENERGY INC 06/21/2018 700-0000-4320 electricity charges 5/13/18-6/12/18 1.47 XCEL ENERGY INC 06/21/2018 101-1600-4320 electricity charges 5/13/18-6/12/18 -25.13 XCEL ENERGY INC 06/21/2018 101-1350-4320 electricity charges 5/13/18-6/12/18 11.31 XCEL ENERGY INC 06/21/2018 101-1350-4320 electricity charges 5/13/18-6/12/18 3.42 XCEL ENERGY INC 06/21/2018 101-1350-4320 electricity charges 5/13/18-6/12/18 23.62 XCEL ENERGY INC 06/21/2018 700-0000-4320 electricity charges 5/9/18-6/10/18 120.25 XCEL ENERGY INC 06/21/2018 101-1350-4320 electricity charges 5/13/18-6/12/18 11.41 XCEL ENERGY INC 06/28/2018 101-1540-4320 electricity charges 05/09/18-6/16/18 1,760.62 XCEL ENERGY INC 06/28/2018 101-1600-4320 electricity charges 05/09/18-6/16/18 57.82 XCEL ENERGY INC 06/28/2018 101-1550-4320 electricity charges 05/09/18-6/16/18 -272.57 XCEL ENERGY INC 06/28/2018 101-1600-4320 electricity charges 05/09/18-6/14/18 170.41 XCEL ENERGY INC 06/28/2018 101-1170-4320 electricity charges -666.63 XCEL ENERGY INC 06/28/2018 101-1190-4320 electricity charges 288.87 XCEL ENERGY INC 06/28/2018 101-1220-4320 electricity charges 970.88 XCEL ENERGY INC 06/28/2018 101-1370-4320 electricity charges 1,884.18 XCEL ENERGY INC 06/28/2018 101-1120-4320 electricity charges 136.97 XCEL ENERGY INC 06/28/2018 700-0000-4320 electricity charges 235.52 XCEL ENERGY INC 06/28/2018 701-0000-4320 electricity charges 235.52 XCEL ENERGY INC 06/28/2018 101-1600-4320 electricity charges 5/17/18-6/18/18 17.02 XCEL ENERGY INC 06/28/2018 700-7019-4320 electricity charges 5/15/18-6/14/18 6,101.73 XCEL ENERGY INC 06/28/2018 101-1350-4320 electricity charges 5/13/18-6/12/18 -37.10 XCEL ENERGY INC 06/28/2018 101-1350-4320 electricity charges 5/13/18-6/14/18 10.06 XCEL ENERGY INC 27,044.32 Accounts Payable - Check Detail-ACH (07/02/2018 - 9:43 AM)Page 11 of 12 Name Check D Account Description Amount 1,207,650.58 Accounts Payable - Check Detail-ACH (07/02/2018 - 9:43 AM)Page 12 of 12 CITY COUNCIL STAFF REPORT Monday, July 9, 2018 Subject Website Analytics Overview June 2018 Section CORRESPONDENCE DISCUSSION Item No: K.2. Prepared By File No: ATTACHMENTS: Website Analytics Overview June 2018 City of Chanhassen All Web Site Data GO TO REPORT Top Channels Users Conversions Acquisition Behavior Set up a goal. To see outcome metrics, define one or more goals. GET STARTED Conversions Acquisition Overview Jun 1, 2018 -Jun 30, 2018 Primary Dimension:Conversion: Edit Channel Grouping To see all 6 Channels click here. Top Channels All Goals Organic Search Direct Referral Social Display Email 32.2% 61.4% Users Goal Conversion Rate …Jun 8 Jun 15 Jun 22 Jun 29 1,0001,000 2,0002,000 …Jun 8 Jun 15 Jun 22 Jun 29 0.00%0.00% 100.00%100.00% 1 Organic Search 2 Direct 3 Referral 4 Social 5 Display 6 Email Users 19,164 New Users 16,648 Sessions 25,076 11,924 6,248 739 432 56 33 Bounce Rate 65.80% Pages / Session 2.02 Avg. Session Duration 00:01:41 59.63% 80.39% 57.20% 68.05% 71.93% 87.50% © 2018 Google All Users 100.00% Users City of Chanhassen All Web Site Data GO TO REPORT Page Rows 1 - 10 of 3027 Pages Jun 1, 2018 -Jun 30, 2018 Explorer Pageviews Unique Pageviews Avg. Time on Page Entrances Bounce Rate % Exit Page Value 50,735 % of Total:100.00% (50,735) 41,335 % of Total:100.00% (41,335) 00:01:38 Avg for View:00:01:38 (0.00%) 25,076 % of Total:100.00% (25,076) 65.80% Avg for View:65.80% (0.00%) 49.43% Avg for View:49.43% (0.00%) $0.00 % of Total:0.00% ($0.00) 1.6,766 (13.34%) 4,554 (11.02%)00:02:02 4,246 (16.93%)36.20%31.64%$0.00 (0.00%) 2.4,499 (8.87%) 3,876 (9.38%)00:04:36 3,586 (14.30%)84.55%81.60%$0.00 (0.00%) 3.1,805 (3.56%) 1,488 (3.60%)00:01:30 1,349 (5.38%)58.71%57.06%$0.00 (0.00%) 4.1,144 (2.25%) 760 (1.84%)00:00:37 297 (1.18%)26.94%17.74%$0.00 (0.00%) 5.938 (1.85%) 765 (1.85%)00:00:59 267 (1.06%)38.20%33.48%$0.00 (0.00%) 6.911 (1.80%) 814 (1.97%)00:02:11 429 (1.71%)87.41%71.57%$0.00 (0.00%) 7.888 (1.75%) 742 (1.80%)00:01:11 657 (2.62%)34.40%36.04%$0.00 (0.00%) 8.861 (1.70%) 732 (1.77%)00:02:15 559 (2.23%)79.61%70.15%$0.00 (0.00%) 9.859 (1.69%) 711 (1.72%)00:03:42 325 (1.30%)83.08%66.82%$0.00 (0.00%) 10.548 (1.08%) 429 (1.04%)00:02:09 216 (0.86%)63.43%54.20%$0.00 (0.00%) Pageviews …Jun 8 Jun 15 Jun 22 Jun 29 1,5001,500 3,0003,000 / /272/4th-of-July-Celebration /284/Lake-Ann-Park /194/Proposed-Developments /31/Parks-Recreation /1018/Job-Opportunities /296/Recreation-Center /276/KleinBank-Summer-Concert-Series /240/Agendas-Minutes-Videos /242/City-Code © 2018 Google All Users 100.00% Pageviews City of ChanhassenAll Web Site Data GO TO REPORT Search Term Rows 1 - 10 of 1143 Search Terms Jun 1, 2018 -Jun 30, 2018 Explorer Site Usage Total Unique Searches Results Pageviews / Search % Search Exits % Search Refinements Time after Search Avg. Search Depth 1,500 % of Total:100.00% (1,500) 1.27 Avg for View:1.27 (0.00%) 30.80% Avg for View:30.80% (0.00%) 18.92% Avg for View:18.92% (0.00%) 00:02:14 Avg for View:00:02:14 (0.00%) 1.44 Avg for View:1.44 (0.00%) 1.Pickleball 14 (0.93%)1.14 42.86%18.75%00:00:43 0.57 2.4th of July Celebration 13 (0.87%)1.00 38.46%0.00%00:01:58 0.77 3.4th of july 9 (0.60%)1.00 11.11%0.00%00:00:12 0.89 4.Pond mosquito 9 (0.60%)1.33 100.00%0.00%00:00:05 0.00 5.avienda 8 (0.53%)1.75 12.50%0.00%00:05:50 4.38 6.pickleball 8 (0.53%)1.25 25.00%30.00%00:05:21 1.88 7.Noise 6 (0.40%)1.33 50.00%25.00%00:01:09 0.67 8.Noise ordinance 6 (0.40%)1.00 50.00%33.33%00:02:06 0.33 9.parking 6 (0.40%)1.83 33.33%0.00%00:03:59 4.17 10.zoning 6 (0.40%)1.50 50.00%11.11%00:00:37 0.67 Total Unique Searches …Jun 8 Jun 15 Jun 22 Jun 29 5050 100100 © 2018 Google All Users 100.00% Total Unique SearchesCity of Chanhassen All Web Site Data GO TO REPORT Rows 1 - 3 of 3 Overview Jun 1, 2018 -Jun 30, 2018 Explorer Summary 19,164 % of Total: 100.00% (19,164) 19,164 % of Total: 100.00% (19,164) 1.desktop10,44854.23% 2.mobile7,64339.67% 3.tablet1,1746.09% Users …Jun 8Jun 15 Jun 22 Jun 29 1,0001,000 2,0002,000 Device CategoryUsersUsers Contribution to total: Users 6.1% 39.7%54.2% © 2018 Google All Users 100.00% Users City of Chanhassen All Web Site Data GO TO REPORT Rows 1 - 3 of 3 Overview Jun 1, 2018 -Jun 30, 2018 Explorer Summary 19,164 % of Total: 100.00% (19,164) 19,164 % of Total: 100.00% (19,164) 1.desktop 10,448 54.23% 2.mobile 7,643 39.67% 3.tablet 1,174 6.09% Users …Jun 8 Jun 15 Jun 22 Jun 29 1,0001,000 2,0002,000 Device Category Users Users Contribution to total: Users 6.1% 39.7%54.2% © 2018 Google All Users 100.00% Users JUNE 2018 WEBSITE ANALYTICS OVERVIEW City of ChanhassenAll Web Site Data GO TO REPORT Language Users % Users 1.en-us 16,827 87.83% 2.c 2,024 10.56% 3.fr 84 0.44% 4.en-gb 50 0.26% 5.ko 28 0.15% 6.zh-cn 24 0.13% 7.es-xl 15 0.08% 8.es-es 12 0.06% 9.de-de 11 0.06% 10.en-ca 11 0.06% Audience Overview Jun 1, 2018 -Jun 30, 2018 Overview Sessions Pageviews …Jun 8 Jun 15 Jun 22 Jun 29 1,0001,000 2,0002,000 1,5001,500 3,0003,000 Users 19,164 New Users 16,648 Sessions 25,076 Number of Sessions per User 1.31 Pageviews 50,735 Pages / Session 2.02 Avg. Session Duration 00:01:41 Bounce Rate 65.80% New Visitor Returning Visitor 21.4% 78.6% © 2018 Google All Users100.00% Users SESSIONS VS. PAGEVIEWS 25,076 Sessions vs. 50,735 Pageviews Session: The period of time a user is actively engaged with our website, app, etc. Pageview: Total # of pages viewed. Repeated views of a single page are counted. HOW ARE THEY FINDING US? 11,924 Organic Search 6,248 Direct 739 Referral 432 Social WHAT ARE THEY USING TO VIEW OUR SITE? WHAT ARE THEY SEARCHING FOR?WHAT PAGES ARE THEY VISITING? NEW VS. RETURNING VISITOR 16,772 New Visitors 4,574 Returning Visitors WHAT CAN WE LEARN? People are primarily interested in the 4th of July celebration along with other Park & Rec events/amenities. The Facebook event has reached 79,137 since May 22, with 2,314 people responding they are going or are interested in the event. CITY COUNCIL STAFF REPORT Monday, July 9, 2018 Subject New Business issued Sign Permits in April, May, and June 2018 Section CORRESPONDENCE DISCUSSION Item No: K.3. Prepared By File No: ATTACHMENTS: 2018 Second Quarter Sign Permits Issued New Businesses Issued Sign Permits April, 2018 Business Name Site Address Type of Business ABC Millwork & Cabinetry 8115 Century Blvd. Millwork Aldi 551 West 78th Street Grocery The Hound Dog Pet Hotel West & Spa 2910 West 82nd Street Doggy Daycare & Spa Kindermusik With Friends 1351 Park Road Music/Dance Training Edward Jones 480 West 78th Street, Suite 100 Insurance Storagemart 1900 Stoughton Avenue Storage (change ownership) May, 2018 Business Name Site Address Type of Business Byerlys 800 W est 78th Street Online Pickup lane Hair With Us 408 West 78th Street Hair Salon Minnetonka Middle School West 6421 Hazeltine Blvd. Electronic Reader Sign June, 2018 Business Name Site Address Type of Business Code Ninjas 426 Pond Promenade Kids Learning to Code g:\plan\forms\sign permits\sign permits issued 2018-2.doc