Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
06/03/2014 - City Council Regular
AGENDA EAGAN CITY COUNCIL EAGAN MUNICIPAL CENTER BUILDING JUNE 3, 2014 6:30 P.M. ROLL CALL AND PLEDGE OF ALLEGIANCE II. ADOPTAGENDA III. RECOGNITIONS AND PRESENTATIONS IV. CONSENT AGENDA (Consent items are acted on with one motion unless a request is made for an item to be pulled for discussion) A. APPROVE MINUTES B. PERSONNEL ITEMS C. APPROVE Check Registers D. APPROVE resolution adopting and authorizing implementation of the performance measures developed by the Council on Local Results and Innovation E. ACCEPT the resignation of Michael Supina from the Advisory Planning Commission F. APPOINT Joseph Dierkes to a one -year term on the Advisory Planning Commission G. APPROVE Vacation of Public Drainage & Utility Easements, Great Oaks & The Woodlands North Addition and a Final Subdivision for Great Oaks 2nd Addition H. ADOPT the 5 Year Public Works Capital Improvement Plan (2015 -2019) and Authorize the Implementation of the 2015 Improvements I. APPROVE Revisions to the Winter Trail Maintenance Program for 2014 -2015 J. APPROVE Final Payment to Xcel Energy —Cedar Grove Gas Line Relocation K. APPROVE Final Subdivision and Final Planned Development — Dakota Path 2nd Addition L. APPROVE Change Order No. 6 to Contract 13 -05 (Cedar Grove Parking Garage) M. APPROVE Street Sign Management & Maintenance Policy N. APPROVE Final Plat — Long Acres 3rd Addition 0. APPROVE Exempt Permit for the Eagan Resource Center to hold a raffle on July 9, 2014 at Jensen's Supper club, 3840 Cedarvale Blvd P. APPROVE AccessEagan Non - Exclusive Access and Use Agreement with Granite Telecommunications, LLC V. 2013 COMPREHENSIVE ANNUAL FINANCIAL REPORT VI. PUBLIC HEARINGS A. VARIANCE — Thorson Homes -A Variance of 17.5' to the required structure setback of 125' from the center line of the Lone Oak Road right -of -way located at 1443 Lone Oak Road VII. OLD BUSINESS A. PLANNED DEVELOPMENT AMENDMENT— Fiesta Cancun —A Planned Development Amendment to allow for outdoor patio dining located at 4250 Lexington Avenue South VIII. NEW BUSINESS A. CONDITIONAL USE PERMIT and VARIANCE —Scott & Kari Anderson - A Conditional Use Permit to exceed 25% impervious surface coverage in a Shoreland Overlay District for a sport court and hardscape improvements and a Variance of 7 ft. to the required maximum driveway width of 22 ft. for property located at 3844 Big Timber Trail B. CONDITIONAL USE PERMIT and VARIANCE — Verizon Wireless - A Conditional Use Permit to allow a cell tower and A Variance to allow a cell tower in the side yard located at 2950 Hwy 55 C. ORDINANCE AMENDMENTS - An Ordinance Amendment associated with micro breweries, tap rooms, farm wineries and micro distilleries IX. LEGISLATIVE / INTERGOVERNMENTAL AFFAIRS UPDATE X. ECONOMIC DEVELOPMENT AUTHORITY (There are no EDA items scheduled for consideration at this time) XI. ADMINISTRATIVE AGENDA A. City Attorney B. City Council Comments C. City Administrator D. Director of Public Works E. Director of Community Development XII. VISITORS TO BE HEARD (for those persons not on the agenda) XIII. CLOSED SESSION XIV. ADJOURNMENT --7- City of Eagan mn TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY ADMINISTRATOR OSBERG DATE: MAY 30, 2014 SUBJECT: AGENDA INFORMATION FOR JUNE 3, 2014 CITY COUNCIL MEETING ADOPT AGENDA After approval is given to the June 3, 2014 City Council agenda, the following items are in order for consideration. Agenda Information Memo June 3, 2014 Eagan City Council Meeting CONSENT AGENDA The following items referred to as consent items require one (1) motion by the City Council. If the City Council wishes to discuss any of the items in further detail, those items should be removed from the Consent Agenda and placed under Old or New Business unless the discussion required is brief. A. Approve Minutes Action To Be Considered: To approve the minutes of May 13, 2014 Special City Council meeting and May 20, 2014 regular City Council meeting as presented or modified. Attachments: (2) CA -1 May 13, 2014 minutes CA -2 May 20, 2014 minutes MINUTES SPECIAL CITY COUNCIL MEETING MAY 13, 2014 5:30 P.M. EAGAN MUNICIPAL CENTER City Councilmembers present: Mayor Maguire, Councilmembers Bakken, Fields and Hansen. Councilmembers Tilley arrived at 6:24 p.m. City staff present: City Administrator Osberg, Assistant City Administrator Miller, Communications Director Garrison, Parks & Recreation Director Johnson, Public Works Director Matthys, Transportation Operations Engineer Plath, City Engineer Gorder, Water Resources Manager Macbeth, Director of Finance Pepper, Director of Community Development Hohenstein. ROLL CALL AND ADOPTION OF THE AGENDA Councilmember Fields moved, Councilmember Hansen seconded a motion to adopt the agenda as presented. Aye:4 Nay:0 VISITORS TO BE HEARD There were no visitors to be heard. NAMING OF NEW PARK IN CEDAR GROVE City Administrator Osberg introduced the item noting the Council is being asked to name the park being constructed in the Cedar Grove area. The Eagan Historical Society (EHS) reviewed the list of potential park names and provided additional input to the Advisory Parks Commission (APrC). Parks & Recreation Director Johnson gave a brief description of the potential park names provided through the collaborative efforts of the APrC and EHS. The Council discussed the potential park names. After further discussion it was the consensus of the Council to name the new park Bridgeview Park. The City Council gave direction to add the new park name, Bridgeview Park, to the consent agenda of the May 20, 2014 City Council meeting. WINTER TRAIL MAINTENANCE PROGRAM REQUESTS FOR ADDITIONS /CHANGES Director of Public Works Matthys introduced the item noting the City Council adopted a Winter Trail Maintenance Plan that allows the Council to annually review and consider modifications to the extent of the trail system that is designated for maintenance during the winter months. Matthys noted there are four (4) Citizen Petitions, six (6) New Trail segments, and two (2) Staff Recommendations to be reviewed. Matthys summarized the citizen petitions received. The City Council discussed Citizen Petition #1, which requested that a trail segment be plowed on the south side of Silver Bell Road from Highway 13 to Nicols Road. Special City Council Minutes May 13, 2014 Page 2 The Council discussed Citizen Petition #1. Councilmember Bakken suggested the trail segment be shortened to end just across from the higher density residential area. The Council concurred and directed staff to add the revised trail segment to be plowed on the south side of Silver Bell Road from Highway 13 as a Priority Level 3 route. The City Council discussed Citizen Petition #2, which requested that a trail segment be plowed on the south side of Diffley Road from Blackhawk Road to Rahn Road. Perry Lippert, representative of the petition, was present and spoke in support of the request. The Council concurred and directed staff to add the trail segment to be plowed on the south side of Diffley Road from Blackhawk Road to Rahn Road as a Priority Level 4 route. The City Council discussed Citizen Petition #3, which requested that a trail segment be plowed on the north side of Cliff Road from Thomas Lake Road to Pilot Knob Road. Denice Arambadjis, 4537 Lake Park Drive, representative of the petition, was present and spoke in support of the request. The Council concurred and directed staff to add the trail segment to be plowed on the north side of Cliff Road from Thomas Lake Road to Pilot Knob Road as a Priority Level 2 route. The City Council discussed Citizen Petition #4 /New Trail #1. A new 6 -foot wide concrete sidewalk was recently installed on the east side of Northwood Circle from Northwood Parkway to the end of the cul- de -sac, as part of the CDA's Northwood Family Townhomes development. A representative from the Dakota County Community Development Agency (CDA) was present. The petition is requesting that a new sidewalk segment be plowed on the east side of Northwood Circle from Northwood Parkway to the end of the cul -de -sac. The City Council concurred that the new sidewalk segment be plowed on the east side of Northwood Circle from Northwood Parkway to the end of the cul -de -sac as a Priority Level 3 route. The City Council discussed New Trail #2, a new 6 -foot wide concrete sidewalk that was installed on the north side of Station Trail, west of Wescott Woodlands, as part of the Fire Safety Center construction. The City Council concurred that the new sidewalk segment be plowed on the north side of Station Trail, west of Wescott Woodlands as a Priority Level 4 route. The City Council discussed New Trail #3, an 8 -foot wide bituminous trail scheduled to be installed this year on the east side of Blackhawk Road, from Diffley Road to the Highline Trail. The City Council concurred that the new bituminous trail be plowed on the on the east side of Blackhawk Road, from Diffley Road to the Highline Trail as a Priority Level 4 route. The City Council discussed New Trail #4, an 8 -foot wide bituminous trail recently installed on the east side of Rahn Road, from Nicols Road to Cedar Grove Parkway, as part of the Cedar Grove Redevelopment efforts. The City Council concurred that the new bituminous trail be plowed on the east side of Rahn Road, from Nicols Road to Cedar Grove Parkway as a Priority Level 2 route. The City Council discussed New Trail #5, a 10 -foot wide bituminous trail scheduled to be installed this year on the west /south side of Highways 55 and 149, from their south intersection to the intersection of Blue Gentian Road and Highway 149, as part of Contract 14 -08. The City Council concurred that the new bituminous trail be plowed on the west /south side of Highway 55 and 149, from their south intersection to the intersection of Blue Gentian Road and Highways 149 as a Priority Level 4 route. The City Council discussed New Trail #6, a 10 -foot wide bituminous trail scheduled to be installed this year on the north side of Cliff Road, from Cinnamon Ridge Trail to Nicols Road. The City Council Special City Council Minutes May 13, 2014 Page 3 concurred that the new bituminous trail be plowed on the north side of Cliff Road, from Cinnamon Ridge Trail to Nicols Road as a Priority Level 2 route. The City Council discussed Staff Recommendation #1, a 10 -foot wide bituminous trail exists on the north /west side of Yankee Doodle Road, from Highway 149 to 77th Street (Inver Grove Heights). Staff has provided winter maintenance of this trail segment since 2007. The trail segment gets little use as it currently lies at the end of the trail system and is not readily accessible. Staff recommendation would be to remove this segment from the program. The City Council concurred with the removal of the trail on the north /west side of Yankee Doodle Road, from Highway 149 to 77th Street from the program. The City Council discussed Staff Recommendation #2, an 8 -foot wide bituminous trail that exists on the west side of Wescott Woodlands, from Station Trail to Yankee Doodle Road. Adding this trail would provide connectivity from the new Stonehaven development to winter maintained trail segments along Yankee Doodle Road. The City Council concurred that the trail segment be plowed on the west side of Wescott Woodlands, from Station Trail to Yankee Doodle Road as a Priority Level 4 route. PUBLIC WORKS 5 -YEAR CAPITAL IMPROVEMENT PROGRAM (2015 -2019) Director of Public Works Matthys introduced the item noting that each year the City Council adopts a Capital Improvement Program (CIP) for the community, which includes Part III- Infrastructure (Public Works). Matthys provided an overview of the proposed Public Works Infrastructure projects for 2015- 2019. The Council discussed the Public Works 5 -year Capital Improvement Program. Matthys proposed changes to Borchert Lane (Project 22- 150026) under Arterial and Collector Improvements, Chapel Lane /Borchert Lane at TH 149 (Project22- 150277) under Intersection Improvements, and Nicols Road (Project 22- 150064) under Local Street Improvements. The Council concurred with the proposed revisions. Mayor Maguire asked if anyone in the audience would like to comment on the proposed CIP. There being no public comment, he turned discussion back to the Council. The City Council discussed the proposed CIP projects and directed the CIP to the June 3, 2014, City Council meeting for formal consideration. OUTLET CENTER TRAVEL DEMAND MANAGEMENT PLAN City Administrator Osberg introduced Peter Lund, General Manager for the Twin Cities Premium Outlets /Simon. Matt Pacyna from SRF Consulting Group Inc., gave an overview of the Travel Demand Management Plan. The Council discussed the Travel Demand Management Plan and agreed with the methodology behind the recommendations along with all of the proposed public improvements. The Council further discussed Outlots A and B being used for additional parking. The Council also discussed on -going traffic and parking issues when the mall is open. Public Works Director Matthys and Mr. Lund responded to their questions. Special City Council Minutes May 13, 2014 Page 4 The City Council affirmed the draft Travel Demand Management Plan for the Twin Cities at Eagan Outlets by SRF Consulting Group, Inc., and authorized the initiation of the public improvement process for the Public Improvement recommendations to a future City Council meeting for formal consideration. There was no other business to be heard. OTHER BUSINESS ADJOURNMENT Mayor Maguire moved, Councilmember Bakken seconded a motion to adjourn at 7:55 p.m. Aye: 5 Nay: D Date Mayor City Clerk MINUTES OF A REGULAR MEETING OF THE EAGAN CITY COUNCIL Eagan, Minnesota MAY 20, 2014 A Listening Session was held at 6:00 p.m. prior to the regular City Council meeting. Present were Mayor Maguire and Councilmembers Bakken, Fields, Hansen and Tilley. A regular meeting of the Eagan City Council was held on Tuesday, May 20, 2014 at 6:30 p.m. at the Eagan Municipal Center. Present were Mayor Maguire, Councilmembers Bakken, Fields, Hansen and Tilley. Also present were City Administrator Osberg, Assistant City Administrator Miller, Director of Community Development Hohenstein, City Planner Ridley, Director of Public Works Matthys, Director of Parks & Recreation Johnson, Deputy Chief Johnson, Fire Chief Scott, and Executive Assistant Stevenson. AGENDA Councilmember Bakken moved, Councilmember Fields seconded a motion to approve the agenda as presented. Aye:5 Nay:0 RECOGNITIONS AND PRESENTATION Director of Public Works Matthys recognized and presented a plaque to Craig Jensen, Streets Maintenance Worker, for his more than 30 years of service to the City of Eagan. Mr. Jensen thanked the City for the opportunity to serve. The City Council thanked Mr. Jensen for his service to the City. CONSENT AGENDA Mayor Maguire pulled Item P. for separate action and discussion. Councilmember Tilley moved, Councilmember Hansen seconded a motion to approve the Consent Agenda as presented: Aye: 5 Nay: 0 A. It was recommended to approve the minutes of May 5, 2014 regular City Council meeting. B. Personnel Items 1. It was recommended to approve the hiring of Nathan Voye, FT Firefighter with Eagan Fire Department. 2. It was recommended to approve the hiring of the Central Maintenance Facility PT Clerical Technician IV "to be named ". 3. It was recommended to approve the hiring of Robin Pollard, Temporary Clerical Technician in Community Development. 4. It was recommended to accept the resignation of Police Officer Scott Heath and authorize hiring his replacement. S. It was recommended to approve the hiring of Seasonal Employees in Parks & Recreation. C. It was recommended to approve check registers dated May 2, and May 9, 2014. D. It was recommended to award a contract for refurbishment of a Fire Support Truck, award a contract to replace an existing fire engine and authorize the sale of the existing fire engine. City Council Meeting Minutes May 20, 2014 2 page E. It was recommended to approve a resolution to accept a donation of $1000 from the Eagan Rotary Club for the Fire Department and Police Department and authorize the necessary budget adjustments. F. It was recommended to schedule a Public Hearing on June 17, 2014 to consider an amendment to the City of Eagan Business Assistance Policy regarding the use of Tax Abatement for specific purposes. G. It was recommended to schedule a Public Hearing on June 17, 2014 to consider approval of public financing assistance to Databank LLC for the development of a colocation data center at 3255 Neil Armstrong Boulevard, including an application for a Minnesota Department of Employment and Economic Development Minnesota Investment Fund forgivable loan and a Tax Abatement District for the City portion of new property taxes generated by investments associated with the project. H. Item was removed. I. It was recommended to approve an amendment to the resolution vacating a public ponding easement located on property in the East % of the West %2 of Section 10, Township 27, Range 23, now described as the LeMay Lake Family Townhomes Addition (aka Lakeshore Townhomes), and authorize the Mayor and City Clerk to execute all related documents. J. It was recommended to receive the petition to vacate a portion of a public drainage and utility easement on Lot 21, Block 1, Fawn Ridge, and schedule a Public Hearing to be held on June 17, 2014. K. It was recommended to cancel the July 8, 2014 Special City Council meeting. L. It was recommended to approve an off -sale liquor license for Keltic Kowboy, LLC doing business as Black Diamond Liquors located at 525 Diffley Road. M. It was recommended to direct the City Attorney's Office to prepare an ordinance amendment to City Code Chapter 10.43 relative to false alarm regulations. N. It was recommended to approve a temporary on -sale 3.2 percent malt liquor (beer) license and waive the license fee for All Saints Lutheran Church's Community Gathering on June 4, 2014 at 3810 Lexington Avenue South. 0. It was recommended to approve naming the new neighborhood park in the Cedar Grove area Bridgeview Park, and indicate such on associated literature and signage. P. It was recommended to approve the plans and specifications for Contract 14 -13 (2014 Trail & Parking Lot Improvements) and authorize the advertisement for a bid opening to be held at 10:30 a.m. on Thursday, June 26, 2014. Mayor Maguire noted Item P. addresses the plans and specifications for Contract 14 -13 (2014 Trail & Parking Lot Improvements) and the advertisement for a bid opening to be held at 10:30 a.m. on Thursday, June 26, 2014. Director of Public Works Matthys provided more content on the contract details and information on an 8 -foot wide bituminous trail scheduled to be installed on the east side of Blackhawk Road, from Diffley Road to the Highline Trail, as part of Contract 14 -13. Ron Staeheli, 4300 Blackhawk Road, addressed the Council with his concerns regarding placement of the trail and grade of his driveway and that of his neighbor's, Iona Kruger, 4290 Blackhawk Road, who asked Mr. Staeheli to advocate for her too. Director of Public Works Matthys responded to Mr. Staeheli's concerns. City Council Meeting Minutes May 20, 2014 3 page After further discussion it was the consensus of the City Council to address the proposed trail on the east side of Blackhawk Road at a future Public Works Committee meeting while proceeding with the 2014 Trail & Parking Lot Improvements. Councilmember Fields moved, Councilmember Hansen seconded a motion to adopt Item P. on the agenda as presented and include the trail on Blackhawk Road as an alternate bid. Aye: 5 Nay: 0 Councilmember Fields moved, Councilmember Tilley seconded a motion to direct staff to schedule the trail on Blackhawk Road, from the 2014 Trail & Parking Lot Improvements, to a future Public Works Committee meeting. Aye: 5 Nay: 0 PUBLIC HEARINGS VARIANCE — TANYA & ALAN KUZNAR, 1374 BERRY RIDGE ROAD City Administrator Osberg noted the Council will be asked to consider a variance in the Berry Ridge Addition which was platted in 1989 and the house constructed in 1990. Osberg noted the lot is 12,010 s.f. in area, and is a corner lot. City Planner Ridley gave a staff report. Alan & Tanya Kuznar were present and available for questions. Mayor Maguire opened the public hearing. There being no public comment, he turned the discussion back to the Council. Councilmember Fields moved, Councilmember Bakken seconded a motion to approve a Variance of 12' to the minimum structure setback of 30' from a public right -of -way for construction of a garage addition upon property located at 1374 Berry Ridge Road, subject to the following conditions: Aye: 5 Nay: 0 1. If within one year after approval, the variance shall not have been completed or utilized, it shall become null and void unless a petition for extension has been granted by the Council. Such extension shall be requested in writing at least 30 days before expiration and shall state facts showing a good faith attempt to complete or utilize the use permitted in the variance. 2. A Building Permit shall be obtained prior to commencing construction. 3. The existing shed shall be removed from the property prior to issuance of building permit. 4. The exterior materials of the proposed garage addition shall match the existing structure. VARIANCE — HERREGAN DISTRIBUTION City Administrator Osberg noted the Council will be asked to consider a variance of 7.5% to the maximum allowed building lot coverage which is currently at 35% to allow construction of a 16,000 SF building addition on property located at 3695 Kennebec Drive. City Planner Ridley gave a staff report. The applicant and property owner were present and available for questions. Mayor Maguire opened the public hearing. There being no public comment, he turned the discussion back to the Council. City Council Meeting Minutes May 20, 2014 4 page Councilmember Hansen moved, Councilmember Fields seconded a motion to approve a Variance of 7.5% to the maximum allowed building lot coverage of 35% to allow construction of a 16,000 SF building addition on property located at 3695 Kennebec Drive, subject to the following conditions: Aye: 5 Nay: 0 1. If within one year after approval, the variance shall not have been completed or utilized, it shall become null and void unless a petition for extension has been granted by the Council. Such extension shall be requested in writing at least 30 days before expiration and shall state facts showing a good faith attempt to complete or utilize the use permitted in the variance. 2. The applicant shall satisfy all water quality and run -off requirements. 3. The building addition shall be designed to match the existing exterior building materials /architecture. 4. The building addition shall be consistent with the depiction on the Site Plan submitted on April 18, 2014. A Building Permit shall be required prior to construction of the building addition. VARIANCE — DATABANK HOLDINGS, LTD City Administrator Osberg noted the Council will be asked to consider a variance of 30' to the minimum structure setback of 40' from a public right -of -way for construction of a screen wall enclosure upon property located at 3255 Neil Armstrong Boulevard. City Planner Ridley gave a staff report. Kevin Ooley, Chief National Officer for DataBank, gave an overview of the company. The architect representing DataBank provided additional information on the proposed operation and design of the site; both were available for questions. Mayor Maguire opened the public hearing. There being no public comment, he turned the discussion back to the Council. Councilmember Fields moved, Councilmember Bakken seconded a motion to approve a Variance of 30' to the minimum structure setback of 40' from a public right -of -way for construction of a screen wall enclosure upon property located at 3255 Neil Armstrong Boulevard, subject to the following conditions: Aye:S Nay:O 1. If within one year after approval, the variance shall not have been completed or utilized, it shall become null and void unless a petition for extension has been granted by the Council. Such extension shall be requested in writing at least 30 days before expiration and shall state facts showing a good faith attempt to complete or utilize the use permitted in the variance. 2. A Building Permit is required prior to commencing construction. 3. The security gates shall have lockboxes with key access for emergency personnel to be able to access that area in case of fire or other emergency. 4. The location of the security gates shall be set back sufficient distance from the street curb to ensure sufficient depth between the street and the gate to ensure vehicles using this entrance will not block the right -of -way. 5. The applicant shall obtain a permit to work in the right -of -way for the proposed new access to Neil Armstrong Blvd. City Council Meeting Minutes May 20, 2014 5 page 6. At the time of Building Permit application, acoustic information shall be provided about the noise level of the equipment to demonstrate compliance with State standards. OLD BUSINESS There were no old business items to be heard. NEW BUSINESS There were no old business items to be heard. LEGISLATIVE / INTERGOVERNMENTAL AFFAIRS UPDATE There was no legislative /intergovernmental affairs update to be heard. ADMINISTRATIVE AGENDA CITY COUNCIL Councilmember Fields acknowledged it was Public Works Week. There were no visitors to be heard. VISITORS TO BE HEARD ADJOURNMENT Councilmember Tilley moved, Councilmember Hansen seconded a motion to adjourn the meeting at 7:26 p.m. Aye: 5 Nay: 0 Date Mayor City Clerk Agenda Information Memo June 3, 2014 Eagan City Council Meeting CONSENT AGENDA B. Personnel Items Item 1 Action to be Considered: Accept the resignation of William Boyd, Utility Maintenance Worker, effective June 20th, 2014 and authorize hiring his replacement. Attachments: (0) Item 2 Approve Memorandum of Understanding Action to be Considered: Approve the Memorandum of Understanding between the City of Eagan, MN, Michael L. Widstrom and Minnesota Teamsters Public Employees and Law Enforcement. Background: ➢ The Eagan City Council memorialized the parameters within the Post Retirement Health Insurance Policy at the July 1, 2008 meeting. The City's policy language provides a higher level of detail concerning eligibility requirements in the Post Retirement Health Insurance Benefit than the labor agreement provides. Facts: ➢ The employee meets the City's eligibility requirements for the post- retirement health benefits and therefore, upon his retirement /resignation, he is eligible to receive such benefits as described in the Teamsters labor agreement and the City's policy. ➢ The Memorandum of Understanding is on file to review in the City Administrator's office. Attachments: (0) Item 3 Action to be Considered: Approve the hiring of Seasonal Employees in Parks & Recreation, Engineering, Streets, Finance, Water Quality and Utilities: Name Division Job Title Olson, Hannah Art House Recreation Assistant Aldinger, Ashley Cascade Bay Guest Relations Benz, Austin Cascade Bay Guest Relations Berryman, Kelsey Cascade Bay Guest Relations Bosshardt, Joseph Cascade Bay Guest Relations Bosshardt, Paige Cascade Bay Guest Relations Cartwright, Alexa Cascade Bay Guest Relations Deitermann, Alexandra Cascade Bay Guest Relations Ekstein, Benjamin Cascade Bay Guest Relations Erickson, Elizabeth Cascade Bay Guest Relations Grelson, Sophie Cascade Bay Guest Relations Gustafson, Jenna Cascade Bay Guest Relations Harford, Laura Cascade Bay Guest Relations Ka, Sodan Cascade Bay Guest Relations Kayser, Kevin Cascade Bay Guest Relations Kruenegel, Rachel Cascade Bay Guest Relations Lemke, Ellen Cascade Bay Guest Relations Lorang, Alex Cascade Bay Guest Relations Mensink, Courtney Cascade Bay Guest Relations Nelson, Christian Cascade Bay Guest Relations Nguyen, Kevin Cascade Bay Guest Relations Pfaltzgraff, Connor Cascade Bay Guest Relations Phillips, Sarah Cascade Bay Guest Relations Rhone, Joe Cascade Bay Guest Relations Rhone, Katie Cascade Bay Guest Relations Rosales, Rosalinda Cascade Bay Guest Relations Saraswate, Alexandra Cascade Bay Guest Relations Scheller, Cole Cascade Bay Guest Relations Teuber, Augustina Cascade Bay Guest Relations Thompson, Sierra Cascade Bay Guest Relations Tucker, Korley Cascade Bay Guest Relations Weitzel, Allison Cascade Bay Guest Relations Abbott, Lucas Cascade Bay Lifeguard Anders, Erica Cascade Bay Lifeguard Barta, Alex Cascade Bay Lifeguard Bramley, Samantha Cascade Bay Lifeguard Broman, Eli Cascade Bay Lifeguard Busch, Kristen Cascade Bay Lifeguard Davis, Ashley Cascade Bay Lifeguard Decker, Stefan Cascade Bay Lifeguard Dettmer, Abigail Cascade Bay Lifeguard Dettmer, Benjamin Cascade Bay Lifeguard Deziel, Robert Cascade Bay Lifeguard Ehlers, Katie Cascade Bay Lifeguard Ehrlich, Katie Cascade Bay Lifeguard Engebretson, Leah Cascade Bay Lifeguard Engebretson, Leah Cascade Bay Lifeguard Fix, Austin Cascade Bay Lifeguard Gallo, Vincent Cascade Bay Lifeguard Garin, Meghan Cascade Bay Lifeguard Hafstad, Landon Cascade Bay Lifeguard Hamand, Audrey Cascade Bay Lifeguard Huusko, Tyler Cascade Bay Lifeguard James, Kathryn Cascade Bay Lifeguard Johnson, Christina Cascade Bay Lifeguard Knutson, Sarah Cascade Bay Lifeguard Larrea, Julian Cascade Bay Lifeguard Leighton, William Cascade Bay Lifeguard Leonard, Taylor Cascade Bay Lifeguard Lough, Megan Cascade Bay Lifeguard Mellum, Mackenzie Cascade Bay Lifeguard Miller, Brandon Cascade Bay Lifeguard Narum, Chris Cascade Bay Lifeguard Narum, Lydia Cascade Bay Lifeguard Olson, Kelsey Cascade Bay Lifeguard Olson, Kenneth Cascade Bay Lifeguard Peterson, Linnea Cascade Bay Lifeguard Ronchak, Ethan Cascade Bay Lifeguard Schornak, Rachel Cascade Bay Lifeguard Segar, Oscar Cascade Bay Lifeguard Srikanth, Shivani Cascade Bay Lifeguard Stefani, Kyle Cascade Bay Lifeguard Steinly, Tyler Cascade Bay Lifeguard Streed, David Cascade Bay Lifeguard Sundry, Zachary Cascade Bay Lifeguard Tozier, Elizabeth Cascade Bay Lifeguard Wagoner, Drew Cascade Bay Lifeguard Walker, Grace Cascade Bay Lifeguard Williams, George Cascade Bay Lifeguard Winge, Carl Cascade Bay Lifeguard Wollin, Justin Cascade Bay Lifeguard r Anderson, Megan Cascade Bay Pool Attendant Burright, Isaac Cascade Bay Pool Attendant Dawson, Zachariah Cascade Bay Pool Attendant Decker, Maren Cascade Bay Pool Attendant Everson, Emily Cascade Bay Pool Attendant Garin, Patrick Cascade Bay Pool Attendant Heilman, Melissa Cascade Bay Pool Attendant Hlas, Rachel Cascade Bay Pool Attendant Holt, Karly Cascade Bay Pool Attendant Humble, Ashlee Cascade Bay Pool Attendant Johnson, Maclaine Cascade Bay Pool Attendant Knutson, Daniel Cascade Bay Pool Attendant Lane, Marissa Cascade Bay Pool Attendant Mayne, McKenna Cascade Bay Pool Attendant Miller, Andrew Cascade Bay Pool Attendant Nelson, Gretchen Cascade Bay Pool Attendant Rupp, Jessica Cascade Bay Pool Attendant Coutu, Tyler Engineering Engineering Intern DuBois, Nathan Engineering Engineering Intern Lundell, Kasha Finance Finance Intern Dimond, Garrett Forestry Landscape Crew Hinke, Brandon Parks Seasonal Park Maintenance Holmin, Nick Parks Seasonal Park Maintenance Piatz, Daniel Parks Seasonal Park Maintenance Russell, Christopher Parks Seasonal Park Maintenance Schoenecker, Justin Parks Seasonal Park Maintenance St. Martin, Ben Parks Seasonal Park Maintenance Wall, Ryan Parks Seasonal Park Maintenance Grundman, Jennifer Parks & Rec Preschool Teacher Strauss, Allison Parks & Rec Preschool Teacher Whitacre, Lauren Parks & Rec Preschool Teacher Collette, Michelle Parks & Rec Program Assistant Hubbard, Evyn Parks & Rec Program Assistant Maczko, Kim Parks & Rec Program Assistant Winter, Jocelyn Parks & Rec Program Assistant Banick, Peyton Parks & Rec Recreation Assistant Duran, Meghan Parks & Rec Recreation Assistant Garcia, Sara Parks & Rec Recreation Assistant Gaylord, Jack Parks & Rec Recreation Assistant Hannasch, Kate Parks & Rec Recreation Assistant Hanson, Heather Parks & Rec Recreation Assistant Lanoue, Haydn Parks & Rec Recreation Assistant Lutz, Jeremy Parks & Rec Recreation Assistant Maehren, Kharissa Parks & Rec Recreation Assistant Mott, Ryan Parks & Rec Recreation Assistant O'Shea, Caitlin Parks & Rec Recreation Assistant Richard, Clara Parks & Rec Recreation Assistant Simpson, Noah Parks & Rec Recreation Assistant Steichen, Geoffrey Parks & Rec Recreation Assistant Suiter, Mark Parks & Rec Recreation Assistant Walker, Andrew Parks & Rec Recreation Assistant Wangler, Lauren Parks & Rec Recreation Assistant Westlund, Jenny Parks & Rec Recreation Assistant Wilson, Kern Parks & Rec Recreation Assistant Wollin, Jordan Parks & Rec Recreation Assistant Jonas, Kalley Parks & Rec Recreation Leader Joyce, Elizabeth Parks & Rec Recreation Leader Mangan, Alex Parks & Rec Recreation Leader Marella, Mitch Parks & Rec Recreation Leader Mehr, Nicole Parks & Rec Recreation Leader Minning, Jacob Parks & Rec Recreation Leader Opsahl, Claire Parks & Rec Recreation Leader Ostrem, Karyn Parks & Rec Recreation Leader Savage, Maddie Parks & Rec Recreation Leader Strauss, Rebecca Parks & Rec Recreation Leader Swensen, Laura Parks & Rec Recreation Leader Vogt, Marissa Parks & Rec Recreation Leader Peterson, Sage Parks & Rec Site Coordinator Reichert, Kristen Parks & Rec Site Coordinator Wilson, Katie Parks & Rec Site Coordinator Bolks, Jacob Streets Seasonal Street Maintenance Runing, Garrett Streets Seasonal Street Maintenance Johnson, Alex Utilities GIS Seasonal Womeldorf, Zachary Utilities Seasonal GIS Boecher, William Utilities Seasonal Utility Maintenance Bolks, Jeremiah Utilities Seasonal Utility Maintenance Johnson, Garret Utilities Seasonal Utility Maintenance Water Provos, Lyndsey Quality Water Resources Intern Informatives: PT Clerical Technician IV named: Amy Wagner City Council approved hiring for this position on May 20, 2014. Agenda Information Memo June 3, 2014 Eagan City Council Meeting CONSENT AGENDA C. Ratify Check Registers Action To Be Considered: To ratify the check registers dated May 16 and May 23, 2014 as presented. Attachments: (2) CC -1 Check register dated May 16, 2014 CC -2 Check register dated May 23, 2014 Agenda Information Memo June 3, 2014 Eagan City Council Meeting C�L•P►���f►11rT�T�IU e D. Approve resolution adopting and authorizing implementation of the performance measures developed by the Council on Local Results and Innovation Action to be Considered: To approve a resolution adopting and authorizing implementation of the performance measures developed by the Council on Local Results and Innovation. Facts: • In 2010, the State Legislature enacted legislation calling for the Council on Local Results and Innovation (CLRI) to establish a standard set of performance measures for cities. • The performance measures are intended to aid residents, taxpayers, and state and local elected officials in determining the efficacy of cities in providing services. • The CLRI established these performance measurements and solicits voluntary participation each year through the Office of the State Auditor. To participate, the City must annually approve a resolution adopting the measures. • In addition to the results generated from participation, benefits to participating cities include remuneration of $0.14 per capita and exemption from levy limits. • Sufficient flexibility exists to allow a city to participate on both a cost - effective and activity- specific basis. • The City Council has participated in the program since 2011, passing similar resolutions each year. The required community survey was completed via the web site in conjunction with the League of Minnesota Cities. • The City received $9,096 in LGA in 2013, and $8,989 in each of the previous two years. Attachments: (2) • CD -1 Resolution • CD -2 2013 Online Survey Results CITY OF EAGAN RESOLUTION NO. 14- RESOLUTION APPROVING PERFORMANCE MEASURES WHEREAS, the State Legislature created the Council on Local Results and Innovation; and WHEREAS, Eagan has implemented a local performance measurement system as developed by the Council on Local Results and Innovation; and WHEREAS, Eagan surveys its residents every other calendar year on services included in the performance benchmarks; and WHEREAS, the Council on Local Results and Innovation released a standard set of performance measures for counties and cities that will aid residents, taxpayers and state and local elected officials in determining the efficacy of counties and cities in providing services and measure residents' opinions of those services; and WHEREAS, cities and counties that choose to participate in the new performance measurement program may be eligible for a reimbursement from Local Government Aid and exemption from levy limits. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Eagan does hereby approve the following Performance Measures and will publish the results of the Performance Measures before the end of the calendar year. Performance Indicator General Citizen survey - quality of services Citizen survey - overall appearance Percent change in the taxable property market value Police Citizen survey rating safety or ...Part I and II crime rates Police response times Fire Citizen survey - quality of services or ISO rating Fire response times Streets Citizen survey - quality of road conditions or... Average pavement condition rating. Citizen survey - quality of snow plowing Water Citizen survey - quality and dependability Operating cost per million gallons Sanitary sewer Citizen survey - quality and dependability Number of sewer blockages Parks and Recreation Citizen survey - quality of services APPROVED by the City Council of the City of Eagan, Minnesota, this 3rd day of June 2014. CITY OF EAGAN ATTEST: City Cleric Mike Maguire, Mayor City Performance Indicators 2013 Page 1 of 3 Tuesday, December 31, 2013 1!Seart News Releases City News Police News Fire News Parks News -- — News Environment Safety About Community Recreation se�s & Notices & Home & Regulations Eagan Connections & Events & Departments - - - �-� Home News Releases City News City Performance Indicators 2013 Newsletters & Publications market value City Performance Indicators 2013 Requests for Proposals How would you rate the overall Created on 1•+0oy, 20 December 2013 11:00 Road Worit & Closures a% The Council on Local Results and Innovation, In concert with the Minnesota Legislature and the Office of the State Audil• Seasonal Notices performance Indicators residents can use to monitor city performance, The Eagan City Council has embraced these indi regarding the performance indicators to be measured. A survey was released to the public In 2013. Watch Video So how are we doing? Below are the results of that survey reflecting the most recent specific performance indicators established in the voluntar City Calendar City? Quality of City Services City Jobs General MIS saying Good News Releases City News Police News Fire News Parks News littp: / /www.cityofeagan.com /index.php /news - releases /news /865- city- perforinance- indicat... 12/31/2013 -- — Percent change in taxable 1.9% increase in 2013 property market value How would you rate the overall appearance of the city? a% 01 %saying Excellent M %saying,Good f: %saying Fair How would you rate the overall quality of services provided by the City? 5 °.S 39S T'g - - MIS saving - Excellent MIS saying Good %sayh% fair 1995 seying omit know Public Safety Services: Police Response Average: 0.25 minutes In 2012 Imes How would you describe your overall feeling of safety in the city? littp: / /www.cityofeagan.com /index.php /news - releases /news /865- city- perforinance- indicat... 12/31/2013 City Performance Indicators 2013 Page 2 of 3 http: / /www.cityofeagan.com /index.php /news - releases/ news /865 city- performance- indicat... 12/31 /2013 In 4o saying Verysafe 11 %saying 5omewhatSafe Fire Response Average: 6.27 minutes in 2012 Imes Insurance Service 3 (2012 Citywide) Organization (ISO) Rating How would you rate the overall quality of fire protection services in the city? 140 ®4; saying Excellent W45 saying Good It saying Fair ai %sayingDon'tknow Pavement tt. Streets Condition: Average Pavement Condit i on Average: 63 on scale of 100 In 2012 Rating How would you rate the overall condition of city streets? re %saying Excellent 40 @%SayingGood I 46 saying Fair How would you rate the overall quality of snowplowing on city streets? 2% fay W% saying Excellent ®SUsaying Good :.14ssaying Fair Is °%saying Poor Ater Utilities & Sanitary Sewer: No contaminants were detected at levels that violated federal drinking Water quality water standards. However, some contaminants were detected In trace amounts that were below legal limits. See: Water Quality Report Water $1.061n 2012 Operating Page 2 of 3 http: / /www.cityofeagan.com /index.php /news - releases/ news /865 city- performance- indicat... 12/31 /2013 City Performance Indicators 2013 Text Size Reset Cost Per Million Gallons How would you rate the dependability and overall quality of the city water supply? $:5 IRIS Saying Excellent q46 saying Good saying Fair 11% saying Don't know SS6 saying Boor Dependability 2 mainline (City) sanitary sewer backups and 14 service (private) sanitary sewer backups in 2012. Howwould you rate the dependability and overall quality of city sanitary sewer service? 145 R %saying Excellent 6546saying Good .:6saying Fair E1 S5 saying Don't know Parks & Recreation How would you rate the overall quality of city recreational programs and facilities (e.g. parks,trails, park facilities, etc,)? ass 156 zs5 M85seying Excellent p44 saying Good °/. saying Fair M -4 saying Poor re %saying bon'tknow © 2012 Eagan Minnesota Eagan Municipal Center, 3830 Pilot Knob Rd. Eagan, MN 55122 Use of Images or Information Is prohibited without specific authority of the City of Eagan. Page 3 of 3 http: / /www.cityofeagan.com /index.php /news - releases /news /865- city- performance- indicat.., 12/31/2013 Agenda Information Memo June 3, 2014, Eagan City Council Meeting CONSENT AGENDA E. ACCEPT the resignation of Michael Supina from the Advisory Planning Commission Action To Be Considered: Accept the resignation of Michael Supina from the Advisory Planning Commission (APC). Facts: ➢ On May 23, 2014, APC member Mike Supina emailed the City Council and staff to notify the City that he would be resigning from the APC effective May 28, 2014 given his family is moving out of Eagan. ➢ Mr. Supina expressed his gratitude for the opportunity to serve on the Commission. ➢ As a result of the resignation, APC Alternate Joseph Dierkes is proposed to fill the 1 -year term being vacated by Mr. Supina. Attachments: (0) Agenda Information Memo June 3, 2014, Eagan City Council Meeting CONSENT AGENDA F. APPOINT Joseph Dierkes to a one -year term on the Advisory Planning Commission Action To Be Considered: Appoint Joseph Dierkes to a one -year term on the Advisory Planning Commission. Facts: ➢ On May 23, 2014, APC member Mike Supina notified the City that he would be resigning from the APC effective May 28, 2014. ➢ As a result of the resignation, APC Alternate Joseph Dierkes is proposed to fill the 1 -year term being vacated by Mr. Supina. Members of the APC have historically had excellent attendance records, and as a result, the alternate position is proposed to remain vacant until the 2015 appointment process. Attachments: (0) Agenda Information Memo June 3, 2014, Eagan City Council Meeting CONSENT AGENDA G. APPROVE an Easement Vacation and Final Subdivision for Great Oaks 2nd Addition — Mark Gergen & Associates Action To Be Considered: To approve an Easement Vacation of public drainage and utility easements located on Outlot A, Great Oaks and Outlots A and B, The Woodlands North, to coincide with the City Council approval of the Great Oaks 2nd Addition final subdivision and plat. To approve a Final Subdivision (Great Oaks 2nd Addition) for 28 townhome lots and 7 outlots for common space, located west of Wescott Woodlands and south of Yankee Doodle Road. Facts: ➢ The Preliminary Subdivision for Great Oaks 2nd Addition was approved by the City on January 21, 2014. The subdivision consolidates several parcels into one site, and subdivides it into five single - family lots. ➢ A Vacation of Easements is proposed in conjunction with dedication of required drainage and utility easements with the Great Oaks 2nd Addition plat. ➢ On March 6, 2014, City staff received a petition from the developer requesting the vacation of an existing drainage and utility easement upon Outlot A, Great Oaks and Outlots A and B, The Woodlands North, located south of Yankee Doodle Road and west of Elrene Road. ➢ The purpose of the request is to allow the recording of a final plat for the proposed Great Oaks 2nd Addition subdivision as a single - family residential development. The Vacation of the Easement would clean up the proposed plat by avoiding underlying recorded dedications. ➢ The final plat of Great Oaks 2nd Addition will address and incorporate all necessary public drainage and utility easements upon the property. ➢ This vacation request has been reviewed by Public Works (Engineering Division) staff and found to be in order for favorable Council action. ➢ On May 5, 2014, a public hearing was held, and action was continued to coincide with future City Council consideration of the Great Oaks 2nd Addition final plat and subdivision. No objections have been received to date. ➢ All documents and agreements are anticipated to be in order for execution at the City Council meeting on June 3, 2014. Attachments: (3) CG -1 Location Map CG -2 Final Plat Great Oaks 2nd Addition CG -3 Easement Vacation Legal Description Graphic o� cd V w a c�v L Y R Q. c O Q c N N Y (u O N W (6 Z U O ^L LL ep v! ^W V/ .x m O. a <1Z °a 0 L M 0 N O (n y C a m IL U (D son 1 1 a� d J U ®Fir °a 0 L z a_ 0 0 Q 0 N 0 LLJ D� CD R R � a � 99b g gll� ;Till `s 904 ° aM �q a3 a a Ab b� M N a -RUM / 10'85 M�Z5,51.Op5/ R .� hd 0 a n°o, °S,s-1 - °, As II 11 ' I , N JJxx / gP % d.0y b I I 't J��, ,•w,yy''� � 4 ;WW;55 I pN, 3FN oU L.�.•- -I----- - -J R R � a � 99b g gll� ;Till `s 904 ° aM �q a3 a a Ab b� M N a -RUM / 10'85 M�Z5,51.Op5/ R .� hd 0 a n°o, °S,s-1 - °, As II 11 ' I , �Y (-N D IJ_ op / e� a N'1c: LU fGA.,D CM v .5 'r JJxx / gP % d.0y b I I �Y (-N D IJ_ op / e� a N'1c: LU fGA.,D CM v .5 Agenda Information Memo June 3, 2014 Eagan City Council Meeting 1419UNIV 11-9 -ITCUU 1 11 H. 5 Year Capital Improvement Plan, 2015 -2019 (Part III, Public Works Infrastructure) Action To Be Considered: Adopt the 5 -year Capital Improvement Plan for Public Works Infrastructure, Part III (2015 -2019) and authorize the initiation of the public improvement process for the 2015 programmed improvements. Facts: ➢ At the Council Workshop held on May 13, 2014, the Public Works Department presented a draft of their proposed 5 -year Capital Improvement Plan (CIP) for 2015 - 2019. After review and discussion, the Council concurred with the proposed CIP as presented, and directed it to the June 3 Council meeting for consideration of formal adoption. ➢ The total 5 -year CIP amounts to $53.2 million in obligations, and the first year proposed improvements (2015) amount to approximately $11.6 million. A summary of the 2015 proposed improvements and a location map is included as a separate section of the overall CIP. ➢ A variety of proposed street and utility improvements have been included as part of the 5 -year Public Works CIP, with modifications as endorsed by the City Council, including: • Borchert Lane — As discussed with the City Council, this project is proposed to be revised and reduced in scope from a street and utility improvement (Borchert Lane) to a turn lane modification at Lunar Lane and Lone Oak Road (County 26). This modification results in a net reduction in estimated costs of approximately $1.2 million. • Nicols Road (Silver Bell Road to Burnsville City limits) — With the pending closure of Black Dog Road in the City of Burnsville, consideration of future maintenance and jurisdiction of this segment of Nicols Road within the City of Eagan will be brought forward to the City Council as in conjunction with a public improvement feasibility report. ➢ With the adoption of this 5 -year Public Works CIP and authorization to initiate the public improvement process for the 2015 projects, it will allow the necessary coordination with other agencies and the appropriate studies, notices and hearings to be completed in 2014 with the solicitation of bids in early 2015 providing for the best opportunity of competitive prices. ➢ A copy of the final adopted CIP will be placed in the Wescott Library and posted on the City's web site for easy reference by all interested parties. Attachments: (1) CH -1 Map of Proposed 2015 Improvements d?LNDO7tl HC /OHTS - r,,,rw,... Y 8....IE rey `..( . »:a �'`:. q• ,,;%wry` {I i` N..w�le�er,apwn UFO$ .' fA ^tq ®+Y' IF, j LONE OAK RD� L'• � 9 {'b tj' !tea 13 �, 1 E _ 1ti !, a 1I YANKEE DOODLE RD " 1. l ee Id w1e � §p, Ir ;in ,ixt )s� '•. �P .. {p. w,Ka y S' r �'. •x n._ I e .N�3i n �,y 6° - � ate• a� ,_ _ is t ° _ r I$ "'�1 I f°'"� F F ro t!2•d. i 4 1-r y�;�` ! �� ^° Tye m411 ",1, , 1 x i w �✓` s� '1a - v '� i a•'°•< p � �a f, m 4 ,,,.t _..._ Z � � Via, _ p �° ���yi `.. i t 1L r 1 i 1 - 3 3 1 - - Y ,�... `i sr m-it d- � IY y�_. (✓ <ft Y4 /' t�, D *� i 8 � � 3 ! E vq r, � I«." � -. �Y(y I { a° e 3 If � � - ^ "� , �. aP ...,•'.isvtt e°nm 4 f I a yi / �..t i Ly w. r ° I S� w.•'o -�DIFFLEY RD �.. ° ^ n— s I Yd.II .... " ds U a �! °rl ��_i € J€ 3a Y pw.re ° T� 4.s - yupaoifi 1�1 R I I •,.. � & S �;r ° p I I � ' S Arai _ (I lo y w I I "� i e�E I E.d .. -• % �a;:5,. n••ae / ! � aiw: a a I c CLIFF R� d °� �a �w n Igo �j"� �' CLIFF RD C a'� e 7L,� L ys+. luI 4 4 e rer f Wit, .fir I (r._ x• 'sF. /'� ss '� e.•. a y xp - YI f.B sa \. V. . Yi1f�' l�• � � s 9 � Y h rR� .�. ,,,,p., ' og � � F MPL8Iri1LLCY ROSCMOUNT CITY OF EAGAN 2015 CIP � 0 } O Sound Wn1l(2) Intersoclionlmprovemsnt(1) Storm FacilitylOperalion lmprovemenis(i) ® Water Fe c114y/ Opa mt ionImprovements(71)T�C011ector ®Local, 11- 1,( —(0) ® Water Quality(3) -Seal oaf 6) in STREET, UTILITY & WATER o A Stmatlight lmpravament(13) Signal lmprovement(13) ® ...•.. Sanitary Trunk lmprovemenls(t) Lanai -N—(1) - -- Lacel- Saalmet(190) — Trail - Naw(2) ti w 0 parking Lot lmpt—manls(10) ®Collector- Overlay /Upgu.de(10) — Trail - OVarlay(43) QUALITY IMPROVEMENTS wo�. p o 6lreats- Ulghy6llelmpmyemen,(2) ®Loral- QyaNay(22) — Trail - 6ealraal(6T) 0 2,000 4,000 a ® Sanitary Facilily /Opera than lmprovemenls(1) ® Calloctor, Rasur(ace(16) rc-' Sanitary - Lining(41) FEET City of Evan Agenda Information Memo June 3, 2014 Eagan City Council Meeting CONSENT AGENDA I. Winter Trail Maintenance Program Action To Be Considered: Approve Specific Additions and Modifications to the Winter Trail Maintenance Program as endorsed by consensus at the May 13, 2014 Council Workshop. Facts: ➢ In 1998, the City implemented a comprehensive Winter Trail Maintenance Program providing for the snow removal of approximately 50% of the City's transportation trail system adjacent to collector and arterial streets. The current program consists of 73.9 maintained miles of a total 119.6 mile system (61.8 %). Part of that program includes a policy that, among other things, stipulates that the Council will review all requests and new additions for possible modification of the most current adopted plan. In 2003, the Council amended its Policy to require that all future requests be reviewed by the Council at the first available work session after April 1st before formal consideration at a regular Council meeting. ➢ At the May 13 Council Workshop, the Council received and considered twelve segments for additional maintenance resulting from four Citizen Petitions (CP), six New Trail (NT), and two Staff Recommendations (SR) segments. As a result of that workshop discussion, the following endorsements were reached by consensus: 1. CP #1 (Silver Bell Road —South side from Highway 13 to driveway entrance) Endorsed - The Council concurred with a majority of the segment petitioned, and directed staff to add the new trail segment (revised), on the south side of Silver Bell Road from Highway 13 to the west driveway entrance at 2020 Silver Bell Road, to the Winter Trail Maintenance Program. Add 1,200 feet (0.23 mi) as a Priority Level 3 route. 2. CP #2 (Diffley Road — South side from Blackhawk Road to Rahn Road) Endorsed - The Council concurred with a majority of the segment petitioned, and directed staff to add the trail segment to be plowed on the south side of Diffley Road from Blackhawk Road to Rahn Road to the Winter Trail Maintenance Program. Add 5,460 feet (1.03 mi) as a Priority Level 4 route. 3. CP #3 (Cliff Road - North side (from Thomas Lake Road to Pilot Knob Road) Endorsed - The Council concurred with a majority of the segment petitioned, and directed staff to add the trail segment to be plowed on the north side of Cliff Road from Thomas Lake Road to Pilot Knob Road to the Winter Maintenance Program. Add 2,570 feet (0.50 mi) as a Priority Level 2 route. 4. CP #4 (New Trail #1 a 6 -foot wide concrete sidewalk on the East side of Northwood Circle (from Northwood Parkway to the end of the cul -de -sac) Endorsed - The City Council concurred with a majority of the segment petitioned, and directed staff to add the new trail to be plowed on the east side of Northwood Circle from Northwood Parkway to the end of the cul -de -sac to the Winter Maintenance Program. Add 500 feet (0.10 mi) as a Priority Level 3 route. 5. NT #2 - a 6 -foot wide concrete sidewalk on the North side of Station Trail, (West of Wescott Woodlands) Endorsed - The City Council concurred with a majority of the segment petitioned, and directed staff to add the new sidewalk segment be plowed on the North side of Station Trail, West of Wescott Woodlands to the Winter Maintenance Program. Add 575 feet (0.10 mi) as a Priority Level 4 route. 6. NT #3 — an 8 -foot wide bituminous trail on the East side of Blackhawk Road (from Diffley Road to Highline Trail) Endorsed - The City Council concurred with a majority of the segment petitioned, and directed staff to add the new bituminous trail on the East side of Blackhawk Road, from Diffley Road to Highline Trail to the Winter Maintenance Program. Add 2,640 feet (0.50 mi) as a Priority Level 4 route. 7. NT #4 — an 8- foot -wide bituminous trail recently installed on the East side of Rahn Road (from Nicols Road to Cedar Grove Parkway) Endorsed —The City Council concurred with a majority of the segment petitioned, and directed staff to add the new bituminous trail on the East side of Rahn Road, from Nicols Road to Cedar Grove Parkway to the Winter Maintenance Program. Add 500 feet (0.10 mi) as a Priority Level 2 route. 8. NT #5 — a 10- foot -wide bituminous trail on the West /South side of Highways 55 and 149 (from their South intersection to the intersection of Blue Gentian Road and Highway 149) Endorsed - The City Council concurred with a majority of the segment petitioned, and directed staff to add the new bituminous trail on the west /south side of Highway 55 and 149, from their south intersection to the intersection of Blue Gentian Road and Highways 149, to the Winter Maintenance Program. Add 4,500 feet (0.85 mi) as a Priority Level 4 route. 9. NT #6 - a 10- foot -wide bituminous trail on the North side of Cliff Road (from Cinnamon Ridge Trail to Nicols Road) Endorsed - The City Council concurred with a majority of the segment petitioned, and directed staff to add the new bituminous trail on the north side of Cliff Road, from Cinnamon Ridge Trail to Nicols Road, to the Winter Maintenance Program. Add 2,200 feet (0.42 mi) as a Priority Level 2 route. 10. SR #1- a 10- foot -wide bituminous trail on the North/ West side of Yankee Doodle Road (from Highway 149 to 77th Street in Inver Grove Heights). Endorsed - The City Council concurred with the removal of the trail on the north /west side of Yankee Doodle Road, from Highway 149 to 77th Street from the Winter Maintenance Program. Remove 4,725 feet ( -0.90 mi) 11. SR #2 - an 8- foot -wide bituminous trail on the west side of Wescott Woodlands (from Station Trail to Yankee Doodle Road) Endorsed - The City Council concurred that the trail segment be plowed and directed staff to add the trail segment on the west side of Wescott Woodlands, from Station Trail to Yankee Doodle Road to the Winter Maintenance Program. Add 400 feet (0.10 mi) as a Priority Level 4 route. ➢ The result of the Council's deliberative evaluation will add a net increase of 15,820 ft (approx. 3 miles) to the current Winter Trail Maintenance Program to be performed with in -house resources. This information was then directed to the June 3 regular meeting for consideration of formal adoption. Attachments (1): CI -1 Location Map Ii Winter Trail & Sidewalk Maintenance Route Considerations for 2014-2015 1 J CP#1 , NT#4 T AjL v CP#2 n. N 7,7-77 NT#3 F FNT#61'; P#3 NT#5 [-'6 S LOAK RD CP#4 ji NT#1 KEE OODL IRD NT#2 1 EtR#2 CLIFF RD 494 SR#1 T // I - // I - J, v, r Z 0 Plowed In 2013-2014 0 1.2W U. VW S.OWF..t A&L Citizens Petition - CP #1,2,3,4 N MEW New Trail - NT #1,2,3,4,5,6 Date: 51612014 Staff Recommendation - SR #1,2 Prepared by., City of Eagan Street Dept., SP City of Eap File: Ll kcmistreetsltrails�plowrtesll4—l5l8xll—route considerations— 14 15. mxd Agenda Information Memo June 3, 2014 Eagan City Council Meeting CONSENT AGENDA J. Xcel Energy Pipeline Relocation Agreement, City Project 1088 Action To Be Considered: Approve the final payment to Xcel Energy for the relocation of a gas pipeline, in the amount of $233,129.00 for Project 1088 (Nicols Road — Phase II - Street & Utility Improvements), and authorize the Mayor and City Clerk to execute all related documents. Facts: • Project 1088 provides for street and utility improvements for Nicols Road (formerly Cedar Grove Boulevard and Cedarvale Boulevard) within the Cedar Grove Redevelopment Area in northwest Eagan. • The street and utility improvements, currently being constructed under City Contract 13 -01, accommodate the relocation of a significant portion of the existing street. As is typical, private utilities are permitted to locate within the existing public right -of -way. Due to the history of this city street, a turnback of a state highway, the nature of the private utilities' relocation was more significant than typically expected. • On March 19, 2013, the City Council approved an agreement with Xcel Energy providing for the relocation of approximately 3,000 feet of 26 -inch diameter pipeline in conjunction with the Nicols Road public improvement. At time of the agreement, Xcel Energy estimated the cost for the relocation and associated work to be $1,320,000. • The final cost for the relocation is $1,553,129.00, with the cost overage due to higher than anticipated costs to remove and retire the old pipeline, and other additional costs incurred to install. • The cost will be the responsibility of the Major Street Fund and will be reimbursed by the Twin Cities at Eagan outlet center developer per agreement with the City. • Public Works staff and the City Attorney's office have reviewed the final payment request from Xcel Energy under terms of the agreement, and found it to be in order for favorable Council action. Attachments: (0) Agenda Information Memo June 3, 2014, Eagan City Council Meeting CONSENT AGENDA K. Approve Final Subdivision and Final Planned Development for Dakota Path 2nd Addition — D. R. Horton Actions To Be Considered: To approve a Final Planned Development upon approximately 45 acres located south of Cliff Road and east of Pilot Knob Road. To approve a Final Subdivision (Dakota Path 2nd Addition) to create 17 single - family lots and two outlots upon approximately 45 acres located south of Cliff Road and east of Pilot Knob Road. Facts: ➢ The Preliminary PD and Preliminary Subdivision were approved April 16, 2013. ➢ This second phase of development consists of 17 single - family lots upon approximately five acres, and two lots upon the remaining 40 acres. Outlot A is open space, and Outlot B is reserved for future development. ➢ The final development plans and plat have been reviewed by staff and are consistent with the preliminary approvals. ➢ All documents and agreements are anticipated to be in order for execution at the City Council meeting on June 3, 2014. Issues: None Attachments: (2) CK -1 Location Map CK -2 Final Plat r_ O t L O❑ d a Q N t a a 0. O Y d t4 ❑ d ❑ 51 C U- N � V � - C Q -' M l O v e 0 a.. e ee� J w a r_ O t L O❑ d a Q N t a a 0. O Y d t4 ❑ d ❑ 51 C U- N � V � - C Q -' M O N O v e a.. m' a v J 7 ®� a o L 0 r o I N 0 0 0 0 0 LO 0 Z w p w °�. \\ \\ of r„ v� • �' —' rssa .J •�` \. \ ',os\ \ 1 ( /tide / <]G. >� sury,n�E I�SU I 1 ° a•� N'i �. 1' ' �`¢:¢',wa•'/ of i 96;y°'i'1 . yap Z R - � zl I X/^ �O \? N \ N:IS `I \\ a' - -, � � $ `�O �J.(�r� ^h o.o L------- - - -- -- ' 1'- asa.eaoon �a� Gi 5 BLACK WOLF RUN = V �?` ------------------- 1 °a o I � 1 - - --J °a °gam ♦ / Q �NM aro o I � I 5b °e�r� °` ^N 00 r ' II d I_ �� .I 1. N \1 1 •�\i. -____ �.irswav - ----I U F I a l l 1 �- `I I L ------ I i - -___J �sy � o�04 eo °1°Eo� n°p w M No n i 3.csz�v°x �e • Z w p w °�. \\ \\ of r„ v� • �' —' rssa .J •�` \. \ ',os\ \ 1 ( /tide / <]G. sury,n�E I�SU I 1 ° a•� N'i �. 1' ' �`¢:¢',wa•'/ of i 96;y°'i'1 . yap Z R N 5y1 \`^ 4n CV zl I X/^ �O \? N \ N:IS `I \\ a' - -, � � $ `�O �J.(�r� ^h o.o L------- - - -- -- ' 1'- asa.eaoon �a� Gi 5 BLACK WOLF RUN = V �?` ------------------- 1 °a o I � 3ae'aoo I � 1; S \•� Iii �`;, � ♦ / Q �NM aro o I � I 5b °e�r� °` ^N 00 r ' II d I_ �� .I 1. N \1 1 •�\i. -____ �.irswav - ----I U F I a l l 1 �- `I I L ------ I i - -___J \ I '�z�•0°x nzr\ I i _ _ _ _ a.iesemx � O. I I w n°p w M No n i 3.csz�v°x � '•� �� I I m °I I I I (J 1 I +mx anz 18, L7 6I 81 I m 1°, i U J= 99I I 4 W� qq E i s z W \ ��dt� All I (maa wxx Toro) u rox mvsa w o • M„89,04e69S Z9'69& 1 � I � I .�.i t,NOio I LL zry I 4Z � m^ I g \ \ C] Ld \ I N — � L y a,xll / 00 O � OY �< hry LL= I .n =Jls( OU ww 'Y�a OOOO 2 g � yo Y ,`e UU) wo 09Qp1A eg 1 wLL v eg I Q W ( lei i,l � ia» zasx -1 os O C\l co SV3 g9 <LS tl:� / rn ZZ oa 2gaSt._. L9g 3,Z0,94,L8N Z6'Zb£ i (i ) Lo Nfli! d70M )K))Vl(l 8 n2 / 1 - <( N C)I L,j _ 00.9£Z — C)I Li I'll qg,LU 1 1` \I L'� C) I p 'i y i w��` \ C; ) I z '/ i i mw �(. I I� ( - -A, �__-- - - -- =— I ° I — �)`� Yz Nob Ijll 8C `SC; <CE °z a LJ J m J P C7 O I I p Ok I f a l l 13 I r g 'b Agenda Information Memo June 3, 2014 Eagan City Council Meeting CONSENT AGENDA L. Contract 13 -05, Cedar Grove Parking Garage Change Order No. 6 Action To Be Considered: Approve Change Order No. 6 to Contract 13 -05 (Cedar Grove Parking Garage) and authorize the Mayor and City Clerk to execute all related documents. Facts: ➢ City Contract 13 -05 provides for the construction of a public parking structure on the north side of Cedar Grove Parkway adjacent to the Paragon Outlets property. The proposed project includes a structure that provides 1,543 parking stalls and is designed with two levels, with the structural capacity to add a third level in the future. ➢ On August 20, 2013, the City Council awarded the base bid for Contract 13 -05 for these improvements to PCL Construction Services, Inc. ➢ Change Order #6 provides for cast -in -place concrete, painting, and structural reinforcement modifications not anticipated with the original design. The change order also provides a driveway access opening on the top level of the garage for the planned hotel use on Lot 1, Cedar Grove Parkway 4th Addition (Hilton Home2). ADD $39,506.00 The cost of the additional work is consistent with bid prices received for relevant bid items on other projects within the city and region. ➢ The change order provides for an additional cost of $39,506.00 (0.22% of original contract) with no change in the current completion date of the contract (August 13, 2014). The cost of the additional work under the change order will be the responsibility of the City's Economic Development Authority (EDA). ➢ The change order has been reviewed by the Public Works Department and the City's consultant, Walker Parking Consultants, and found to be in order for favorable Council action. Attachments: (0) Agenda Information Memo June 3, 2014 Eagan City Council Meeting CONSENT AGENDA M. Street Sign Management & Maintenance Policy Action To Be Considered: Approve Street Sign Management & Maintenance Policy and authorize Mayor and City Clerk to execute all related documents. Facts: ➢ "Retroreflectivity" describes how light is reflected from a surface and returned to its original source. Traffic signs are made with retroreflective sign sheeting material that redirects headlamp illumination back toward the vehicle, thereby making the sign visible at nighttime to the vehicle driver. Improvements to nighttime visibility of traffic signs will help drivers better navigate roads at night and thus promote safety and mobility. ➢ By June 13, 2014, the Federal Highway Administration (FHWA) requires that all agencies, including cities, who maintain roadways open to public travel must adopt a sign maintenance program designed to maintain traffic sign retroreflectivity at or above specific levels. ➢ The FHWA requires that all signs not meeting certain minimum retro reflectivity standards be replaced, or the implementation and continued use of an assessment or management method that is designed to maintain regulatory and warning sign retro reflectivity at or above the minimum standards. ➢ The City has a long- standing program and policy, in conjunction with the City's street improvement program, which assesses and replaces signs not meeting the minimum requirements. This meets the FHWA requirements and League of MN Cities model policy recommendations. ➢ In order to meet the FHWA deadline, the Public Works and Transportation Operations staff is recommending formal approval of the City Street Sign Management and Maintenance Policy by the City Council. Attachments: (0) Agenda Information Memo June 3, 2014, Eagan City Council Meeting CONSENT AGENDA N. Approve Final Plat for Long Acres 3rd Addition — Mark Gergen & Assoc. Action To Be Considered: To approve a Final Plat upon approximately 0.75 acres located west of Biscayne Avenue and south of Red Pine Lane at Gun Club Road. Facts: ➢ This site was platted as an outlot in 2004 with the first phase of the Long Acres development which comprised approximately 29 acres both east and west of Biscayne Avenue between Gun Club Road and 120th Street. ➢ While the Preliminary Subdivision showed the site divided into two parcels, the current Final Plat simply replats the outlot into a single parcel. ➢ The Final Plat has been reviewed by staff and is acceptable. ➢ A development agreement has been prepared to secure improvements and financial obligations associated with development of the parcel. Tree mitigation and park and trail dedication fees will be collected at the time of Building Permit. ➢ All documents and agreements are anticipated to be in order for execution at the City Council meeting on June 3, 2014. Issues: None Attachments: (2) CN -1 Location Map CN -2 Final Plat c AM 4u O V J J 0 Q 06 c m a� L L V Q. L N N M Ea 0 = y > J U- N � ❑ Q mail NONNI Iloilo �• �� ®�®\ ; ®!��� � ®!® j��i mot■ �11®� ®.:;� ■ ■ONNI STE PIP MEN INS Jill gassig- IN MA, . Iii i■ 0 �o LL C) 0 N M O N 00 C) �p v c W c Y m -p a m a U d ®� J o mail NONNI Iloilo �• �� ®�®\ ; ®!��� � ®!® j��i mot■ �11®� ®.:;� ■ ■ONNI STE PIP MEN INS Jill gassig- IN MA, . Iii i■ 0 2 sqq c Y o � H fr E h r O O E NU c 0 h \� k _19'L m 3fi Z 0 O � \ 1 °F� \ \� I ss Fr I I m F I I I a ug-0 p ..ten T I c= ••: -�::� F v 3 o y E v? E fr „ u asX I o I I I 6 O E � 0 5 a 0 _c Q s u r ° a S 16� Es a ud 2 sqq c Y o � H fr E h r O O E NU c 0 h \� k _19'L m 3fi Z 0 O � \ 1 °F� \ \� I ss Fr I I m F I I I a p ..ten T I c= ••: -�::� F v 3 o y Gf I I I I 6 O E � 5 a 0 _c Q s u r ° a S 16� �I W - - -- F of 2 sqq c Y o � H fr E h r O O E NU c 0 h \� k _19'L m 3fi Z 0 O � \ 1 °F� \ \� I ss Fr I I m F I I I p ..ten T I c= ••: -�::� F v 3 o y Gf I I I I 2 F- cJ F, O Y v O J I- Q J C) 0 `al s � � u $ g 5 U FG v U og_ wzaa� [.J -------------- - - - - -- - - -- 65'BlZ M,6£,01.00N F, A I 0 F, CBI o� xige p ..ten T c= ••: -�::� F v C o y UX 5 a 6 � 5 a _c s u r ° a S 16� �I F of F s rc c ti 4l G Z.^ QQV DI � I A I 0 F, CBI o� xige Agenda Information Memo June 3, 2014, Eagan City Council Meeting CONSENT AGENDA O. Approve Exempt Permit for the Eagan Resource Center to hold a raffle on July 9, 2014 at Jensen's Supper Club, 3840 Cedarvale Blvd Action To Be Considered: To adopt a resolution approving an Exempt Permit for the Eagan Resource Center to conduct a raffle on July 9, 2014 at Jensen's Supper Club, 3840 Cedarvale Blvd. Facts: ➢ The Eagan Resource Center has applied for an Exempt Permit with the Gambling Control Board to hold a raffle as listed above. All requirements for the application have been met and staff deems it in order for approval. Attachments: (1) CO -1 Resolution RESOLUTION NO. CITY OF EAGAN APPLICATION FOR EXEMPT PERMIT EAGAN RESOURCE CENTER WHERAS, the Eagan Resource Center has applied for an Exempt Permit to conduct a raffle on July 9, 2014; and WHEREAS, the Eagan Police Department has reviewed the application and has not identified any reason to deny; and NOW, THEREFORE, BE IT RESOLVED that the City Council of Eagan, Dakota County, Minnesota, hereby approved the Exempt Permit for the Eagan Resource Center to conduct a raffle on July 9, 2014 at 3840 Cedarvale Boulevard. Motion by: Seconded by: Those in favor: Those against: Date: June 3, 2014 CERTIFICATION CITY OF EAGAN CITY COUNCIL By: It's Mayor Attest: It's Clerk I, Christina M. Scipioni, Clerk of the City of Eagan, Dakota County, Minnesota, do hereby certify that the foregoing resolution was duly passed and adopted by the City Council of the City of Eagan, Dakota County, Minnesota, in a regular meeting thereof assembled this 3rd day of June, 2014. City Clerk Agenda Information Memo June 3, 2014 Eagan City Council Meeting P. Approve AccessEagan Non - Exclusive Access And Use Agreement With Granite Granite Telecommunications, LLC Action To Be Considered: Approve AccessEagan non - exclusive Access and Use Agreement with Granite Telecommunications LLC and authorize the Mayor and Clerk to sign; and further authorize the Director of Communications or IT Manager to execute all necessary work schedules to implement subsequent fiber connections with the concurrence of the City Attorney. Facts: ➢ With approval, Granite Telecommunications will become the fourth provider to come onto the AccessEagan wholesale fiber network. ➢ On May 21, July 2 and July 16, 2013 the Eagan City Council approved similar contracts with Frontier Communications, Arvig Enterprises and Velocity Telephone, Inc. ➢ Granite is a leading corporate communications service provider to multi - location companies throughout the United States and Canada, including national retailers in various store locations. ➢ The company is headquartered in Quincy, MA and its customers include 86 of the Fortune 100 Companies with more than 4,800 corporate clients in over 555,000 locations. ➢ Authorized and built in two phases in 2011 and 2012, the 17 -mile AccessEagan network was provisioned and launched for service last fall. The network is open access, meaning the fiber infrastructure is available to any telecommunications provider wishing to serve Eagan businesses and agreeing to the terms and conditions for use of the network. ➢ It is important to note that to avoid market delays, the agreement provides that subsequent work schedules may be approved by identified City staff. These schedules extend the final connection to businesses contracted by Granite Telecommunications to use AccessEagan fiber. City approval of these schedules in conditioned on concurrence of the City Attorney. Attachments: (0) Due to the length of the Access & Use Agreement, the master agreement is on file with City Clerk. Agenda Information Memo June 3, 2014, Eagan City Council Meeting A. 2013 Comprehensive Annual Financial Report Action To Be Considered: To receive and accept the 2013 Comprehensive Annual Financial Report Facts: ➢ The CAFR for year ended December 31, 2013 has been completed and the audit by Kern, DeWenter, Viere, Ltd (KDV) has been performed. ➢ KDV has expressed an unmodified ( "clean ") opinion —the best opinion that can be given — on the financial statements. ➢ A brief PowerPoint presentation reviewing the results and the various charts tables included in KDV's "Communications Letter" will be made by Matt Mayer of KDV. ➢ 2013 results in the General Fund are favorable. Details will be offered in KDV's presentation. ➢ Hard copies of the reports are included in your packet and may be easier to use when following KDV's presentation. ➢ Mr. Mayer, Finance Director Pepper and Assistant Finance Director Feldman will be available to answer questions. Attachments: (3) V -1 2013 Comprehensive Annual Financial Report of the City of Eagan V -2 City of Eagan Communications Letter V -3 Report on Legal Compliance Independent Auditor's Report COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY COUNCIL OF EAGAN, MINNESOTA For the Year Ended December 31, 2013 Dave Osberg, City Administrator PREPARED BY: THE FINANCE DEPARTMENT Thomas W. Pepper, Finance Director (THIS PAGE LEFT BLANK INTENTIONALLY) CITY OF EAGAN TABLE OF CONTENTS INTRODUCTORY SECTION Page Elected Officials and Administration ............................................................ ............................... 1 OrganizationalChart ..................................................................................... ............................... 2 Locationof City ............................................................................................ ............................... 3 Location of Public Properties ........................................................................ ............................... 5 Letterof Transmittal ..................................................................................... ............................... 7 Certificate of Achievement for Excellence in Financial Reporting .............. ............................... 12 FINANCIAL SECTION Independent Auditor's Report ....................................................................... ............................... 13 Management's Discussion and Analysis ....................................................... ............................... 15 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Position ................................................................. ............................... 27 Statementof Activities ...................................................................... ............................... 28 Fund Financial Statements: Balance Sheet — Governmental Funds .............................................. ............................... 30 Reconciliation of the Balance Sheet to the Statement of Net Position — GovernmentalFunds ....................................................................... ............................... 33 Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds ....................................................................... ............................... 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities — Governmental Funds .......................... 36 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — General Fund ............................................................. ............................... 37 Statement of Net Position — Proprietary Funds ................................. ............................... 40 Reconciliation of the Statement of Net Position — Proprietary Funds — to the Government -Wide Statement of Net Position — Business -Type Activities ................... 45 Statement of Revenues, Expenses and Changes in Fund Net Position — ProprietaryFunds ............................................................................ ............................... 46 Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Net Position to the Statement of Activities — Business -Type Activities ....................... 49 Statement of Cash Flows — Proprietary Funds .................................. ............................... 50 Statement of Fiduciary Net Position ................................................. ............................... 54 Statement of Changes in Fiduciary Net Position .............................. ............................... 54 Notes to the Financial Statements ........................................................... ............................... 55 Required Supplementary Information: Schedule of Funding Progress — Other Post Employment Benefits ........ ............................... 92 Schedule of Employer Contributions — Other Post Employment Benefits ............................ 92 CITY OF EAGAN TABLE OF CONTENTS FINANCIAL SECTION Page Combining and Individual Fund Financial Statements and Schedules: Combining Balance Sheet — Nonmajor Governmental Funds ................ ............................... 94 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Governmental Funds .... ............................... ............................100 General Fund: Schedule of Revenues — Budget (Original and Final) and Actual ........ ...........................108 Schedule of Expenditures — Budget (Original and Final) and Actual .. ............................110 Special Revenue Funds: Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget (Original and Final) and Actual: HousingFund .................................................. ............................... ............................113 Cable TV Franchise Fees Fund ....................... ............................... ............................114 EaganTV ........................................................ ............................... ............................115 Cedarvale Special Services Fund ..................... ............................... ...........................116 Minnesota Investment Fund Revolving Loan . ............................... ............................117 DWIForfeiture ................................................ ............................... ............................118 Capital Project Funds: Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget (Original and Final) and Actual: Park System Development and Renewal & Replacement .............. ...........................119 Equipment Revolving Fund ............................ ............................... ............................120 General Facilities Renewal ............................. ............................... ............................121 Fire Apparatus Revolving ................................ ............................... ...........................122 Public Utilities Enterprise Fund: Comparative Statement of Fund Net Position ...... ............................... ............................124 Schedule of Revenues, Expenses and Changes in Fund Net Position . ............................126 Internal Service Funds: Combining Statement of Fund Net Position ......... ............................... ............................127 Combining Statement of Revenues, Expenses and Changes in FundNet Position ................................................ ............................... ...........................128 Combining Statement of Cash Flows ................... ............................... ............................129 Combining Statement of Changes in Agency Funds Assets and Liabilities ..........................130 Financial Schedules: Combined Schedule of Bonds Payable ....................... ............................... ............................131 Combined Schedule of Bonds Payable Maturities ...... ............................... ............................132 Combined Schedule of Debt Service Requirements ... ............................... ............................134 Schedule of Cash and Investments ............................. ............................... ............................136 CITY OF EAGAN TABLE OF CONTENTS STATISTICAL SECTION Table Page NetPosition by Component .................................................................... ............................... 1 140 Changesin Net Position .......................................................................... ............................... 2 141 Fund Balances of Governmental Funds .................................................. ............................... 3 142 Changes in Fund Balances of Governmental Funds ............................... ............................... 4 143 Tax Capacity, Estimated Market Value and Indicated Market Value ..... ............................... 5 144 Direct and Overlapping Property Tax Rates ........... ................................ ............................... 6 145 Principal Property Taxpayers ......................................... ............................... Property Tax Levies and Collections ...................................................... ............................... 8 147 Ratios of Outstanding Debt by Type ....................................................... ............................... 9 148 Ratios of General Bonded Debt Outstanding and Legal Debt Margin ..... .............................10 149 Direct and Overlapping Governmental Activities Debt ............................ .............................11 150 PledgedRevenue Coverage ...................................................................... .............................12 151 Demographic and Economic Statistics ..................................................... .............................13 152 Principal Employers ....................... ............................... ............................ .............................14 153 Budgeted Full -Time Equivalent City Government Employees by Function .........................15 154 Operating Indicators by Function .............................................................. .............................16 155 Capital Asset Statistics by Function .......................................................... .............................17 156 (THIS PAGE LEFT BLANK INTENTIONALLY) CITY OF EAGAN ELECTED OFFICIALS AND ADAHNISTRATION December 31, 2013 Elected Officials Position Term Expires Mike Maguire Mayor December 31, 2014 Cyndee Fields Council Member December 31, 2016 Meg Tilley Council Member December 31, 2016 Paul Bakken Council Member December 31, 2014 Gary Hansen Council Member December 31, 2014 Administration Dave Osberg City Administrator Dianne Miller Assistant City Administrator Thomas W. Pepper Finance Director Jim McDonald Chief of Police Mike Scott Fire Chief Russ Matthys Director of Public Works Juli Seydell Johnson Director of Parks and Recreation Thomas M. Garrison Director of Communications Jon D. Hohenstein Director of Community Development Consultants and Advisors Legal Severson, Sheldon, Dougherty & Molenda, P.A. Auditing Kern, DeWenter, Viere, Ltd. Engineering Stantec Consulting Services, Inc. Bolton & Menk, Inc. SEH, Inc. SRF Consulting Group, Inc. WSB & Associates, Inc. Fiscal Springsted Ehlers & Associates 1 \ \ \ ƒ ) ƒ : ƒ ] : } / ) % l 6 � 6 j � } ƒ w ) G y : g # : \ � � G « ° � 7 / \ / ( ƒ� \ ±�� RCL ) \ � ] $ 2 ( \ � \� ƒ L ! b S ! % � [ � � ] % $ ) [ \ ( \ i % \ $ \ \ \ \( ] \\ CITY OF £AGAN ORGANIZATIONAL CHART December a % 2013 CITY OF EAGAN LOCATION OF CITY December 31, 2013 City of Eagan, Minnesota The City of Eagan is a suburb located south of Minneapolis and St. Paul in Dakota County in east- central Minnesota. Eagan was incorporated as a village In 1972. In 1974, pursuant to a revision of Chapter 412, Minnesota Statutes by the State Legislature, Eagan was incorporated as a City and instituted a council /administrator form of government. The'City covers an area of 34.6 miles. Dakota County (THIS PAGE LEFT BLANK INTENTIONALLY) CITY OF EAGAN LOCATION OF PUBLIC PROPERTIES December 31, 2013 hook Oma Nku Fatales U a t y V0 fm '2 4t3 s "wgh5v�w 17 M ... 20 iWnMK%" �6 ty«OVw w1a I= Vii`` . 4 oo -,, Mp V& M" & fin'. Kwao M k& 4 6,wo t 41Y 7 T Oak, l "x (v 4 rml u7 thl fitawmi 2s fv4 3 '1l MVIA Y4 v v k M NttMd {NW04 F"SIAM4 76 MVIIA culu GW4 5rank'`uum 10 law 5dk"w,3taxw&gg -lsaaml a PmoffwA 5 (THIS PAGE LEFT BLANK INTENTIONALLY) Ski %a i Y City of Eakan Mike Maguire Mayor Paul Bakken Cyndee Fields Gary Hansen Meg Tilley Council Members Dave Osberg City Administrator Municipal Center 3830 Pilot Knob Road Eagan, MN 551221810 651.675.5000 phone 651,675.5012 fax 651.454.8535 TDD Maintenance Facility 3501 Coachman Point Eagan, MN 55122 651.675.5300 phone 651.675.5360 fax 651.454.8535 TDD www.cityofeagan.com The Lone Oak Tree The symbol of strength and growth in our community. May 12, 2014 Honorable Mayor, Councilmembers, Citizens, and Interested Parties City of Eagan, MN Dear Mayor Maguire, Councilmembers, Citizens and Interested Parties: State law requires that cities of more than 2,500 in population submit an audited annual financial report to the State Auditor by June 30 of the following year. State law also requires that the annual financial report be submitted to the Mayor and each City Council member no later than 30 days after it is due to the State Auditor. This report is published to fulfill those requirements for the year ended December 31, 2013. The organization, form and contents of this report are prepared in conformity with generally accepted accounting principles (GAAP) and standards prescribed by the Minnesota State Auditor's office and the Government Finance Officers Association. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based on a comprehensive framework of internal controls that it has established for this purpose, Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of material misstatements. The CPA firm Kern, DeWenter, Viere, Ltd. has issued an unmodified ( "clean ") opinion on the City of Eagan's financial statements for the year ended December 31, 2013. The independent auditor's report is located at the front of the financial section of this report. Management's Discussion and Analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD &A complements this letter of transmittal and should be read in conjunction with it. C!ty Profile The City of Eagan is a southern Twin Cities suburb, equidistant from Minneapolis and St. Paul, and ten minutes from the Minneapolis /St. Paul International Airport. Eagan is located in Dakota County. The City encompasses 34.5 square miles or 22,080 acres. Eagan was incorporated as a statutory Plan A (Council /Administrator) city in 1974 and was one of the fastest growing cities in the State in the 1980s. Population growth remained strong through the 1990s, but has leveled off since 2000 as all but a small amount of vacant residential land has now been developed. Eagan is the 9th largest city in Minnesota. Eagan is located at the juncture of two interstate freeways— Interstate 494 traverses east and west along the City's north border, while Interstate 35E runs north and south through the City. The extensive system of County and State highways and 236 miles of city streets has made the City an ideal location for development. State Highway 13 along the western edge of the City is a major regional artery, as is State Highway 77, which runs north and south. The transportation routes serving Eagan provide easy access for commuters coming into the City, as well as City residents going to employment in the rest of the metropolitan area, including the downtowns of Minneapolis and St. Paul. The City provides a full range of municipal services. This includes public safety (police and fire), public works (engineering and streets and highways), parks and recreation, and general government. The City also operates a public water and sewer utility, limited street lighting utility, water quality /storm drainage utility, civic arena, recreational aquatic facility, and community center. The City participates with other municipalities in jointly governed organizations for public transit and data processing and support. Separate financial statements are issued for these jointly governed organizations; information on activity between the City and these organizations can be found in the notes to the City's financial statements (Note 1.A.2). Refuse collection and recycling are handled on a private basis through contractual arrangements with private haulers. Sewage treatment is operated on a regional basis by the Metropolitan Council. The annual budget serves as the foundation for the City's financial planning and control. Budgets for the calendar year are adopted annually by the City Council in December, subsequent to several months of analysis and review and an opportunity for input from citizens by way of public hearings. The City Council adopts budgets for the General Fund and the Special Revenue funds. Budgeting controls in the General Fund are maintained at the department level. Appropriations not expended at the end of the fiscal year lapse. Budget adjustments require City Council approval. M. Population Percent Population Increase Increase 2010 Census 64,206 649 1% 2000 Census 63,557 16,148 34% 1990 Census 47,409 26,709 129% 1980 Census 20,700 10,302 99% 1970 Census 10,398 7,016 207% 1960 Census 3,382 - - Eagan is located at the juncture of two interstate freeways— Interstate 494 traverses east and west along the City's north border, while Interstate 35E runs north and south through the City. The extensive system of County and State highways and 236 miles of city streets has made the City an ideal location for development. State Highway 13 along the western edge of the City is a major regional artery, as is State Highway 77, which runs north and south. The transportation routes serving Eagan provide easy access for commuters coming into the City, as well as City residents going to employment in the rest of the metropolitan area, including the downtowns of Minneapolis and St. Paul. The City provides a full range of municipal services. This includes public safety (police and fire), public works (engineering and streets and highways), parks and recreation, and general government. The City also operates a public water and sewer utility, limited street lighting utility, water quality /storm drainage utility, civic arena, recreational aquatic facility, and community center. The City participates with other municipalities in jointly governed organizations for public transit and data processing and support. Separate financial statements are issued for these jointly governed organizations; information on activity between the City and these organizations can be found in the notes to the City's financial statements (Note 1.A.2). Refuse collection and recycling are handled on a private basis through contractual arrangements with private haulers. Sewage treatment is operated on a regional basis by the Metropolitan Council. The annual budget serves as the foundation for the City's financial planning and control. Budgets for the calendar year are adopted annually by the City Council in December, subsequent to several months of analysis and review and an opportunity for input from citizens by way of public hearings. The City Council adopts budgets for the General Fund and the Special Revenue funds. Budgeting controls in the General Fund are maintained at the department level. Appropriations not expended at the end of the fiscal year lapse. Budget adjustments require City Council approval. M. Economic Condition and Outlook In a period of record unemployment levels in the United States, labor market data for the region continue to compare favorably to the rest of the country: Source: MN Dept of Employment & Economic Development. Figures are annual averages, not seasonally adjusted. The City's ten largest employers have combined estimated employment of about 19,000. These employers are well diversified and provide a large variation in employment opportunities. Thomson Reuters and Blue Cross /Blue Shield of Minnesota are headquartered in Eagan. The ten largest taxpayers in the City also represent varied types of business and account for approximately 7% of the 2012 tax capacity. Eagan has become one of the largest and most diverse employment nodes in the Twin Cities area. In an employment report issued by the Minnesota Department of Employment and Economic Development for the period 2000 - 2010, knowledge worker jobs in Eagan increased by 15% while such jobs in the Twin Cities metropolitan area overall decreased by 5.7 %. Like most communities across the nation, Eagan's new construction tapered during the Great Recession. Total valuation of new construction in for 2009 -2011 was lower than any three -year period in more than thirty years. Construction valuation increased substantially in 2012 and even more in 2013, with the residential class at $ 53 million and the commercial/ industrial class at $ 83 million. 2013 2012 Civilian Unemployment Civilian Unemployment Labor Force Rate Labor Force Rate Eagan 38,716 4.2% 38,873 4.7% Dakota County 232,407 4.7% 231,946 5.3% Mpls /St. Paul MSA 1,865,647 4.8% 1,857,426 5.5% State of Minnesota 2,973,987 5.1% 2,969,366 5.6% United States 155,389,166 7.4% 154,974,583 8.1% Source: MN Dept of Employment & Economic Development. Figures are annual averages, not seasonally adjusted. The City's ten largest employers have combined estimated employment of about 19,000. These employers are well diversified and provide a large variation in employment opportunities. Thomson Reuters and Blue Cross /Blue Shield of Minnesota are headquartered in Eagan. The ten largest taxpayers in the City also represent varied types of business and account for approximately 7% of the 2012 tax capacity. Eagan has become one of the largest and most diverse employment nodes in the Twin Cities area. In an employment report issued by the Minnesota Department of Employment and Economic Development for the period 2000 - 2010, knowledge worker jobs in Eagan increased by 15% while such jobs in the Twin Cities metropolitan area overall decreased by 5.7 %. Like most communities across the nation, Eagan's new construction tapered during the Great Recession. Total valuation of new construction in for 2009 -2011 was lower than any three -year period in more than thirty years. Construction valuation increased substantially in 2012 and even more in 2013, with the residential class at $ 53 million and the commercial/ industrial class at $ 83 million. With the underlying strength of the seven - county metropolitan area's economy, the City's diversification of tax and employment bases, and its prime location, Eagan's long -term future continues to look bright. 0 MEMO ■� ■� _■ ONE ■ _ ■11■ ■11 With the underlying strength of the seven - county metropolitan area's economy, the City's diversification of tax and employment bases, and its prime location, Eagan's long -term future continues to look bright. 0 Major Initiatives and Long -term Financial Planning In 2012, the General fund operations produced a favorable budget variance for the fourth year in a row. As a result, $1.9 million was added to unassigned fund balance, increasing it to 54% of subsequent year's expenditures, slightly above the City's target of 40 -45 %. General Fund results for 2013 also were favorable with an operating surplus of $ 1.1 million. After transfers and other financing sources, the City added $ 0.8 million to the fund balance in the General Fund and ended the year with $ 15.3 million, or 51 % of subsequent year's expenditures. Eagan continues its redevelopment efforts for the future with the Cedar Grove Redevelopment area being the focus of redevelopment. In 2012, the Eagan Economic Development Authority (EDA) completed all acquisition, demolition and environmental investigation for the redevelopment area. The City and its Master Developer, Pratt Development, were approached by Paragon Outlet Centers to consider development of a new regional upscale retail outlet center on a large portion of the core Cedar Grove site. After significant design considerations, the EDA approved a purchase agreement to sell 29 acres to Paragon for the anchor development. Construction began in 2013 and will be completed by August 2014. The $100 million outlet center project will consist of a 444,000 square foot facility that will be six separate buildings configured in a walkable interior racetrack design. It will house small and medium shops within walkable proximity, and connections to the existing Bus Rapid Transit (BRT) Cedar Grove Transit Station at its west end. To complement the outlet mall and the recently approved four -story, 123 -unit room hotel, the City began construction of a 1,530 -stall parking ramp in 2013. The ramp will be completed in conjunction with the August 2014 grand opening of the Outlet Center. A combination of conservative budgeting for revenues, a solid economic redevelopment plan, and a strong posture of self- sufficiency have positioned the City well as it looks to the future. Awards and Acknowledgments 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 Eagan for its comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2012. This was the thirtieth consecutive year (1983 -2012) the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a governmental unit had to publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report on a timely basis could not have been accomplished without the efficient services of the entire staff of the Finance Department. We would like to particularly thank accountants Linda Fink, Sheldon Libman, and Alexandra O'Leary for their work. 10 We want to express our appreciation to the Mayor and the members of the City Council for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, IA Joshua A. Feldman Assistant Finance Director Thomas W. Pepper Finance Director David M. erg City Administrator 11 Government Finance Officers Association Reporting Presented to City of Eagan Minnesota For its Comprehensive Annual. F-InancialRepon for the Ric al Year Ended December 31, 2012 12 am Expert advice. Men you need it.' INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Eagan Eagan, 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 Eagan, Minnesota, as of and for the year ended December 31, 2013, and the related Notes to the Financial Statements, which collectively comprise the City's basic financial statements as listed in the Table of Contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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 City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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 Eagan, Minnesota, as of December 31, 2013 and the respective changes in financial position and, where applicable, cash flows, thereof, and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Expert advice. When you need it Sbf St. Cloud Twin Cities www.kdv.com 220 Park Avenue S. 3800 American Boulevard W. Certified Public Accountants P.O. Box 1304 Suite 1000 Toll Free Wealth Management St. Cloud, Minnesota Bloomington, Minnesota 877.912.7696 Payroll Services 56302 55431 Business Valuations Phone: 320.251.7010 Phone: 952.563.6800 Technology Help Desk Technology Services Fax: 320.251.1784 Fax: 952.563.6801 866.400.6426 13 Implementation of GASB 65 As discussed in Note 16 to the financial statements, the City has adopted the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, which follows this report letter, the Schedule of Funding Progress — Other Post Employment Benefits and the Schedule of Employer Contributions — Other Post Employment Benefits be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the GASB who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The Introductory Section, the Combining and Individual Fund Financial Statements and Schedules, Financial Schedules and Statistical Section are presented for purposes of additional analysis and are not a required part of the financial statements. The Combining and Individual Fund Financial Statements and Schedules and Financial Schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. This supplementary information contains prior year comparative information taken from the City's 2012 financial statements. We also have previously audited, in accordance with auditing standards generally accepted in the United States of America, the City's basic financial statements for the year ended December 31, 2012, which are not presented with the accompanying financial statements. In our report dated May 9, 2013, we expressed unmodified opinions on the respective financial statements of the governmental activities, business -type activities, each major fund and the aggregate remaining fund information. In our opinion, the 2012 supplementary information is fairly stated in all material respects in relation to the basic financial statements for the year ended December 31, 2012, taken as a whole. The Introductory Section and Statistical Section have not been subjected to the auditing procedures applied in the audit of th/e basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. KERN, DEWENTER, VIERS, LTD. Minneapolis, Minnesota May 12, 2014 14 CITY OF EAGAN MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 As management of the City of Eagan (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, 2013. We encourage readers to consider the information presented here in conjunction with additional information we have furnished in our letter of transmittal, which can be found on pages 7 through 11 of this report. FINANCIAL HIGHLIGHTS • The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the year by $ 432.4 million. Of this amount, $ 80.1 million may be used to meet the government's ongoing obligations to citizens and creditors in accordance with the City's fund directives and fiscal policies. • The City's total net position increased by $ 16.6 million. • As of the close of the year, the City's governmental funds reported combined ending fund balances of $ 38.7 million; 68% of this total amount, or $ 26.1 million, is available for use within the City's directives and policies. • At the end of the current fiscal year, unassigned fund balance for the General Fund was $ 15.0 million, or 53% of total General Fund expenditures. • The City's total bonded debt increased by $ 10.6 million during the current fiscal year. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements 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. The Statement of Net Position presents information on all of the City's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. 15 CITY OF EAGAN MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 OVERVIEW OF THE FINANCIAL STATEMENTS The Statement of Activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this Statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City principally supported by taxes and intergovernmental revenues (governmental activities) from other functions 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 and parks and recreation. The business -type activities of the City include its public utilities (water, sanitary sewer, street lighting, storm drainage and water quality), Civic Arena, Aquatic Facility, Community Center and AccessEagan (Fiber Infrastructure). The goverunent -wide financial statements can be found on pages 27 -28 of this report. Fund Financial Statements — A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds — Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term 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 statement. By doing so, readers may better understand the long -term impact of the City's near -tern 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. As of December 31, 2013, the City maintained 33 individual governmental funds. One governmental fund was closed and two were opened during 2013. 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 six funds: the General Fund, Improvement Bonds Debt Service, Combined Utility Trunk Capital Projects Fund, Major Street Capital Projects Fund, Cedar Grove /Highway 13 Tax Increment Capital Projects Fund, and Revolving Improvement Construction Fund. These six funds are considered to be major funds. Data from the other 27 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the fonn of combining statements elsewhere in this report. 16 CITY OF EAGAN MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 OVERVIEW OF THE FINANCIAL STATEMENTS The City adopts an annual appropriated budget for its General Fund. For the current year, the City also adopted budgets for special revenue funds. A budgetary comparison statement has been provided for the budgeted funds to demonstrate compliance with the budget. The basic governmental fund financial statements can be found on pages 30 -37 of this report. Proprietary Funds — The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the governmental -wide financial statements. The City uses enterprise funds to account for its public utilities (water, sewer, street lighting, storm drainage and water quality), Civic Arena, Cascade Bay Aquatic Facility, Community Center and AccessEagan (Fiber Infrastructure). Internal service funds are accounting devices used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its general risk management, employee benefits and workers compensation self - insurance. Because these services predominantly benefit governmental rather than business -type functions, they have been included within governmental 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 Public Utilities, Civic Arena, Cascade Bay Aquatic Facility, Community Center and the AccessEagan (Fiber Infrastructure), which are considered to be major funds of the City. The three internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual division data on the public utilities and individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 40 -53 of this report. Notes to the Financial Statements — The notes provide additional information 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 on pages 55 -91 of this report. Other Information — The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented inunediately following the Notes to the Financial Statements. Combining and individual fund statements and schedules can be found on pages 94 -130 of this report. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, total net position was $ 432.4 million at the close of 2013. By far the largest portion of the City's net position, $ 339.0 million, or 78 %, reflects its investment in capital assets (e.g. land, buildings, machinery and equipment) less any related outstanding debt used to acquire those assets. 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 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. 17 CITY OF EAGAN MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 GOVERNMENT -WIDE FINANCIAL ANALYSIS City's Net Position_ Governmental Activities Business -Type Activities Total 2013 2012 2013 2012 2013 2012 ASSETS: Current and Other Assets $ 52,892,059 $ 35,147,250 $ 63,454,059 $ 59,800,510 $ 116,346,118 $ 94,947,760 Capital Assets 174,239,504 160,066,242 187,044,997 191,161,454 361,284,501 351,227,696 Total Assets 227,131,563 195,213,492 250,499,056 250,961,964 477,630,619 446,175,456 DEFERRED OUTFLOWS OF RESOURCES: Deferred Outflows - 6,892 8,343 6,892 8,343 LIABILITIES: Long-Terin Liabilities 21,542,853 10,097,778 6,735,230 7,604,910 28,278,083 17,702,688 Other Liabilities 11,835,736 6,774,529 2,928,361 2,153,394 14,764,097 8,927,923 Total Liabilities 33,378,589 16,872,307 9,663,591 9,758,304 43,042,180 26,630,611 DEFERRED INFLOWS OF RESOURCES: Unavailable Revenue 2,196,229 3;723,949 1,414 1,413 2,197,643 3,725,362 NET POSITION: Invested in Capital Assets, Net of Debt 159,873,972 152,611,492 179,469,767 182,726,544 338,969,489 334,882,786 Restricted 13,327,484 13,075,016 ` - 30,250,211 13,327,484 43,325,227 Unrestricted 18,355,289 8,930,728 61,371,176 28,233,835 80,100,715 37,619,813 Total Net Position $ 191,556,745 $ 174,617,236 $ 240,840,943 $ 241,210,590 $ 432,397,688 $ 415,827,826 A portion of the City's net position represents resources subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $ 80.1 million, may be used to meet the City's ongoing obligations to citizens and creditors. 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 government as a whole, as well as for its separate governmental and business- type activities. Governmental Activities — Governmental activities increased the City's net position by $ 16.9 million, or 9.7 %. The majority of the increase comes from the Cedar Grove development activity and contributions to the City. Significant development activity occurred with the Premium Outlet Center scheduled to open in 2014. The City received $ 14.7 million from the developer for the acquisition of land ($ 5.8 million), the participant's cost sharing for the construction of a parking ramp ($4.2 million), and construction of a road and reconfiguration of a utility pipeline ($ 4.7 million). In addition, the City received $ 2.7 million of donated assets, resulting in an increase in net position. CITY OF EAGAN MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 GOVERNMENT -WIDE FINANCIAL ANALYSIS City's Changes in Net Position Governmental Activities 2013 2012 REVENUES Program Revenues Business -Type Activities 2013 2012 Total 2013 2012 Charges for Services $ 10,954,715 $ 5,304,929 $ 18,165,398 $ 18,083,697 $ 29,120,113 $ 23,388,626 Operating Grants and Contributions 1,533,818 860,251 165,153 211,200 1,698,971 1,071,451 Capital Giants and Contributions 14,881,089 8,593,756 1,233,511 73,791 16,114,600 8,667,547 General Revenues Property Taxes 27,051,703 25,991,281 1,114,560 1,117,576 28,166,263 27,108,857 Tax Increment 770,945 743,413 - - 770,945 743,413 FiancliiseTaxes 826,006 791,138 826,006 791,138 Unrestricted State Aid 285 376 - 285 376 Unrestricted Investment Earnings (58,256) 44,047 (137,504) 188,249 (195,760) 232,296 Other 32,330 18,750 - - 32,330 18,750 Total Revenues 55,992,635 42,347,941 20,541,118 19,674,513 76,533,753 62,022,454 EXPENSES General Government 7,609,191 8,024,291 - - 7,609,191 8,024,291 Public Safety 15,881,220 14,165,928 - 15,881,220 14,165,928 Public Works 9,888,051 10,436,231 - 9,888,051 10,436,231 Parks and Recreation 5,123,877 4,638,627 - 5,123,877 4,638,627 Interest on Debt 481,587 317,149 - 481,587 317,149 Public Utilities - - 15,771,982 15,555,095 15,771,982 15,555,095 Civic Arena 1,357,584 1,353,756 1,357,584 1,353,756 Aquatic Facility 1,253,404 1,198,770 1,253,404 1,198,770 Corrnnunity Center 2,342,396 2,286,791 2,342,396 2,286,791 Fiber Intiastructuie - - 198,584 192,223 198,584 192,223 Total Expenses 38,983,926 37,582,226 20,923,950 20,586,635 59,907,876 58,168,861 Increase (decrease) in net position before transfers 17,008,709 4,765,715 (382,832) (912,122) 16,625,877 3,853,593 Transfers in (out) (69,200) (711,458) 69,200 711,458 - - Increase (Decrease) in Net Position 16,939,509 4,054,257 (313,632) (200,664) 16,625,877 3,853,593 Net Position - January 1 174,617,236 170,562,979 241,210,590 241,411,254 415,827,826 411,974,233 Change in Accounting Principle - - (56,015) - (56,015) - Net Position - January 1, as Restated 174,617,236 170,562,979 241,154,575 241,411,254 415,771,811 411,974,233 Net Position - December 31 $ 191,556,745 $ 174,617,236 $ 240,840,943 $ 241,210,590 $ 432,397,688 $ 415,827,826 19 CITY OF EAGAN MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 GOVERNMENT -WIDE FINANCIAL ANALYSIS Following are graphs providing comparisons of the governmental activities revenues and expenses: $18,000,000 $15,000,000 $12,000,000 $9,000,000 $6,000,000 $3,000,000 Expenses and Program Revenues - Governmental Activities Expenses M Program Revenues General Public Safety Public Works government Capital a-ants and Contributio 26.5% Operating Grants 2.7% Franchise Taxes 1.5% State Aid Less than .01 % Revenue Sources - Governmental Activities Charges for Services 19.5% Other 0.1% Parks and Interest on Debt Recreation W Property Taxes 48.2% Interest -0.1% Tax Increments 1.3% 20 CITY OF EAGAN MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 GOVERNMENT -WIDE FINANCIAL ANALYSIS Business -Type Activities — Business -type activities net position decreased negligibly by $ 0.4 million, or 0.2 %. Following are graphs showing the business -type activities revenue and expense comparisons: 818,000;000 $ 15,000,000 $12,000,000 $9,000,000 $6,000,000 $3,000,000 Expenses and Program Revenues - Business -T }ape Activities 1 13 Expenses ® Program Revenues Public Utilities Civic Arena Aquatic Facility Community Center Fiber Infrastructure UnreE Interest -0. Proper 5. Revenue Sources - Business -Type Activities and Contributions 6.0% Charges for Services 88.4% Operating Grants and Contributions 0.8% 21 CITY OF EAGAN MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 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, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $ 38.7 million. Approximately 68% of this total amount, or $ 26.1 million, constitutes fund balance that is neither restricted nor nonspendable. $ 7.1 million of the fund balance is property held for resale in the Cedar Grove Highway 13 Tax Increment fund and is not available to be spent. $ 2.6 million of the fund balance is restricted for debt service and $ 0.7 million is restricted for public, educational, and government programming on the local cable channel. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the General Fund was $ 15.0 million. As a measure of the General Fund's liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance represents 54% of total General Fund expenditures. Fund balance in the General Fund increased by $ 0.8 million. Total General Fund revenue was $29.4 with Property Taxes of $ 22.0 million continuing to be the predominant funding source for general city operations. Licenses, Permits and Charges for Services totaled $5.3 million or 18% of the revenue in the General Fund. General Fund expenditures were $28.3 million resulting in an excess of revenue over expenditures of $1.1 million. Public Safety expenditures of $14.4 million continue to make up approximately half of the City's operational expenditures. The Improvement Bonds Debt Service Fund increased fund balance by $ 0.6 million. Revenues were $2.6 million and transfers out totaled $ 2.0 million. Timing differences in assessment collections and transfers to the Revolving Improvement Construction Capital Projects fund may result in fund balance fluctuations in a given year. The Combined Utility Trunk Capital Projects Fund experienced an increase in activity in 2013 with a slight increase in fund balance of $ 0.5 million. This was primarily a result of special assessment revenue utility related to an increase of development related connection fees. The Major Street Capital Projects Fund increased by $ 0.5 million. Transfers out to the Revolving Improvement Construction Capital Projects Fund totaled $ 3.7 million, while revenues exceeded expenditures by $ 4.2 million. Timing differences in project revenues and expenditures can result in a substantial increase or decrease in this fund from year to year. In 2013, $ 1.1 million was expended for sealcoating and other street system maintenance. The Cedar Grove /Highway 13 Tax Increment Capital Projects Fund increased by $ 9.6 million. Bonds issued in the amount of $ 12.5 million and monetary contributions totaling $ 4.2 million for the construction of a new parking ramp facility were the primarily reasons for the increase in fund balance. The project was partially complete in 2013 and is expected to be complete in 2014. 22 CITY OF EAGAN MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 The Revolving Improvement Construction Capital Projects Fund increased by $ 0.9 million. Expenditures totaled $ 10.3 million. Transfers in and revenue totaled $ 11.2 million. $ 4.7 million or 88% of the revenue was assessed in advance of the project for the Cedar Grove Area and infrastructure improvements. These project expenditures totaled $ 3.4 million for 2013 and temporarily increased fund balance. FINANCIAL ANALYSIS OF THE GOVERNMENT'S 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 enterprise funds are: Public Utilities, $ 39.9 million; Civic Arena, ($ 1.8 million) deficit; Aquatic Facility, $ 1.3 million; Community Center, $ 3.5 million and AccessEagan (Fiber Infrastructure), ($ 0.7 million) deficit. Net position decreased $ 1.9 million in the Public Utilities Fund. Operating income (loss) before depreciation totaled $ 1.0 million. Depreciation expense totaled $ 4.2 million and resulted in an operating loss of $ 3.2 million. The non- operating revenues of $ 2.0 million with internal transfers and capital contributions netting to $ 0.7 million ended the year with a net position of $ 205.5 million. Net position in the Civic Arena and Aquatic Facility increased by $ 0.1 and $ 0.6 million, respectively. This increase was mostly due to a cash infusion made from the General Fund for Capital improvements at both facilities. Net position in the Community Center Fund grew by $ 0.5 million, primarily due to a $ 0.4 million transfer in of antenna lease revenue to cover the operating deficit. Net position in the AccessEagan (Fiber Infrastructure) Fund decreased $ 0.2 million mostly due to depreciation. The three internal service funds have combined net position of $ 3.3 million. Net position decreased slightly by $ 0.1 million during the year primarily due to the liquidation of accrual balances for a few long- standing employees that retired. GENERAL FUND BUDGETARY HIGHLIGHTS The General Fund revenue Budget decreased $ 0.9 million from the original Budget. The decrease is primarily due to an accounting practice change in how the City accounts for internal program revenues between the General Fund and Public Utility Funds. In addition, the City changed another accounting practice and revised the 2014 budget to recognize State Fire Aid revenue and the related expenditure instead of passing it through directly to the local fire relief association. General Fund revenues were $ 1.9 million over budget with building permits and plan check fees from development activity being the primary revenue driver. Expenditure budgets were increased less than $ 0.2 million during the year primarily due to the accounting practice for the Fire Aid revenue as the City also reflects a corresponding expenditure to the Fire relief association. Overall, the City spent $ 0.7 less than the revised 2014 budget. As in past years, most departments expended less than what was authorized in the budget. 23 CITY OF EAGAN MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 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, 2013, amounts to $ 361.2 million (net of accumulated depreciation). This investment in capital assets includes land, buildings, infrastructure, machinery and equipment. Major capital asset construction during the current fiscal year included the Cedarvale Boulevard -Cedar Grove Parkway reconfiguration in the amount of $ 3.4 million, and streets infrastructure additions totaling $ 6.0 million. Land valued at $2.1 million was also acquired in 2013. Public utilities infrastructure additions included $ 0.3 million of lift station improvements and $ 1.0 million of water, sewer and storm sewer main improvements. Additional information on the City's capital assets can be found in Note 4 on pages 71 -73 of this report. City's Capital Assets (Net of Depreciation) Goverranental Activities Business -type Activities Total Total Assets $ 174,239,504 $ 160,066,242 $187,044,999 $ 191,161,454 $ 361,284,503 $ 351,227,696 24 2013 2012 2013 2012 2013 2012 Iand $ 69,924,617 $ 65,710,957 $ 1,638,054 $ 1,638,054 $ 71,562,671 $ 67,349,011 Pennanent Easements 1,959,010 1,959,010 326,301 326,301 2,285,311 2,285,311 Sculptures and Monuments 89,179 83,363 89,179 83,363 Buildings 14,637,116 15,207,169 21,415,965 22,578,272 36,053,081 37,785,441 hnprovements Other than Buildings 8,765,014 8,766,084 - - 8,765,014 8,766,084 Maclilneryand Equipment 7,097,866 7,446,190 2,374,955 2,391,778 9,472,821 9,837,968 Infrastructure and Temporary Easements 61,347,484 60,035,217 161,168,749 164,219,819 222,516,233 224,255,036 Construction in Progress 10,419,218 858,252 120,975 7,230 10,540,193 865,482 Total Assets $ 174,239,504 $ 160,066,242 $187,044,999 $ 191,161,454 $ 361,284,503 $ 351,227,696 24 CITY OF EAGAN MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 CAPITAL ASSET AND DEBT ADMINISTRATION Long -Term Debt — At the end of the current year, the City had total bonded debt outstanding of $ 28.6 million. The $11.2 million increase of debt outstanding is primarily due to the issuance of $12.4 million of debt in 2013 for the construction of the Cedar Grove parking ramp. $ 24.5 million of the total debt outstanding comprises debt backed by the full faith and credit of the government and $ 4.2 million is special assessment debt for which the government is liable in the event of default by the property owners subject to the assessment. In addition, the City also has debt in the amount of $ 3.6 million for compensated absences. City's Outstanding Debt General Obligation Bonds and Compensated Absences Governmental Activities Business -type Activities Total 2013 2012 2013 _ _2012 2013 2012 G.O. Bonds $16,895,000 $ 4,875,000 $ 7,575,230 ; $ 8,434,910 $ 24,470,230 $13,309,910 Special Assessment Debt with Governmental Commitment 41155,000 4,695,000 - - 4,155,000 ` 4,695,000 Compensated Absences 3,613,998 3,531,119 - - 3,613,998 3,531,119 Total $ 24,663,998 $13,101,119 $ 71575,230 $ 8,434,910 $ 32,239,228 $ 21,536,029 In May 2013, Moody's reaffirmed its credit rating on the City's general obligation (G.O.) debt of Aaa. S &P also reaffunmed its rating of AA +. Minnesota Statutes limit the amount of direct G.O. net debt a Minnesota city may issue to 3% of total estimated market value of property within the city. Net debt means actual debt less cash held in sinking funds for retirement of the debt. The current net debt limitation for the City is $ 185 million. The City's net debt is $ 14.1 million. Additional information on the City's long -term debt can be found in Note 5 on pages 73 -78 of this report. 25 CITY OF EAGAN MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The 2014 budget was prepared and developed in a period of newfound prosperity. The overall economy is improving; home sales and values are on the rise while the unemployment rate continues to fall. As a result, the City has begun to see that overall property values are on the rise once again and are expected to be back to the 2005 level for taxes payable in 2014. Redevelopment efforts continue in the Cedar Grove Redevelopment area with the Paragon Outlet Center being the primary focus in 2014. The new regional upscale retail outlet center is on a large portion of the core Cedar Grove site. The outlet center is a 444,000 square foot facility consisting of 6 buildings that will house more than 100 stores within walkable proximity, and connections to the existing Bus Rapid Transit (BRT) Cedar Grove Transit Station at its west end. Adjacent to the outlet center, is a City owned parking ramp that will serve the outlet center, a proposed hotel and other properties set for mixed development. The desire is to generate retail, commercial and residential users to enhance the location for pedestrian -and neighborhood - friendly center. The 2014 Budget included one new full -time position in the Police Department. The 2014 budget included cost -of- living increases for collective and non - collective bargaining unit personnel. The wage increases were the same as 2013, and will be 1 % in January and 1 % in July. Collective bargaining employees represent about one -half of the City's full -time staff. The 2014 General Fund budget of $ 29.9 million is up 3.7% from the amended 2013 budget and was driven by modest wage increases and increases in health insurance costs. The City's total 2014 property tax levy increased 2.7% from 2013. The City portion of taxes on an average valued Eagan home increased from $814 to $834.. The property tax capacity rate (city portion) in 2014 is 38.216% versus 38.271% in 2013. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Assistant Finance Director, 3830 Pilot Knob Road, Eagan, Minnesota 55122. Email requests can be sent to j feldmanL&cityfeagan. com. W CITY OF EAGAN STATEMENT OF NET POSITION December 31, 2013 The Notes to the Financial Statements are an integral part of this statement. 27 Governmental Business -Type Activities Activities Total ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets Cash and Investments $ 45,069,699 $ 42,123,518 $ 87,193,217 Receivables: Accounts Receivable 189,963 2,109,932 2,299,895 Interest Receivable 165,701 146,782 312,483 Property Tax Receivable 1,609,966 21,811 1,631,777 Special Assessments Receivable 14,299,168 1,078,423 15,377,591 Internal Balances (17,891,333) 17,891,333 - Notes Receivable 629,218 - 629,218 Due from OtherGovenunents 1,084,690 65,157 1,149,847 Other Assets 109;503 - 109,503 Prepaid Items 248,252 11,401 259,653 Inventories - Land Held for Resale 7,102,205 - 7,102,205 Net Other Post Employment Benefits (OPEB) Asset 275,027 5,702 280,729 Capital Assets not being Depreciated: Land 69,924;617 1,638;054 71,562,671 Permanent Easements 1,959,010 326,301 2,285,311 Sculptures and Monuments 89,179 - 89,179 Construction in Progress 10,419,218 120,975 10,540,193 Capital Assets Net tof Accumulated Depreciation: Buildings 14,637,116 21,415,964 36,053,080 Improvements Other than Buildings 8,765,014 - 8,765,014 Machinery and Equipment 7,097,866 2,374,955 9,472,821 Infiastructure and Temporary Easements 61,347,484 161,168,748 222,516,232 Total Assets 227,131,563 250,499,056 477,630,619 Deferred Outflows of Resources Deferred Refunding - 6,892 6,892 Total Assets and Deferred Outflows of Resources $ 227,131,563 $ 250,505,948 $ 477,637,511 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities Salaries and Benefits Payable $ 624,245 $ 123,895 $ 748,140 Accounts Payable 2,216,872 460,881 2,677,753 Contracts Payable 1,756,654 31,448 1,788,102 Accrued Interest Payable 318,616 95,245 413,861 Due to Other Governments 554,883 841,514 1,396,397 Unearned Revenue 188,359 506,073 694,432 Escrow Deposits 2,658,439 29,344 2,687,783 Other Liabilities 391,014 (39) 390,975 Bond Principal Payable: Payable Witltin One Year 990,000 - 990,000 Payable After One Year 20,060,000 7,575,230 27,635,230 Compensated Absences Payable: Payable Within One Year 2,136,654 - 2,136,654 Payable After One Year 1,477,344 1,477,344 Other Liabilities Payable: Payable After One Year 5,509 - 5,509 Total Liabilities 33,378,589 9,663,591 43,042,180 Deferred Inflows of Resources Grants 2,196,229 1,414 2,197,643 Total Deferred Inflows of Resources 2,196,229 1,414 2,197,643 Net Position Net Investment in Capital Assets 159,873,972 179,469,767 338,969,489 Restricted for: Debt Service 10,740,230 - 10,740,230 Special Revenue 773,976 773,976 Park Dedication 1;813,278 - 1,813,278 Unrestricted 18,355,289 61,371,176 80,100,715 Total Net Position 191,556,745 240,840,943 432,397,688 Total Liabilities, Deferred Inflow of Resources and Net Position $ 227,131,563 $ 250,505,948 $ 477,637,511 The Notes to the Financial Statements are an integral part of this statement. 27 z C7 O F M N to N N � F M d H A U LL Q F � W W Lzl d H � C O :, N C ti -' a° �z N C N N Lt1 C 4U Z 28 m N 00 O h d' h O Vl tl' W N M 'V V) N O O O1 t-- �o V7 •--� 00 M M o0 t W O 00 •--� o Vn Cl) �--� 01 •-• ON O 00 Vl N N cal W Q\ -+ � O d• 00 o M N O O< N h cri o h O o0 N •--� o0. O CD W N c1 •--� cV Vt h 01 O O\ V� ID �o Cl Vi N� O In t` �o ,h-� O •--• O W d' 00 h U Vl N h a Cl) 'O N N Vl h O\ o N a: N 69 69 O h O �n d' 00 00 O . . . 'd• O �D N O Vl Vn M ON Qt O 00 N lr N M o0 00 00 O n N O V) M N N O\. t— n O n V Cl y In ll- U O O, Oi N M c' r : O v N ��'' •�-� ° v N N N � bq 69 �D 'D V1 y M M o0 00 O O O O d 00 In Cl) O O M M d 00 'd' .-� V n M In M M l n O C, N N M b O 06 N N W n Q\ M O\ N N t- t- (� V' .5 O O •-+ 00 Vl N h �a m O 00 h Vl M lr O\ •--� V) U-- 00 O V d ells 69 y M V' O, O y M h 00 O b' P oo M M •--� d' U V rn rn oo CII �D oo �t m M c �• C 000 Ohi M O M O` y K1 •N-+ V) V� tj p N U ss s> y a H O` O\ �o .-r 'n N ID Vl Vl O 00 m to 1.• Vl lD O G7 � 00 00 00 00 O\• �D C y0y y 00p U 00 � M O h M �o O d' 1p VNi W Q\ � <Y � N M 00 Vi 00 Vi O •--' O ,7r�-,. C y Cd ti N •--i N Vi y o � °' q `° ' U en G C 01 N Vl n Oho N W 000 O U 000 "O b C 0 N N O o0 Vn On D\ 00 Cl) m On V) lzt M Vl On tM l- M N m 0•-0 00 r- CI' N U U y N d U 0o 0 O 00 Nd 00 ;.M0 V) n 'd N O ,W W 0 On M h N -� On � 'C G 01 W N O Q\ yw O O O - � N y 's � 5 O co 'ci ' a�yyw•��� i O d A 5 O" ffl �c7ao. aa� .�aU�Uw o C C7 0.1 28 (THIS PAGE LEFT BLANK INTENTIONALLY) 29 CITY OF EAGAN BALANCE SHEET - GOVERNMENTAL FUNDS December 31, 2013 ASSETS Cash and Investments Accounts Receivable Accrued Interest Receivable Taxes Receivable Special Assessments Receivable Due from Other Funds Due from Other Governments Other Assets Prepaid Items Inventories - Land Held for Resale Notes Receivable Advances to Other Funds Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Salaries and Benefits Payable Accounts Payable Contracts Payable Accrued Interest Payable Due to Other Funds Due to Other Governments Escrow Deposits Unearned Revenue Other Liabilities Advances fi•om Other Funds Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Taxes Receivable Unavailable Revenue - Special Assessments Unavailable Revenue - Notes Receivable Unavailable Revenue - Grants Total Deferred Inflows of Resources Fund Balances Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Improvement General Fund Bonds Capital Projects Combined Utility Trunk $ 16,624,069 $ - $ 3,552,016 78,404 - - 54,120 - 11,583 1,605,589 - - 3,105 6,759,976 621,761 31,837 - - 109,503 - 226,128 - - - - 15,000,000 $ 18,732,755 $ 6,759,976 $ 19,185,360 $ 613,204 $ - $ 750,441 - - - - (1,837) 15,239 - - 4,671,781 73,655 - - 1,221,364 - - 180,138 - - 10,357 - - 2,849,159 4,687,020 (1,837) 522,647 - - 3,019 6,680,519 610,335 23,319 - - 548,985 6,680,519 610,335 335,631 - - - - 18,576,862 14,998,980 (4,607,563) - 15;334,611 (4,607,563) 18,576,862 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 18,732,755 $ 6,759,976 $ 19,185,360 The Notes to the Financial Statements are an integral part of this statement. 30 Capital Projects Cedar Grove Revolving Highway 13 Tax Improvement Major Street Increment Construction Other Total Governmental Governmental Funds Funds $ 5,955,093 $ - $ 2,159,758 $ 13,122,739 $ 41,413,675 - - - 109,894 188,298 37,703 - 6,916 43,458 153,780 - 1,215 - 3,162 1,609,966 699,556 4,733 - 6,831,798 14,920,929 5,783,617 - - - 5,783,617 76,088 329,346 560,429 86,990 1,084,690 - - - - 109,503 92,828 - - - 226,128 - 7,102,205 - - 7,102,205 194,732 - - 629,218 629,218 - - - - 15,000,000 $ 12,552,057 $ 7,437,499 $ 2,727,103 $ 20,827,259 $ 88,222,009 $ $ - $ - $ 11,041 $ 624,245 1,070,221 184,015 194,258 2,198,935 - 1,198,166 545,232 13,256 1,754,817 9,476 - 3,630 28,345 2,891,333 - 1,111,836 8,674,950 101,904 - 143,222 219,828 538,609 - 1,437,075 - - 21658,439 - - - 8,221 188,359 92,828 - - - 103,185 - 15,000,000 - - 15,000,000 194,732 21,606,271 872,469 1,562,070 31,769,884 - - - - 522,647 699,556 4,179 - 6,700,361 14,697,969 - - - 318,240 318,240 2,172,910 - - - 2,196,229 2,872,466 4,179 - 7,018,601 17,735,085 - 7,102,205 - - 7,437,836 - - 5,144,715 5,144,715 - - - 2,246,281 2,246,281 9,484,859 - 1,854,634 5,881,202 35,797,557 - (21,275,156) - (1,025,610) (11,909,349) 9,484,859 (14,172,951) 1,854,634 12,246,588 38,717,040 $ 12,552,057 $ 7,437,499 $ 2,727,103 $ 20,827,259 $ 88,222,009 31 (THIS PAGE LEFT BLANK INTENTIONALLY) 32 CITY OF EAGAN RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION - GOVERNMENTAL FUNDS December 31, 2013 Total Fund Balances - Governmental Funds Amounts reported for gover oriental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported as assets in governmental funds. Cost of Capital Assets Less Accumulated Depreciation Long -term liabilities are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Long -teen liabilities at year -end consist of: Bond Principal Payable Net OPEB Asset Delinquent receivables will be collected in subsequent years, but are not available soon enough to pay for the current period's expenditures and, therefore, are deferred in the funds. Property Taxes Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Special Assessments Receivable Notes Receivable Govermnental funds do not report a liability for accrued interest due and payable. Certain funds are proprietary in nature and, therefore, need to be reported in the business -type activities in the Statement of Net Position. Combined Utility Trunk Fund The Combined Utility Trunk Capital Projects Fund recorded delinquent and deferred special assessments receivables. In the governmental fund statements, delinquent and deferred special assessments are not available in the current period and, therefore, are deferred in the funds. This revenue is recognized when earned as a business -type activity. Internal Service Funds are used by management to charge the costs of benefit accrual, risk management and workers' compensation to individual funds. Total Net Position - Governmental Activities $ 38,717,040 247,342,834 (73,103,330) (21,050,000) 275,027 522,647 14,697,969 318,240 (290,271) (18,576,862) (610,335) 3,313,786 $ 191,556,745 The Notes to the Financial Statements are an integral part of this statement. 33 CITY OF EAGAN STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 REVENUES Property Taxes Special Assessments Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Program Revenues Miscellaneous: Investment Income Other Revenues Total Revenues EXPENDITURES Current General Government Public Safety Public Works Parks and Recreation Government Buildings Debt Service Principal Interest and Other Charges Capital Outlay General Government Public Safety Public Works Parks and Recreation Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Sale of City Property Bonds Issued Premium on Bonds Issued Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances FUND BALANCES Beginning of Year End of Year 5,073,986 225 14,263,203 - - 3,684,386 225 4,291,745 - - 733,452 - - 14,845 - 103,131 - - 26,711 - 194 110,216 - - 28,301,675 225 419 1,053,449 2,661,648 501,290 10,007 - - 1,575,514 - (1,883,000) (2,034,529) (43,368) (297,479) (2,034,529) (43,368) 755,970 627,119 457,922 14,578,641 (5,234,682) 18,118,940 $ 15,334,611 $ (4,607,563) $ 18,576,862 The Notes to the Financial Statements are an integral part of this statement. 34 Debt Service Capital Projects Improvement Combined Utility General Fund Bonds Trunk $ 21,965,317 $ - $ 1,134 25,977 2,645,490 432,405 2,578,283 - - 1,139,793 - - 2,718,305 - 79,200 271,958 - - 460,798 - - (38,666) 16,383 (11,030) 233,359 - - 29,355,124 2,661,873 501,709 5,073,986 225 14,263,203 - - 3,684,386 225 4,291,745 - - 733,452 - - 14,845 - 103,131 - - 26,711 - 194 110,216 - - 28,301,675 225 419 1,053,449 2,661,648 501,290 10,007 - - 1,575,514 - (1,883,000) (2,034,529) (43,368) (297,479) (2,034,529) (43,368) 755,970 627,119 457,922 14,578,641 (5,234,682) 18,118,940 $ 15,334,611 $ (4,607,563) $ 18,576,862 The Notes to the Financial Statements are an integral part of this statement. 34 35 Capital Projects Cedar Grove Revolving Other Total Highway 13 Tax Improvement Governmental Governmental Major Street Increment Construction Funds Funds $ 2,807,580 $ 411,997 $ - $ 2,622,656 $ 27,808,684 8,919 29,386 4,700,000 1,478,033 9,320,210 - - - - 2,578,283 2,495,861 840,033 492,802 643,913 5,612,402 65,564 3,694,250 - 2,564,127 9,121,446 - - - 44,324 316,282 - - - - 460,798 (40,126) 29,386 91,928 (6,008) 41,867 - 55 67,516 54,337 355,267 5,337,798 5,005,107 5,352,246 7,401,382 55,615,239 - 265,214 - 819,413 6,158,838 - - - 316,170 14,579,373 37,274 311,243 - 4,033,128 - - 2,811 4,294,556 - - - 733,452 - - - 910,000 910,000 - 95,785 - 325,355 421,140 7,473,530 - 1,273,629 8,762,004 - - - 43,934 147,065 1,085,193 10,017,157 - 11,129,255 - - - 671,402 781,618 1,122,467 7,834,529 10,328,400 4,362,714 51,950,429 4,215,331 (2,829,422) (4,976,154) 3,038,668 3,664,810 - 772 - 67,823 78,602 - 12,374,501 - 15,499 12,390,000 - 110,246 - - 110,246 - 81,241 5,854,773 1,050,388 8,561,916 (3,724,731) (95,513) - (893,343) (8,674,484) (3,724,731) 12,471,247 5,854,773 240,367 12,466,280 490,600 9,641,825 878,619 3,279,035 16,131,090 8,994,259 (23,814,776) 976,015 8,967,553 22,585,950 $ 9,484,859 $ (14,172,951) $ 1,854,634 $ 12,246,588 $ 38,717,040 35 CITY OF EAGAN RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES - GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 Net Change in Fund Balances - Governmental Funds $ 16,131,090 Amounts reported for governmental activities in the Statement of Activities are different because: Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital Outlays 19,206,525 Depreciation Expense (6,334,557) Loss on Disposal (1,388,911) Donated Assets 2,690,205 Principal payments on long -term debt are recognized as expenditures in the governmental funds but have no effect on net position in the Statement of Activities. 910,000 Interest on long -term debt in the Statement of Activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due and thus requires use of current financial resources. In the Statement of Activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. (170,693) Payments to refunding bond escrow agents are shown as other financing uses in the governmental funds but have no effect on net position in the Statement of Activities. Issuance of long -term debt are shown as revenue in the funds but are recorded as a long - tern liability in the Statement of Net Position. (12,390,000) OPEB obligations are recognized when paid in the governmental funds but recognized when incurred in the Statement of Activities. (26,862) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Special Assessments Deferred (1,097,716) Due from Other Governments Deferred (528,048) Notes Receivable Deferred 318,240 Delinquent receivables will be collected in subsequent years, but are not available soon enough to pay for the current period's expenditures and, therefore, are deferred in the funds. Property Taxes Delinquent 15,098 Certain funds are proprietary in nature and, therefore, are reported in the business -type activities. Combined Utility Trunk Fund (457,922) Delinquent and deferred special assessments from the Combined Utility Trunk Capital Projects Fund are recognized when received in the governmental funds, but recognized when assessed with the business -type activities. (63,363) Internal Service Funds are used by management to charge the costs of benefit accrual, risk management and workers' compensation to individual funds. 126,423 Change in Net Position - Governmental Activities $ 16,939,509 The Notes to the Financial Statements are an integral part of this statement. 36 CITY OF EAGAN STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2013 EXPENDITURES Current General Government Budgeted Amounts 5,263,100 Variance with (189,114) Public Safety 14,276,100 Actual Final Budget - (463,397) Original Final Amounts Over (Under) REVENUES Parks and Recreation 4,510,500 4,520,800 4,291,745 Property Taxes $ 22,113,100 $ 22,113,100 $ 21,965,317 $ (147,783) Special Assessments 33,000 33,000 25,977 (7,023) Licenses and Permits 1,300,900 1,415,900 2,578,283 1,162,383 Intergovernmental 645,100 1,036,100 1,139,793 103,693 Charges for Services 1,998,100 1,998,100 2,718,305 720,205 Fines and Forfeitures 248,200 248,200 271,958 23,758 Program Revenues 1,812,400 379,300 460,798 81,498 Miscellaneous: Total Expenditures 28,864,200 29,044,400 28,301,675 Investment Income 28,000 28,000 (38,666) (66,666) Other Revenues 189,800 221,300 233,359 12,059 Total Revenues 28,368,600 27,473,000 29,355,124 1,882,124 EXPENDITURES Current General Government 5,498,600 5,263,100 5,073,986 (189,114) Public Safety 14,276,100 14,726,600 14,263,203 (463,397) Public Works 3,556,900 3,489,600 3,684,386 194,786 Parks and Recreation 4,510,500 4,520,800 4,291,745 (229,055) Government Buildings 724,500 724,300 733,452 9,152 Contingencies 48,800 48,800 - (48,800) Capital Outlay General Government 14,000 14,000 14,845 845 Public Safety 84,200 106,000 103,131 (2,869) Public Works 32,200 32,200 26,711 (5,489) Parks and Recreation 118,400 119,000 110,216 (8,784) Total Expenditures 28,864,200 29,044,400 28,301,675 (742,725) Excess of Revenues Over (Under) Expenditures (495,600) (1,571,400) 1,053,449 2,624,849 OTHER FINANCING SOURCES Sale of City Property 1,000 8,200 10,007 1,807 Transfers In 494,600 1,629,300 1,575,514 (53,786) Transfers Out - - (1,883,000) (1,883,000) Total Other Financing Sources 495,600 1,637,500 (297,479) (1,934,979) Net Change in Fund Balances $ - $ 66,100 755,970 $ 689,870 FUND BALANCE Beginning of Year 14,578,641 End of Year $ 15,334,611 The Notes to the Financial Statements are an integral part of this statement. 37 (THIS PAGE LEFT BLANK INTENTIONALLY) (THIS PAGE LEFT BLANK INTENTIONALLY) 39 CITY OF EAGAN STATEMENT OF NET POSITION - PROPRIETARY FUNDS December 31, 2013 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Current Assets Cash and Cash Equivalents Accounts Receivable Interest Receivable Taxes Receivable - Delinquent Special Assessments Receivable Due from Other Funds Due from Other Governments Advances to Other Funds Prepaid Items Total Current Assets Noncurrent Assets Special Assessments Receivable Due from Other Governments Net OPEB Asset Capital Assets: Land Permanent Easements Buildings and Improvements Water Supply Facilities Water Storage Facilities Water Mains and Lines Sewer Mains and Lines Stonn Drainage Systern Street Lights Machinery and Equipment Construction in Progress Total Costs Less Accumulated Depreciation Net Capital Assets Total Noncurrent Assets Total Assets Deferred Outflows of Resources Deferred Refunding Total Assets and Deferred Outflows of Resources Public Utilities Aquatic Civic Arena Facility $ 33,107,100 $ 466,520 $ 1,342,270 2,062,260 24,407 - 117,398 1,516 4,375 48,043 - - 3,596,387 - - - 45,050 - 2,255,400 - - 266 - 262 41,186,854 537,493 1,346,907 408,619 - - 17,915 - - 4,288 461 27 971,317 - - 326,301 - - 1,578,910 8,282,557 7,208,956 46,867,551 - - 6,676,901 - - 50,014,838 - - 48,483,862 - - 82,158,059 - - 447,883 - - 5,767,128 512,274 216,687 110,006 - - 243,402,756 8,794,831 7,425,643 (77,737,950) (4,127,934) (4,485,071) 165,664,806 4,666,897 2,940,572 166,095,628 4,667,358 2,940,599 207,282,482 5,204,851 4,287,506 - 6,892 - $ 207,282,482 $ 5,211,743 $ 4,287,506 The Notes to the Financial Statements are an integral part of this statement. 40 Community AccessEagan (Fiber Infrastructure) Total Internal Total Service Funds $ 3,655,612 $ - $ 38,571,502 $ 7,208,040 23,241 24 2,109,932 1,665 11,910 - 135,199 23,504 21,811 - 21,811 - - - 48,043 - - - 3,596,387 - 2,192 - 47,242 - - - 2,255,400 - 873 10,000 11,401 22,124 3,715,639 10,024 46,796,917 7,255,333 - - 408,619 - - - 17,915 - 926 - 5,702 666,737 - 1,638,054 - - - 326,301 - 15,227,576 2,342,430 34,640,429 - - - 46,867,551 - - - 6,676,901 - - - 50,014,838 - - - 48,483,862 - - - 82,158,059 - - - 447,883 - 1,101,475 136,602 7,734,166 - 9,456 1,513 120,975 - 17,005,244 2,480,545 279,109,019 - (5,291,121) (421,946) (92,064,022) - 11,714,123 2,058,599 187,044,997 - 11,715,049 2,058,599 187,477,233 - 15,430,688 2,068,623 234,274,150 7,255,333 - - 6,892 - $ 15,430,688 $ 2,068,623 $ 234,281,042 $ 7,255,333 (Continued) 41 CITY OF EAGAN STATEMENT OF NET POSITION - PROPRIETARY FUNDS December 31, 2013 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Current Liabilities Salaries and Benefits Payable Accounts Payable Contracts Payable Accrued Interest Payable Due to Other Funds Due to Other Governments Other Liabilities Unearned Revenue Bonds Payable Compensated Absences Total Current Liabilities Noncurrent Liabilities Customer Deposits Other Liabilities Compensated Absences Advances from Other Funds Bonds Payable, Net Total Noncurrent Liabilities Total Liabilities Deferred Inflow of Resources Unavailable Revenue - Grants Net Position Net Investment in Capital Assets Unrestricted Total Net Position Total Liabilities, Deferred Inflows of Resources and Net Position 29,344 - 2,255,400 29,344 2,255,400 1,756,373 2,339,260 404 29,481 202 165,664,806 4,666,897 Aquatic Public Utilities Civic Arena Facility 205,526,109 2,872,079 4,257,823 $ 69,170 $ 20,660 $ 1,470 388,227 22,147 12,185 23,485 - 9,800 833,006 2,311 5 413,141 38,742 6,021 29,481 1,727,029 83,860 29,344 - 2,255,400 29,344 2,255,400 1,756,373 2,339,260 404 29,481 202 165,664,806 4,666,897 2,940,572 39,861,303 (1,794,818) 1,317,251 205,526,109 2,872,079 4,257,823 $ 207,282,482 $ 5,211,743 $ 4,287,506 The Notes to the Financial Statements are an integral part of this statement. 42 AccessEagan Conununity (Fiber Center Infrastructure) Total Total Internal $ 32,595 $ - $ 123,895 $ - 33,415 4,907 460,881 17,937 - - 33,285 - 95,245 - 95,245 - - 705,054 705,054 - 6,192 - 841,514 16,274 (39) - (39) 287,829 48,169 - 506,073 - - - - 2,136,654 215,577 709,961 2,765,908 2,458,694 7,575,230 7,575,230 7,790,807 I., 29,344 - - 5,509 - - 1,477,344 - 2,255,400 - - 7,575,230 - - 9,859,974 1,482,853 709,961 12,625,882 3,941,547 1,414 4,138,893 2,058,599 179,469,767 - 3,500,180 (699,937) 42,183,979 3,313,786 7,639,073 1,358,662 221,653,746 3,313,786 $ 15,430,688 $ 2,068,623 $ 234,281,042 $ 7,255,333 43 (THIS PAGE LEFT BLANK INTENTIONALLY) 44 CITY OF EAGAN RECONCILIATION OF THE STATEMENT OF NET POSITION - PROPRIETARY FUNDS - TO THE GOVERNMENT -WIDE STATEMENT OF NET POSITION - BUSINESS -TYPE ACTIVITIES December 31, 2013 Total Fund Net Position - Proprietary Funds $ 221,653,746 Amounts reported for business -type activities in the Statement of Net Position are different because: The Combined Utility Trunk Capital Projects Fund provides renewal and replacement resources for utility operations. Therefore, it is included within business -type activities at the government -wide level. 18,576,862 The Combined Utility Trunk Capital Projects Fund recorded delinquent and deferred special assessments receivables. In the governmental fund statements, delinquent and deferred special assessments are not available in the current period and, therefore, are deferred in the funds. This revenue is recognized when earned as a business -type activity. 610,335 Total Net Position - Business -Type Activities $ 240,840,943 The Notes to the Financial Statements are an integral part of this statement. 45 CITY OF EAGAN STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - PROPRIETARY FUNDS For the Year Ended December 31, 2013 The Notes to the Financial Statements are an integral part of this statement. 46 Cormnunity Public Utilities Civic Arena Aquatic Facility Center OPERATING REVENUES Service Charges $ 12,432,733 $ $ - $ - Connection Permits 21,972 - - Penalties 84,007 - - Sale of Materials and Meter Charges 71,017 - Facility and Equipment Rental - 699,548 11,385 298,171 Program and Admission Revenue 265,802 828,289 827,163 Merchandise Sales 86,929 235,521 110,230 Advertising Revenue 18,650 - - Other Revenue - 140 - 102,717 Total Operating Revenues 12,609,729 1,071,069 1,075,195 1,338,281 OPERATING EXPENSES Personal Services 2,467,201 548,707 569,753 1,118,975 Supplies, Repairs and Maintenance 645,380 56,693 71,607 93,131 Costs of Merchandise Sales - 42,972 100,372 51,958 Other Services and Charges 4,115,064 256,310 203,578 338,488 MCES Disposal Charge 4,367,358 - - - Miscellaneous - - 346 - Total Operating Expenses 11,595,003 904,682 945,656 1,602,552 Operating Income (Loss) before Depreciation 1,014,726 166,387 129,539 (264,271) Depreciation Expense 4,176,560 416,730 307,748 539,553 Operating Income (Loss) (3,161,834) (250,343) (178,209) (803,824) NONOPERATING REVENUES (EXPENSES) Investment Income (111,795) (1,319) (3,621) (8,689) Other Interest Earnings 89,676 Interest Expense - (36,172) (200,291) Gain (Loss) on Sale of Asset 14,940 (289) Property Taxes - 1,113,426 Refunds and Reimbursements 20,049 - Connection Charges 846,744 - - - Intergovernmental Revenues 162,326 808 404 1,615 Other Revenues 958,324 417 290 53,493' Total Nonoperating Revenues (Expenses) 1,980,264 (36,266) (2,927) 959,265 Income (Loss) before Capital Contributions and Transfers (1,181,570) (286,609) (181,136) 155,441 Capital Contributions 737,743 - - - Transfers In 43,368 405,000 827,200 363,945 Transfers Out (1,526,945) - - - Change in Net Position (1,927,404) 118,391 646,064 519,386 NET POSITION Beginning of Year 207,453,513 2,759,523 3,611,759 7,169,867 Change in Accounting Principle - (5,835) - (50,180) Beginning of Year as Restated 207,453,513 2,753,688 3,611,759 7,119,687 End of Year $ 205,526,109 $ 2,872,079 $ 4,257,823 $ 7,639,073 The Notes to the Financial Statements are an integral part of this statement. 46 AccessEagan (Fiber Internal Service Infrastructure) Total Funds $ $ 12,432,733 $ 8,640,650 21,972 - 84,007 - 71,017 - 7,639 1,016,743 - - 1,921,254 - 432,680 - - 18,650 - 641 103,498 - 8,280 16,102,554 8,640,650 - 4,704,636 7,575,223 2,568 869,379 - - 195,302 - 78,235 4,991,675 917,043 - 4,367,358 - - 346 80,803 15,128,696 8,492,266 (72,523) 973,858 148,384 117,781 5,558,372 - (190,304) (4,584,514) 148,384 (1,050) (126,474) (21,961) 89,676 (236,463) 14;651 1,113,426 20,049 846,744 165,153 1,012,524 (1,050) 2,899,286 (21,961) (191,354) (1,685,228) 126,423 737,743 - 1,639,513 (1,526,945) - (191,354) (834,917) 126,423 1,550,016 222,544,678 3,187,363 - (56,015) - 1,550,016 222,488,663 3,187,363 $ 1,358,662 $ 221,653,746 $ 3,313,786 47 (THIS PAGE LEFT BLANK INTENTIONALLY) CITY OF EAGAN RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION TO THE STATEMENT OF ACTIVITIES - BUSINESS -TYPE ACTIVITIES For the Year Ended December 31, 2013 Change in Net Position - Proprietary Funds $ (834,917) Amounts reported for governmental activities in the Statement of Activities are different because: Recognized current year activity from the Combined Utility Trunk Capital Projects Fund with the business -type activities. 457,922 Delinquent and deferred special assessments from the Combined Utility Trunk Capital Projects Fund are recognized when received in the governmental funds, but recognized when assessed with the business -type activities. 63,363 Change in Net Position - Business -Type Activities $ (313,632) The Notes to the Financial Statements are an integral part of this statement. 49 CITY OF EAGAN STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS For the Year Ended December 31, 2013 CASH FLOWS - OPERATING ACTIVITIES Receipts from Customers and Users Receipts from Internal Services Provided Other Nonoperating Revenues Payments to Suppliers Payments to Employees Payments to Benefits on Behalf of Employees Net Cash Flows - Operating Activities CASH FLOWS - NONCAPITAL FINANCING ACTIVITIES Transfer fi-om Other Funds Transfer to Other Funds Proceeds from (Payments on) Advances to Other Funds Proceeds from Connection Charges Net Cash Flows - Noncapital Financing Activities CASH FLOWS - CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and Construction of Capital Assets Principal Paid on Capital Debt Interest Paid on Capital Debt Interest Received on Special Assessments Property Taxes Received for Debt Service Proceeds fiom Disposal of Capital Assets Net Cash Flows - Capital and Related Financing Activities CASH FLOWS - INVESTING ACTIVITIES Interest and Dividends Received Net Change in Cash and Cash Equivalents CASH AND CASH EQUIVALENTS January 1 Business -Type Activities - Enterprise Funds Aquatic Public Utilities Civic Arena Facility $ 12,682,480 $ 1,177,550 $ 1,077,428 1,140,699 1,225 694 (8,268,581) (364,768) (366,289) (2,456,892) (545,270) (569,791) 3,097,706 268,737 142,042 43,368 405,000 827,200 (1,526,945) - - 14,556,724 (154,822) - 846,744 - - 13,919,891 250,178 827,200 (1,215,702) (6,230) - - (43,330) - 89,676 - - 645,832 - - (480,194) (49,560) - (90,943) (2,835) (6,560) 16,446,460 466,520 962,682 16,660,640 - 379,588 December 31 $ 33,107,100 $ 466,520 $ 1,342,270 The Notes to the Financial Statements are an integral part of this statement. 50 Business -Type Activities - Enterprise Funds (23,617) (1,335,064) - (830,000) AccessEagan (236,887) (1,992) (282,209) - Conununity (Fiber 1,113,834 Total Internal Center Infrastructure) Total Service Funds $ 1,330,887 $ 13,530 $ 16,281,875 $ - - - - 8,640,609 55,108 - 1,197,726 - (478,416) (165,303) (9,643,357) (847,965) (1,116,380) - (4,688,333) (2,025,959) - - - (5,458,491) (208,801) (151,773) 3,147,911 308,194 363,945 - 1,639,513 - - - (1,526,945) - 178,432 14,580,334 - - - 846,744 - 363,945 178,432 15,539,646 - (89,515) (23,617) (1,335,064) - (830,000) - (830,000) - (236,887) (1,992) (282,209) - - - 89,676 - 1,113,834 - 1,113,834 - (289) - 645,543 - (42,857) (25,609) (598,220) (7,171) (1,050) (108,559) (19,014) 105,116 - 17,980,778 289,180 3,550,496 - 20,590,724 6,918,860 $ 3,655,612 $ - $ 38,571,502 $ 7,208,040 (Continued) 51 CITY OF EAGAN STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS For the Year Ended December 31, 2013 RECONCILIATION OF OPERATING LOSS TO NET CASH FLOWS - OPERATING ACTIVITIES Operating Loss Adjustments to Reconcile Operating Loss to Net Cash Flows - Operating Activities: Depreciation Expense Other Nonoperating Revenue Accounts Receivable Intergovernmental Receivables Special Assessments Receivable Prepaid Items Other Assets Customer Deposits Accounts Payable Contracts Payable Wages, Salaries and Compensation Payable Net OPEB Asset /Payable Deferred Revenue Intergovernmental Payables Other Liabilities Total Adjustments Net Cash Flows - Operating Activities NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Contributions of Capital Assets from Private Developers Business -Type Activities - Enterprise Funds Aquatic Public Utilities Civic Arena Facility $ (3,161,834) $ (250,343) $ (178,209) 4,176,560 416,730 307,748 1,140,699 1,225 694 175,037 127,735 - (12,731) (2,717) - (98,693) - - (266) 266 (262) - 1,451 - 10,150 - - 74,915 (8,543) 9,876 (11,585) - - 9,890 3,392 (41) 419 45 3 (1,012) (18,537) 2,233 796,157 (1,967) - 6,259,540 519,080 320,251 $ 3,097,706 $ 268,737 $ 142,042 $ 737,743 The Notes to the Financial Statements are an integral part of this statement. 52 Business -Type Activities - Enterprise Funds AccessEagan Conununity (Fiber Total Internal Center Infrastructure) Total Service Funds $ (803,824) $ (190,304) $ (4,584,514) $ 148,384 539,553 117,781 5,558,372 - 55,108 - 1,197,726 - (7,710) 1,530 296,592 (41) (2,192) 3,720 (13,920) - - - (98,693) - (332) 9,900 9,306 4,122 - - 1,451 - - - 10,150 - 5,588 (27,798) 54,038 1,220 - (66,354) (77,939) - 2,505 - 15,746 82,879 90 - 557 - 2,508 - (14,808) - (56) (248) 793,886 2,473 (39) - (39) 69,157 595,023 38,531 7,732,425 159,810 $ (208,801) _j _L151,773) $ 3,147,911 $ 308,194 $ 737,743 $ - 53 CITY OF EAGAN STATEMENT OF FIDUCIARY NET POSITION December 31, 2013 ADDITIONS Contributions Investment Income Net Appreciation in Fair Value of Investments $ 2,839,046 Less Investment Activity Expense Dakota County Net Investment Earnings 2,837,926 OPEB Trust Drug Task Force Withdrawals by Participants 361,320 Fund Agency Fund ASSETS Beginning of Year 8,852,480 Cash and Investments $ - $ 436,750 Minnesota State Board of Investments Internal Equity Pool 11,329,086 - Other Receivables 7,071 Accrued Interest Receivable - 1,378 Due from Other Governments - 70,566 Other Assets - 3,534 Total Assets $ 11,329,086 $ 519,299 LIABILITIES Accounts Payable $ - $ 499,720 Due to Other Governments - 19,579 Total Liabilities - 519,299 NET POSITION Held in Trust for OPEB $ 11,329,086 $ - STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For the Year Ended December 31, 2013 OPEB Trust Fund ADDITIONS Contributions Investment Income Net Appreciation in Fair Value of Investments $ 2,839,046 Less Investment Activity Expense (1,120) Net Investment Earnings 2,837,926 DEDUCTIONS Withdrawals by Participants 361,320 Change in Net Position 2,476,606 NET POSITION Beginning of Year 8,852,480 End of Year $ 11,329,086 The Notes to the Financial Statements are an integral part of this statement. 54 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Eagan (the "City ") is a statutory city governed by an elected mayor and four council members. The accompanying financial statements present the government entities for which the government is considered to be financially accountable. The financial statements present the City and its component units. The City includes all funds, organizations, institutions, agencies, departments and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the basic financial statements of the City because of the significance of their operational or financial relationships with the City. The City is considered financially accountable for a component unit if it appoints a voting majority of the organization's governing body and it is able to impose its will on the organization by significantly influencing the programs, projects, activities or level of services performed or provided by the organization or there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on, the City. As a result of applying the component unit definition criteria above, certain organizations have been defined and are presented in this report as follows: Blended Component Units — Reported as if they were part of the City. Joint Ventures and Jointly Governed Organizations — The relationship of the City with the entity is disclosed. For each of the categories above, the specific entities are identified as listed below and on the following page. 1. Blended Component Unit Economic Development Authority for the City of Eagan The Eagan Economic Development Authority (EDA) was created in 2000 by the City to assume the duties of the former Housing and Redevelopment Authority (HRA) and to provide economic development services to the City. The Eagan EDA is governed by a board currently comprised of the four City Council Members and the Mayor. The Eagan EDA is a legally separate entity from the City and is a public body corporate and politic and political subdivision of the state. The Eagan EDA's financial statements are reported as a part of the primary City government's because the EDA board is substantively the same as the City Council. The activity of the Eagan EDA is shown in the Tax Increment Financing (T1F) Capital Projects Funds in the City's financial statements. No separate financial statements for the Eagan EDA are issued. 55 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity (Continued) 2. Joint Ventures and Jointly Governed Organizations The City has several agreements with governmental and other entities which provide reduced costs, better service and additional benefits to the participants. These programs, which the City participates in, are listed below and amounts recorded within the current year financial statements are disclosed. Minnesota Valley Transit Authority (a Jointly Governed Organization) The Cities of Eagan, Apple Valley, Burnsville, Rosemount and Savage, as equal participants, formed the Minnesota Valley Transit Authority (the "Authority "). The purpose of the Authority is to coordinate public transit service for the five communities. The Authority is governed by an eight member board comprised of representatives of member cities. The Authority is not fiscally dependent on the City. There were miniinal transactions between the City and the Authority in 2013. Complete financial statements for the Authority can be obtained at the City's Municipal Center. LOGIS (a Jointly Governed Organization) This consortium of approximately 28 government entities provides computerized data processing and support services to its members. LOGIS is legally separate from the City, as the City does not appoint a voting majority of the board and the consortium is fiscally independent of the City. During 2013, the City expended $ 605,441 to LOGIS for services provided. This amount is recorded as expenditures of the General Fund. Dakota Communications Center Area cities have entered into a joint powers agreement to form the Dakota Communications Center (DCC), a county -wide public safety answering and communications center. See related disclosures in Note 6. 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 City. The fiduciary funds are only reported in the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position at the fund financial statement level. 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. 56 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES B. Government -Wide and Fund Financial Statements (Continued) The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Interest on general long -term debt is considered an indirect expense and is reported separately in the Statement of Activities. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Internally dedicated revenues are reported as general revenues rather than program revenues. As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are charges between the government's water and sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The Dakota County Drug Task Force and Dakota County Drug Task Force Equipment Agency Funds are presented in the fiduciary fund financial statement. Since, by definition, these assets are being held for the benefit of a third party (other local governments, private parties, etc.) and cannot be used to address activities or obligations of the City, these Funds are not incorporated into the goveinment -wide 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 and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current 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 upon maturity. 57 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Property taxes, franchise taxes, licenses and interest associated with the current period are all considered to be susceptible to accrual and so have been recognized as revenues of the current period. Only the portion of special assessments receivable due within the current period is considered to be susceptible to accrual as revenue of the current period. Street construction aid from the Minnesota Department of Transportation is recognized as revenue in the year the funds are appropriated to the City. All other revenue items are considered to be measurable and available only when cash is received by the City. Description of Funds: Major Governmental Funds: General Fund — This 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. Improvement Bonds — Debt Service Fund — This Fund accounts for debt associated with various improvement projects throughout the City. Combined Utility Trunk — Capital Projects Fund — This Fund accounts for costs associated with maintenance, renewal and replacement of the City's water, sewer and storm sewer infrastructure. Major Street— Capital Projects Fund— This Fund accounts for costs associated with maintenance, renewal and replacement of City streets. Cedar Grove Highway 13 Tax Increment — Capital Projects Fund — This Fund accounts for costs associated with constructing or acquiring assets related to the TIF District. Revolving Improvement Construction — This Fund accounts for costs associated with improvement projects throughout the City. Proprietary Funds: Public Utilities Fund — This Fund accounts for the operations of the City's water, sanitary sewer, street lighting and storm drainage /water quality utilities. Civic Arena Fund — This Fund accounts for the activities of the City's arena operations. Aquatic Facility Fund — This Fund accounts for the activities of the City's Cascade Bay Water Park. Community Center Fund — This Fund accounts for the operation of the City's Community Center. AccessEagan (Fiber Infiastiucture) Fund — This Fund accounts for the operation of the City's AccessEagan (Fiber Infrastructure). CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Description of Funds: (Continued) Internal Service Funds: Benefit Accrual Fund — This Fund accounts for the City's vacation and sick pay liabilities. Risk Management Fund — This Fund accounts for the City's commercial insurance activity. Workers' Compensation Self- Insurance Fund — This Fund accounts for the City's workers' compensation self - insurance activity. Fiduciary Funds: OPEB Trust Fund — This Fund is used to account for the financial resources held by the City in a trustee capacity to be used by the City to pay OPEB benefits to employees. Dakota County Drug Task Force Agency Fund — This Fund accounts for the amounts related to the task force held by the City in a strictly custodial capacity. Dakota County Drug Task Force Equipment Agency Fund — This Fund accounts for the amounts related to the task force's equipment fund held by the City in a strictly custodial capacity. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are charges between the City's Public Utilities Fund and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 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 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. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. 59 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity 1. Deposits and Investments City Funds The City's cash is considered to be cash on hand, demand deposits and short -term investments with original maturities of three months or less from the date of acquisition. The City addresses custodial credit risk by having the authority from the City Council to maintain deposits with various financial institutions that are members of the Federal Reserve System. As required by Minnesota Statutes, any of the City's deposits are to be protected by $ 250,000 of federal depository insurance and pledged collateral. The market value of pledged collateral must equal 110% of the deposits not covered by insurance or bonds. Minnesota Statutes authorizes the City to invest in obligations of the U.S. Treasury, agencies and instrumentalities, shares of investment companies whose only investments are in the aforementioned securities, obligations of the State of Minnesota or its municipalities, certificates of deposit, bankers' acceptances, future contracts, repurchase and reverse repurchase agreements and commercial paper of the highest quality with a maturity of no longer than 270 days and in the Minnesota Municipal Investment Pool. The Minnesota Municipal Investment Pool is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities and is an external investment pool not registered with the Securities Exchange Commission (SEC) that follows the same regulatory rules of the SEC under Rule 2.a.7. The fair value of the position in the pool is the same as the value of the pool shares. Investments for the City are stated at fair value. Credit Risk: This is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Minnesota Statutes 118A.04 -05 limits investments that are in the top two ratings issued by nationally recognized statistical rating organizations. The City's investment policy limits its investments to those specified in these Statutes. Concentration of Credit Risk: This is the risk of loss attributed to the magnitude of a city's investment in a single issuer. The City's investment policy addresses concentration of credit risk by diversifying its investments by security type not to exceed maximum holdings percentage. The maximum holdings percentages range from 5% for repurchase agreements to 100 % for U.S. Treasury obligations and governmental agency and instrumentality securities. Interest Rate Risk: This is the risk that changes in interest rates will adversely affect the fair value of an investment. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy states the City will not invest in securities maturing more than 10 years from the date of purchase. •1 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (Continued) 1. Deposits and Investments (Continued) OPEB Trust Fund These funds represent investments administered by the City's OPEB Trust Fund investment managers. As of December 31, 2013, they were comprised of Minnesota State Board of Investments. Minnesota Statutes authorize the OPEB Trust Fund to invest in obligations of the U.S. Treasury, agencies and instrumentalities, shares of investment companies whose only investments are in the aforementioned securities, obligations of the State of Minnesota or its municipalities, bankers' acceptances, future contracts, corporate bonds, common stock and foreign stock of the highest quality, mutual funds, repurchase and reverse agreements, commercial paper of the highest quality with a maturity no longer than 270 days and in the State Board of Investments. Investments are stated at fair value. The Trust Policy states that with respect to assets of an OPEB trust, investments are limited to investments authorized under Minnesota Statutes Chapter I I 8 or Sec. 356A.06, Subd. 7, including shares of MN Trust, or as further prescribed by the City's GASB Statement No. 45 Investment Policy. 2. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the year are referred to as either "due to /from other funds" (i.e., the current portion of interfund loans) or "advances to /from other funds" (i.e., the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as "due to /from other funds ". Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." All trade and property tax receivables are shown at a gross amount since both are assessable to the property taxes and are collectible upon the sale of the property. The City levies its property tax for the subsequent year during the month of December. December 28 is the last day the City can certify a tax levy to the County Auditor for collection the following year. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. The property tax is recorded as revenue when it becomes measurable and available. Dakota County is the collecting agency for the levy and remits the collections to the City three times a year. The tax levy notice is mailed in March with the first half of the payment due on May 15 and the second half due on October 15. Taxes not collected as of December 31 each year are shown as delinquent taxes receivable. 61 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (Continued) 2. Receivables and Payables (Continued) The County Auditor prepares the tax list for all taxable property in the City, applying the applicable tax rate to the tax capacity of individual properties, to arrive at the actual tax for each property. The County Auditor also collects all special assessments, except for certain prepayments paid directly to the City. The County Auditor submits the list of taxes and special assessments to be collected on each parcel of property to the County Treasurer in January of each year. 3. Inventory and Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenditures /expenses at the time of consumption. Inventory is valued at cost using the first -in, first -out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Inventory — land held for resale represents land owned by the City with the intent to sell to developers. This land is recorded at the lesser of historical cost or expected net realizable value. 4. Capital Assets Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, sidewalks and similar items) and intangible assets, 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 $ 5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost. Donated capital assets are recorded at estimated fair market value at the date of donation. 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. Property, plant and equipment of the City are depreciated using the straight -line method over the estimated useful lives as listed on the following page. 62 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (Continued) 4. Capital Assets (Continued) Assets Years Utility Distribution Systems 80 Streets 50 Infrastructure 50 Buildings 40 Land Improvements 30 Building Improvements 10 -25 Machinery and Equipment 5 -10 Mobile Equipment 5 -10 Temporary Easements 3 -5 5. 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 a future period(s) and so will not be recognized as an outflow of resources (expense /expenditure) until that time. The City only has one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the government -wide and proprietary funds statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The governmental funds report unavailable revenues from four sources: property taxes, special assessments, notes receivable and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. At the government -wide level unavailable revenue related to grants is presented. 63 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (Continued) 6. Compensated Absences Under the terms of union contracts and personnel policies, the City's employees are granted vacations in varying amounts depending upon length of service and union contract or employee classification. All full -time employees accumulate one day of sick leave per month. Some part-time employees receive prorata benefits. Upon termination, employees are paid for all unused vacation and, if they have five or more years of service, severance pay is equal to 50% of their unused sick leave. Employees who have been with the City for at least 5 years and who have accrued and maintain a balance of over 160 hours of sick leave are also allowed to convert accumulated sick leave to deposits in the City's deferred compensation plans. Deposits in combination with all other payments to the deferred compensation plans are subject to maximum deferral regulations. Accumulated sick leave converted to deferred compensation will be paid at half the employee's rate of pay. Employees who have been with the City for at least 5 years and who have accrued and maintain a balance of over 160 hours of sick leave time are allowed to trade accumulated sick leave for cash reimbursement for approved wellness activities. Accumulated sick leave used for this purpose will be reimbursed in cash at half the employee's current rate of pay. The liability for vacation and vested sick leave is recorded in the Benefit Accrual Internal Service Fund as earned. The Fund's revenues are derived from direct labor charges to other City funds. All benefits are then paid by the Benefit Accrual Internal Service Fund. 7. 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, are deferred and amortized over the life of the bonds using the straight -line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 64 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (Continued) 8. Fund Equity a. Classification In the fund financial statements, governmental funds report fund classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts in those funds can be spent. • Nonspendable Fund Balance — These are amounts that cannot be spent because they are not in spendable form. • Restricted Fund Balance — These are amounts that are restricted to specific purposes either by a) constraints placed on the use of resources by creditors, grantors, contributors or laws or regulations of other governments or b) imposed by law through enabling legislation. • Committed Fund Balance — These are amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council (highest level of decision making authority) through resolution. • Assigned Fund Balance — These are amounts that are constrained by the City's intent to be used for specific purposes but are neither restricted nor committed. The City Council has delegated authority to the Finance Director to assign fund balance under the City's fund balance policy. • Unassigned Fund Balance — These are residual amounts in the General Fund not reported in any other classification. The General Fund is the only fund that can report a positive unassigned fund balance. Other funds would report a negative unassigned fund balance should the total of nonspendable, restricted and committed fund balances exceed the total net resources of that fund. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. When unrestricted resources are available for use it is the City's policy to use resources in the following order: committed, assigned and unassigned. b. Minimum Fund Balance The City's target General Fund balance is to maintain an unassigned fund balance of 40% to 45% of the subsequent year's expenditure budget. 65 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (Continued) 9. Net Position Net position represent the difference between assets and liabilities in the government -wide financial statements. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balance of any long -term debt used to build or acquire the capital assets. A reclassification of $ 374,250 was made between this net position class and unrestricted net position in the total column in the Statement of Net Position to recognize the portion of debt attributable to capital assets donated from governmental activities to business -type activities. Net Positions is reported as restricted in the government -wide financial statement when there are limitations on their use through external restrictions imposed by creditors, grantors or laws or regulations of other governments. 10. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenue and expenditures /expense during the reporting period. Actual results could differ from those estimates. NOTE 2 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Budgetary information 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 Special Revenue Funds with the exception of the Police Forfeiture Fund and Drug Task Force Grant Funds. Budgets are also adopted for the Park System Development and Renewal & Replacement, Equipment Revolving, General Facilities Renewal and Fire Apparatus Revolving Capital Projects Funds. A separate budget report is issued at the beginning of each year. Budgeted amounts presented include the originally adopted budget and final amended budget approved by the City Council. The City does not use encumbrances. Budgeted expenditure appropriations lapse at year -end. .. CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 2 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information (Continued) The City follows these procedures in establishing the budgetary data reflected in the financial staternents: 1. The City Administrator submits to the City Council, a proposed operating budget for the year commencing the following January 1. The 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 City Council action. 4. Expenditures may legally exceed budgeted appropriations at the fund level through City Council action. Also, the City Council may authorize transfers of budgeted amounts between departments within any fund. 5. Formal budgetary integration is employed as a management control device during the year for the General and Special Revenue Funds with the exception of the Police Forfeiture and Drug Task Force Grant Special Revenue Fund. Formal budgetary integration is not employed for Debt Service Funds because effective budgetary control is alternatively achieved through general obligation (G.O.) bond indenture provisions. Budgetary control for Capital Projects Funds is accomplished through the use of project controls, with the exception of the Park System Development and Renewal & Replacement, Equipment Revolving, General Facilities Renewal and Fire Apparatus Revolving Funds, which are budgeted. 6. The legal level of budgetary control is at the department level for the General Fund and at the fund level for all other budgeted funds. Also inherent in this controlling function is the management philosophy that the existence of a particular item or appropriation in the approved budget does not automatically mean that it will be spent. The budget process has flexibility in that, where need has been properly demonstrated, an adjustment can be made within the department budget by the City Administrator or between departments by the City Council. 67 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 2 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY B. Excess of Expenditures Over Appropriations Special Revenue Funds: Cable TV Franchise Fees - 100 Eagan TV 567,100 706,135 Minnesota Investment Fund Revolving Loan 45,900 45,927 Capital Projects Funds: Park System Development and 475,000 674,213 Renewal and Replacement C. Deficit Fund Equity Debt Service Funds: Improvement Bonds $ 4,607,563 2012B Equipment Certificates 166 Capital Projects Funds: Cedar Grove Highway 13 Tax Increment 14,172,951 Highway 55 /Blue Gentian (2 -5) Tax Increment 121,919 Highway 55 /Grand Oaks (2 -4) Tax Increment 168,509 Southeast Eagan Tax Increment 24,570 Cedar Bluffs Housing Improvement District 162,835 Meadowlark Ridge Housing Improvement District 632,756 The deficit in the Debt Service Funds will be resolved through future transfers and levies. Deficit balances in the Tax Increment Funds will be eliminated through future tax increment collections. Housing Improvement Fund deficits will be eliminated through special assessment collections. .: Appropriations Expenditures General Fund: Mayor and Council $ 139,600 $ 141,001 Administration 517,100 544,288 Human Resources 285,200 295,210 Public Works Engineering 1,123,900 1,163,325 Streets and Highways 1,794,200 1,875,106 Central Services Maintenance 603,700 672,666 Govermnent Buildings 724,300 733,452 Special Revenue Funds: Cable TV Franchise Fees - 100 Eagan TV 567,100 706,135 Minnesota Investment Fund Revolving Loan 45,900 45,927 Capital Projects Funds: Park System Development and 475,000 674,213 Renewal and Replacement C. Deficit Fund Equity Debt Service Funds: Improvement Bonds $ 4,607,563 2012B Equipment Certificates 166 Capital Projects Funds: Cedar Grove Highway 13 Tax Increment 14,172,951 Highway 55 /Blue Gentian (2 -5) Tax Increment 121,919 Highway 55 /Grand Oaks (2 -4) Tax Increment 168,509 Southeast Eagan Tax Increment 24,570 Cedar Bluffs Housing Improvement District 162,835 Meadowlark Ridge Housing Improvement District 632,756 The deficit in the Debt Service Funds will be resolved through future transfers and levies. Deficit balances in the Tax Increment Funds will be eliminated through future tax increment collections. Housing Improvement Fund deficits will be eliminated through special assessment collections. .: CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 3 — DEPOSITS AND INVESTMENTS A. Deposits As of December 31, 2013, the City was not exposed to custodial credit risk because deposits were fully collateralized. The City had deposits of $ 7,973,338 as of December 31, 2013. The City's book balance for cash as of December 31, 2013 was $ 8,658,314. B. Investments As of December 31, 2013, the City's governmental funds had the following investments and maturities: Investment Maturities Fair Less than Investment Type Value One Year 1 -5 Years 6 -10 Years U.S. Agencies $ 63,602,498 $ 3,018,030 $ 36,784,243 $ 23,800,225 Certificates of Deposit 11,679,756 5,224,412 6,455,434 - Money Market 3,671,372 N/A N/A N/A Total $ 78,953,626 Credit Risk: The City's investments in U.S. Agency Securities are rated AA+ or higher by Standard & Poor's (S &P). The other investments held at year -end are not rated. Concentration of Credit Risk: The City's investments follow its investment policy in tenns of concentration of credit risk. The following investments are over 5% of total investments: Investment Class Percentage of Total Investments Federal Home Loan Bank 9 % Federal Home Loan Mortgage Corporation 27% Federal National Mortgage Association 32% OPEB Trust Fund As of December 31, 2013, the City's OPEB Trust Fund had the following investments and maturities. Investment Maturities Fair Less than Investment Type Value One Year 1 -5 Years 6 -10 Years Minnesota Internal Equity Pool $ 11,329,086 N/A N/A N/A •• CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 3 — DEPOSITS AND INVESTMENTS B. Investments (Continued) Credit Risk: Investments in the Minnesota Internal Equity Pool are not rated. Concentration of Credit Risk: The OPEB Trust Fund investments are not subject to concentration of credit risk. The following is a summary of total deposits and investments: City Governmental Funds: Deposits (Note 3.A.) $ 8,658,314 Petty Cash 18,027 Investments (Note 3.13.) 78,953,626 OPEB Trust Fund: Investments (Note 3.13.) 11,329,086 Total Deposits and Investments $ 98,959,053 Deposits and investments are presented in the December 31, 2013 basic financial statements as follows: Statement of Net Position: Cash and Investments $ 87,193,217 Statement of Fiduciary Net Position: OPEB Trust Fund: Cash and Investments 11,329,086 Dakota County Drug Task Force Agency Funds: Cash and Investments 436,750 Total Deposits and Investments $ 98,959,053 %I17 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 4 — CAPITAL ASSETS Capital asset activity for the year ended December 31, 2013 was as follows: Total Capital Assets being Depreciated, Net Governmental Activities Capital Assets, Net 91,454,661 1,781,734 1,388,915 L- 91,847,480 $ 160,066,242 $ 15,877,456 $ 1,704,195 $ $ 174,239,504 71 Beginning Ending Balance Increases Decreases Transfers Balance Govermnental Activities: Capital Assets not being Depreciated: Land $ 24,925,492 $ 4,213,660 $ - $ - $ 29,139,152 Infrastructure Land 40,785,465 - - - 40,785,465 Permanent Easements 1,959,010 - - - 1,959,010 Sculptures and Monuments 83,363 5,816 - - 89,179 Constriction in Progress 858,252 9,876,246 315,280 - 10,419,218 Total Capital Assets not being Depreciated 68,611,582 14,095,722 315,280 - 82,392,024 Capital Assets being Depreciated: Buildings 24,872,608 148,794 191,368 - 24,830,034 hnfrastructure and Temporary Easements 98,240,461 5,992,016 1,126,373 - 103,106,104 Improvements Other than Buildings 16,150,817 673,979 28,438 - 16,796,358 Machinery and Equipment 20,669,246 1,301,502 1,752,434 - 20,218,314 Total Capital Assets being Depreciated 159,933,131 8,116,291 3,098,613 - 164,950,810 Less Accumulated Depreciation for: Buildings 9,665,439 626,990 99,511 - 10,192,918 Infrastructure and Temporary Easements 38,205,243 3,613,449 60,072 - 41,758,620 hnprovements Other than Buildings 7,384,733 591,155 26,542 81,998 8,031,344 Machinery and Equipment 13,223,056 1,502,963 1,523,573 (81,998) 13,120,448 Total Accumulated Depreciation 68,478,471 6,334,557 1,709,698 - 73,103,330 Total Capital Assets being Depreciated, Net Governmental Activities Capital Assets, Net 91,454,661 1,781,734 1,388,915 L- 91,847,480 $ 160,066,242 $ 15,877,456 $ 1,704,195 $ $ 174,239,504 71 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 4 — CAPITAL ASSETS 72 Beginning Ending Balance Increases Decreases Transfers Balance Business -Type Activities: Capital Assets not being Depreciated: Land $ 1,638,054 $ $ - $ - $ 1,638,054 Permanent Easements 326,301 - - 326,301 Construction in Progress 7,230 120,975 7,230 - 120,975 Total Capital Assets not being Depreciated 1,971,585 120,975 7,230 - 2,085,330 Capital Assets being Depreciated: Buildings and Improvements 34,522,869 117,560 - - 34,640,429 Infrastructure and Temporary Easements 233,988,124 1,290,546 629,576 234,649,094 Machinery and Equipment 7,742,955 543,727 552,516 - 7,734,166 Total Capital Assets - being Depreciated 276,253,948 1,951,833 1,182,092 - 277,023,689 Less Accumulated Depreciation for: Buildings and Improvements 11,944,597 1,279,867 - - 13,224,464 Infrastructure and Temporary Easements 69,768,305 3,722,533 10,493 - 73,480,345 Machinery and Equipment 5,351,177 555,972 547,938 - 5,359,211 Total Accumulated Depreciation 87,064,079 5,558,372 558,431 - 92,064,020 Total Capital Assets being Depreciated, Net 189,189,869 (3,606,539) 623,661 184,959,669 Business -Type Activities Capital Assets, Net $ 191,161,454 $ (3,485,56L) $ 630,891 $ - $ 187,044,999 72 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 4 — CAPITAL ASSETS Depreciation expense was charged to functions /programs of the City as follows: Governmental Activities: General Government $ 586,944 Public Safety 983,025 Public Works 4,025,621 Parks and Recreation 738,967 Total Depreciation Expense - Governmental Activities $ 6,334,557 Business -Type Activities: Public Utilities $ 4,176,560 Civic Arena 416,730 Aquatic Facility 307,748 Community Center 539,553 Fiber Infrastructure 117,781 Total Depreciation Expense - Business -Type Activities $ 5,558,372 NOTE 5 — LONG -TERM DEBT A. Governmental Activities 1. G.O. Special Assessment Bonds The City issues special assessment bonds to provide funds for the construction of streets and utilities improvements. These bonds will be repaid from special assessments levied against the properties benefiting from this construction. The City is obligated for payment of special assessments debt not covered through the collection of special assessments from property owners. Any obligation by the City would be paid from property taxes. The amount of delinquent special assessment receivables at December 31, 2013 was $134,117. Special assessment bonds with governmental commitment currently outstanding are as listed on the following page. 73 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 5 — LONG -TERM DEBT A. Governmental Activities (Continued) 1. G.O. Special Assessment Bonds (Continued) Authorized Issue Interest and Date Rate Issued G.O. Improvement Bonds, Series 2005A 12/01/05 3.25 % -4.00% $ 5,155,000 G.O. Improvement Refunding Bonds, Series 2005C 12/01/05 4.00% 1,515,000 Total Special Final Balance at Due Within Maturity Year -End One Year 02/01/21 $ 2,210,000 $ 350,000 02/01/15 285,000 180,000 Assessment Bonds $ 2,495,000 $ 530,000 Annual debt service requirements to maturity for special assessment bonds are as follows: Year Ending December 31, Pricipal Governmental Activities Interest Total 2014 $ 530,000 $ 84,479 $ 614,479 2015 415,000 66,778 481,778 2016 305,000 53,378 358,378 2017 300,000 42,110 342,110 2018 300,000 30,785 330,785 2019 -202.1 645,000 29,463 674,463 Total $ 2,495,000 $ 306,993 $ 2,801,993 2. G.O. State Aid Bonds The City issued G.O. State Aid Street Bonds to provide funding for the Northwood Parkway Bridge across Interstate 35E within the City. The debt service on the Bonds is expected to be repaid from the City's municipal state aid allotments received annually from the Minnesota Department of Transportation. The City also pledges its full faith, credit and power to levy direct general ad valorem taxes as security on the Bonds, but the City does not anticipate using tax levies for the repayment of the Bonds. G.O. State Aid Street Bonds currently outstanding are noted below: Issue Interest Authorized Final Balance Due Within Date Rates and Issued Maturity at Year -End One Year G.O. State -Aid Street Bonds, Series 2008A 08/01/08 3.50 % - 4.375% $ 4,105,000 04/01/29 $ 3,280,000 $ 205,000 74 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 5 — LONG -TERM DEBT A. Governmental Activities (Continued) 2. G.O. State Aid Bonds (Continued) Annual debt service requirements to maturity for G.O. State Aid Street Bonds are as follows: Year Ending December 31, Principal Governmental Activities Interest Total 2014 $ 205,000 $ 130,586 $ 335,586 2015 210,000 122,805 332,805 2016 210,000 114,668 324,668 2017 205,000 106,368 311,368 2018 205,000 98,168 303,168 2019 -2023 1,025,000 367,223 1,392,223 2024 -2028 1,020,000 153,491 1,173,491 2029 200,000 4,375 204,375 Total $ 3,280,000 $ 1,097,684 $ 4,377,684 3. G.O. Equipment Certificate Bonds The City issued G.O. Equipment Certificate Bonds to provide funding for public safety equipment purchases within the City. G.O. Certificates of Indebtedness are direct obligations, pledge the full faith and credit of the City and are payable through tax levies. G.O. Equipment Certificate Bonds currently outstanding are listed below: 75 Issue Interest Authorized Final Balance Due Within Date Rates and Issued Maturity at Year -End One Year G.O. Equipment Certificate Bonds, Series 2009A 09/01/09 1.90 % -4.00% $ 525,000 02/01/19 $ 380,000 $ 55,000 G.O. Equipment Certificate Bonds, Series 2010A 12/15/10 2.20 % -3.97% 415,000 02/01/20 330,000 45,000 G.O. Equipment Certificate Bonds, Series 2012B 05/15/12 0.65 % -1.75% 575,000 06/01/21 515,000 60,000 Total G.O. Equipment Certificate Bonds $ 1,225,000 $ 160,000 75 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 5 - LONG -TERM DEBT A. Governmental Activities (Continued) 3. G.O. Equipment Certificate Bonds (Continued) Annual debt service requirements to maturity for G.O. Equipment Certificate Bonds are as follows: Year Ending December 31, Principal Governmental Activities Interest Total 2014 $ 160,000 $ 29,687 $ 189,687 2015 165,000 26,324 191,324 2016 170,000 22,418 192,418 2017 175,000 18,008 193,008 2018 185,000 12,918 1 97,918 2019 -2021 370,000 10,626 380,626 Total $ 1,225,000 $ 119,981 $ 1,344,981 4. G.O. Housing Improvement Bonds The City issued G.O. Housing Improvement Bonds to provide funding for townhome improvements. These bonds will be repaid from special assessments levied against the property owners benefiting from the improvements. G.O. Housing Improvement Bonds currently outstanding are listed below: Issue Interest Authorized Final Balance Due Within Date Rates and Issued Maturity at Year -End One Year G.O. Housing Improvement Bonds, Series 2012A 05/15/12 1.00 % -3.45% $ 1,660,000 02/01/28 $ 1,660,000 $ 95,000 Annual debt service requirements to maturity for G.O. Housing Irprovement Bonds are as follows: Year Ending December 31, Governmental Activities Principal Interest Total 2014 $ 95,000 $ 38,700 $ 133,700 2015 100,000 37,725 137,725 2016 100,000 36,725 136,725 2017 100,000 35,600 135,600 2018 100,000 34,200 134,200 2019 -2023 540,000 138,565 678,565 2024 -2028 625,000 54,388 679,388 Total $ 1,660,000 $ 375,903 $ 2,035,903 76 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 5 — LONG -TERM DEBT A. Governmental Activities (Continued) 5. G.O. Tax Increment Bonds The City issued G.O. Tax Increment Bonds to provide funding for a parking structure. G.O. Tax Increment Bonds currently outstanding are listed below: Issue Interest Authorized Final Balance Due Within Date Rates and Issued Maturity at Year -End One Year G.O. Tax Increment Bonds, Series 2013A 06/01/13 2.00 % -3.40% $ 12,390,000 02/01/30 $ 12,390,000 $ Annual debt service requirements to maturity for G.O. Tax Increment Bonds are as follows: Year Ending Governmental Activities December 31, Principal Interest Total 2014 2015 2016 2017 2018 2019 -2023 2024 -2028 2029 -2030 Total B. Business -Type Activities 1. G.O. Bonds $ - $ 380,196 $ 380,196 - 325,882 325,882 150,000 324,382 474,382 750,000 315,382 1,065,382 765,000 300,232 1,065,232 4,075,000 1,257,538 5,332,538 4,605,000 704,346 5,309,346 2,045,000 69,623 2,114,623 $ 12,390,000 $ 3,677,581 $ 16,067,581 The City issued the G.O. bonds listed below to provide funds for the acquisition and construction of major capital facilities. G.O. bonds are direct obligations and pledge the full faith and credit of the City and are payable through tax levies. G.O. bonds currently outstanding are as noted below: Issue Interest Authorized Final Balance Due Within Date Rates and Issued Maturity at Year -End One Year G.O. Facility Refunding Bonds, Series 2009B 12/15/09 2.0 % -4.0% $ 8,195,000 02/01/21 $ 7,365,000 $ 840,000 77 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 5 — LONGTERM DEBT B. Business -Type Activities (Continued) 1. G.O. Bonds (Continued) Annual debt service requirements to maturity for G.O. bonds are as follows: Year Ending December 31, Business -Type Activities Principal Interest Total 2014 $ 840,000 $ 220,188 $ 1,060,188 2015 855,000 202,169 1,057,169 2016 875,000 179,425 1,054,425 2017 900,000 152,800 1,052,800 2018 930,000 125,350 1,055,350 2019 -2021 2,965,000 176,900 3,141,900 Total $ 7,365,000 $ 1,056,832 $ 8,421,832 C. Changes in Long Term Debt Long -term debt activity for the year ended December 31, 2013 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Bonds Payable: Special Assessment Bonds State Aid Bonds Equipment Certificate Bonds Housing Improvement Bonds Tax Increment Bonds Compensated Absences Total Governmental Activities Long -Tern Liabilities Business -Type Activities: Bonds Payable: G.O. Bonds Net Premium/Discount Total Business -Type Activities Long -Tern Liabilities $ 3,035,000 $ $ 540,000 $ 2,495,000 $ 530,000 3,490,000 210,000 3,280,000 205,000 1,385,000 160,000 1,225,000 160,000 1,660,000 - 1,660,000 95,000 - 12,390,000 - 12,390,000 - 3,531,119 2,233,803 2,150,924 3,613,998 2,136,654 $ 13,101,119 $ 14,623,803 $ 3,060,924 $ 24,663,998 $ 3,126,654 $ 8,195,000 $ - $ 830,000 $ 7,365,000 $ 840,000 239,910 29,680 210,230 - $ 8,434,910 $ $ 859,680 $ 7,575,230 $ 840,000 i CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 6 — JOINT POWERS COMMITMENT On August 25, 2005, the City entered into a joint powers agreement with the Cities of Apple Valley, Burnsville, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St. Paul, West St. Paul, Minnesota and Dakota County, Minnesota, to establish the Dakota Communications Center (DCC), a Minnesota nonprofit corporation. The purpose of the DCC is to engage in the operation and maintenance of a county -wide public safety answering point and communications center for law enforcement, fire, emergency medical services and other public safety services for the mutual benefit of residents residing in the above mentioned cities and county (members). Pursuant to the joint powers agreement, members are required to provide DCC their pro rata share of cost of operations and maintenance and capital projects. On May 1, 2007, the DCC issued Public Safety Revenue Bonds, Series 2007, in the amount of $ 7,315,000 to provide financing for the acquisition of equipment and reimbursement for conversion costs. The Bonds are special obligations of the DCC, payable from revenues to be received from members. Pursuant to the joint powers agreement, members will levy taxes for the payment of then pro rata share of the principal and interest payments due on the Bonds. The Bonds mature February 1, 2014 and bear interest rates ranging from 4.0% to 5.0 %. The debt will be repaid with member assessments over a seven year amortization. All members reserve the right to prepay, in whole or in part on any date, its allocated share of principal and interest on the Bonds. Pursuant to Section 9.5 of the joint powers agreement, member payments are submitted monthly and held in escrow by U.S. Bank National Association (Trustee) until the funds are remitted to the bond holders according to the established bond principal and interest due dates. The interest earnings from the escrow account will reduce future member obligations on the debt. Payments from the City are provided from Equipment Revolving Fund appropriations. In 2013, the City's member payments totaled $ 100,411. The City's fixture member payments to the DCC as of December 31, 2013 are as follows: Payment Year 2014 Amount $ 7,694 79 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 7 — CONDUIT DEBT OBLIGATIONS Conduit debt obligations are certain limited obligation revenue bonds or similar debt instruments issued for the express purpose of providing capital financing for a specific third party. The City has issued various revenue bonds to provide funding to private- sector entities for projects deemed to be in the public interest. Although these bonds bear the name of the City, the City has no obligation for such debt beyond the resources provided by related leases or loans. Accordingly, the bonds are not reported as liabilities in the financial statements of the City. As of December 31, 2013, the following conduit debt was outstanding: Original Date of Amount Balance Project Issue of Issue Retired Outstanding Multifamily Housing Revenue Bonds: Thomas Lake 08/01/86 $ 12,975,000 $ - $ 12,975,000 Aspenwoods of Eagan 01/15/03 5,280,000 - 5,280,000 Wescott Hills Townhomes 03/01/96 1,805,000 1,805,000 - Royal Oaks - Reissuance 12/05/96 13,139,491 - 13,139,491 Total Conduit Debt $ 33,199,491 $ 1,805,000 $ 31,394,491 . N CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE S — FUND BALANCE DETAIL Fund equity balances are classified as follows to reflect the limitations and restrictions of the respective funds. The City internally segregated portions of its cash and investments in its enterprise funds for specific purposes. The City has designated certain revenue and expenditure accounts to be added to or subtracted from these cash accounts or specifically set aside amounts based on the capital improvement plan. Fund Public Utilities Public Utilities Public Utilities Public Utilities Public Utilities Public Utilities Civic Arena Aquatic Facility Community Center Total Restricticted For Water Renewal & Replacement Sanitary Sewer Renewal & Replacement Water Supply & Storage Storm Drain Expansion & Modifications Storm Drain Renewal & Replacement Water Quality Capital Replacement Capital Replacement Capital Replacement Amount $ 9,459,126 7,072,378 8,604,365 2,957,954 3,639,483 130,099 454,265 804,100 1,055,248 $ 34,177,018 81 Cedar Grove Revolving Other Improvement Combined Highway 13 Improvement Govenunental General Bonds Utility Trunk Major Street Tax Increment Construction Funds Total Nonspendable: Prepaid Items $ 226,128 $ $ $ $ $ $ $ 226,128 Inventory 109,503 109,503 Land Held for Resale - 7,102,205 7,102,205 Total Nonspendable 335,631 7,102,205 7,437,836 Restricted: Debt Service - - 2,557,461 2,557,461 Police Forfeitures - - - - - - 5,375 5,375 Eagan TV 667,587 667,587 Revolving Loan 51,728 51,728 DWI Forfeiture 49,286 49,286 Park Dedication 1,813,278 1,813,278 Total Restricted 5,144,715 5,144,715 Committed: Housing 282,852 282,852 Cable TV 1,960,915 1,960,915 Cedarvale Special Services 2,514 2,514 Total Committed 2,246,281 2,246,281 Assigned: Capital Projects and Equipment - 18,576,862 9,484,859 1,854,634 5;881,202 35,797,557 Unassigned 14,998,980 (4,607,563) - (21,275,156) (1,025,610) (11,909,349) Total $ 15,334,611 1 (4,607,563) $ 18.576,862 $ 9,484,859 $ (14;172,9511 $ 1,854.634 $ 12,246,588 $ 38,717,040 The City internally segregated portions of its cash and investments in its enterprise funds for specific purposes. The City has designated certain revenue and expenditure accounts to be added to or subtracted from these cash accounts or specifically set aside amounts based on the capital improvement plan. Fund Public Utilities Public Utilities Public Utilities Public Utilities Public Utilities Public Utilities Civic Arena Aquatic Facility Community Center Total Restricticted For Water Renewal & Replacement Sanitary Sewer Renewal & Replacement Water Supply & Storage Storm Drain Expansion & Modifications Storm Drain Renewal & Replacement Water Quality Capital Replacement Capital Replacement Capital Replacement Amount $ 9,459,126 7,072,378 8,604,365 2,957,954 3,639,483 130,099 454,265 804,100 1,055,248 $ 34,177,018 81 CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 9 — INTERFUND ASSETS/LIABILITIES The composition of interfund balances as of December 31, 2013 was as follows: Receivable Fund Public Utilities Major Street Public Utilities Major Street Total Advances to /from Other Funds: Receivable Fund Public Utilities Combined Utility Trunk Total Payable Fund AcessEagan (Fiber Infrastructure) Improvement Bonds Cedar Grove Hwy 13 Tax Increment Other Governmental Funds Payable Fund Civic Arena Cedar Grove TIF Amount $ 705,054 4,671,781 2,891,333 1,111,836 $ 9,380,004 Amount $ 2,255,400 15,000,000 $ 17,255,400 The due from/due to other funds balances represent borrowing to resolve deficit cash balances. Advances to /from other funds represent funding for capital and construction activity. NOTE 10 — TRANSFERS Transfer Out of Transfer In to Purpose Amount Public Utilties General Fund Operations Funding $ 1,134,700 Other Govermnental Funds General Fund Operations Funding 440,814 Other Governmental Funds Other Goverrunental Funds Operations Funding 371,288 Combined Utility Trunk Public Utilites Operations Funding 43,368 General Civic Arena Operations Funding 405,000 General Aquatic Facility Operations Funding 827,200 Public Utilties Community Center Operations Funding 363,945 Other Governmental Funds Cedar Grove Highway 13 Tax Increment Funding Capital Projects 81,241 Public Utilties Other Governmental Funds Funding Capital Projects 28,300 General Other Governnental Funds Funding Capital Projects 650,800 Improvement Bonds Revolving Improvement Construction Funding Capital Projects 2,034,529 Major Sheet Revolving Improvement Construction Funding Capital Projects 3,724,731 Cedar Grove Hwy 13 TIF Revolving Improvement Construction Funding Capital Projects 95,513 Total $ 10,201,429 i% CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 11— RISK MANAGEME NT 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. On July 1, 1993, the City began to self - insure for workers' compensation risk up to certain limits. A stop -loss policy was purchased that limits the City's loss to $ 450,000 per incident. The City purchases commercial insurance for claims in excess of coverage provided by the fund and for all other risks of loss. Settled claims have not exceeded this commercial coverage in any of the past three years. All funds of the City participate in the program and make payments to the Workers' Compensation Self - Insurance Internal Service Fund. Based on the requirements of GASB Statement No. 10, a liability is reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Interfund premiums are charged to user funds as quasi - external transactions. The Workers' Compensation Self- Insurance Internal Service Fund includes a reserve of $ 1,862,914 for catastrophic losses. The total claims liability reported in the Fund at December 31, 2013 is $ 147,100, of which $ 5,509 is considered long -term and includes amounts for known claims and for estimated incurred but not reported claims. These estimates are determined based on the probability that a loss has occurred and the amount of the loss can be reasonably estimated. Changes in the Fund's claims liability amounts, including long -terns amounts, for the past two years were as follows: Balance, Beginning of Year Claims Expense and Claims Estimates Payments Balance, End of Year 2011 $ 115,400 $ 181,107 $ (219,007) $ 77,500 2012 77,500 188,012 (182,112) 83,400 2013 83,400 253,024 (189,324) 147,100 The City also has an Internal Service Fund titled "Risk Management" which services other funds' insurance premiums, but does not involve the retention of risk. The City anticipates that over a period of time, sufficient amounts will be built up to allow the City to expand into a self insurance program. M. CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 12 — PENSION PLANS Public Employees' Retirement Association A. Plan Description All full -time and certain part-time employees of the City are covered by defined benefit plans administered by the Public Employees' Retirement Association of Minnesota (PERA). PERA administers the General Employees' Retirement Fund (GERF) and the Public Employees' Police and Fire Fund (PEPFF), which are cost - shaming, multiple - employer retirement plans. These Plans are established and administered in accordance with Minnesota Statutes Chapters 353 and 356. GERF members belong to the Coordinated or Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by state statute and vest after five years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the first 10 years and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2% of average salary for each of the first 10 years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate 2.7% of average salary for Basic Plan members and 1.7% for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0% for each year of service. For all GERF and PEPFF members hired prior to July 1, 1989, whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55 for PEPFF members and 65 for Basic and Coordinated Plan members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated Plan members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A single -life annuity is a lifetime annuity that ceases upon the death of the retiree — no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the Fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active Plan participants. 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. ., CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 12 — PENSION PLANS Public Employees' Retirement Association (Continued) A. Plan Description (Continued) PERA issues a publicly available financial report that includes financial statements and required supplementary information for GERF and PEPFF. That report may be obtained on the Internet at www.mnpera.org, by writing to PERA at 60 Empire Drive, #200, St. Paul, Minnesota 55103 -2088 or by calling (651) 296 -7460 or (800) 652 -9026. B. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These Statutes are established and amended by the State Legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members were required to contribute 9.1 % and 6.25 %, respectively, of their annual covered salary in 2013. PEPFF members were required to contribute 9.6% of their annual covered salary in 2013. In 2013, the City was required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERT members, 7.25% for Coordinated Plan PERF members and 14.4% for PEPFF members. The City's contributions to the Public Employees' Retirement Fund for the years ending December 31, 2013, 2012 and 2011 were $ 835,670, $ 803,275 and $ 762,380, respectively. The City's contributions to the PEPFF for the years ending December 31, 2013, 2012 and 2011 were $ 957,457, $ 931,481 and $ 863,567, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. Public Employees' Defined Contribution Plan Four council members of the City are covered by the Public Employees' Defined Contribution Plan ( PEDCP), a multiple - employer deferred compensation plan administered by the PERA. The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes Chapter 353D.03 establishes plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. Any amendments must also be approved through statute. An eligible elected official who decides to participate contributes 5% of salary which is matched by the elected official's employer. For ambulance service personnel, employer contributions are determined by the employer and for salaried employees must be a fixed percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% of employer contributions and twenty -five hundredths of 1 % of the assets in each member's account annually. Total contributions made by the City during year 2013 were $ 2,001. CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 12 — PENSION PLANS Eagan Volunteer Fire Relief Association A. Plan Description The City contributes to the Eagan Volunteer Fire Department Relief Association (the "Association ") that provides pension benefits to its members under a single employer defined contribution plan. Since fire department members are volunteers, contributions to the Association are not based on payroll but rather on years of active service. All active firefighters may apply for membership in the Association and shall become a member immediately upon approval by the Board of Trustees. Under an Annual Contribution Agreement, the City's contribution to the Association is determined by multiplying $ 6,330 by the number of years of active service completed by members of the Association for the plan year, prorated by months for members who did not complete a full year of active service. The City also contributes a portion of the Association's administrative fees each year. For 2013, that contribution was $ 29,050. Required and actual employer contributions to the plan during 2013 were $ 667,768. In addition, the City passes through state aid allocated to the plan in accordance with state statutes. For 2013, the state aid was $ 370,000. Members of the Association are not allowed to snake voluntary contributions to the plan. Members are not vested in their accounts until they attain five years of active service, at which time they become 40% vested. Thereafter, the vested portion of their accounts increases by 4% annually until they achieve 100% vesting after having served for 20 years. Plan provisions were established and may only be amended by amendments to the Association bylaws which require a majority vote by the Board of Trustees. NOTE 13 — POST EMPLOYMENT HEALTH CARE PLAN A. Plan Description The City provides a single - employer defined benefit health care plan to eligible retirees and their spouses. The plan offers medical coverage administered by B1ueCross BlueShield. It is the City's policy to periodically review its medical coverage and to obtain requests for proposals in order to provide the most favorable benefits and premiums for City employees and retirees. The City Council has the authority to establish and amend the plan provisions. B. Funding Policy Retirees and their spouses contribute to the health care plan at the same rate as City employees. This results in the retirees receiving an implicit rate subsidy. Contribution requirements are established by the City, based on the contract terms with B1ueCross BlueShield. During 2009, the City made the decision to fully fund the actuarial accrued liability. For 2013, the City withdrew $ 139,598 from the plan. This withdrawal was for 2012 and 2013 costs. As of January 1, 2013, there were I1 retirees receiving health benefits from the City's health plan. :P CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 13 — POST EMPLOYMENT HEALTH CARE PLAN C. Annual OPEB Cost and Net OPEB Obligation The City's annual OPEB cost (expense) is calculated based on the annual required contribution (ARC) of the City, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation to the plan. ARC Interest on Net OPEB Obligation Adjustment to ARC Annual OPEB Cost (Benefit) Contributions Made Increase (Decrease) in Net OPEB Obligation Net OPEB Obligation - Beginning of Year Net OPEB Obligation (Asset) - End of Year $ (117,639) (11,347) 16,807 (112,179) (112,179) (168,549) $ (280,728) The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation was as follows: Year Ended Annual Percentage of Net OPEB OPEB Cost Employer Annual OPEB Obligation (Benefit) Contribution Cost Contributed (Asset) December 31, 2011 $ (46,032) $ 137,641 -299% $ (107,403) December 31, 2012 (61,146) - 0% (168,549) December 31, 2013 (112,179) - 0% (280,728) D. Funded Status and Funding Progress As of January 1, 2013, the most recent actuarial valuation date, the City had $ 8,852,480 deposited to fund the plan. The actuarial accrued liability for benefits was $ 4,367,428 and the actuarial value of assets was $ 8,852,480, resulting in an unfunded actuarial accrued liability (UAAL) of $ (4,485,052). The covered payroll (annual payroll of active employees covered by the plan) was $ 15,804,000 and the ratio of the UAAL to the covered payroll was 28 %. In January 2009, the City established an irrevocable trust and contributed $ 4,800,000 into the trust to fund the plan. As of December 31, 2013, the ending market value of these assets was $ 11,329,086. e CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 13 — POST EMPLOYMENT HEALTH CARE PLAN D. Funded Status and Funding Progress (Continued) Actuarial valuations 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 deterinined regarding the funded status of the plan and the 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 — Other Post Employment Benefits, presented as required supplementary information following the Notes to the Financial Statements, presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. The Schedule of Employer Contributions — Other Post Employment Benefits, presented as required supplementary information following the Notes to the Financial Statements, presents multi -year trend information about employer contributions in relations to annual OPEB costs. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the 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 effects of short-term volatility in actuarial accrued liabilities, consistent with the long -term perspective of the calculations. At the January 1, 2013 actuarial valuation date, the entry age normal level percentage of pay actuarial cost method was used. The actuarial assumptions included a 7.5% discount rate, which is based on the investment yield expected to finance benefits funded in a separate trust. At the actuarial valuation date, the annual health care cost trend rate was calculated to be 9.5% initially, reduced incrementally to an ultimate rate of 9.0% after 10 years. Both rates included a 3.0% inflation assumption. The initial UAAL was amortized over a one -year closed amortization period. M. CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 13 — POST EMPLOYMENT HEALTH CARE PLAN E. Condensed Financial Statements The financial statements for the OPEB plan are reported below because the OPEB plan does not issue a separate report. OPEB PLAN STATEMENT OF PLAN NET POSITION December 31, 2013 ASSETS Cash and Investments, at Fair Value $ 11,329,086 NET POSITION Net Position Held in Trust for OPEB $ 11,329;086 STATEMENT OF CHANGES IN PLAN NET POSITION For the Year Ended December 31, 2013 ADDITIONS Contributions $ Investments: Investment Income 2,839,046 Less Investment Expense (1,120) Net Investment Income 2,837,926 DEDUCTIONS Withdrawals by Participants 361,320 Change in Net Position 2,476,606 NET POSITION HELD IN TRUST FOR OPEB Beginning of the Year 8,852,480 End of Year $ 11,329,086 1. Notes to the Condensed Financial Statements A. Plan Provisions The plan is described in detail above and on the previous pages, including plan provisions and the authority for plan changes. .. CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 13 — POST EMPLOYMENT HEALTH CARE PLAN E. Condensed Financial Statements (Continued) 2. Summary of Significant Accounting Policies A. Basis of Accounting The financial statements shown on the previous page are prepared using the accrual basis of accounting. Employee and employer contributions are recognized as revenues in the period in which the employee services are performed. Benefits are recognized when due and payable. B. Investments The details of the investments and the investment policy are described in Note I.D. of the City's financial statements. C. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make various estimates. Actual results could differ from those estimates. NOTE 14 — CONTRACT COMMITMENTS At December 31, 2013, the following contract commitments existed: NOTE 15 — CONTINGENCIES There are various lawsuits pending in which the City is involved. The City estimates the potential claims against the City, not covered by insurance resulting from such litigation, would not materially affect the financial statements of the City. .o Revised Completed Contract to Amount Contractor Amount Date Remaining Dakota County Financial Services $ 305,751 $ 281,890 $ 23,861 Northwest Asphalt, Inc 2,125,977 1,834,068 291,909 PCL Construction Services 17,819,048 3,676,851 14,142,197 Insituform Technologies USA, Inc. 172,094 163,489 8,605 Frattalone Companies, Inc. 429,383 370,210 59,173 Keys Well Drilling 63,530 60,340 3,190 Infi•atech 39,650 - 39,650 Minger Construction 240,000 214,220 25,780 North Country landscape & Design 46,947 43,855 3,092 Simpson Company 36,250 21,450 14,800 CLIMB Theatre, Inc 26,600 1,002 25,598 PowerSecure 1,055,195 100,000 955,195 $ 22,360,425 $ 6,767,375 $ 15,593,050 NOTE 15 — CONTINGENCIES There are various lawsuits pending in which the City is involved. The City estimates the potential claims against the City, not covered by insurance resulting from such litigation, would not materially affect the financial statements of the City. .o CITY OF EAGAN NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 NOTE 16 — CHANGE IN ACCOUNTING PRINCIPLE For the year ended December 31, 2013, the City implemented GASB Statement No. 65. This action resulted in an adjustment to the beginning net position on the Statement of Revenues, Expenses and Changes in Fund Net Position — Proprietary Funds and the Statement of Activities of $ 56,015 to remove deferred charges no longer required to be capitalized in accordance with GASB Statement No. 65. NOTE 17 — GASB STATEMENTS ISSUED BUT NOT YET IMPLEMENTED GASB Statement No. 68 replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers and Statement No. 50, Pension Disclosures, as they relate to governments that provide pensions through pension plans administered as trusts or similar arrangements that meet certain criteria. Statement 68 requires govermients providing defined benefit pensions to recognize their long -term obligation for pension benefits as a liability for the first time, and to more comprehensively and comparably measure the annual costs of pension benefits. 91 CITY OF EAGAN SCHEDULE OF FUNDING PROGRESS - OTHER POST EMPLOYMENT BENEFITS December 31, 2013 SCHEDULE OF EMPLOYER CONTRIBUTIONS - OTHER POST EMPLOYMENT BENEFITS December 31, 2013 Percentage of Actuarial Fiscal Year Annual Employer Annual OPEB UAAL as a Ended OPEB Cost Contributions Actuarial Accrued Liability Unfunded $ (46,032) $ 137,641 - 299,0% Percentage of 12/31/12 Actuarial Value of (AAL) - AAL Funded Covered Covered Fiscal Year Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll Ended Date (a) (b) (b -a) (a/b) (c) ((b -a) /c) 12/31/08 01/01/08 $ $ 4,380,374 $ 4,380,374 0.0% $ 15,798,000 27.7% 12/31/09 01/01/09 4,488,285 4,488,285 0.0% 15,658,000 28.7% 12/31/10 01/01/09 4,828,308 4,828,308 0.0% 16,363,000 29.5% 12/31/11 01 /01 /11 7,444,673 3,983,323 (3,461,350) 186.9% 15,624,000 -22.2% 12/31/12 01/01/12 8,003,023 4,276,555 (3,726,468) 187.1% 16,327,000 -22.8% 12/31/13 01/01/13 8,852,480 4,367,428 (4,485,052) 202.7% 15,804,000 -28.4% SCHEDULE OF EMPLOYER CONTRIBUTIONS - OTHER POST EMPLOYMENT BENEFITS December 31, 2013 92 Percentage of Fiscal Year Annual Employer Annual OPEB Net OPEB Ended OPEB Cost Contributions Contributed Obligation 12/31/11 $ (46,032) $ 137,641 - 299,0% $ (107,403) 12/31/12 (61,146) - 0.0% (168,549) 12/31/13 (112,179) 0 0.0% (280,728) 92 (THIS PAGE LEFT BLANK INTENTIONALLY) 93 CITY OF EAGAN COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 Special Revenue Fund Balances Restricted - - 5,375 667,587 Committed 282,852 1,960,915 - - Assigned - - Unassigned - - - - Total Fund Balances 282,852 1,960,915 5,375 667,587 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 290,961 $ 1,960,915 $ 5,375 $ 848,758 94 Cable TV Franchise Fees Police Forfeiture Housing Fund Fund Fund Eagan TV ASSETS Cash and Investments $ 273,645 $ 1,954,535 $ 5,358 $ 748,426 Accounts Receivable - - - 97,894 Accrued Interest Receivable 892 6,380 17 2,438 Taxes Receivable - - - - Special Assessments Receivable; Unremitted Delinquent Green Acres Senior Citizen Deferred - Due from Other Governments 16,424 Notes Receivable - Total Assets $ 290,961 $ 1,960,915 $ 5,375 $ 848,758 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Salaries and Benefits Payable $ $ $ $ 11,041 Accounts Payable 169,135 Contracts Payable - Accrued Interest Payable Due to Other Funds - Due to Other Governments 995 Unearned Revenue 8,109 Total Liabilities 8,109 181,171 Deferred Inflows of Resources Unavailable Revenue - Special Assessments - - Unavailable Revenue - Notes Receivable Total Deferred Inflows of Resources Fund Balances Restricted - - 5,375 667,587 Committed 282,852 1,960,915 - - Assigned - - Unassigned - - - - Total Fund Balances 282,852 1,960,915 5,375 667,587 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 290,961 $ 1,960,915 $ 5,375 $ 848,758 94 (Continued) $ $ $ - $ - $ 11,041 $ $ $ 9,053 178,188 144,506 809 70,566 216,876 8,109 _ 144,506 9,862 70,566 414,214 671,949 - - 671,949 - 51,728 49,286 773,976 351,684 2,514 - - 2,246,281 - 2,514 51,728 49,286 3,020,257 351,684 $ 2,514 $ 196,234 $ 59,148 $ 70,566 $ 3,434,471 $ 1,023,633 1,451,949 1;451,949 - 1,145,834 2,273 1,145,834 2,273 $ 2,597,783 $ 2,273 95 Special Revenue Debt Service S.A. Improvement Bonds Cedar-vale Minnesota 2000A/2005 Special Investment Fund Drug Task Refunding 2008A MSA Services Fund Revolving Loan DWI Forfeiture Force Grant Total Series C 2005 Series A Bonds $ 2,506 $ 55,374 $ 58,956 $ $ 3,098,800 $ 348,825 $ 1,135,839 $ 1,584 - - - 97,894 - - - 8 181 192 10,108 1,137 3,702 689 1,723 6,294 2,045 8,221 - 669,903 1,443,727 - 70,566 86,990 - - 140,679 - 140,679 - - $ 2,514 $ 196,234 $ 59,148 $ 70,566 $ 3,434,471 $ 1,023,633 $ 2,597,783 $ 2,273 $ $ $ - $ - $ 11,041 $ $ $ 9,053 178,188 144,506 809 70,566 216,876 8,109 _ 144,506 9,862 70,566 414,214 671,949 - - 671,949 - 51,728 49,286 773,976 351,684 2,514 - - 2,246,281 - 2,514 51,728 49,286 3,020,257 351,684 $ 2,514 $ 196,234 $ 59,148 $ 70,566 $ 3,434,471 $ 1,023,633 1,451,949 1;451,949 - 1,145,834 2,273 1,145,834 2,273 $ 2,597,783 $ 2,273 95 ASSETS Cash and Investments Accounts Receivable Accrued Interest Receivable Taxes Receivable Special Assessments Receivable: Unremitted Delinquent Green Acres Senior Citizen Deferred Due from Other Govermnents Notes Receivable Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Salaries and Benefits Payable Accounts Payable Contracts Payable Accrued Interest Payable Due to Other Funds Due to Other Governments Unearned Revenue Total Liabilities Deferred Inflows of Resources Unavailable Revenue- Special Assessments Unavailable Revenue - Notes Receivable Total Deferred Inflows of Resources Fund Balances Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances CITY OF EAGAN COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 Debt Service 2009A 2010A 2012B 2012 2013A G.O. Equipment Equipment Equipment Coachman Tax Increment 166 Certificates Certificates Certificates Oaks ERA Bonds Total 1,328,623 3,452,521 7328,623 $ 71,981 $ 59,023 $ $ 377,594 $ 543,648 $ 2,538,494 234 192 1,231 1,772 8,957 545,420 2,557,295 1,995 $ 1,709,443 10,012 - 3,076 13,342 1,325,547 3,439,177 $ 72,215 $ 59,215 $ $ 1,709,443 $ 545,420 $ 6,009,982 96 165 165 166 166 1,328,623 3,452,521 7328,623 3,452,521 72,215 59,215 380,820 545,420 2,557,461 - (166) (166) 72,215 59,215 (166) 380,820 545,420 2,557,295 $ 72,215 $ 59,215 $ $ 1,709,443 $ 545,420 $ 6,009,982 96 Capital Projects Park System Development Conunmrity Hwy 55/149 (2- Hwy 55 /Blue Hwy 55 /Grand Equipment and Renewal & Investment 3) Tax Gentian (2 -5) Oaks (2 -4) Tax Revolving Replacement Fund Increment Tax Increment Increment Fund $ 1,810,943 $ 2,744,015 $ 91,196 $ $ $ 1,416,607 - - - 12,000 5,900 8,942 297 4,616 - 9,080 (6,348) 212 218 - 117,146 - - 3,570 1,445,049 69,860 - - - 463,001 161,627 51,293 488,539 $ 1,816,843 $ 5,349,202 $ 85,145 $ 161,839 $ 51,511 $ 1,433,223 501 1,035 8,599 - 13,256 - - - - - 398 550 - 121,733 168,177 2,952 - - 112 3,565 14,291 122,131 168,727 8,599 1,981,480 161,627 51,293 318,240 2,299,720 161,627 51,293 1,813,278 3,035,191 - 1,424,624 85,145 (121,919) (168,509) - 1,813,278 3,035,191 85,145 (121,919) (168,509) 1,424,624 $ 1,816,843 $ 5,349,202 $ 85,145 $ 161,839 $ 51,511 $ 1,433,223 (Continued) 97 CITY OF EAGAN COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 Fund Balances Restricted Committed - - Assigned 540,445 880,942 Unassigned - (24,570) (162,835) - Total Fund Balances 540,445 (24,570) (162,835) 880,942 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 546,380 $ $ 283,275 $ 880,942 98 Capital Projects Cedar Bluffs General Housing Facilities Southeast Eagan Improvement Fire Apparatus Renewal Tax Increment District Revolving ASSETS Cash and Investments $ 544,605 $ $ $ 878,079 Accounts Receivable - - Accrued Interest Receivable 1,775 2,863 Taxes Receivable - - Special Assessments Receivable: Unremitted 3,479 Delinquent 1,281 Green Acres - Senior Citizen - Deferred 278,515 Due from Other Governments - Notes Receivable - - - Total Assets $ 546,380 $ $ 283,275 $ 880,942 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Salaries and Benefits Payable $ - $ $ $ Accounts Payable 5,935 Contracts Payable - Accrued Interest Payable 80 541 Due to Other Funds 24,490 165,773 Due to Other Governments - - Uneamed Revenue Total Liabilities 5,935 24,570 166,314 Deferred Inflows of Resources Unavailable Revenue - Special Assessments - - 279,796 Unavailable Revenue - Notes Receivable - Total Deferred Inflows of Resources 279,796 Fund Balances Restricted Committed - - Assigned 540,445 880,942 Unassigned - (24,570) (162,835) - Total Fund Balances 540,445 (24,570) (162,835) 880,942 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 546,380 $ $ 283,275 $ 880,942 98 Capital Prgjects Meadowlark Ridge Rousing Total Improvement Governmental District Total Funds $ $ 7,485,445 $ 13,122,739 12,000 109,894 24,393 43,458 3,162 3,162 802 121,427 131,439 10,804 15,655 28,997 - 1,445,049 1,445,049 - 69,860 69,860 762,840 1,717,276 5,156,453 - - 86,990 488,539 629,218 $ 774,446 $ 11,382,806 $ 20,827,259 $ $ - $ 11,041 16,070 194,258 13,256 13,256 2,060 3,629 3,630 631,498 1,111,671 1,111,836 - 2,952 219,828 112 8,221 633,558 1,147,690 1,562,070 773,644 3,247,840 6,700,361 - 318,240 318,240 773,644 3,566,080 7,018,601 1,813,278 5,144,715 - 2,246,281 5,881,202 5,881,202 (632,756) (1,025,444) (1,025,610) (632,756) 6,669,036 12,246,588 $ 774,446 $ 11,382,806 $ 20,827,259 99 CITY OF EAGAN COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 Special Revenue 100 Cable TV Franchise Fees Police Housing Fund Fund Forfeiture Fund Eagan TV REVENUES Property Taxes $ $ $ $ Special Assessments: Principal Interest Intergovernmental: Grants Charges for Services 39,243 826,006 401,284 Fines and Forfeitures - - - Miscellaneous: Investment Income (876) (7,957) (18) (1,822) Other - - - - Total Revenues 38,367 818,049 (18) 399,462 EXPENDITURES Current Personal Services - - - 369,136 Materials and Supplies - 24,043 Other Services and Charges 2,750 100 124,583 Debt Service Principal - - Interest and Other Charges Capital Outlay Professional Fees - Machinery and Equipment 188,373 Land - Buildings Other Improvements - - - Total Expenditures 2,750 100 - 706,135 Excess of Revenues Over (Under) Expenditures 35,617 817,949 (18) (306,673) OTHER FINANCING SOURCES (USES) Sale of City Property - - - Bonds Issued - Transfers In 371,288 Transfers Out (812,102) - Total Other Financing Sources (Uses) - (812,102) 371,288 Net Change in Fund Balances 35,617 5,847 (18) 64,615 FUND BALANCES Beginning of Year 247,235 1,955,068 5,393 602,972 End of Year $ 282,852 $ 1,960,915 $ 5,375 $ 667,587 100 (Continued) - 369,136 Special Revenue - 6,408 Debt Service - - 45,927 14,216 295,546 483,122 50 S.A. Improvement Bonds - - - Minnesota 180,000 360,000 210,000 15,403 89,503 Investment 188,373 45,927 20,624 Cedarvale Fund 449,956 348,793 2000A/2005 (10) 11,332 23,574 - 581,771 Special Revolving DWI Drug Task Refunding 2008A MSA Services Fund Loan Forfeiture Force Grant Total Series C 2005 Series A Bonds 148,084 377,219 - - - 19,540 96,854 - 295,546 295,546 - - 348,367 - - 1,266,533 - - - 44,324 44,324 - - (10) 6,582 (126) (4,227) (740) (2,729) (292) - 50,677 50,677 (10) 57,259 44,198 295,546 1,652,853 166,884 471,344 348,075 - 369,136 - 6,408 - 30,451 - - 45,927 14,216 295,546 483,122 50 453 - - - - - 180,000 360,000 210,000 15,403 89,503 138,793 188,373 45,927 20,624 295,546 1,071,082 195,453 449,956 348,793 (10) 11,332 23,574 - 581,771 (28,569) 21,388 (718) 371,288 (812,102) - (440,814) - (10) 11,332 23,574 140,957 (28,569) 21,388 (718) 2,524 40,396 25,712 2,879,300 380,253 1,124,446 2,991 $ 2,514 $ 51,728 $ 49,286 $ $ 3,020,257 $ 351,684 $ 1,145,834 $ 2,273 101 CITY OF EAGAN COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 Debt Service 102 2013A G.O. 2009A 2012B 2012 Tax Equipment 2010A Equipment Equipment Coachman Increment Certificates Certificates Certificates Oaks HIA Bonds Total REVENUES Property Taxes $ 71,594 $ 59,532 $ 70,438 $ - $ $ 201,564 Special Assessments: Principal - - - 77,125 602,428 Interest 68,846 185,240 Intergovernmental: Grants - 348,367 Charges for Services 532,275 532,275 Fines and Forfeitures - - - - - - Miscellaneous: Investment Income (65) (72) 102 (955) (1,604) (6,355) Other - - - - - Total Revenues 71,529 59,460 70,540 145,016 530,671 1,863,519 EXPENDITURES Current Personal Services - - - - - Materials and Supplies - - - Other Services and Charges 50 50 - 603 Debt Service Principal 55,000 45,000 60,000 - - 910,000 Interest and Other Charges 13,790 12,233 7,013 47,870 750 325,355 Capital Outlay Professional Fees - - - - - - Machinery and Equipment Land Buildings Other Improvements - - - - - - Total Expenditures 68,840 57,283 67,013 47,870 750 1,235,958 Excess of Revenues Over (Under) Expenditures 2,689 2,177 3,527 97,146 529,921 627,561 OTHER FINANCING SOURCES (USES) Sale o£City Property - - - - - - Bonds Issued 15,499 15,499 Transfers In - - Transfers Out - - Total Other Financing Sources (Uses) - - - - 15,499 15,499 Net Change in Fund Balances 2,689 2,177 3,527 97,146 545,420 643,060 FUND BALANCES Beginning of Year 69,526 57,038 (3,693) 283,674 - 1,914,235 End of Year $ 72,215 $ 59,215 $ (166) $ 380,820 $ 545,420 $ 2,557,295 102 (Continued) Capital Projects Park System - - - 2,648 - Development and 29,350 Hwy 55/Blue Hwy 55 /Grand 100,564 65,364 Renewal & Community Hwy 55/149 (2- Gentian (2 -5) Tax Oaks (2-4) Tax Equipment General Facilities Replacement Investment Fund 3) Tax Increment Increment Increment Revolving Fund Renewal $ 425,634 $ 9,278 $ 153,687 $ 6,825 $ 198,436 $ 1,121,066 $ 307,730 - 392,300 - 53,899 17,105 - - 94,332 51,922 - 13,984 4,438 2,777 733,476 31,843 582 881 54,805 1,079,415 113,013 (3,724) 10,729 (65) 578 894 (3,586) (1,361) 600 - - - - 3,060 - 1,155,986 496,072 153,622 75,286 220,873 1,120,540 306,369 - - - - 2,648 - 2,811 29,350 50 54,197 100,564 65,364 15,596 582 831 608 - 29,351 208,211 - - - - 976,203 6,875 343,469 58,750 - - 9,794 - 8,646 94,332 - - - 2,777 674,213 88,100 582 881 54,805 1,079,415 113,013 481,773 407,972 153,040 74,405 166,068 41,125 193,356 - - - - - 67,823 - 650,800 28,300 - (37,158) (1,105) (42,978) - - 650,800 (37,158) (1,105) (42,978) 96,123 - 481,773 1,058,772 115,882 73,300 123,090 137,248 193,356 1,331,505 1,976,419 (30,737) (195,219) (291,599) 1,287,376 347,089 $ 1,813,278 $ 3,035,191 $ 85,145 $ (121,919) $ (168,509) $ 1,424,624 $ 540,445 103 CITY OF EAGAN COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 Capital Projects 104 Cedar Bluffs Meadowlark Southeast Housing Ridge Housing Eagan Tax Improvement Fire Apparatus Improvement Increment District Revolving District REVENUES Property Taxes $ $ - $ 198,436 $ - Special Assessments: Principal 44,351 - 53,027 Interest 19,964 39,375 Intergovernmental: Grants - - Charges for Services Fines and Forfeitures - - Miscellaneous: Investment Income 81 690 (1,967) 2,305 Other - - - Total Revenues 81 65,005 196,469 94,707 EXPENDITURES Current Personal Services Materials and Supplies - Other Services and Charges 98 Debt Service Principal - Interest and Other Charges - Capital Outlay Professional Fees 633 - Machinery and Equipment - 43,934 Land - Buildings Other Improvements - - Total Expenditures 731 - 43,934 - Excess of Revenues Over (Under) Expenditures (650) 65,005 152,535 94,707 OTHER FINANCING SOURCES (USES) Sale of City Property - - - - Bonds Issued Transfers In Transfers Out Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (650) 65,005 152,535 94,707 FUND BALANCES Beginning of Year (23,920) (227,840) 728,407 (727,463) End of Year $ (24,570) $ (162,835) $ 880,942 $ (632,756) 104 Capital Projects Total Other Governmental Total Funds $ 2,421,092 $ 2,622,656 560,682 1,163,110 129,683 314,923 - 643,913 765,319 2,564,127 - 44,324 4,574 (6,008) 3,660 54,337 3,885,010 7,401,382 - 369,136 2,648 33,099 252,434 736,159 - 910,000 - 325,355 47,601 47,601 1,235,223 1,423,596 402,219 402,219 18,440 18,440 97,109 97,109 2,055,674 4,362,714 1,829,336 3,038,668 67,823 67,823 - 15,499 679,100 1,050,388 (81,241) (893,343) 665,682 240,367 2,495,018 3,279,035 4,174,018 8,967,553 $ 6,669,036 $ 12,246,588 105 (THIS PAGE LEFT BLANK INTENTIONALLY) 106 (THIS PAGE LEFT BLANK INTENTIONALLY) 107 CITY OF EAGAN' SCHEDULE OF REVENUES - BUDGET (ORIGINAL AND FINAL) AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) Intergovernmental Revenues Market Value Credit 3,000 2013 285 285 2012 Fire Aid Budgeted Amounts 370,400 Variance with 29 - Police Town Aid 470,000 Actual Final Budget - 3,515 446,604 Original Final Amounts Over (Under) Actual REVENUES State Grants 137,800 158,400 155,422 (2,978) Property Taxes Other Grants and Aids - - 59,740 59,740 General Property Taxes $ 19,742,100 $ 19,742,100 $ 20,127,249 $ 385,149 $ 19,339,061 Fiscal Disparities 2,371,000 2,371,000 1,838,068 (532,932) 1,992,585 Total Property Taxes 22,113,100 22,113,100 21,965,317 (147,783) 21,331,646 Special Assessments 33,000 33,000 25,977 (7,023) 31,479 Licenses and Permits Police Service Fees 165,900 165,900 229,436 63,536 Licenses: Permit Surcharges 600 600 2,007 1,407 Liquor Licenses 212,000 212,000 240,592 28,592 232,832 Beer Licenses 7,100 7,100 4,902 (2,198) 4,135 Cigarette Licenses 9,000 9,000 9,618 618 8,400 Garbage and Rubbish Hauling Licenses 8,600 8,600 9,372 772 6,440 Dog Licenses 37,300 37,300 36,207 (1,093) 33,422 Other Licenses 8,500 8,500 9,124 624 7,922 Total Licenses 282,500 282,500 309,815 27,315 293,151 Permits: Building Permits 735,000 850,000 1,925,830 1,075,830 938,248 Plumbing Permits 85,000 85,000 110,455 25,455 105,968 Mechanical Pennits 120,000 120,000 126,075 6,075 149,875 Sign Permits 15,000 15,000 26,259 11,259 19,173 Excavating Permits 2,500 2,500 3,800 1,300 3,900 Other Permits 60,900 60,900 76,049 15,149 97,888 Total Permits 1,018,400 1,133,400 2,268,468 1,135,068 1,315,052 Total Licenses and Permits 1,300,900 1,415,900 2,578,283 1,162,383 1,608,203 Intergovernmental Revenues Market Value Credit 3,000 - 285 285 376 Fire Aid - 370,400 370,429 29 - Police Town Aid 470,000 470,000 473,515 3,515 446,604 Federal Grants 37,300 37,300 80,402 43,102 109,708 State Grants 137,800 158,400 155,422 (2,978) 169,602 Other Grants and Aids - - 59,740 59,740 17,978 Total Intergovernmental Revenues 645,100 1,036,100 1,139,793 103,693 744,268 Charges for Services Variance Fees 3,000 3,000 5,000 2,000 4,100 Platting Fees 5,000 5,000 11,508 6,508 10,935 Rezoning Fees 4,000 4,000 5,134 1,134 7,900 Dog Impound and Kennel Fees 7,000 7,000 6,415 (585) 5,048 Burglar Alai-in Fees 25,000 25,000 23,900 (1,100) 26,050 Plan Checks 275,000 275,000 546,997 271,997 398,017 Assessment Search - - 19 19 9 Engineering Services 646,500 646,500 892,494 245,994 1,085,068 Developer Escrow Reimbursement 60,000 60,000 183,715 123,715 135,311 Sales of Printed Materials 3,100 3,100 1,295 (1,805) 3,070 Police Service Fees 165,900 165,900 229,436 63,536 196,688 Permit Surcharges 600 600 2,007 1,407 1,242 Administrative Fees on SAC Charges 3,500 3,500 16,913 13,413 5,994 Recreation Fees 692,800 692,800 685,956 (6,844) 671,324 Investment Management Fee 3,000 3,000 5,785 2,785 387 Other 103,700 103,700 101,731 (1,969) 77,843 Total Charges for Services 1,998,100 1,998,100 2,718,305 720,205 2,628,986 108 CITY OF EAGAN SCHEDULE OF REVENUES - BUDGET (ORIGINAL AND FINAL) AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) (Continued) REVENUES Fines and Forfeitures Program Revenues Project Administration Water Administration Sewer Administration Street Light Administration Storm Drainage Administration Water Quality Administration Central Services - Maintenance Drug Task Force Other Total Program Revenues Other Revenues Investment Income Building and Equipment Rent Contributions and Donations Other Total Other Revenues Total Revenues OTHER FINANCING SOURCES Sale of City Property Transfers In Total Other Financing Sources Total Revenues and Other Financing Sources 2012 Budgeted Amounts Variance with Actual Final Budget - Original Final Amounts Over (Under) Actual $ 248,200 $ 248,200 $ 271,958 $ 23,758 $ 263,968 354,300 354,300 433,350 79,050 244,882 828,000 - - - 784,800 393,600 373,100 40,700 38,600 27,100 25,700 67,900 64,300 95,800 - - 69,500 13,000 13,000 8,598 (4,402) 10,678 12,000 12,000 18,850 6,850 20,231 1,812,400 379,300 460,798 81,498 1,631,791 28,000 28,000 (38,666) (66,666) 34,432 160,200 160,200 158,987 (1,213) 180,350 20,700 52,200 48,087 (4,113) 61,429 8,900 8,900 26,285 17,385 18,479 217,800 249,300 194,693 (54,607) 294,690 28,368,600 27,473,000 29,355,124 1,882,124 28,535,031 1,000 8,200 10,007 1,807 9,172 494,600 1,629,300 1,575,514 (53,786) 441,680 495,600 1,637,500 1,585,521 (51,979) 450,852 $ 28,864,200 $ 29,110,500 $ 30,940,645 $ 1,830,145 $ 28,985,883 109 CITY OF EAGAN SCHEDULE OF EXPENDITURES - BUDGET (ORIGINAL AND FINAL) AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) (Continued) 110 2013 2012 Budgeted Amounts Variance with Actual Final Budget - Original Final Amounts Over (Under) Actual EXPENDITURES General Government Mayor and Council: Personal Services $ 101,800 $ 101,400 $ 102,959 $ 1,559 $ 100,921 Supplies, Repairs and Maintenance - - 64 64 - Other Services and Charges 38,200 38,200 37,978 (222) 37,782 Capital Outlay - - - - - Total Mayor and Council 140,000 139,600 141,001 1,401 138,703 Administration: Personal Services 419,900 419,700 423,094 3,394 419,522 Supplies, Repairs and Maintenance 3,000 3,000 1,220 (1,780) 2,685 Other Services and Charges 93,400 93,400 118,243 24,843 59,126 Capital Outlay 1,000 1,000 1,731 731 1,101 Total Administration 517,300 517,100 544,288 27,188 482,434 Human Resources: Personal Services $ 205,000 $ 204,900 $ 210,624 $ 5,724 $ 205,339 Supplies, Repairs and Maintenance 1,300 1,300 1,056 (244) 1,987 Other Services and Charges 78,500 78,500 80,661 2,161 81,722 Capital Outlay 500 500 2,869 2,369 128 Total Human Resources 285,300 285,200 295,210 10,010 289,176 Information Technologies: Personal Services 528,900 425,100 427,591 2,491 403,898 Supplies, Repairs and Maintenance 34,400 34,400 29,531 (4,869) 31,355 Other Services and Charges 928,300 928,300 852,473 (75,827) 775,795 Capital Outlay 3,600 3,600 2,547 (1,053) 2,827 Total Information Technologies 1,495,200 1,391,400 1,312,142 (79,258) 1,213,875 Finance: Personal Services 861,300 731,200 709,725 (21,475) 807,030 Supplies, Repairs and Maintenance 19,900 19,900 17,081 (2,819) 20,747 Other Services and Charges 70,900 70,900 68,425 (2,475) 81,555 Capital Outlay 3,800 3,800 1,201 (2,599) 5,726 Total Finance 955,900 825,800 796,432 (29,368) 915,058 City Clerk: Personal Services 213,400 213,300 200,129 (13,171) 292,015 Supplies, Repairs and Maintenance 1,300 1,300 771 (529) 2,129 Other Services and Charges 29,100 29,100 20,579 (8,521) 27,423 Capital Outlay 500 500 735 235 1,049 Total City Clerk 244,300 244,200 222,214 (21,986) 322,616 Legal: Other Services and Charges 390,000 390,000 358,473 (31,527) 350,175 110 CITY OF EAGAN SCHEDULE OF EXPENDITURES - BUDGET (ORIGINAL AND FINAL) AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) (Continued) 2013 2012 Budgeted Amounts Variance with Actual Final Budget - Original Final Amounts Over (Under) Actual EXPENDITURES General Government Planning and Code Enforcement: Personal Services $ 912,400 $ 911,900 $ 890,773 $ (21,127) $ 892,936 Supplies, Repairs and Maintenance 5,700 5,700 3,964 (1,736) 4,154 Other Services and Charges 69,500 69,500 78,887 9,387 55,444 Capital Outlay 2,300 2,300 2,187 (113) 3,000 Total Planning and Code Enforcement 989,900 989,400 975,811 (13,589) 955,534 Communications: Personal Services 268,900 268,600 258,358 (10,242) 236,942 Supplies, Repairs and Maintenance 800 800 6,539 5,739 1,122 Other Services and Charges 222,700 222,700 174,788 (47,912) 202,881 Capital Outlay 2,300 2,300 3,575 1,275 1,414 Total Communications 494,700 494,400 443,260 (51,140) 442,359 Total General Government 5,512,600 5,277,100 5,088,831 (188,269) 5,109,930 Public Safety Police: Personal Services $ 9,373,300 $ 9,316,100 $ 9,261,301 $ (54,799) $ 9,047,615 Supplies, Repairs and Maintenance 525,600 533,900 473,588 (60,312) 478,413 Other Services and Charges 1,528,600 1,531,500 1,454,610 (76,890) 1,352,816 Capital Outlay 73,000 93,600 93,784 184 69,110 Total Police 11,500,500 11,475,100 11,283,283 (191,817) 10,947,954 Inspections: Personal Services 833,600 833,000 835,025 2,025 807,955 Supplies, Repairs and Maintenance 25,000 25,000 11,803 (13,197) 13,735 Other Services and Charges 99,700 214,700 212,435 (2,265) 71,557 Capital Outlay 4,100 4,100 3,063 (1,037) 3,343 Total Inspections 962,400 1,076,800 1,062,326 (14,474) 896,590 Fire: Personal Services 1,516,100 1,884,500 1,648,142 (236,358) 1,302,144 Supplies, Repairs and Maintenance 174,600 188,300 174,419 (13,881) 145,657 Other Services and Charges 199,600 199,600 191,880 (7,720) 181,034 Capital Outlay 7,100 8,300 6,284 (2,016) 22,079 Total Fire 1,897,400 2,280,700 2,020,725 (259,975) 1,650,914 Total Public Safety 14,360,300 14,832,600 14,366,334 (466,266) 13,495,458 Public Works Public Works Engineering: Personal Services 1,133,200 1,067,400 1,109,566 42,166 1,098,584 Supplies, Repairs and Maintenance 14,800 14,800 17,258 2,458 12,606 Other Services and Charges 34,100 34,100 32,400 (1,700) 40,023 Capital Outlay 7,600 7,600 4,101 (3,499) 2,704 Total Public Works Engineering 1,189,700 1,123,900 1,163,325 39,425 1,153,917 CITY OF EAGAN SCHEDULE OF EXPENDITURES - BUDGET (ORIGINAL AND FINAL) AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) (Continued) Government Buildings Personal Services 134,900 2013 139,350 4,650 2012 Other Services and Charges Budgeted Amounts 520,200 Variance with 9,052 486,533 Capital Outlay - Actual Final Budget - - 28,362 Original Final Armowits Over (Under) Actual EXPENDITURES Contingencies 48,800 48,800 - (48,800) Public Works Total Expenditures 28,864,200 29,044,400 28,301,675 (742,725) Streets and Highways: OTHER FINANCING USES Personal Services $ 1,134,600 $ 1,133,400 $ 1,132,655 $ (745) $ 1,083,530 Supplies, Repairs and Maintenance 482,500 482,500 573,839 91,339 391,549 Other Services and Charges 160,100 160,100 152,879 (7,221) 136,029 Capital Outlay 15,200 18,200 15,733 (2,467) 2,571 Total Streets and Highways 1,795,400 1,794,200 1,875,106 80,906 1,613,679 Central Services- Maintenance: Personal Services 516,700 516,400 597,732 81,332 509,382 Supplies, Repairs and Maintenance 33,300 33,300 31,234 (2,066) 23,275 Other Services and Charges 47,600 47,600 36,823 (10,777) 48,206 Capital Outlay 6,400 6,400 6,877 477 12,823 Total Central Services - Maintenance 604,000 603,700 672,666 68,966 593,686 Total Public Works 3,589,100 3,521,800 3,711,097 189,297 3,361,282 Parks and Recreation Parks and Recreation: Personal Services $ 2,876,000 $ 2,874,400 $ 2,786,785 $ (87,615) $ 2,758,647 Supplies, Repairs and Maintenance 463,400 469,600 422,544 (47,056) 427,192 Other Services and Charges 693,100 698,900 637,930 (60,970) 617,402 Capital Outlay 76,300 76,900 68,317 (8,583) 42,653 Total Parks and Recreation 4,108,800 4,119,800 3,915,576 (204,224) 3,845,894 Tree Conservation: Personal Services 373,100 373,000 356,482 (16,518) 368,855 Supplies, Repairs and Maintenance 62,700 62,700 45,269 (17,431) 58,975 Other Services and Charges 42,200 42,200 42,735 535 28,997 Capital Outlay 42,100 42,100 41,899 (201) 56,897 Total Tree Conservation 520,100 520,000 486,385 (33,615) 513,724 Total Parks and Recreation 4,628,900 4,639,800 4,401,961 (237,839) 4,359,618 Government Buildings Personal Services 134,900 134,700 139,350 4,650 135,285 Other Services and Charges 520,200 520,200 529,252 9,052 486,533 Capital Outlay - - - - 28,362 Total Government Buildings 724,500 724,300 733,452 9,152 704,775 Contingencies 48,800 48,800 - (48,800) - Total Expenditures 28,864,200 29,044,400 28,301,675 (742,725) 27,031,063 OTHER FINANCING USES Transfers Out - - 1,883,000 1,883,000 - Total Expenditures and Other Financing Uses $ 28,864,200 $ 29,044,400 $ 30,184,675 $ 1,140,275 $ 27,031,063 112 CITY OF EAGAN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (ORIGINAL AND FINAL) AND ACTUAL - SPECIAL REVENUE FUND - HOUSING FUND For the Year Ended December 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) 2013 REVENUES Charges for Services Housing Bound Fees Miscellaneous Investment Income Total Revenues EXPENDITURES General Government Current Excess of Revenues Over (Under) Expenditures FUND BALANCE Beginning of Year End of Year Budgeted Amounts Original Final Variance with Actual Final Budget - Amounts Over (Under) 2012 $ 44,100 $ 44,100 $ 39,243 $ (4,857) $ 44,443 700 700 (876) (1,576) 6,504 44,800 44,800 38,367 (6,433) 50,947 2,800 2,800 2,750 (50) 2,800 $ 42,000 $ 42,000 35,617 $ (6,383) 247,235 $ 282,852 48,147 199,088 $ 247,235 113 CITY OF EAGAN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (ORIGINAL AND FINAL) AND ACTUAL - SPECIAL REVENUE FUND - CABLE TV FRANCHISE FEES FUND For the Year Ended December 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) REVENUES Charges for Services Cable Television Franchise Fees Miscellaneous Investment Income Total Revenues EXPENDITURES General Government Current Excess of Revenues Over Expenditures OTHER FINANCING USES Transfers Out Net Change in Fund Balance FUND BALANCE Beginning of Year End of Year 2013 Budgeted Amounts Variance with Actual Final Budget - Original Final Amounts Over (Under) 2012 Actual $ 774,000 $ 774,000 $ 826,006 $ 52,006 $ 791,138 5,700 5,700 (7,957) (13,657) 10,149 779,700 779,700 818,049 38,349 801,287 - - 100 100 200 779,700 779,700 817,949 38,249 801,087 (860,800) (860,800) (812,102) 48,698 (795,538) $ (81,100) $ (81,100 ) 5,847 $ 86,947 5,549 1,955,068 $ 1,960,915 1,949,519 $ 1,955,068 114 CITY OF EAGAN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (ORIGINAL AND FINAL) AND ACTUAL - SPECIAL REVENUE FUND - EAGAN TV For the Year Ended December 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) REVENUES Charges for Services General Government Miscellaneous Investment Income Contributions and Donations Total Revenues EXPENDITURES General Government Current Capital Outlay Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES Sale of City Property Transfers In Total Other Financing Sources Net Change in Fund Balance FUND BALANCE Beginning of Year End of Year 2013 2012 Budgeted Amounts Variance with Actual Final Budget - Original Final Amounts Over (Under) Actual $ 748,300 $ 748,300 $ 401,284 $ (347,016) $ 378,006 - - (1,822) (1,822) 799 - - 5 748,300 748,300 399,462 (348,838) 378,810 548,700 548,700 517,762 (30,938) 446,124 18,400 18,400 188,373 169,973 146,819 567,100 567,100 706,135 139,035 592,943 181,200 181,200 (306,673) (487,873) (214,133) - - - - 390 371,288 371,288 353,858 - - 371,288 371,288 354,248 $ 181,200 $ 181,200 64,615 $ (116,585) 140,115 602,972 $ 667,587 462,857 $ 602,972 115 CITY OF EAGAN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (ORIGINAL AND FINAL) AND ACTUAL - SPECIAL REVENUE FUND - CEDARVALE SPECIAL SERVICES FUND For the Year Ended December 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) REVENUES Miscellaneous Investment Income EXPENDITURES General Government Current Excess of Revenues Over (Under) Expenditures FUND BALANCE Beginning of Year End of Year 2013 Budgeted Amounts Original Final 2012 Variance with Actual Final Budget - Amounts Over (Under) Actual $ (10) $ (10) $ 17 1,000 1,000 - (1,000) 1,000 $ (1,000) $ (1,000) (10) $ 990 2,524 $ 2,514 (983) 3,507 $ 2,524 116 CITY OF EAGAN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (ORIGINAL AND FINAL) AND ACTUAL - SPECIAL REVENUE FUND - MINNESOTA INVESTMENT FUND REVOLVING LOAN For the Year Ended December 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) REVENUES Miscellaneous Investment Income Other Total Revenues EXPENDITURES Other Services and Charges Excess of Revenues Over (Under) Expenditures FUND BALANCE f Beginning of Year End of Year 40,396 $ 51,728 28,829 $ 40,396 117 2013 2012 Budgeted Amounts Variance with Actual Final Budget - Original Final Amounts Over (Under) Actual $ 100 $ 100 $ 6,582 $ 6,482 $ 8,801 57,400 57,400 50,677 (6,723) 48,693 57,500 57,500 57,259 (241) 57,494 45,900 45,900 45,927 27 45,927 $ 11,600 $ 11,600 11,332 $ (268) 11,567 40,396 $ 51,728 28,829 $ 40,396 117 CITY OF EAGAN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (ORIGINAL AND FINAL) AND ACTUAL - SPECIAL REVENUE FUND - DWI FORFEITURE For the Year Ended December 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) REVENUES Fines and Forfeitures Police Forfeitures Miscellaneous Investment Income Other Total Revenues EXPENDITURES Public Safety Current Excess of Revenues Over (Under) Expenditures FUND BALANCE Beginning of Year End of Year 2013 Budgeted Amounts Variance with Actual Final Budget - Original Final Amounts Over (Under) A _-__1 $ 25,000 $ 25,000 $ 44,324 $ 19,324 $ 29,322 (126) (126) 25 1 25,000 25,000 44,198 19,198 29,348 26,000 26,000 20,624 (5,376) 10,555 $ (1,000) $ (1,000) 23,574 $ 24,574 18,793 25,712 6,919 $ 49,286 $ 25,712 118 Excess of Revenues Over (Under) Expenditures (22,390) (22,390) OTHER FINANCING USES Transfers Out - - Net Change i i Fund Balance $ (22,390) $ (22,390) FUND BALANCE Beginning of Year End of Year 481,773 504,163 549,696 - - (17,253) 481,773 $ 504,163 532,443 1,331,505 $ 1,813,278 799,062 $ 1,331,505 119 CITY OF EAGAN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (ORIGINAL AND FINAL) AND ACTUAL - CAPITAL PROJECTS FUND - PARK SYSTEM DEVELOPMENT AND RENEWAL & REPLACEMENT For the Year Ended December 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) 2013 2012 Budgeted Amounts Variance with Actual Final Budget - Original Final Amounts Over (Under) Actual REVENUES Property Taxes General Property Taxes $ 400,000 $ 400,000 $ 425,634 $ 25,634 $ 400,000 Charges for Services Parks and Recreation 50,000 50,000 733,476 683,476 370,600 Miscellaneous Investment Income 2,610 2,610 (3,724) (6,334) 3,850 Contributions and Donations - - - - 56,905 Other - - 600 600 2 Total Revenues 452,610 452,610 1,155,986 703,376 831,357 EXPENDITURES Parks and Recreation Current - - 2,811 2,811 204 Capital Outlay 475,000 475,000 671,402 196,402 281,457 Total Expenditures 475,000 475,000 674,213 199,213 281,661 Excess of Revenues Over (Under) Expenditures (22,390) (22,390) OTHER FINANCING USES Transfers Out - - Net Change i i Fund Balance $ (22,390) $ (22,390) FUND BALANCE Beginning of Year End of Year 481,773 504,163 549,696 - - (17,253) 481,773 $ 504,163 532,443 1,331,505 $ 1,813,278 799,062 $ 1,331,505 119 CITY OF EAGAN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (ORIGINAL AND FINAL) AND ACTUAL - CAPITAL PROJECTS FUND - EQUIPMENT REVOLVING FUND For the Year Ended December 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) REVENUES Property Taxes General Property Taxes Miscellaneous Investment Income Other Total Revenues EXPENDITURES General Government Current Capital Outlay Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES Sale of City Property Transfers In Total Other Financing Sources Net Change in Fund Balance FUND BALANCE Beginning of Year End of Year 2013 2012 Budgeted Amounts Variance with Actual Final Budget - Original Final Amounts Over (Under) Actual $ 1,121,000 $ 1,121,000 $ 1,121,066 $ 66 $ 1,053,549 8,000 8,000 (3,586) (11,586) 4,543 - - 3,060 3,060 - 1,129,000 1,129,000 1,120,540 (8,460) 1,058,092 - - 103,212 103,212 219,583 1,646,500 1,646,500 976,203 (670,297) 1,028,578 1,646,500 1,646,500 1,079,415 (567,085) 1,248,161 (517,500) (517,500) 41,125 558,625 (190,069) 67,823 67,823 38,720 28,300 28,300 44,600 96,123 96,123 83,320 $ (517,500) $ (517,500) 137,248 $ 654,748 (106,749) 1,287,376 $ 1,424,624 1,394,125 $ 1,287,376 120 121 CITY OF EAGAN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (ORIGINAL AND FINAL) AND ACTUAL - CAPITAL PROJECTS FUND - GENERAL FACILITIES RENEWAL For the Year Ended December 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) 2013 2012 Budgeted Amounts Variance with Actual Final Budget - Original Final Amounts Over (Under) Actual REVENUES Property Taxes General Property Taxes $ 308,000 $ 308,000 $ 307,730 $ (270) $ 289,197 Miscellaneous Investment Income 2,000 2,000 (1,361) (3,361) 1;483 Total Revenues 310,000 310,000 306,369 (3,631) 290,680 EXPENDITURES General Government Current - - 65,364 65,364 127,505 Capital Outlay 142,946 142,946 47,649 (95,297) 114,105 Total Expenditures 142,946 142,946 113,013 (29,933) 241,610 Excess of Revenues Over Expenditures $ 167,054 $ 167,054 193,356 $ 26,302 49,070 FUND BALANCE Beginning of Year 347,089 298,019 End of Year $ 540,445 $ 347,089 121 CITY OF EAGAN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (ORIGINAL AND FINAL) AND ACTUAL - CAPITAL PROJECTS FUND - FIRE APPARATUS REVOLVING For the Year Ended December 31, 2013 (With Comparative Actual Amounts for the Year Ended December 31, 2012) REVENUES Property Taxes General Property Taxes Miscellaneous Investment Income Contributions and Donations Total Revenues EXPENDITURES Public Safety Current Capital Outlay Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES Bonds Issued Net Change in Fund Balance FUND BALANCE Beginning of Year End of Year 2013 2012 Budgeted Amounts Variance with Actual Final Budget - Original Final Amounts Over (Under) Actual $ 198,000 $ 198,000 $ 198,436 $ 436 $ 266,479 3,000 3,000 (1,967) (4,967) 2,009 80,000 80,000 - (80,000) 36,890 281,000 281,000 196,469 (84,531) 305,378 - - - - 7,031 400,000 400,000 43,934 (356,066) 1,103,543 400,000 400,000 43,934 (356,066) 1,110,574 (119,000) (119,000) 152,535 271,535 (805,196) $ (119,000) $ (119,000) 152,535 $ 271,535 728,407 $ 880,942 575,000 (230,196) 958,603 $ 728,407 122 (THIS PAGE LEFT BLANK INTENTIONALLY) 123 CITY OF EAGAN COMPARATIVE STATEMENT OF FUND NET POSITION - PUBLIC UTILITIES ENTERPRISE FUND December 31, 2013 ASSETS Current Assets Cash and Investments Accounts Receivable Interest Receivable Special Assessments Receivable Due from Other Funds Advances to Other Funds Prepaid Items Total Current Assets Restricted Cash Storm Drainage, Renewal and Replacement Water Source, Supply and Storage Improvements Storm Drainage System, Expansion and Modification Water Quality Total Restricted Cash Property and Equipment Land Permanent Easements Buildings and Improvements Water Supply Facilities Water Storage Facilities Water Mains and Lines Sewer Mains and Lines Storm Drainage System Street Lights Machinery and Equipment Construction in Progress Total Property and Equipment Less Accumulated Depreciation Property and Equipment, Net Other Assets Special Assessments Receivable Due from Other Government Units: Current Value and Debt Service Credits Net OPEB Asset Total Other Assets Total Assets 2013 2012 $ 33,107,100 $ 2,818,646 2,062,260 2,237,297 117,398 138,250 48,043 47,488 3,596,387 18,153,111 2,255,400 2,255,400 266 - 41,186,854 25,650,192 - 4,335,770 - 6,860,566 - 2,580,523 - 65,135 971,317 326,301 1,578,910 46,867,551 6,676,901 50,014,838 48,483,862 82,158,059 447,883 5,767,128 110,006 243,402,756 (77,737,950) 165,664,806 408,619 17,915 4,288 430,822 $ 207,282,482 13,841,994 971,317 326,301 1,489,684 46,833,745 6,676,901 49,744,000 47,714,106 82,571,489 447,883 5,855,977 7,230 242,638,633 (74,119,820) 168,518,813 310,481 5,184 4,707 320,372 $ 208,331,371 124 CITY OF EAGAN COMPARATIVE STATEMENT OF FUND NET POSITION - PUBLIC UTILITIES ENTERPRISE FUND December 31, 2013 (Continued) LIABILITIES AND FUND EQUITY Current Liabilities Salaries and Benefits Payable Accounts Payable Contracts Payable Due to Other Governments Unearned Revenue Total Current Liabilities Long -Term Liabilities Customer Deposits Total Liabilities Net Position Net Investment in Capital Assets Restricted: Water System, Renewal and Replacement Sewer System, Renewal and Replacement Water Source, Supply and Storage Improvements Storm Drainage System, Expansion and Modification Storm Drainage, Renewal and Replacement Water Quality Total Restricted Net Position Unrestricted Total Net Position Total Liabilities and Net Position 2013 2012 $ 69,170 $ 59,280 388,227 313,312 23,485 35,070 833,006 36,849 413,141 414,153 1,727,029 858,664 29,344 19,194 1,756,373 877,858 165,664,806 168,518,813 - 8,417,895 - 7,990,322 - 6,860,566 - 2,580,523 - 4,335,770 - 65,135 - 30,250,211 39,861,303 8,684,489 205,526,109 207,453,513 $ 207,282,482 $ 208,331,371 125 CITY OF EAGAN SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - PUBLIC UTILITIES ENTERPRISE FUND For the Year Ended December 31, 2013 Division NONOPERATING REVENUES (EXPENSES) Investment Income Interest Earnings: Special Assessments Gain on Sale of Asset Refunds and Reimbursements Connection Charges Intergovernmental Revenues Other Revenues Total Nonoperating Revenues (Expenses), Net Income before Capital Contributions and Transfers Capital Contributions Transfers In Transfers Out Change in Net Position NET POSITION Beginning of Year End of Year (111,795) 124,234 89,676 136,548 14,940 1,405 Drainage/ 46,079 846,744 387,170 162,326 208,373 Sheet Water Fund Total 1,862,517 Sewer Water Lighting Quality 2013 2012 OPERATING REVENUES Service Charges $ 6,012,869 $ 4,469,265 $ 615,362 $ 1,335,237 $ 12,432,733 $ 12,892,121 Connection Permits 11,400 10,572 - - 21,972 14,615 Penalties 28,522 48,021 3,038 4,426 84,007 68,148 Sale of Materials and Meter Charges 5,253 65,764 - - 71,017 55,569 Other Revenue - - - - - 10,790 Total Operating Revenues 6,058,044 4,593,622 618,400 1,339,663 12,609,729 13,041,243 OPERATING EXPENSES Personal Services 626,801 1,353,801 8,900 477,699 2,467,201 2,097,969 Supplies, Repairs and Maintenance 104,824 371,639 191 168,726 645,380 676,238 Other Services and Charges 534,690 2,194,908 501,720 883,746 4,115,064 4,438,324 MCES Disposal Charge 4,366,001 1,357 - - 4,367,358 4,207,357 Total Operating Expenses 5,632,316 3,921,705 510,811 1,530,171 11,595,003 11,419,888 Operating Income (Loss) before Depreciation 425,728 671,917 107,589 (190,508) 1,014,726 1,621,355 Depreciation Expense 760,590 2,251,483 12,797 1,151,690 4,176,560 4,097,780 Operating Income (Loss) $ (334,862) $ (1,579,566) $ 94,792 $ (1,342,198) (3,161,834) (2,476,425) NONOPERATING REVENUES (EXPENSES) Investment Income Interest Earnings: Special Assessments Gain on Sale of Asset Refunds and Reimbursements Connection Charges Intergovernmental Revenues Other Revenues Total Nonoperating Revenues (Expenses), Net Income before Capital Contributions and Transfers Capital Contributions Transfers In Transfers Out Change in Net Position NET POSITION Beginning of Year End of Year (111,795) 124,234 89,676 136,548 14,940 1,405 20,049 46,079 846,744 387,170 162,326 208,373 958,324 958,708 1,980,264 1,862,517 (1,181,570) (613,908) 737,743 1,216,561 43,368 64,602 (1,526,945) (659,824) (1,927,404) 7,431 207,453,513 207,446,082 $ 205,526,109 $ 207,453,513 126 CITY OF EAGAN COMBINING STATEMENT OF FUND NET POSITION - INTERNAL SERVICE FUNDS December 31, 2013 ASSETS Current Assets Cash and Cash Equivalents Accounts Receivable Accrued Interest Receivable Prepaid Expenses Total Assets LIABILITIES AND NET POSITION Liabilities Current Liabilities: Accounts Payable Due to Other Govermnents Other Liabilites Compensated Absences Total Current Liabilities Noncurrent Liabilities Other Liabilities Compensated Absences Total Noncurrent Liabilities Total Liabilities Net Position Unrestricted Total Net Position Total Liabilities and Net Position Workers' Benefit Risk Compensation Accrual Management Self - Insurance Total $ 4,126,942 $ 1,093,238 $ 1,987,860 $ 7,208,040 1,665 - - 1,665 13,454 3,567 6,483 23,504 967 - 21,157 22,124 $ 4,143,028 $ 1,096,805 $ 2,015,500 $ 7,255,333 $ 3,696 $ 14,242 $ (1) $ 17,937 10,787 - 5,487 16,274 146,238 - 141,591 287,829 2,136,654 - - 2,136,654 2,297,375 14,242 147,077 2,458,694 - - 5,509 5,509 1,477,344 - - 1,477,344 1,477,344 - 5,509 1,482,853 3,774,719 14,242 152,586 3,941,547 368,309 1,082,563 1,862,914 3,313,786 368,309 1,082,563 1,862,914 3,313,786 $ 4,143,028 $ 1,096,805 $ 2,015,500 $ 7,255,333 127 CITY OF EAGAN COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - INTERNAL SERVICE FUNDS For the Year Ended December 31, 2013 OPERATING REVENUES Service Charges Total Operating Revenues OPERATING EXPENSES Personal Services Accrued Leave Benefits Employee Retirement Benefits Employee Insurance Benefits Other Services and Charges Total Operating Expenses Operating Income (Loss) NONOPERATING REVENUES Investment Income Total Nonoperating Revenue Change in Net Position NET POSITION Beginning of Year End of Year Workers' Benefit Risk Compensation Accrual Management Self- Insurance lr-4 -1 $ 7,670,208 $ 497,300 $ 473,142 $ 8,640,650 7,670,208 497,300 473,142 8,640,650 2,108,838 - - 2,108,838 2,783,656 - - 2,783,656 2,682,729 - - 2,682,729 28,197 547,349 341,497 917,043 7,603,420 547,349 341,497 8,492,266 66,788 (50,049) 131,645 148,384 (11,886) (3,850) (6,225) (21,961) (11,886) (3,850) (6,225) (21,961) 54,902 (53,899) 125,420 126,423 313,407 1,136,462 1,737,494 3,187,363 $ 368,309 $ 1,082,563 $ 1,862,914 $ 3,313,786 128 CITY OF EAGAN COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS For the Year Ended December 31, 2013 CASH FLOWS - OPERATING ACTIVITIES Receipts from Other Funds Payments to Suppliers Payments to Employees Payments of Benefits on Behalf of Employees Net Cash Flows - Operating Activities CASH FLOWS - INVESTING ACTIVITIES Interest and Dividends Received Net Change in Cash and Cash Equivalents CASH AND CASH EQUIVALENTS January 1 December 31 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS- OPERATING ACTIVITIES Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Flows - Operating Activities: Accounts Receivable Prepaid Items Accounts Payable Wages, Salaries and Compensation Payable Due to Other Governments Other Liabilities Total Adjustments Net Cash Flows - Operating Activities Governmental Activities - Internal Service Funds (10,266) (3,104) (5,644) (19,014) 142,289 (46,882) 193,773 289,180 3,984,653 1,140,120 1,794,087 6,918,860 $ 4,126,942 $ 1,093,238 $ 1,987,860 $ 7,208,040 $ 66,788 $ (50,049) $ Workers' $ 148,384 Benefit Risk Compensation (41) Accrual Management Self- Insurance Total $ 7,670,167 $ 497,300 $ 473,142 $ 8,640,609 (33,162) (541,078) (273,725) (847,965) (2,025,959) - - (2,025,959) (5,458,491) - - (5,458,491) 152,555 (43,778) 199,417 308,194 (10,266) (3,104) (5,644) (19,014) 142,289 (46,882) 193,773 289,180 3,984,653 1,140,120 1,794,087 6,918,860 $ 4,126,942 $ 1,093,238 $ 1,987,860 $ 7,208,040 $ 66,788 $ (50,049) $ 131,645 $ 148,384 (41) - - (41) 85 - 4,037 4,122 (5,050) 6,271 (1) 1,220 82,879 - - 82,879 2,437 36 2,473 5,457 63,700 69,157 85,767 6,271 67,772 159,810 $ 152,555 $ (43,778) $ 199,417 $ 308,194 129 CITY OF EAGAN STATEMENT OF CHANGES IN AGENCY FUNDS ASSETS AND LIABILITIES For the Year Ended December 31, 2013 DAKOTA COUNTY DRUG TASK FORCE Balance Balance Balance 12/31/12 Additions 12/31/12 Deletions 12/31/13 ASSETS Deletions 12/31/13 ASSETS Cash and Investments $ 423,519 $ 1,280,224 $ 1,273,716 $ 430,027 Other Receivables - - 7,071 $ - 7,071 Accrued Interest Receivable Accrued Interest Receivable 1,554 1,356 1,554 1,356 Due from Other Governments 79,767 70,691 $ 79,892 70,566 Other Assets $ 2,354 3,534 6,745 2,354 3,534 Total Assets $ 507,194 $ 1,362,876 $ 1,357,516 $ 512,554 LIABILITIES $ - $ 61,549 $ 54,804 Accounts Payable $ 475,284 $ 1,131,250 $ 1,113,559 $ 492,975 Due to Other Governments 54,804 31,910 57,912 70,243 19,579 Total Liabilities $ 507,194 $ 1,189,162 $ 1,183,802 $ 512,554 DAKOTA COUNTY DRUG TASK FORCE EQUIPMENT FUND Balance Balance 12/31/12 Additions Deletions 12/31/13 ASSETS Cash and Investments $ - $ 92,434 $ 85,711 $ 6,723 Accrued Interest Receivable - 22 - 22 Total Assets $ - $ 92,456 $ 85,711 $ 6,745 LIABILITIES Accounts Payable $ - $ 61,549 $ 54,804 $ 6,745 Total Liabilities $ - $ 61,549 $ 54,804 $ 6,745 TOTAL Balance Balance 12/31/12 Additions Deletions 12/31/13 ASSETS Cash and Investments $ 423,519 $ 1,372,658 $ 1,359,427 $ 436,750 Other Receivables - 7,071 - 7,071 Accrued Interest Receivable 1,554 1,378 1,554 1,378 Due from Other Governments 79,767 70,691 79,892 70,566 Other Assets 2,354 3,534 2,354 3,534 Total Assets $ 507,194 $ 1,455,332 $ 1,443,227 $ 519,299 LIABILITIES Accounts Payable $ 475,284 $ 1,192,799 $ 1,168,363 $ 499,720 Due to Other Governments 31,910 57,912 70,243 19,579 Total Liabilities $ 507,194 $ 1,250,711 $ 1,238,606 $ 519,299 130 CITY OF EAGAN COMBINED SCHEDULE OF BONDS PAYABLE December 31, 2013 Year Original Issued Amount I we 11-113 01 " Retired Bonds Outstanding 2005A $ 5,155,000 $ 2,945,000 $ 2,210,000 2005C* 1,515,000 1,230,000 285,000 2008A 4,105,000 825,000 3,280,000 2009A 525,000 145,000 380,000 2009B* 8,195,000 830,000 7,365,000 2010A 415,000 85,000 330,000 2012A 1,660,000 - 1,660,000 2012B 575,000 60,000 515,000 2013A 12,390,000 - 12,390,000 Total G.O. Bonds $ 34,535,000 $ 6,120,000 $ 28,415,000 * Refunding Bonds Coupon Rates on Outstanding Bonds 3.63%- 4.00% 4.00 % 3.750 % - 4.375% 2.20%- 4.00% 2.00%- 4.00% 2.89- 3.97% 1.00 % - 3.45% 0.65%- 1.75% 2.00 - 3.40% 131 CITY OF EAGAN COMBINED SCHEDULE OF BONDS PAYABLE MATURITIES December 31, 2013 132 Issue Interest Maturity Date Rates Dates Principal G.O. BONDS 2005 G.O. Improvement Bonds, Series A, Maturing 12/01/05 $ 350,000 Per Year 3.63% 02/01/14 $ 350,000 $ 310,000 Per Year 3.65% 02/01/15 310,000 $ 305,000 Per Year 3.70% 02/01/16 305,000 $ 300,000 Per Year 3.75 % -3.80% 02/01/17 -18 600,000 $ 290,000 Per Year 3.85% 02/01/19 290,000 $ 280,000 Per Year 3.90% 02/01/20 280,000 $ 75,000 Per Year 4.00% 02/01/21 75,000 Total 2005 G.O. Improvement Bonds, Series A 2,210,000 2005 G.O. Improvement Refunding Bonds, Series C, Maturing 12/01/05 $ 180,000 Per Year 4.00% 02/01/14 180,000 $ 105,000 Per Year 4.00% 02/01/15 105,000 Total 2005 G.O. Improvement Refunding Bonds, Series C 285,000 2008 G.O. State Aid Street Bonds, Series A, Maturing 08/01/08 $ 205,000 Per Year 3.75% 04/01/14 205,000 $ 210,000 Per Year 3.75 %5 -4.00% 04/01/15 -16 420,000 $ 205,000 Per Year 4.00 % -4.30% 04/01/17 -27 2,255,000 $ 200,000 Per Year 4.375% 04/01/28 -29 400,000 Total 2008 G.O. State Aid Street Bonds, Series A 3,280,000 2009 G.O. Equipment Certificate Bonds, Series A, Maturing 09/01/09 $ 55,000 Per Year 2.20 % -2.70% 02/01/14 55,000 $ 60,000 Per Year 3.10 % -3.40% 02/01/15 -16 120,000 $ 65,000 Per Year 3.60% 02/01/17 65,000 $ 70,000 Per Year 3.80 % -4.00% 02/01/18 -19 140,000 Total 2009 G.O. Equipment Certificate Bond, Series A 380,000 2009 G.O. Facility Refunding Bonds, Series B, Maturing 12/15/09 $ 840,000 Per Year 2.00% 02/01/14 $ 840,000 $ 855,000 Per Year 2.25% 02/01/15 855,000 $ 875,000 Per Year 3.00% 02/01/16 875,000 $ 900,000 Per Year 3.00% 02/01/17 900,000 $ 930,000 Per Year 3.00% 02/01/18 930,000 $ 960,000 Per Year 3.25% 02/01/19 960,000 $ 980,000 Per Year 4.00% 02/01/20 980,000 $ 1,025,000 Per Year 4.00% 02/01/21 1,025,000 Total 2009 G.O. Facility Refunding Bond, Series B 7,365,000 132 CITY OF EAGAN COMBINED SCHEDULE OF BONDS PAYABLE MATURITIES December 31, 2013 (Continued) G.O. Bonds 2010 G.O. Equipment Certificate Bonds, Series A, Maturing $ 45,000 Per Year $ 45,000 Per Year $ 50,000 Per Year Total 2010 G.O. Equipment Certificate Bond, Series A 2012 G.O. Housing Improvement Bonds, Series A, Maturing $ 95,000 Per Year $ 100,000 Per Year $ 105,000 Per Year $ 110,000 Per Year $ 115,000 Per Year $ 120,000 Per Year $ 125,000 Per Year $ 130,000 Per Year $ 135,000 Per Year Total 2012 G.O. Housing Improvement Bond, Series B 2012 G.O. Equipment Certificate Bonds, Series B, Maturing $ 60,000 Per Year $ 65,000 Per Year $ 70,000 Per Year Total 2012 G.O. Equipment Certificate Bonds, Series B 2013 G.O. Tax Increment Bonds, Series A, Maturing $ 150,000 Per Year $ 750,000 Per Year $ 765,000 Per Year $ 780,000 Per Year $ 800,000 Per Year $ 815,000 Per Year $ 830,000 Per Year $ 850,000 Per Year $ 870,000 Per Year $ 895,000 Per Year $ 920,000 Per Year $ 945,000 Per Year $ 975,000 Per Year $ 1,005,000 Per Year $ 1,040,000 Per Year Total 2013 G.O. Tax Incremenr Bonds, Series A Refunding Bond, Series A Total G.O. Bonds Issue Interest Maturity Date Rates Dates Principal 12/15/10 2.89% 02/01/14 -15 $ 90,000 3.49% 02/01/16 -17 90,000 3.97% 02/01/18 -20 150,000 330,000 05/15/12 1.00 %0 02/01/14 95,000 1.00 - 1.55% 2/1/2015 -18 400,000 1.85 - 2.35% 2/1/2019 -21 315,000 2.55% 02/01/22 110,000 3.00% 02/01/17 230,000 3.25% 02/01/25 120,000 3.25% 02/01/26 125,000 3.45% 02/01/27 130,000 3.45% 02/18/28 135,000 1,660,000 05/15/12 0.65% 6/1/14 -15 120,000 1.00- 1.75 % 6/1/16 -20 325,000 1.75% 6/1/21 70,000 515,000 06/01/13 2.00% 02/01/16 $ 150,000 2.00% 02/01/17 750,000 2.00% 02/01/18 765,000 2.00% 02/01/19 780,000 2.00% 02/01/20 800,000 2.00% 02/01/21 815,000 2.25% 02/01/22 830,000 2.45% 02/01/23 850,000 2.65% 02/01/24 870,000 2.85% 02/01/25 895,000 3.00% 02/01/26 920,000 3.10% 02/01/27 945,000 3.20% 02/01/28 975,000 3.30% 02/01/29 1,005,000 3.40% 02/01/30 1,040,000 12,390,000 $ 28,415,000 133 CITY OF EAGAN COMBINED SCHEDULE OF DEBT SERVICE REQUIREMENTS December 31, 2013 2029 2030 Total $ 2,495,000 $ 306,993 $ 1,660,000 $ 375,903 $ 7,365,000 $ 1,056,832 134 Special Assessment Debt Housing bnprovement General Bonded Debt Year Principal Interest Principal Interest Principal Interest 2014 $ 530,000 $ 84,479 $ 95,000 $ 38,700 $ 840,000 $ 220,188 2015 415,000 66,778 100,000 37,725 855,000 202,169 2016 305;000 53,378 100,000 36,725 875,000 179,425 2017 300,000 42,110 100,000 35,600 900,000 152,800 2018 300;000 30,786 100,000 34,200 930,000 125,350 2019 290,000 19,502 105,000 32,454 960,000 95,800 2020 280,000 8,460 105,000 30,380 980,000 60,600 2021 75,000 1,500 105,000 28,044 1,025,000 20,500 2022 - - 110,000 25,407 - - 2023 115,000 22,280 2024 115,000 18,830 2025 120,000 15,155 2026 125,000 11,174 2027 130,000 6,900 2028 135,000 2,329 2029 2030 Total $ 2,495,000 $ 306,993 $ 1,660,000 $ 375,903 $ 7,365,000 $ 1,056,832 134 Equipment Certificate State -Aid Debt Tax Increment Total Principal Interest Principal Interest Principal Interest Principal Interest $ 160,000 $ 29,687 $ 205,000 $ 130,586 $ $ 380,196 $ 1,830,000 $ 883,836 165,000 26,324 210,000 122,805 325,882 1,745,000 781,683 170,000 22,418 210,000 114,668 150,000 324,382 1,810,000 730,996 175,000 18,008 205,000 106,368 750,000 315,382 2,430,000 670,268 185,000 12,917 205,000 98,168 765,000 300,232 2,485,000 601,653 185,000 7,227 205,000 89,967 780,000 284,782 2,525,000 529,732 115,000 2,786 205,000 81,767 800,000 268,982 2,485,000 452,975 70,000 614 205,000 73,568 815,000 252,832 2,295,000 377,058 - - 205,000 65,214 830,000 235,345 1,145,000 325,966 205,000 56,706 850,000 215,595 1,170,000 294,581 205,000 48,200 870,000 193,655 1,190,000 260,685 205,000 39,538 895,000 169,374 1,220,000 224,067 205,000 30,722 920,000 142,820 1,250,000 184,716 205,000 21;907 945,000 114,373 1,280,000 143,180 200,000 13,125 975,000 84,126 1,310,000 99,580 200,000 4,375 1,005,000 51,943 1,205,000 56,318 - - - - 1,040,000 17,680 1,040,000 17,680 $ 1,225,000 $ 119,981 $ 3,280;000 $ 1,097,684 $ 12,390,000 $ 3,677,581 $ 28,415,000 $ 6,634,974 135 CITY OF EAGAN SCHEDULE OF CASH AND INVESTMENTS December 31, 2013 CASH AND MONEY MARKET FUNDS Deposits $ 8,658,314 Cash on Hand 18,027 Total $ 8,676,341 136 Coupon Maturity Fair Value INVESTMENTS First American Government Obligation Fund N/A N/A $ 3,671,372 MN Internal Equity Pool N/A N/A 11,329,086 Farmer Mac 0.250% 02/19/14 1,000,160 Federal Fann Credit Bank 4.950% 04/07/14 1,012,710 Federal Home Loan Bank 1.500% 05/23/19 968,780 Federal Home Loan Bank 1.780% 11/13/18 494,475 Federal Home Loan Bank 1.200% 11/20/17 496,880 Federal Home Loan Bank 1.000% 11/27/20 496,830 Federal Home Loan Bank 1.250% 04/16/21 1,004,800 Federal Home Loan Bank 0.650% 11/27/18 976,600 Federal Home Loan Bank 4.000% 12/26/23 1,039,650 Federal Home Loan Bank Step -Up 0.500% 08/27/19 999,040 Federal Home Loan Bank Step -Up 2.040% 10/02/18 994,920 Federal Home Loan Bank Step -Up 1.000% 09/26/22 982,980 FHL Mortgage Corporation 1.060% 01/06/16 1,000,090 FHL Mortgage Corporation 1.125% 01/13/16 1,000,250 FHL Mortgage Corporation 3.000% 01/17/19 3,003,210 FHL Mortgage Corporation 1.000% 03/21/16 1,001,540 FHL Mortgage Corporation 1.200% 06/06/17 1,000,040 FHL Mortgage Corporation 1.375% 01/30/18 987,300 FHL Mortgage Corporation 1.050% 07/17/17 496,550 FHL Mortgage Corporation 2.250% 03/13/20 1,965,480 FHL Mortgage Corporation 1.350% 01/27/17 2,501,700 FHL Mortgage Corporation 1.000% 10/25/16 2,006,800 FHL Mortgage Corporation 0.850% 08/08/16 2,000,800 FHL Mortgage Corporation 0.800% 11/22/16 501,375 FHL Mortgage Corporation 0.420% 08/28/15 1,000,180 FHL Mortgage Corporation 1.050% 09/19/16 1,004,400 FHL Mortgage Corporation 1.000% 02/27/17 998,500 FHL Mortgage Corporation 0.875% 12/10/18 995,830 FHL Mortgage Corporation 1.000% 12/11/18 699,776 FHL Mortgage Corporation 2.500% 11/05/19 1,006,340 FHL Mortgage Corporation 0.625% 12/19/17 990,380 FNMA 1.800% 03/07/19 990,870 FNMA 2.750% 03/13/14 1,005,160 FNMA 2.750% 04/16/19 2,011,620 FNMA 1.700% 02/27/19 987,330 FNMA 2.100% 03/27/20 978,680 FNMA 2.050% 04/30/19 999,710 FNMA 2.000% 11/30/20 943,420 FNMA 0.750% 01/17/19 979,490 FNMA 1.600% 03/12/18 995,870 FNMA 1.050% 04/17/18 972,910 FNMA 1.365% 06/27/18 1,967,780 FNMA 1.330% 10/24/19 950,200 FNMA 2.500% 07/10/18 2,012,080 FNMA 1.130% 07/30/18 2,001,740 FNMA 1.200% 03/06/17 825,842 FNMA 1.300% 03/27/17 2,004,340 FNMA 1.000% 10/17/16 502,530 FNMA 2.500% 10/16/18 1,012,350 FNMA 1.500 % 09/26/17 868,875 FNMA 0.750% 12/27/18 1,473,000 FNMA 2.500% 02/13/20 1,002,338 FNMA 2.500% 02/13/20 997,962 FNMA 1.000% 12/27/18 998,540 FNMA 1.000% 12/30/20 1,491,495 136 CITY OF EAGAN SCHEDULE OF CASH AND INVESTMENTS December 31, 2013 (Continued) 90,282,712 $ 98,959,053 137 Coupon Maturity Fair Value INVESTMENTS CD -Ally Bk Midvale Utah 0.700% 12/04/15 $ 248,295 CD -Alma Bk Astoria New York 0.550% 07/30/15 248,569 CD -Bank Baroda New York NY 0,400% 08/13/14 248,793 CD -Bank Hapoaliin B M New York 0.450% 12/11/14 247,474 CD -Bank Holland Mich 0.450% 07/31/15 248,564 CD -Bank India New Youk NY 0.350% 05/07/14 248,873 CD -Bank of China New York City 0.450% 11/10/14 248,724 CD -BBCN Bk Los Angeles CA 0.200% 05/20/14 248,813 CD -Beal Bk USA Las Vegas NV 0.250% 05/07/14 248,841 CD -Bucks Cnty Bk Doylestown PA 0.650% 06/23/16 247,780 CD- Capital Bk Miami 0.550% 12/21/15 248,186 CD- Cardinal Bk Natl Assn VA 0.200% 05/16/14 248,821 CD- Cathay Bk Los Angeles CA 0.600% 12/30/15 248,079 CD- Cathay Bk Los Angeles CA 0.700% 06/30/16 247,847 CD- Citizens St Bk Okemah OK 0.500% 12/17/15 248,114 CD- College Svgs Bk Princeton NJ 0.500% 07/31/15 248,567 CD- Compass Bk Birmingham AL 0.550% 04/30/15 248,300 CD- Discover Bank Greenwook Del 0.400% 11/10/14 248,724 CD -DMB Cmnty Bk Deforest Wis 0.600% 06/20/16 248,166 CD -Doral Bank Catano PR 0.600% 03/17/14 249,202 CD- Enerbank USA Utah 0.500% 08/03/15 248,669 CD- Enterprise Bk Allison Pk PA 0.500% 03/31/14 249,239 CD- Espirito Santo Bk Miami FL 0.550% 12/16/15 248,074 CD -F &M Bk Clarksville TN 0.550% 08/30/15 248,363 CD -Fifth Third Bk Cininnati STN 0.250% 05/08/14 248,838 CD -First Bk PR Santurce 0.600% 03/17/14 249,202 CD First Niagara Bk Natl Assn 0.300% 01/27/14 248,970 CD -First St Bk UN City Tenn 0.450% 12/23/15 248,026 CD -First St. Bk West VA 0.500% 12/07/15 248,128 CD- Flushing Bk NY 0.750% 06/30/16 247,969 CD -GE Cap Finl Inc Retail 0.900% 01/19/16 247,908 CD -GE Cap Retail Bk Draper 0.600% 03/17/14 249,047 CD- Goldman Sachs BK USA NY 0.550% 05/08/15 248,472 CD -Key Bank NA Ohio 0.250% 11/10/14 248,828 CD- Marlin Business BK Salt Lake 0.550% 12/28/15 248,094 CD- Mizuho Corporate Bk USA 0.200% 02/10/14 249,002 CD- Plainscapital Bk Dallas TX 2.000% 05/15/14 248,826 CD- Provident Bk Amesbury Mass 0.500% 12/02/15 248,166 CD -S &T BK Indiana PA 0.300% 08/14/14 248,701 CD -Safra Natl Bk New York NY 0.300% 11/17/14 248,719 CD- Sallie Mae Bank 1.100% 08/31/15 249,557 CD -State Bk India New York NY 0.450% 07/29/14 247,998 CD- Total Investments 0.400% 08/13/14 248,778 CD -TCF Natl Bk 0.450% 04/30/15 248,268 CD- Total Cash and Investments 0.550% 12/03/15 248,203 CD- Washington Tr Co Westerly R I 0.500% 07/30/15 248,572 CD -WEX Bk Midvale Utah 0.500% 10/23/15 248,407 Total Investments Total Cash and Investments 90,282,712 $ 98,959,053 137 (THIS PAGE LEFT BLANK INTENTIONALLY) 138 CITE' OF EAGAN STATISTICAL SECTION This part of the City'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 government's overall financial health. CONTENTS Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well -being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity Pages 140 -143 144 -147 148 -151 These schedules 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. Demographic and Economic Information 152 -153 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information 154 -156 These schedules contain service and infrastiucture 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. 139 O O 140 U ll w fA F9 di fA di f9 IN N Nw I O IL n ll� O 14 o cl� Dri Cli ll� Ili N .6 mN cl� ll� N w ocr ll� lc� IN I Im `" vNielm � o6 1� t-Z dr ll� c5 6 cK .6 a FA f9 69 K f9 f9 6,6 N g� 6 h M N d -1: 1, 16 .6 1 N t-: 1R. A, 'Fi P P9 10 O O 140 CITY OF EAGAN CHANGES IN NET'ASSET'S Lml Nine Vemr (accraallnsisofaceosmtirg) Table 2 Brnivas -Type Acllvill. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 EXPENSES 10 ,338,400 11,758,106 12,275,233 13,230,903 13,425,630 13,988,745 15,257,994 15,642,629 15,555,095 15,771,952 Goveramenlal Adhilla 959,104 930,859 955;533 979,025 1,054 ,335 1,072,681 1 -197,447 1,337,005 1,353,756 1;357,564 (3-al Go -. S 6,392,341 S 9,708,944 S 9,279,109 S 9,013,902 S 20,172,975 $ 7,591,323 S 7,185,570 S 6,485,976 S 8,024-191 S 7,609,191 Public Safely 8,508,404 9,393,215 11,112,611 12,316,632 13 -193,262 16,915,166 14,203,224 14;281,939 14,165,925 15,881,220 Public Works 4,677,810 5,276,726 10 ,356,121 17,138,379 6,122,179 8,100,035 6,640,294 7,070,862 10,436,231 9,688,051 Parks and Recreation 3,865,084 2,641,862 4,267,152 4,775,454 4,766,866 5,667,840 4,777,192 4,934,676 4,638,627 5,123,677 Inierat on Inug =Perm Mal 285,614 272,960 424.070 290,307 340,625 380.975 335,535 317.260 317,149 481.587 Total Governmeolal Activities Expemes 24,029,253 30.293,710 35,439,063 43534,674 44315,907 38,655,359 33,142,115 33,090.693 37,182.226 38.953,926 Brnivas -Type Acllvill. Public Utilities 10 ,338,400 11,758,106 12,275,233 13,230,903 13,425,630 13,988,745 15,257,994 15,642,629 15,555,095 15,771,952 Civic Arm 959,104 930,859 955;533 979,025 1,054 ,335 1,072,681 1 -197,447 1,337,005 1,353,756 1;357,564 Aquatic Facility 1,1S0,6S1 1 I,265,BS3 1,201,145 1,296,665 1,227,814 1 -146,942 1,214,859 1,198,770 1 -153,404 Coaroar, Center 2,132,097 :11'11 2,344,779 2,394 ,375 2,514,229 2,545,366 2,394522 2,603,241 2,707,523 2,286,791 2,342,396 Filar mGaslnxdrae 265,079 578,809 19,900 15,076 16.210 16,210 16.549 236359 192,223 198,554 Total B.mes1-Type Activities BaPertses 14660,282 16,619.385 16.911,224 17940375 .18338,206 18499,975 20.422,473 21.138.375 20556.635 20,923,950 Total Pritony Goveaonea Gxpr -, S 38.689.535 S 46,973,095 S 52350,287 S 61,475.052 S (,3,054,113 S 57,355.334 S 53.564,338 S 54,229 068 S 58.169,861 S 59.907.876 PROGIiM+ REVENGES (2,026,145) 733,995 (78,589) (780,623) 155,106 (1,513,064) (2,512,647) (1,304,742) (711,458) (69,200) Governmental AclivllI, 17330,588 21,957,761 22341,405 24,758,390 25659,654 24,563,790 24,626,445 26,819,733 26.877,547 26,553,813 Charges for services: Grteral Go, ant $ 777,666 $ 1,432,103 S 1,838,199 S 2;339,701 S 2,134,794 S 1,162,527 'S 1,201,784 S 1,276 ,395 S 1,478,071 S 5,900,659 Public Safety 710,887 666,350 663,893 665,426 775,677 1,468,689 1,281,033 1,354,906 1,817,107 2,863,469 Public Works 6,357,792 5,166 ,322 522,316 394,889 528,697 1,025,935 876,359 647,559 1,132,745 1,300,506 Parks and Remotion 1,105,304 618,822 665,093 866,841 842,030 813,525 777,183 772,749 577,(103 890,081 Operrat g GraWS aW CoalnbWroas 654,357 686,291 756,196 682,755 558,303 975,296 1,534,972 881,179 860,251 1,533,618 Capital Grars and Coahib,dfoto 3,036715 4:120384 5.436.905 13,987,218 6,484,249 9,103,882 8.467,755 6,369.632 8,593,756 14.861.089 Total Gover- awal Acau,hks Prograa Revem 12,642,754 12.690,272 9,904,602 18,936,870 11323.750 14549,854 14.139,116 11302,420 14.758,936 27369,622 Bn.ma. -Type Activities Cleapsfprserv;ces: Public Utilities 11,718,230 11,724,216 11,629,584 12,065,977 12,106275 12,792,418 12,760,094 13,906,741 14596,563 14,618,662 Civic Amva 866,529 855,923 935,923 1,(03,195 919,950 6SS,298 965,750 978,231 1,026,418 1,071,486 Aquatic Facility 888,744 1,058,020 1,102,393 1,095,617 1,103 ,366 841,592 1,032,967 1,022,007 1,064523 1,075,485 Commrmity Center 789,093 1,015,844 1,224,770 1,384,675 1,421,337 1,357,454 1,321,461 1,383588 1,327,575 1,391,485 Filar lnf huchae - - - - - - - 1,660 68,618 5,280 Opentirg Gws and Cooftioaioos - - - - - 64,791 87,641 125,647 211,200 165,153 Capital GaNS awl Contrib,dioa .1,177,725 1,801.194 1.016,088 836102 2,767,741 102,257 2,254,223 225.919 73,791 1333311 Total Bramess- Type Activities Program Revert 15,440.621 16,455,197 15.908,758 16,385,662 18,318,672 16.047;110 18,422,136 17,649,793 18368.6SS 19564 062 Total Primary Govetr aeol Program Reveres S 23.033,375 S 29.145.469 S 25.813.360 S 35,322,492 S 29,642.422 $ 30.596.964 S 32.561;!52 'S. 25.952 213 S 33.127,624 S 46.933,684 Net Bxpeme)meremm Governmental Activi". S (11,396,499) S (17,603,438) S (25,534,461) S (24597,544) S (33,392,157) $ (24,105505) S (19,002,999) S (21,785,273) S (22,827 -190) S (11,614 ,304) B.i..s -Type Activities 780339 (184.191) (1.002,466) (1.554.716) .(19,574) (2.000,337) (3,498.582) (2.217.947) (1359,888) Total Priasary GOVCaarea NO(Expense)1Revt S (1,606,160) S 6 536.927 (26,152,560) (21,003336) (25,041;237) S (12,974,192) GENERAL REVENUES AND OTHER CHANGES IN NET ASSETS Govcrnmcnlol Activities Taxes .Property Taxes S .18,099,592 S 19 ,387,404 S 20 ,329,903 $ 21,460,131 S 22,636600 S 23,922,255 S 25,267,763 S 25,944,117 S 25,991,281 S 27,051,703 I- hise Taxes 546 ,099 600,783 653,532 714,957 757,071 762,326 767,058 774,110 791,138 526,006 Tax locrear- .158,903 185,136 334,855 611,357 826,960 902,467 900,286 804125 743,413 770,945 State Aid 84,498 29,171 20,607 853,422 441,572 57,182 13,437 14,016 376 285 Unrestricted 1 -resets Eaamgs 265,079 578,809 863,959 1,325,717 397,523 (163,942) 13 ,394 47,756 44,047 (58,256) Other Gemal 1"'-,e 182,562 441,857 217,141 570,629 215,423 87,212 177,154 28,772 18,750 32 ,330 Gawoa Sale ofASWI - - - - 259,599 518,354 - 511,579 - - Toca,- (2,026,145) 733,995 (78,589) (780,623) 155,106 (1,513,064) (2,512,647) (1,304,742) (711,458) (69,200) Total Goveameaal Activ0ies 17330,588 21,957,761 22341,405 24,758,390 25659,654 24,563,790 24,626,445 26,819,733 26.877,547 26,553,813 13.b,.s -Type Activiies Property Taxes 1,076,880 1,193,717 1,187,226 1,185,266 1,184,274 1,132,277 1,186033 1,214,216 1,117576 1,114560 State Ad 7,269 7,269 7,269 10,269 44 ,375 - - - - - Umestrio,almvesnoemEamfitgs 798,249 1,053,360 2,358,239 3,300,795 3,29 5,280 618,606 1,135,618 328,053 186,249 (137,504) OtbOGe„eral Reverse 3,063 163,463 - - 81,661 - - - - - "orafrs 2,026,145 (733,995) 78589 780.823 (155,106) 1,513,064 2,512,647 1,304,742 711,456 69.200 Total Breiacss- Type Activities 3,911,606 1,653,834 3.631323 5.277,156 4,451456 3,311947 4,834,298 2,847,011 2,017,283 1.(14(,256 Total Printry Govenunerl S 21.242,194 S 37.641 595 S 25.972,731 S 30.035.546 S 30.14JJ40 S 27.862.737 S 29.460.743 S 29.666.744 S 25,894.630 S 29.600069 Chaogvs In Net Asset Governmcofal Acfivltics $ 5,944,089 S 4,354 ,323 S (3,193,053) S 160,546 $ (7,702,703) S 463,285 'S 5,623,446 S 5,031,460 S 4,054,257 S 16,939,509 )barons -Type Acflotles 4,691,945 1,499,643 2,628,857 3,722,440 4,433,952 3313,947 2.533.961 (641,571) (200,6(A) (111,632) Told( Primary Government S 10.636,034 S 5,853,966 _!--(564 196 1 S 7.862.956 S (7,265,3511 S 3.777 -132 S 5.457,407 'S 4,389,889 S 3.853591 S 16625.677 Sconce, Clty of6aganfsaanclai records Data for 2002 art rvber is not Presorted as rwem,es were wl acemrted for by program poor to implementation ofGASB 34 m2003. 141 O r 2 ;;, � t 142 C 9U C7 Ca51ti z P4 Q � Gl 69 d N3 IR IR o6 Iq ll� l� fA V3 v vi eN 16 49 FA N 1� Wl 0 .15 W 6-11 I Mm . . . . . h-11 M Vi . . . kil t 142 C 9U C7 Ca51ti z P4 Q � t 142 d R F 7 i w w F U OD q 'C O O 1 R II ° � y 7 4 �a b 1 w 1 'd O g d' O M 14 N W 0( w M N N O O D O � ' ' N v^ 7 O O o w w O ti w O� O M M h .N. h h 't w M 'n t T O W N O 'R '^ d' O w °� V w N O '+ O() O 00 tT O Q\ Vi 00 01 M 7 M T O O r} O w •d� �D .tea M In N 69 E/j rV V• M h ' In t V O N M "' CT V cn ! w N O h N h In, 'ch t t� M �0 h h m N N V N GD W O: oV� v' O O O N N vi M r vt h N O A �0 O N 'n 7 D\ M tN 0n M h M V� tN a M m O to h O ti O O M M IN N 69 Vi M M N-+ 7 7 0 M^ h IR I M M �° 0\ V O A O w •cY N N M "t h O d' h h M O w N M N �D h \? i0 c� d= M O M N .Ni^ O M m cl oN m h h h O N 00 lc 7 W N t(on Vl ^ N �D N 'd� w w 7 h 1 N N h a w M N w N M 7 lD N In .ti M In .-. �- V'� ti M 7 �D � � M n dt 69 E9 w w h V1 h O c� 'n l� O ' ' N V h O o 0, 'n M w O o' V' d' M w M fn M b °� M b Vl d' w h� ti O w y M h D\ M O d' M O N 01 0� M O N h N O h O D\ �O w M M O '0 i M w� 'n N b h M N 'n 7 7 w 'n �0 h �0 �° h O Oi t- .-� 'n M O h b h O w 7 7 h O 'n N O h M N 0� M cp 69 69 N w oc .Mi T .hi r N V O w w ti 0� �0 o0 N oc vt N GD V GO In O M w O �0 O O O vt 7 w O O N 'n 7 h to N I h h IR � iD �F 'n �° I h l0 M M l0 V i0 Vi 'n M N O vt �D N 'n �0 vt vl n m N .--i M .-� O N 7--� M M a O •-� N N d' N .i 0 0 69 f.9 O m w M 'n w .Ni N a, w O w � l 0� oo h 0� h .� M w h N '+ 7 O N tIn N V' t- f t Q\ M T to N h O M �° O '0 � O w 'cY �D Ill O �-' h O O 'n of ' ^-' h N •--� 0� �D O h 00 0� 0) M O O h w w 'n M �° M d\ 7 N O M •zt N O V' w 'n O M O M h h oc Q\ N h 7 d• T V` N N h w w 'M 'n M .-+ .-i O N V' a, N M d' cn •-• N 'n .. v� vi w M h N O' N to '4 N 'n O V O h In N N --� V� h O 'n �D d' O CIn h O D\ 0\ 01 w 0\ i° Vl M M V N r o O O O o0 O O kc d; 0\ " M N m V 0� t- 'n w O C b vl M M h N h h h O vi w w O N CT "t w 'n 'n N O S O m 7 "t (T M O h M M w O w M fT I M N N .r M .r M t- ti 7 t Vj 69 M w M O 'n w w h M d' cn I N n N w 0` C N d' •ti vj 0\ V O O ^+" DD V •� Di �i h w O �O 0� 0\ I M v1 W h -Y h ol .� N h \0 l m N N N .-i tN a IN O M M In 7 7 V3 69 69 •cr w T --� M In �n O N •-+ N •-+ V� �D �D h O w M M w� O l n O O •-' b O M w (TV M O h T O M N w 0 �0 lc Vt N M N d• N M N �0 'n 0 c \ .--' h b w N N M In M M M M N 69 Vi �0 h M h N h 0 M N N O M N W 7 0 0� N h 1 N n� vn M d' O N �0 h N w1 h 7� M t N t t O M O O l w r 7 vi �D O w N 0, Cn O N N M Cli 't tV w •-' N I •-+ O h w w o h 0 m o N M M O to -+ •--i O I� w� vi h h 0 0 01 D\ w M O vl 7 vi O Ot 0\ N N 'n N� 2 0\ N '+ w t� 'n w Oi M h N — 'h O B O� h N DD In M N '^ ti M 'n GD N M iD vi M m v IN v Vj G9 N U VV `V C �1 Pqq� N CL •J a p, o G C q W d On ,� A OR N^ao c! v o Von F z M >e 0 o u s ° a •v °' 0.o 1 a u a a88w, w , 00°p�O w' or. aay"U w pil 7Un wi d uu o i o �Fv w(ID p�,pu w a oa",wa" O a 0 W 0 a 143 d F W w O N 0 .n G e U a x U O � O ti o " Q ro � o L 0 w o U N � w � b � Q y � N U � •D 'GQ .O, d � v � � m U p b a� U U F m W N 7 d N d a a d A N 'b m ° w t°e o T v � o O O w � � 0 ti O ai W sv x o � m O 7 8 O ,G C y N i7 U A � l •3 w U d C m v ° m � R o 'ti w a •b C O � N N J y y N W N rtl w T � T b °UX � v N a o a U t0 •� o 00 7 Vi 144 ° 7 7 ji 0 e. 0 0 0 FAN o 6> N O w w N of M N 'N � `�'tix °rn o"'o o°OOrno.rnrnrnrn v 14� V ro v ' 0 0 0 0 0 0 0 0 0 N "t 't � too tiro d•d•� r N w w d; lo v� N U N N N N N N N N N N n M rn M F A U W M b •• •� ,� 7 M U O V� V�J V°`i � r '� '� C 7 rn m �n o yr •-, w .. �O o D a H M O 0�0 �D O N N N rFy I` Vi vi. o N h of o: N. d" W F '� w d' �n 7 .• vt .-. N M N. rn a R a N a y N O h h In, M O 7 N M O U �Fb 00 I , b w M R 5 r T p r O M O p M d' w d lo rn o0 00 0 0o rn C7 tC'y' Y t`r� � w w w I h I w U�� T w w l p yV Fr'� �t�wcowrnwr N.N h y tNatl O 'ti O c r ON+ N N E N M 7 O F y h �--� M �O �D to M N N a N N M to M M M M M M a A 4g d 'C V� o w m o\ w h •[ M M ol O O U •d m r- b b a w d• b . a v.n vr,����vmi . N P.' p W O G ? 0 0 0 0 0 0 N U 0 0 0 0 0 0 0 0 0 0 U a N 0 .n G e U a x U O � O ti o " Q ro � o L 0 w o U N � w � b � Q y � N U � •D 'GQ .O, d � v � � m U p b a� U U F m W N 7 d N d a a d A N 'b m ° w t°e o T v � o O O w � � 0 ti O ai W sv x o � m O 7 8 O ,G C y N i7 U A � l •3 w U d C m v ° m � R o 'ti w a •b C O � N N J y y N W N rtl w T � T b °UX � v N a o a U t0 •� o 00 7 Vi 144 Source: Dakota County TreasuretMuditor 145 CITY OF EAGAN Table 6 PROPERTY TAX RATES DIRECT AND OVERLAPPING PROPERTY TAX RATES Last Ten Years City Direct Rates Overlapping Rates Total Direct and Dakota County School District Special Overlapping Rates General Referendum General Referendum General Referendum Districts Levy (Tax Levy (Market Levy (Tax Levy (Market Levy (Tax Levy (Market (Tax Tax Market Capacity- Value- Capacity- Value- School Capacity- Value- Capacity- Capacity- Value - Year based) based) based) based) District based) based) based) based based 2004 28.702% 0.01874% 30.300% 0.00754% 191 18.955% 0.17130% 4.925% 82.882% 0.19758% 196 26.074% 0.13978% 90.001% 0.16606% 197 12.917% 0.11688% 76.844% 0.14316% 2005 28.186% 0.01894% 28.267% 0.00666% 191 17.729% 0.16763% 4.907% 79.089% 0.19323% 196 26.251% 0.10862% 87.611% 0.13422% 197 21.878% 0.09646% 83.238% 0.12206% 2006 26.704% 0.01712% 26.318% 0.00592% 191 18.315% 0.17155% 4.616% 75.953% 0.19459% 196 27.554% 0.22437% 85.192% 0.24741% 197 21.428% 0.10919% 79.066% 0.13223% 2007 25.232% 0.01574% 25.127% 0.00516% 191 18.152% 0.15852% 4.416% 72.927% 0.17942% 196 23.607% 0.20824% 78.382% 0.22914% 197 19.838% 0.08319% 74.613% 0.10409% 2008 25.892% 0.01526% 25.184% 0.00471% 191 19.374% 0.13199% 4.393% 74.843% 0.15196% 196 21.136% 0.21274% 76.605% 0.23271% 197 18.914% 0.09400% 74.383% 0.11397% 2009 26.886% 0.01517% 25.821% 0.00471% 191 19.842% 0.24464% 4.328% 76.877% 0.26452% 196 21.109% 0.21032% 78.144% 0.23020% 197 18.051% 0.09967% 75.086% 0.11955% 2010 30.408% 0.01603% 27.269% 0.00501% 191 20.668% 0.26417% 4.421% 82.766% 0.28521% 196 25.391% 0.22268% 87.489% 0.24372% 197 18.850% 0.10193% 80.948% 0.12297% 2011 33.675% 0.01704% 29.149% 0.00537% 191 21.854% 0.27427% 4.644% 89.322% 0.29668% 196 26.959% 0.22601% 94.427% 0.24842% 197 19.692% 0.11186% 87.160% 0.13427% 2012 34.553% 0.01644% 31.426% 0.00551% 191 21.881% 0.28538% 5.021% 92.881% 0.30733% 196 28.440% 0.22131% 99.440% 0.24326% 197 21.857% 0.16493% 92.857% 0.18688% 2013 38.272% 0.01726% 33.421% 0.00000% 191 26.168% 0.29632% 5.341% 103.202% 0.31358% 196 27.956% 0.23542% 104.990% 0.25268% 197 24.429% 0.18537% 101.463% 0.20263% Source: Dakota County TreasuretMuditor 145 CITY OF EAGAN PRINCIPAL PROPERTY TAXPAYERS Current year and nine years ago 2013 2004 Table 7 Source: Dakota County Treasurer /Auditor (1) Tax capacity is an artificial number calculated as the product of the assessed market value and a percentage established by the State Legislature for each property class. Current tax capacity class rates are significantly lower for commercial/industrial properties than they were ten years ago, while tax capacity class rates for residential properties are essentially the same, thus lowering the calculated tax capacity figures on commercial/industrial properties and effectively shifting more of the property tax burden to residential properties. 146 Percentage of Percentage of Tax Total Tax Tax Total Tax Taxpayer Capacity trr Rank Capacity Capacity t1r Rank Capacity Thomson Reuters $ 1,463,533 1 1.76 % $ 1,525,804 1 1.97 % BlueCross /BlueSbield of Minnesota 1,198,446 2 1.44 % 815,227 2 1.05 % DDRA Eagan Promenade, LLC 780,284 3 0.94 % 643,250 3 0.83 % Spectrum Commerce Center, LLC 528,586 4 0.64 % Ecolab 468,094 5 0.56 % 444,500 6 0.58 % Promenade Oaks, LLC 457,568 6 0.55 % Dakota Electric Association 437,908 7 0.53 % 490,692 5 0.63 % BRE /DP MN LLC 438,644 7 0.53 % CSM Properties 420,900 8 0.51 % Xcel Energy 385,490 9 0.46 % Duke Realty, LP 590,002 4 0.76 % NWA Real Estate Holding Co. LLC 347,768 7 0.45 % Unisys Corp 343,250 8 0.44 % Windsor at Promenade Oaks, LLC 300,000 9 0.39 % MN Hospital Services Association 339,250 10 0.44 % Totals $ 6,579,453 7.92 % $ 5,839,743 7.54 % Source: Dakota County Treasurer /Auditor (1) Tax capacity is an artificial number calculated as the product of the assessed market value and a percentage established by the State Legislature for each property class. Current tax capacity class rates are significantly lower for commercial/industrial properties than they were ten years ago, while tax capacity class rates for residential properties are essentially the same, thus lowering the calculated tax capacity figures on commercial/industrial properties and effectively shifting more of the property tax burden to residential properties. 146 W O 147 v F c 0 p � vi •w c��i °mNi � � N N N N N N N N N U r.J _ 00 h N N� O h Vl �� � O W V M P h a U y v ?� k O s ra° y O d k O N N N.M. din �.�+P 7 n _ pp 4" N N O (J F d � U M ti vii OMB b 4�l N N N N N N N N 66q" z "' a C N N N N N N N N W a a o _ ' U b � Q G v W�� a aN Pr •� � .N..v vvvN Nom`-' moo Y � O C W 6 1 W ¢CC � r� N N r O m w v•p ! O v � f "r�wry F`�i }} M vai v�j" ON V n N o N N U �• O O Y 265 y x O a Q •dC � o r p V N O N M T N q 0 V k b o o cNi N N O N. N." O . U w vvv vvv vv vv O C� '�� NU N 0 6 a v a o m �tltlG V 1� r 4 .°Yr H E 8 o A u d��v 147 ^ 't In 'cF In M O 00 00 M M d •p, 00 N 0) O M Q\ Vr 00 00 O O 00 n cad a [r IO IInn In. 000 M It d' It M M d' It M N CY U O W a H A H W A d W � � O QI, H O W O to O ra H 0 0 0 0 0 0 0 0 0 µ,I j� —y O Q1 00 00 O O Q\ M 0 O O O O O O 0 I" N C z O O o a o 0 0 0 0 0 C O O O O O O O O O O O o 0 C 0 0 0 0 0 0 In o vi o vi 'n v o In In o �t`.o�orn����ry > t� �o cri In of 'D vn t` 00 O N M N N N N N N N C7 69 O O O O O O I I I 1 y Cl O O O O O b In In In Cl O O �O rl ti ti O O � U rn 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O 4J O y p O O In O 0 0 0 to In tl- O N 00 M V) O <Y cl 0\ M N. p U C7 c ss U d 0 0 0 0 0 0 l l l 1 0 0 0 0 0 Cl H O N O O O O O O id O N m� Vim' N oo �0 d� lO 0� N d' rig N ('4 69 y O O O O O O O O O O �. O O O 0 Cl 0 Cl 0 0 O' 0 0 0 0 0 0 0 0 0 0 .' .d O O Lr � Vi O kn Vi Vi. In N ti f7 ;! � ol 000 M W es+ Vo1 O dam' 0 ti CQ oo m 0 0i t-- vi d' M ri N 69 'U fr 0 O fly 0 ti a. w° N H C/1 148 1 1 1 1 I (D I] C> CD � N O Cl O O O O x n �p O d O 0 N d O 00 N 0 M o00C000CDC) '� 0 •� 0 0 0 0 0 0 b y+ In In O In o 0 I 1 I 1 I I 1 1 1 0 0 0 0� C, 00 O b O O O O rJ r O � 0 0 N 69 IV \O U d• In �o t` 00 0, o N M 0 0 0 0 0 0 O O Cl O O O Cl O O O 'U fr 0 O fly 0 ti a. w° N H C/1 148 1 1 1 1 I (D I] C> CD � N O Cl O O O C 0 0 0 0 0 tN to O O In V1 N d O 00 N o00C000CDC) '� 0 •� 0 0 0 0 0 0 b In In O In o 0 I q op 0 0 0 0� C, 00 O O 69 U d• In �o t` 00 0, o N M 0 0 0 0 0 0 O O Cl O O O Cl O O O N N N N N N N N N N tp 'U fr 0 O fly 0 ti a. w° N H C/1 148 O d .Q E+ W W O U 1' a y, �w > o iH i 1 i O o M O in 00 O V � V1 O M M y� O V N o6 N 69 69 0 o m O N M r O ti N 69 Vi O o 00 O 19 C0 o � 0 0 00 M m o N N Y3 fA O o 0p O 00 �O O � N s9 v9 O o O 0 o rn O d O � N 69 69 0 o m O N M O M N O _ Nv N 69 � O o V1 O O O o m � O N �rj N 69 69 o o m cli O � N 69 N3 O o Vl O r N y� O O iD O ti V N M 69 69 O o 7 O M 00 O V d Vi O O O � d N r N 69 EH N o0 M o Gl O �D Vl O i _ O N 9 J O O� d0 y MV Vt 00 �O 69 d p V li rn ' Ri < rn � 69 all N � 69 0.0 v o n a (7, r f ON M M V f 00 N N 0 69 rn o 0 N h 7 �n cl On O V M � O b 14 O M N N N 69 O O O O o ol G� O N 69 o m h N O 00 O O b O 7 OMO N Ni N �o m h N oo O v 00 v l� • -� 69 Vl Vt O V1 0 O O M N d 7 Iq `-' N N O 149 y i _ O N 9 J O O� d0 y d p N Ri < 0.0 a z 0 149 CITY OF EAGAN Dakota County, Minnesota Table 11 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of December 31, 2013 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding(l) Applicable(2) Debt Overlapping Debt School Districts: I.S.D. No. 191 - Burnsville $ 108,795,000 10.3 % $ 11,205,885 I.S.D. No. 196 - Rosemount/AV /Eagan 105,209,247 35.1 36,928,446 I.S.D. No. 197 - West St. Paul 57,940,000 32.0 18,540,800 Dakota County 44,880,000 18.4 8,257,920 Regional: Metropolitan Council 23,675,000 131 2.4 568,200 Subtotal, Overlapping Debt 75,501,251 Direct Debt City of Eagan 8,660,000 100.0 8,660,000 Total Direct and Overlapping Debt $ 84,161,251 Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the govermnent'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. Debt figures are supplied by the City's fiscal consultants, Springsted. Excludes general obligation tax and aid anticipation certificates and revenue - supported debt. Includes annual appropriation lease revenue obligations. (z) The percent of governmental unit within the City's boundaries is calculated by the City's fiscal consultants, Springsted. (3) Excludes general obligation debt supported by wastewater revenues and housing rental payments. Includes certificates of participation. 150 N e-1 C3 W 0 V rr�1 4! W � RI ® �y U z� ww �a Cd N U H 00 110 011 00 V') � V) �O C> .-+ m d' O, N Ln bA N 0 O U O O O O O O O O O O O O O O O O O O O O O O O O O kn vl O O Vn O O O Vl O CIS O m t� 00 N N %,D d' O N 01 It I'D lD to (71 U N O 00 m 00 --i "t 00 � W) d- t- oo 00 d' oo mot %'D O a1 01 1r) .-, kn O Vn �dorn�D,�rn�n 110 O O I- lzY t- N 00 1�0 o0 ON �O 01 O\ t- C1 N a kr) Q W 64 U N O N \0 m m t- lD O\ O oo N N m O1 --i Cl � l n n N o kn m � - � 00 = 01 01 O\ 00 00 V) N Cl) 'cY Ln � t-- 00 ON 0 0 0 0 0 0 0 0 0 0 Cl Cl 0 0 0 Cl N N N N N N N N O U ti W U v O O N N Y N U fC3 � wCd O � Z "Cl �0 b� �� O a � Q U O TJ N O O ti N N � N bb g., ti Y Y ti ° 3-i N N � o Z 151 O a\ 00 m 00 O l� t� O .-i O O N Y H O O O O O O O O O O O O O O O O O O O O O O O O O kn vl O O Vn O O O Vl O CIS O m t� 00 N N %,D d' O N 01 It I'D lD to (71 U N O 00 m 00 --i "t 00 � W) d- t- oo 00 d' oo mot %'D O a1 01 1r) .-, kn O Vn �dorn�D,�rn�n 110 O O I- lzY t- N 00 1�0 o0 ON �O 01 O\ t- C1 N a kr) Q W 64 U N O N \0 m m t- lD O\ O oo N N m O1 --i Cl � l n n N o kn m � - � 00 = 01 01 O\ 00 00 V) N Cl) 'cY Ln � t-- 00 ON 0 0 0 0 0 0 0 0 0 0 Cl Cl 0 0 0 Cl N N N N N N N N O U ti W U v O O N N Y N U fC3 � wCd O � Z "Cl �0 b� �� O a � Q U O TJ N O O ti N N � N bb g., ti Y Y ti ° 3-i N N � o Z 151 CITY OF EAGAN DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Data sources (')Bureau of Economic Analysis - Dakota County Data (2) School enrollment is the total number of students in schools located in Eagan for Independent School District No. 191 (Burnsville), 196 (Rosemount) and 197 (West Saint Paul), each of which serves a portion of the City as well as other communites. (3) Unemployment rates were compiled by the Minnesota Department of Employment and Economic Development. (4) 2013 population data are estimates. Table 13 Unemployment Rate (3) 3.5 % 3.2% 2.9% 3.5% 4.1% 6.5% 6.4 % 5.6% 4.7% 4.1% 152 Personal Per Income Capita Fiscal (thousands Personal School Year Population of dollars)(] Income Enrollment (2) 2004 67,051 $ 2,760,490 41,170 11,075 2005 66,709 2,817,855 42,241 10,772 2006 66,508 2,908,129 43,726 10,753 2007 67,106 3,061,980 45,629 10,472 2008 65,847 3,052,074 46,351 10,622 2009 65,933 2,925,711 44,374 10,398 2010 64,206 2,770,661 43,153 10,432 2011 64,456 2,817,737 43,716 10,300 2012 64,972 3,238,659 49,847 10,214 20134) 64,900 N/A N/A 10,378 Data sources (')Bureau of Economic Analysis - Dakota County Data (2) School enrollment is the total number of students in schools located in Eagan for Independent School District No. 191 (Burnsville), 196 (Rosemount) and 197 (West Saint Paul), each of which serves a portion of the City as well as other communites. (3) Unemployment rates were compiled by the Minnesota Department of Employment and Economic Development. (4) 2013 population data are estimates. Table 13 Unemployment Rate (3) 3.5 % 3.2% 2.9% 3.5% 4.1% 6.5% 6.4 % 5.6% 4.7% 4.1% 152 CITY OF EAGAN PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2013 Taxpayer Employees Rank Thomson Reuters 7,700 1 BlueCross /BlueShield of Minnesota 3,250 2 US Postal Service 2,000 1') 3 Ecolab 1,500 4 United Parcel Service 1,400 5 Coca -Cola Midwest Bottling 800 6 Wells Fargo Mortgage 700 7 Prime Therapeutics 650 8 Argosy University 425 9 Dart Transit 410 10 Lockheed- Martin Tactical Defense Systems Northwest Airlines Cray Research Unisys Corp. U.S. Postal Service Bulk Mail Center Kraft American Totals Source: City Community Development - Planning Department. (1) City's estimate. 2004 Percentage of Total City Employment Employees Rank 14.33% 7,000 1 6.05% 3,000 2 3.72% 2.79% 2.61% 1,435 4 1.49% 885 7 1.30% 1.21% 0.79% 0.76% 1,750 3 1,100 5 900 6 736 8 680 9 400 10 35.05% 17,886 Table 14 Percentage of Total City Employment 14.34% 6.15% 2.94% 1.81% 3.59% 2.25% 1.84% 1.51% 1.39% 0.82% 36.65% 153 FUNCTION General government Administration Infonnation Technology City Clerk Finance Community Development Communications Total Public Safety Police Fire Total Public Works Engineering Streets and Highways Central Services Total Parks and Recreation Park and Recreation Tree Conservation Total Government Buildings Public Utilities Water Sewer Storm Drainage Water Quality Total Civic Arena Aquatic Facility Community Center ETV Community Television Total CITY OF EAGAN Table 15 BUDGETED FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 8.00 6.50 6.75 6.05 6.05 5.60 5.60 5.70 5.70 5.00 3.00 3.00 3.00 3,00 4.00 4.00 4.00 4.00 4.00 5,00 3.50 3.50 3.25 3.25 3.25 3.00 3.00 3.00 3.00 3.00 8.75 9.75 9.75 10.00 10.85 10.85 10.85 10.85 10.00 9,00 20.00 21.00 21,75 19.75 19.75 18.75 18.00 18.00 18.00 18.00 2.00 2.00 2.00 2.25 2,00 2.00 2.00 2.00 2,00 2.00 45,25 45.75 46.50 44.30 45,90 44.20 43,45 43.55 42.70 42.00 96.00 98.00 99.00 87.25 t l 87.25 82.95 82.95 82.95 82.95 82,95 3.00 2.00 3.00 5.00 5.00 5.00 5.00 5.00 5.00 5.50 99.00 100.00 102.00 92.25 92.25 87.95 87.95 87.95 87.95 88.45 14.00 12.00 6.50 32.50 14.00 13.00 11.00 11.00 11.00 12.00 12.00 12.67 12.67 12.67 6.00 6.00 5.83 5.83 5.83 32.00 31.00 29.50 29.50 29.50 11.00 10.40 10.40 10.40 12.67 12.60 12.60 12.60 5_83 5.80 5.80 5,80 29.50 28.80 28.80 28.80 25.65 25.45 24.45 25.45 26.75 24.75 24.75 24.50 24.50 24.00 1.75 2.75 2.75 2.75 2.75 2.75 2.75 2.70 2.70 2.70 27.40 28.20 27.20 28.20 29.50 27.50 27.50 27.20 27.20 26.70 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 11.00 12.00 12,00 13.67 13.50 13.50 13.30 13.30 13.50 13.50 6.00 6.00 6.00 5.33 5.83 5.50 5.50 5.50 5.50 5.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.00 1.00 3.00 4.00 4.50 4.50 4.50 4.50 4.50 4.50 4.00 4.00 20.50 22.50 23.00 24,00 24.33 24.00 23.80 23.80 24.00 24.00 3.95 4.20 3,87 3.87 3.87 3.87 3.87 3.87 3.87 3.87 2.40 2.40 2.73 2.73 2.73 2.73 2.73 2.73 2.73 2.73 8.00 9.00 9.00 10.00 10.00 10.00 10.00 10.00 9.75 9.75 4.00 tZ) 4.00 4.00 4.00 4.00 242.00 247.05 248,30 237,85 241.08 235.75 234.80 233.90 233.00 232.30 t0 Dispatch positions moved in 2007 to centralized Dakota Communications Center (11.75 FTEs) (z) Co rmunity Television operations began in 2009 Source: City of Eagan Budget Books 154 O N m 00 .-, 00 N "t m m �--� O \O N 'n V- 0\ m l- W) ;q �t Wn \O O O \O O — t- ll O\ O 00 N M vl 'V l� O .--i cn l- O N 00 vi .-� .-� O .-� a; O Q; t` Cj N M N N 00 O d' M 00 00 \O O\ — O O\ t` r N Vl O M 0\ \0 — 01 01 t` M .--� N .--� 00 1q v1 o0 00 N O O> ~O � N NI N 00 M_ \O O dt 0\ .g Wn cn d 00 to 00 00 00 m o0 t` l� d' O o0 M O M r In 00 V') O O .-• D1 ti 00 to p et D N o0 O l- N lr M M N ~O Cl) O N m 00 .-, 00 N "t m m �--� O \O N 'n V- 0\ m l- W) ;q �t Wn \O O O \O O — t- ll O\ O 00 N M vl 'V l� O .--i cn l- O N 00 vi .-� .-� O .-� a; O Q; t` Cj N M N N 00 O d' M 00 00 \O O\ — O O\ t` r N Vl O M 0\ \0 — 01 01 t` M .--� N .--� 00 1q v1 o0 00 N O O> ~O � N NI N 155 00 M_ \O O dt 0\ .g Wn cn In 00 d' 00 to 00 et M O N 00 Vl V1 00 00 V') M ''-� l- O p O r .--� M N o0 O l- V1 00 lr M M '11 ~O O 10 to 00 m N Cl N M l� 0\ 'd' 00 O \D 00 kn 01 ti' d' � �--� V1 M O\ N \D .--� M N m N C` 00 r- %� p l� .--� N O kn *-� Oi 00 000 O N O N rV Cl O V1 O\ O O M M O \D N d' o N � � �y y, ct O M m M O m M V1 M O M \p o0 01 .--� m [� 7 00 00 N N rq ON U C d' Cl \O l0 O .--� M 00 O 'ct O d' 00 Vl �i .� C` �t <t O\ <t M O �n et O o0 N M O\ O 'd' O M l- \O ' t N In O 0 dt \0 N ti O— 0 O 00 o0 O a y N In � wd cn H e! -It _ 00 O l� O M '-+ 01 N Cl) fn V1 ON .--� 00 Oo N N O N .-i O C> �n Vl l� l- N WJ ap 0 oo 00 \o G � kn 0o vi N of o m oo Cl) C) .-i cn a; c N <t 00 00 r ® N 0 M O\ \O O l� O O M_ O M M 00 (� kn N 0 m M In In 01 N .o �O M fn m N M N N o0 o O O vl N 00 .-i O\ O 00 00 Oi N N m NO .-� 00 l- N N N N .-+ l> N ON � 00 W M O M 00 0\ ct 7 d' It 0\ .-i O O l- O l-- 00 \O Wn N C> DD \D .--� O .-� Oi In oo 00 00 N -It .Mr Cl m M ti y v .. ti y O 4 ti N p O O U .O. W �i •� -, u Q P., V) fir" . v w O 0 „W V) al N 4 4 P. tv 3 by O d =�H P UU O u cl Off-. =u ) Via” z.�UU „u - on 155 N~ N Vii � 0000 V/ Cl) d' N "'a .-+ h h M 01 HN o6 Lr; M N o M In In N p N pa\ d' \lO It V1 N �--� .-� O <t h [� ON oo h V) In 'd' O p N Vi p N N �M. Vl O0 ON d' \�O It In N oo d; O N '. M In d• et ct In N h N h O --� d• \1 Vl In M d' "p (ON N Vi o0 p M N V' N. h O p N M M M N N N 0O � N V) 00 p p N M M M N N N Cl N z O N M N ^� M M N N O N H U z h h 00 0 In N M N N \o cO Vl M It M N rrj Vi rn po. N ri --I m n N N N z r N N d h oo h O ID N N N p h v O w E W M <Y c NN 4 N p M M <f V c� 't O E•y Y Cl N M M cr N N N 7 [-4 N O � O �-+ In In M �o �o p In N N N ,-. •-+ d, In '. O �h to a 'd" c,.l \o N h (1) 'It D\ N N O N c� .-r M Ki N N N (� Fy O "y N N y 'b i-e -Ny � y @ o 0 4) 4- ^ . a c a U w N m ro aNi n y �qq ti N (j y y bb o 3 h ^a9 `d Oy r�5 O 1�-� o o 3 ° N o v w o a`"i ++ O v O O O U.�.GO w �v�ivbiE� V y3w3 ,. V) m z z 156 wa, a a 3 z z CITY OF EAGAN Dakota County, Minnesota COMMUNICATIONS LETTER For the Year Ended December 31, 2013 CITY OF EAGAN TABLE OF CONTENTS REPORT ON MATTERS IDENTIFIED AS A RESULT OF THE AUDIT OF THE FINANCIAL STATEMENTS .......................................... ............................... 1 REQUIREDCOMMUNICATION ................................................................. ............................... 3 FINANCIALANALYSIS ................................................................................. ............................... 6 EMERGINGISSUES ....................................................................................... ............................... 18 Expert adi ice. When you need it.' REPORT ON MATTERS IDENTIFIED AS A RESULT OF THE AUDIT OF THE FINANCIAL STATEMENTS Honorable Mayor, Members of the City Council and Management City of Eagan Eagan, Minnesota In planning and performing our audit of the financial statements of the City of Eagan, Minnesota, as of and for the year ended December 31, 2013, in accordance with auditing standards generally accepted in the United States of America, we considered the City's internal control over financial reporting (internal control) as a basis for designing our auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. 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 combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented or detected and corrected on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses. A significant deficiency is a deficiency, or 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. The accompanying memorandum also includes financial analysis provided as a basis for discussion. The matters discussed herein were considered by us during our audit and they do not modify the opinion expressed in our Independent Auditor's Report dated May 12, 2014, on such statements. This communication is intended solely for the inforination and use of management, the City Council, others within the City and state oversight agencies and is not intended to be and should not be used by anyone other than these specified parties. We would like to express our appreciation for the cooperation extended to us by the management and employees of the City during our audit. KERN, DEWENTER, VIERE, LTD. Minneapolis, Minnesota May 12, 2014 OA CITY OF EAGAN REQUIRED COMMUNICATION December 31, 2013 We have audited the financial statements of the City for the year ended December 31, 2013, and have issued our report dated May 12, 2014. Professional standards require that we provide you with the following information related to our audit. OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA As stated in our engagement letter, our responsibility, as described by professional standards, is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility for the supplementary information accompanying the financial statements, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the financial statements as a whole and to report on whether the supplementary information is fairly stated, in all material respects, in relation to the financial statements taken as a whole. PLANNED SCOPE AND TIMING OF THE AUDIT An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit involved judgment about the number of transactions to be examined and the areas to be tested. Our audit included obtaining an understanding of the City and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing and extent of further audit procedures. Material misstatements may result from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets or (4) violations of laws or governmental regulations that are attributable to the City or to acts by management or employees acting on behalf of the City. 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 the year ended December 31, 2014. 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 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 financial statements are stated on the following page. CITY OF EAGAN REQUIRED COMMUNICATION December 31, 2013 QUALITATIVE ASPECTS OF ACCOUNTING PRACTICES Depreciation — The City is currently depreciating its capital assets over the estimated useful lives, as determined by management, using the straight -line method. Net Other Post Employment Benefits (OPEB) Obligation — This liability is based on an actuarial study using estimates of future obligations of the City for post employment benefits. The disclosures in the financial statements 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 misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management did not identify and we did not notify them of any uncorrected financial statement misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. 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 requested certain representations from management that are included in the management representation letter. 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. M CITY OF EAGAN REQUIRED COMMUNICATION December 31, 2013 OTHER AUDIT FINDINGS OR ISSUES We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. OTHER MATTERS With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content and methods of preparing the information to determine that the information complies with accounting principles generally accepted in 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. 5 CITY OF EAGAN FINANCIAL ANALYSIS December 31, 2013 The following pages provide graphic representation of select data pertaining to the financial position and operations of the City for the past five years. Our analysis of each graph is presented to provide a basis for discussion of past performance and how implementing certain changes may enhance future performance. We suggest you view each graph and document if our analysis is consistent with yours. A subsequent discussion of this information should be useful for planning purposes. GENERAL FUND Total fund balance in the General Fund increased 5.2 %, or $ 755,970, in 2013. Revenues exceeded expenditures by $ 1,053,449 for the period. The General Fund also had net transfers out of $ 307,486 and sales from City property of $ 10,007. $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 Fund Balance - General Fund 2009 2010 2011 2012 2013 CITY OF EAGAN FINANCIAL ANALYSIS December 31, 2013 GENERAL FUND The following graph presents year -end unassigned fund balance as a percentage of the next year's budgeted expenditures. The state recommends cities maintain a fund balance of 35% to 50% of operating revenues, or no less than five months, or approximately 42 % of operating expenditures at year -end. This recommendation is a result of the timing of the City's most significant revenue source, the property tax levy. The first significant receipt of property taxes occurs midway through the year, requiring sufficient fund balance at the beginning of the year to cash flow operations. The City's policy is to maintain an unassigned fund balance of between 40 % and 45% of the following year's expenditures. During 2013, the City's General Fund unassigned fund balance remained consistent at 50.1% of the following year's expenditures as a result of the increase in fund balance (5.2 %). 60.0% 50.0% 40.0% 30.0 % 20.0% 10.0% 0.0% Unassigned Fund Balance as a Percent of Subsequent Year's Budget 2009 2010 2011 2012 2013 7 CITY OF EAGAN FINANCIAL ANALYSIS December 31, 2013 GENERAL FUND The graph below presents a comparison of final budget and actual results for General Fund revenues: 2013 General Fund Revenues and Other Sources Budget and Actual $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ Property Taxes Licenses and Intergovernmental Charges for Program Income Transfers and pennits Services and Other Other Sources 13 Budget $22,113,100 $1,415,900 $1,036,100 $1,998,100 $909,800 $1,637,500 oActual 21,965,317 2,578,283 1,139,793 2,718,305 953,426 1,585,521 Total General Fund revenue, including other financing source items, was over the final revised budget by $ 1,830,145, or 6.3 %. Licenses and permits carne in $ 1,162,383 over budget as a result of increased building activity; the City budgeted conservatively for these amounts based on past fees received. Charges for services were $ 720,205 over budget due to the tuning of completed projects and the amount of engineering fees being charged. This category has been historically budgeted conservatively given the unknown timing of when projects will be fully completed. FZ CITY OF EAGAN FINANCIAL ANALYSIS December 31, 2013 GENERAL FUND The chart below shows the City's revenues by source for the last five years: General Fund Revenues and Other Sources $35,000,000 $30,940,645 $28,579,560 $28;985,883 $30,000,000 $27;549,001 $27,662,798 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ 2009 2010 2011 2012 2013 ❑Transfers and Other Sources $417,781 $451,807 $433,465 $450;852 $1,585,521 ® Program Income and Other 2,430,679 2,567,039 2,268,697 2,221,928 953,426 ® Charges for Services 2,192,712 2,122,119 1,995,464 2,628,986 2,718,305 El Intergovernmental 722,896 1,076,175 733,697 744,268 1,139,793 ® Licenses and Pennits 1,083,419 1,056,337 1,120,375 1,608,203 2,578,283 O Property Taxes 20,701,514 21,306,083 21,111,100 21,331,646 21,965,317 In total, revenues and other sources increased $ 1,954,762, or 6.3 %, from 2012 to 2013. Property taxes increased $ 633,671, a function of the certified levy and delinquent tax collections. Licenses and permits increased $ 970,080 as a result of higher building activity and a turnaround in the housing market. Intergovernmental revenue increased $ 395,525 as a result of recognizing State Fire Aid as revenue for the first time. Program income and other revenues decreased $ 1,268,502 with a change in the approach the City took in 2013 in reporting inter -fund activity. M CITY OF EAGAN FINANCIAL ANALYSIS December 31, 2013 GENERAL FUND The graph below presents a comparison of final budget and actual results for General Fund expenditures: 2013 General Fund Expenditures Budget and Actual $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 General Public Safety Public Works Parks and Government Contingencies Government Recreation Buildings 0Budget $5,277,100 $14,832,600 $3,521,800 $4,639,800 $724,300 $48,800 0 Actual 51088,831 14,366,334 3,711,097 4,401,961 733,452 Annual expenditures were $ 742,725, or 2.6 %, under final budgeted amounts. General government expenditures were $ 188,269 under budget as a result of reallocating wages to another fund. Public safety expenditures were $ 466,266 under budget due to not fully staffing during all months and changes in state aid and how it gets coded. Public works expenditures were $ 189,297 over budget due to an increase in snow /ice removal and more repair expenses than expected. Park and recreation expenditures decreased $ 237,839 due to savings across all areas. 10 CITY OF EAGAN FINANCIAL ANALYSIS December 31, 2013 GENERAL FUND The chart below shows the City's expenditures by function for the last five years: General Fund Expenditures and Other Uses $10,000,000 $5,000,000 $ 2009 2010 2011 2012 2013 ❑Transfers to Other Funds $- $- $1,500,000 $- $1,883,000 • Government Buildings 555,671 564,915 702,796 704,775 733,452 • Parks and Recreation 4,109,896 4,226,157 4,248,280 4,359,618 4,401,961 ID Public Works 3,428,411 3,583,494 3,440,843 3,361,282 3,711,097 El Public Safety 13,264,471 13,316,005 13,362,961 13,495,458 14,366,334 19 General Goveninent 5,051,477 5,190,387 1 5,051,642 1 5,109,930 1 5,088,831 Overall, expenditures and other uses increased $ 3,153,612, or 11.7 %. Factoring out transfers to other funds, expenditures increased $ 1,270,612, or 4.7 %, from the prior year. The most significant increase was noted in the function of public safety; the increase was a result of the cost of living increases for employees and an increase in fire safety aid. Public works expenditures increased $ 349,815 due to increases in snow and ice removal as well as an increase in repair supplies. All other functions have remained consistent from 2012 to 2013. 11 CITY OF EAGAN FINANCIAL ANALYSIS December 31, 2013 DEBT SERVICE The line graph below shows the City's future debt service payments as of December 31, 2013: $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Annual Debt Service Payments N N N N N N N N N N N N N N N N N O O O O O O O O O O O O O O O O O N N N N N N N N N W P v, ON -.1 00 10 O N W 4P cA ON —1 00 O Total Debt Service Payments Debt service increases in 2017 with higher principal payments on the 2013A G.O. Tax Increment Bonds. These bonds are not anticipated to require any resources from the City other than the dedicated tax increments received related to the project. In 2022, the City's annual debt service payments drop significantly with the retirement of the 2009B G.O. Facility Refunding (Community Center) Bonds. 12 CITY OF EAGAN FINANCIAL ANALYSIS December 31, 2013 PUBLIC UTILITIES ENTERPRISE FUND OPERATIONS Operating income, as well as designations for capital replacement for the City's four public utility divisions, are shown below for the year 2013: Amount Designated for Capital Replacement $ 1,857 $ 188 $ - $ 494 $ 2,539 Water sales were down approximately 14% from the prior year, resulting in a larger operating loss for this segment. The sewer and street lighting segments outperformed 2012 numbers, while increased operating expenses in Storm Drainage/Water Quality increased the size of the operating loss from the prior year. Nonoperating revenues are not allocated out to each division and are shown in total. The City Council policy does not factor in depreciation expense as part of evaluating capital replacement needs or setting user charges. 13 Storm Drainage/ Street Water Sewer Water Lighting Quality Total Operating Income (Loss) $ (335) $ (1,580) $ 95 $ (1,342) $ (3,162) Add Depreciation 761 2,251 13 1,152 4,177 Add Net Nonoperating Revenue - - - - 1,980 Ainount Available for Capital Replacement $ 426 $ 671 $ 108 $ (190) $ 2,995 Amount Designated for Capital Replacement $ 1,857 $ 188 $ - $ 494 $ 2,539 Water sales were down approximately 14% from the prior year, resulting in a larger operating loss for this segment. The sewer and street lighting segments outperformed 2012 numbers, while increased operating expenses in Storm Drainage/Water Quality increased the size of the operating loss from the prior year. Nonoperating revenues are not allocated out to each division and are shown in total. The City Council policy does not factor in depreciation expense as part of evaluating capital replacement needs or setting user charges. 13 CITY OF EAGAN FINANCIAL ANALYSIS December 31, 2013 AQUATIC FACILITY ENTERPRISE FUND OPERATIONS The chart below shows the challenges the Aquatic Facility has had in maintaining adequate working capital. The Aquatic Facility sets aside a certain amount of cash for capital replacement each year. This set aside of cash has exceeded the Fund's total cash, resulting in negative working capital each of the preceding four years. During 2011, the Fund received transfers from the Housing Fund and the Community Investment Fund totaling $ 910,000, which in effect liquidated the interfund loan payable to each of those funds. With this debt service obligation eliminated, the Fund was able to dedicate 2012 and 2013 positive cash flow from operations to strengthen its working capital position and capital replacement. In addition, the fund received an $ 827 thousand cash infusion from the General Fund in 2013. Aquatic Facility Cash $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- $(200,000) $(400,000) $(600,000) 2009 1 2010 1 2011 j 2012 2013 Committed Cash and Investments $740,251 $605,586 $676,312 $734,405 1 $804,100 Total Cash and Investments 1 401,982 200,646 208,388 379,588 1 1,342,270 Worldne Cauital Less Committed Amounts (472,557) 1 (546,035) 1 (486,097) 1 (370,996) 1 513,326 14 CITY OF EAGAN FINANCIAL ANALYSIS December 31, 2013 CIVIC ARENA ENTERPRISE FUND OPERATIONS Similar to the Aquatic Facility, the Civic Arena has also experienced working capital challenges; while this fund also has positive cash flows from operations, debt service on an internal loan makes it difficult to maintain cash reserves. This fund also benefited from a transfer from the General Fund in 2013 totaling $ 405,000. Civic Arena Cash 0- - 15 CITY OF EAGAN FINANCIAL ANALYSIS December 31, 2013 COMMUNITY CENTER ENTERPRISE FUND OPERATIONS While the Community Center posts annual operating losses, depreciation expense is not factored into the evaluation of the fund's performance. An annual transfer from the utility fiend representing antenna lease revenue makes up the remaining operating shortfall and a dedicated property tax levy services the debt. Operating Loss Add Depreciation Less Debt Service Transfers In of Antenna Lease Charges Other Transfers In Add Net Nonoperating Revenue Amount Available for Capital Replacement Amount Designated for Capital Replacement PRODUCTIVITY MEASURES Population Number of Households Number of Employees Population per Employee Households per Employee 16 2009 2010 2011 2012 2013 $ (635) $ (673) $ (760) $ (762) $ (804) 482 514 533 553 540 (1,130) (1,308) (1,126) (1,129) (1,057) 212 238 280 304 364 - 45 7 - - 1,227 1,502 1,417 1,189 1,160 $ 156 $ 318 $ 351 $ 155 $ 203 $ 158 $ 158 $ 158 $ 158 $ 158 2009 2010 2011 2012 2013 65,933 64,206 64,200 64,765 64,854 25,562 25,249 25,284 25,340 25,236 236 235 234 233 232 279 273 274 273 280 108 107 108 109 112 16 CITY OF EAGAN FINANCIAL ANALYSIS December 31, 2013 2012 TOTAL EXPENDITURES FOR COMPARABLE CITIES Blaine Plymouth Eagan Coon Rapids Woodbury Lakeville Burnsville Minnetonka Eden Prairie Brooklyn Park St. Cloud Maple Grove Rochester Bloomington St. Paul Duluth Minneapolis 2012 Per Capita Total Expenditures MN Cities with 50,000 +Population (Source: State Auditor, March 2014) 1 ! W 2 17 CITY OF EAGAN EMERGING ISSUES December 31, 2013 Executive Summary The following is an executive summary of financial and business related updates to assist you in staying current on emerging issues in accounting and finance. This summary will give you a preview of the new standards that have been recently issued and what is on the horizon for the near future. The most recent and significant updates include: • Accounting for pensions —This accounting update has been issued and will be applied for 12/31/15 year -end reporting. • Internal Control Integrated Framework — COSO has issued an updated integrated framework for internal control. The update is expected to make the integrated internal control framework easier to use and apply. In addition, the update takes into account globalization of businesses today and their interdependence on technology. This update has been issued and will supersede the original framework at the end of 2014. The following are extensive summaries of each of the current updates. As your continued business partner, we are committed to keeping you informed of new and emerging issues. We are happy to discuss these issues with you further and their applicability to your company. ACCOUNTING STANDARD UPDATE — ACCOUNTING FOR PENSIONS GASB Statement No. 68 replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers and Statement No. 50, Pension Disclosures, as they relate to governments that provide pensions through pension plans administered as trusts or similar arrangements that meet certain criteria. Statement No. 68 requires governments providing defined benefit pensions to recognize their long -term obligation for pension benefits as a liability for the first time, and to more comprehensively and comparably measure the annual costs of pension benefits. COSO PROJECT — INTERNAL CONTROL INTEGRATED FRAMEWORK In 1992, the Committee on Sponsoring Organizations of the Treadway Commission (COSO) developed an internal control framework that has been adopted and used by entities worldwide. In 2013, COSO finalized and released an updated integrated internal control framework. The update is expected to make the integrated framework easier to use and apply. In addition, the update takes into account the business environment of today and the reliance on and interdependence of technology within business systems. The internal control update is not changing the core definition of internal control, the three categories of objectives or the five components of internal control. COSO defines internal control as a process, affected by an entity's board of directors, management and other personnel. This process is designed to provide reasonable assurance regarding the achievement of the three objectives, as follows: effectiveness and efficiency of operations; reliability of financial reporting; and compliance with applicable laws and regulations. CITY OF EAGAN EMERGING ISSUES December 31, 2013 COSO PROJECT — INTERNAL CONTROL INTEGRATED FRAMEWORK (CONTINUED) 1. Internal control is a process. It is a means to an end, not an end in itself. 2. Internal control is not merely documented by policy manuals and forms. Rather, it is put in by people at every level of an organization. 3. Internal control can provide only reasonable assurance, not absolute assurance, to an entity's management and board. 4. Internal control is geared to the achievement of objectives in one or more separate but overlapping categories. The five components of internal control, which are unchanged, are as follows: 1. Control Environment - integrity, ethics, management style, etc. 2. Risk Assessment - identification and analysis of relevant risks. 3. Control Activities - policies, procedures and activities, including segregation of duties. 4. Information and Communication - ensure information effectively flows up, down and across the organization, both internally and externally. 5. Monitoring Activities - assessment of the systems performance over time. The updated framework has changed to address the changes in business and operating environments, such as globalization of markets and operations, greater complexities in businesses, reliance on evolving technologies and expectations relating to preventing and detecting fraud. In addition, principles of effective internal controls have been added to each of the components of internal control as follows: Control Environment: 1. Demonstrates a commitment to integrity and ethical values. 2. The board of directors is independent from management and exercises oversight responsibility of the performance of internal controls. 3. Management establishes structure, reporting lines, authority and responsibility. 4. Demonstrates a commitment to attract, develop and retain competent individuals. 5. Enforces accountability for individual's internal control responsibilities. Risk Assessment: 1. Specifies suitable objectives with sufficient clarity. 2. Identifies and analyzes risk as a basis for how risks should be managed. 3. Assesses the potential for fraud risk. 4. Identifies and analyzes significant changes that could impact the system of internal controls. Control Activities: 5. Selects and develops control activities that contribute to the mitigation of risks. 6. Selects and develops general controls over technology. 7. Deploys control activities through policies that establish what is expected and procedures that put policies into place. 19 CITY OF EAGAN EMERGING ISSUES December 31, 2013 COSO PROJECT — INTERNAL CONTROL INTEGRATED FRAMEWORK (CONTINUED) Information and Communication: 8. Uses relevant information to support the functioning of other components of internal control. 9. Communicates information internally, including objectives and responsibilities necessary to support the internal controls. 10. Communicates with external parties regarding matters affecting internal control. Monitoring Activities: 11. Conducts ongoing and/or separate evaluations to ascertain whether the components of internal control are present and functioning. 12. Evaluates and communicates deficiencies to those parties responsible for corrective actions. The updated framework also has additional examples relevant to operation, compliance and reporting objectives added. While COSO integrated internal control framework is very extensive, this is only a short summary of some of the changes of the updated framework. The updated framework will supersede the original framework at the end of 2014; however, users of the framework are encouraged to transition to the updated framework as soon as possible. 20 Expert advice. VVl1en you need REPORT ON LEGAL COMPLIANCE INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Eagan Eagan, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the City of Eagan, Minnesota as of and for the year ended December 31, 2013, and the related Notes to the Financial Statements, and have issued our report thereon dated May 12, 2014. The Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the State Auditor pursuant to Minn. Sat. § 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 Eagan, Minnesota failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Political Subdivisions. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions. This report is intended solely for the information and use of those charged with governance and management of the City and the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. KERN, DEWENTER, VIERE, LTD. Minneapolis, Minnesota May 12, 2014 Expert advice. When you need it.' "' Cei7ifed Public Accountants Wealth Management Payroll Services Business Valuations Technologv Services St. Cloud 220 Park Avenue S. P.O. Box 1304 St. Cloud, Minnesota 56302 Phone: 320.251.7010 Fax: 320.251.1784 Twin Cities 3800 American Boulevard W. Suite 1000 Minneapolis, Minnesota 55431 Phone: 952.563.6800 Fax: 952.563.6801 www.lcdv.com Toll Free 877.912.7696 Technology Help Desk 866.400.6426 Agenda Information Memo June 3, 2104, Eagan City Council Meeting PUBLIC HEARINGS A. Variance (1443 Lone Oak Road) — Thorson Homes, Inc. Action To Be Considered: To approve a Variance of 17.5' to the required front yard setback of 125' from the right - of -way center line of Lone Oak Road, for property located at 1443 Lone Oak Road, subject to the conditions listed in the staff report. Required Vote For Approval: ➢ Variance —Majority of Councilmembers present Facts: ➢ The property is zoned R -1 and is a platted lot of record. Access is from Lone Oak Road. ➢ Lone Oak Road is classified as a Major Thoroughfare. The required minimum front setbacks from a major thoroughfare is 50' or 125' from the right -of -way center line, whichever is greater. In this case, the 125' from the centerline is the greater measure, and equates to 67.5' setback from the front lot line. ➢ Due to utility easements and slopes on the property, the applicant is proposing a 50' structure setback from the front lot line. ➢ The proposed 50' setback is consistent with that of several other homes in this area, and also with the minimum setback distance generally applied to County roads. Issues: ➢ None 60 -Day Agency Action Deadline: ➢ July 7, 2014 Attachments: (3) PHA -1 Location Map PHA -2 Staff Report PHA -3 Report Exhibits c�a 0 V ►w 1 is d AN 4u(DH Q U -!:�Iz a� 0 N �. o f° U r- w m o Q 3 Lo Lo d ° -1 mp o l.' Ag � Q 3f1N3A �� oY z Qf U Z 3 E ® .. cwi 0 0 w > w o'� � r 3NVl O 2f J�Oy ow 4 W Ft PO Z O N NORCN�JO y LL as sai3ws 0 a N IL ® se ®, cc �2 a- aat a 300121 OI 'y 3 v ao ea o � a o � 3OVHH31 M31AHOIH m Aldo Jt)(JIH 3NId K w Q w j AI NIl1JIS MDG�WAMHO w } 3NVI NO )I 30VUU31M31�3 lea Y O O 4p O p - ® oVON NVINHOVOo ES CD E a d L6 o 0 C = = O C 0 0 0 O O J N O O Z Z -!:�Iz a� 0 N �. o f° U r- w m o Q 3 Lo Lo d ° -1 mp o l.' Ag � Q 3f1N3A �� oY z Qf U Z 3 E ® .. cwi 0 0 w > w o'� � r 3NVl O 2f J�Oy ow 4 W Ft PO Z O N NORCN�JO y LL as sai3ws 0 a N IL ® se ®, cc �2 a- aat a 300121 OI 'y 3 v ao ea o � a o � 3OVHH31 M31AHOIH m Aldo Jt)(JIH 3NId K w Q w j AI NIl1JIS MDG�WAMHO w } 3NVI NO )I 30VUU31M31�3 lea Y O O 4p O p - ® oVON NVINHOVOo ES CD E a l.' Ag � Q 3f1N3A �� oY z Qf U Z 3 E ® .. cwi 0 0 w > w o'� � r 3NVl O 2f J�Oy ow 4 W Ft PO Z O N NORCN�JO y LL as sai3ws 0 a N IL ® se ®, cc �2 a- aat a 300121 OI 'y 3 v ao ea o � a o � 3OVHH31 M31AHOIH m Aldo Jt)(JIH 3NId K w Q w j AI NIl1JIS MDG�WAMHO w } 3NVI NO )I 30VUU31M31�3 lea Y O O 4p O p - ® oVON NVINHOVOo ES CD E a PLANNING REPORT CITY OF EAGAN REPORT DATE: May 28, 2014 APPLICANT: Thorson Homes Inc. PROPERTY OWNER: Thorson Homes Inc. REQUEST: Variance LOCATION: 1443 Lone Oak Road CASE: 04- VA- 07 -05 -14 HEARING DATE: June 3, 2014 APPLICATION DATE: May 8, 2014 PREPARED BY: Pamela Dudziak COMPREHENSIVE PLAN: LD, Low Density Residential ZONING: R -1, Single - Family Residential SUMMARY OF REQUEST The applicant is requesting approval of a 17.5' Variance to the required structure setback of 125' from the center line of the Lone Oak Road right of way. For construction of a single family home upon property located at 1443 Lone Oak Road, legally described as Lot 1, Block 1, Kennerick 4th Addition. AUTHORITY FOR REVIEW City Code Chapter 11, Section 11.50, Subdivision 3, B., 3, states that the Council may approve, approve with conditions or deny a request for a variance. In considering all requests for a variance, and whether the applicant established that there are practical difficulties in complying with the provisions(s) of this Chapter, the City Council shall consider the following factors: a. Exceptional or extraordinary circumstances apply to the property which do not apply generally to other properties in the same zone or vicinity, and result from lot size or shape, topography, or other circumstances over which the owner of property has no control. b. The literal interpretation of the provisions of this Code would deprive the applicant property use commonly enjoyed by other properties in the same district under the provisions of this Code. c. The exceptional or extraordinary circumstances do not result from the actions of the applicant. Planning Report — Thorson Homes June 3, 2014 Page 2 d. The granting of the variance will not confer on the applicant any special privilege that is denied by this Chapter to owners of other lands, structures or buildings in the same district. e. The variance requested is the minimum variance which would alleviate the practical difficulties. f. The variance would not be materially detrimental to the purposes of this Code or to properties in the same zone. g. The property for which the variance is requested is otherwise in compliance with the City Code. The ordinance also states "A variance will be denied when it is not in harmony with the general purposes and intent of the zoning provisions of this Code or when the variance is inconsistent with the comprehensive plan. Any condition imposed upon the approved variance must be directly related to and must bear a rough proportionality to the impact created by the variance." CODE REQUIREMENTS The City's Functional Classification Plan in Chapter 7 of the Comprehensive Guide Plan identifies Lone Oak, Road in this location as a Major Thoroughfare. Thus, additional setbacks in City Code Section 11.60, Subdivision 5 apply. City Code Sec. 11.60, Subd. 5.G., states in part: The following shall be the minimum required building setback along any interstate or state highway, major thoroughfare or minor thoroughfare, either existing or proposed as shown on the current Functional Classification Plan: BACKGROUND/HISTORY The site was platted in its current configuration in 2013 as Kennericic 4th Addition. It was previously two parcels, platted in 2003 as part of Kennericic 2nd Addition. There is a 20' utility easement for a water line along the east side of the property and a pond with a significant slope in the northwest portion of the site. Dakota County required dedication of an additional 5' of right -of -way with the plat in 2013. Consequently, the Lone Oak Road right -of -way for this lot is 5' wider than adjacent lots. RIGHT -OF -WAY THOROUGHFARE WIDTH MINIMUM SETBACK Major Thoroughfare 150 feet 50 feet or 125 feet from the (Principal and A Minor right -of -way centerline, Arterials) whichever is greater BACKGROUND/HISTORY The site was platted in its current configuration in 2013 as Kennericic 4th Addition. It was previously two parcels, platted in 2003 as part of Kennericic 2nd Addition. There is a 20' utility easement for a water line along the east side of the property and a pond with a significant slope in the northwest portion of the site. Dakota County required dedication of an additional 5' of right -of -way with the plat in 2013. Consequently, the Lone Oak Road right -of -way for this lot is 5' wider than adjacent lots. Planning Report — Thorson Homes June 3, 2014 Page 3 EXISTING CONDITIONS The site is a vacant platted lot, zoned R -1, Single- family residential. The surrounding area is also zoned R -1 and developed primarily with single - family homes. To the south is Pilot Knob Elementary School, zoned PF, Public Facilities, and east of that are quad -homes zoned PD, Planned Development. The lot takes access from Lone Oak Road. There is a 20' utility easement along the cast edge of the lot over an existing water line. Storm sewer easement also encumbers the south, west and northwest portions of the lot. EVALUATION OF REQUEST Proposal — The applicant proposes to construct a single - family dwelling upon property zoned R -1. The required minimum structure setback from Lone Oak Road is 50' from the front lot line, or 125' from the right -of -way center line, whichever is greater. In this case, 125' from the center line is the greater measure, and equates to a 67.5' setback from the front lot line. Due to the slopes and easements upon the property, the applicant is proposing a front yard setback of 50' from the front lot line, resulting in a Variance request of 17.5'. Variance Criteria — The Zoning Ordinance states that relief may be granted from a required ordinance provision provided there are special conditions that apply to the subject land, the relief is not contrary to the Zoning Ordinance and Comprehensive Guide Plan, and it is necessary to alleviate a practical difficulty. Evaluation — The applicant has submitted both a conforming plan and a proposed plan illustrating the difference in placement of the structure on the lot. The proposed 50' setback is consistent with the adjacent home to the east. Structure setbacks vary along the north side of Lone Oak Road, and many of the homes with some homes set back further than 50', with 50' being the minimum. Estimating from aerial photos and the County GIS data, the several houses east of the subject site are set back between 50' and 90', and the two houses to the west are set back about 50'. The proposed 50' structure setback is consistent with the placement of several other homes along the same stretch of Lone Oak Road. However, because the required structure setback is greater, the equivalent of 67.5' from the front property line, a Variance is required to allow the proposed 50' setback. The utility easements and topography constrain the buildable area of the lot. These conditions are unique to this property and limit placement of the structure within the lot. With the 2013 plat, the owner dedicated additional right -of -way to the County for Lone Oak Road, which reduced the depth of the lot by 5'. The proposed Variance does not appear to be contrary to the Zoning Ordinance, or the Comprehensive Guide Plan. Granting of the Variance would not appear to result in any detrimental effects to neighboring properties or the public. Planning Report — Thorson Homes June 3, 2014 Page 4 Airport Noise — The City of Eagan considered airport noise as a factor in its Comprehensive Land Use Guide Plan and has adopted an Aircraft Noise Zone Overlay District in the land use regulations of the City Code in accordance with the Metropolitan Council's 2030 Transportation Policy Plan, Appendix M (Land Use Compatibility Guidelines for Aircraft Noise). New construction as defined within these regulations is subject to noise attenuation requirements to limit negative impacts of aircraft noise on residents and inhabitants of structures located within established noise zones. The site is located within the one -mile buffer of Zone 4. New residential construction is required to achieve an interior sound level of 45dBa, and a minimum 19 dBa interior sound level reduction within the Zone 4 Buffer per City ordinance. APPLICANT'S PRACTICAL DIFFICULTIES The lot is constrained by existing easements, slopes and ponding. The Applicant's narrative indicates that the required 125' measure from the right -of -way center line pushes the house further back on the lot and into the slopes. The proposed 50' setback is consistent with several other homes in this area, and with the minimum setback distance generally applied to County roads. SUMMARY /CONCLUSION In summary, the applicant is requesting approval of a front setback Variance of 17.5'. The applicant is proposing a 50' front setback for construction of a single - family home on an existing platted lot of record, whereas the required front setback is 125' from the right -of -way center line or the equivalent of 67.5' from the front lot line. The proposed 50' setback is consistent with several other homes along this stretch of Lone Oak Road. The lot contains easements and topography that appear to be unique conditions of this site, and which constrain placement of the structure within the lot. Granting of the Variance does not appear to result in any detrimental effects to neighboring properties or the public. ACTION TO BE CONSIDERED To approve a Variance of 17.5' to the required structure setback of 125' from the center line of the Lone Oak Road right -of -way. For construction of a single family home upon property located at 1443 Lone Oak Road. If approved, the following conditions should apply: If within one year after approval, the variance shall not have been completed or utilized, it shall become null and void unless a petition for extension has been granted by the council. Such extension shall be requested in writing at least 30 days before expiration and shall state facts showing a good faith attempt to complete or utilize the use permitted in the variance. Planning Report — Thorson Homes June 3, 2014 Page 5 2. A building permit is required prior to commencing construction. 3. New residential construction shall achieve a minimum 19 dBa interior sound level reduction within the Zone 4 Buffer and an interior sound level of 45dBa. --_lz m �\ /d \ § § 2 E k } U .KW §0 % E§ ) ) / �} � --_lz �\ --_lz r' � �s3 •�tt., c���;F � '"� a a��� &fit�'#e�i3 t rcE� n +irk# c a 'nxd `4s { � 5 liar `t r •� a :r :'�,d " 3 a p,.. '' •.'2 '{ p�-r #.pk� `� a' it !' ! t [ *X � : L got WMM S89a54.47 "E 200.p0 - 5 0^ 449,90 ° X x l I XI A X /X POND HDP -1 ' �/ I q NWL =862.0 O HVfL =884.0 ',il fn/ 6� I� / I 0 v rv/ Ian 04 wii M d' a an N x1 t�6h•2i e,.p•9,: •,'� g6gr/ / /n / I X ° x X ° N dcek I x 0 sza0 g /� 8 w CV O 819:0 etir� —} i a° X ° IT�r v Y a Inc i ° 15.5 • -- / par o j pr go P d X 0 �/ b .m ;�a1,2.nD X 1 x II ' zo.sn x _.' 1 e X150151 J I cr � I I ! � 96 )<0 9aJ I s°,'°ai I II e ° a ,• °r1 20 0 4yI${ � x °�Doslgnatod acre „1 x I oo°� r1j 40 20 0 40 Scale in Feet ;Xo X _ N 9602 20 91" r 1 1� n ,n _ _ _ _ CENTERLINE OF NEW R -0_ W _j CENTERLINE OF OLD 0 C.S.A•H. N0. 26 Uri (LONE OAK ROAD) This sketch does not purport to show the existence or nonexistence of any encroachments from or onto the hereon described land, easements of record or unrecorded easements which "foot said land or any Improvements to sold land, We hereby certify to "fhorson Homes Inc, that this survey, plan or report was prepared by me, or under my direct supervision, and that I am a duly licensed Land Surveyor under the laws of the State of Minnesota, dated this 30th day of April, 2014. "RLTEIVEP MAY Q 7 `J11t % 000.00 Oenoles existing elevation ( 000.00) Donoles proposed elovallon SIGNED: PIONEER ENGINEERING, P.A. oen °lee nralanae noA aaeauan ® Denotos apiko / Y Danalea rec(riclod access to Dekola (Q - / /—� —A— Count per Iho recorded plat or Hy. KENNERICK FOURTH AMMON Peter J. Hawkinson, Professlonal Land Surveyor Minnesota License No. 42299 email— pho wkin sont4pion eeren g, com Revisions: ')05 -01 -14 SelbaekExhibit PROPOSED t�� PIONEER engineering P.A, Setback Exhibit M N ;H. CNLLFA'OINFHSS LING OLANNFRS U.ND SSntVEVOAS LANDSCAPE AAUlaECre (651)681 -1914 ad File: 1140970005 tCD,r Thorson Homes Inc. 242212.w prise Ddvp pax: 681 -9488 Folder #: 738 hlendom HDigha, NIN 5512D w—pioncereng.com aw n by: kth U1 rn cV TO d' O Q in 0 40 20 0 40 Scale in Feet Conforming Setbacks j' 200.00 ml X ' �xl 21 \`% l i N N I I I f POND HDP -1 �i �l I i 1� x NWL =862.0 �� wI m Im ` HWL=a64.0 nXF .:� 1 < /I m i1r ./ i tl- E � deck I h S x/ Proposed S '( .. o 0 0 �a .50 m a Va tA m J I� / agti p 3.00 Po °Car gx X 0 a agb/ "20.501 112 - P I, X i X. x m I 4 I L _ r% �aeau/ / N o I away �' I � 1 iI r x� 1X2 o II �x a, m x e I < 20 m G I a 1 1 r0eaignatedm Accos ai _X I= -a —ern /n x ^ 30.00o o�e-�i-Q X mm N8 °66 Wi W 71— � 920 .00 xq Iq 7 b \� 902 �� ham/ X s/ —so, CENTERL m In _ _ _ _INE - — - C n ENTERLINE OF OLD R -O -W 0 vi C,S,A,He Noe 26 (LONE OAK ROAD) co / /xo 1� Xm O t!'J N x1 �J a xm O I O N X. �g + This sketch does not purport to show the existence or nonexistence of any encroachments from or onto the hereon described land, easements of record or unrecorded easements which offect sold land or any improvements to said land. We hereby certify to Thorson Homes Inc, that this survey, plan or report was prepared by me, or under my direct supervision, and that I am a duly licensed Land Surveyor under the laws of the State Of Minnesota, dated this 30th day of April, 2014. x 000.00 Denalee eAtelag elevation ( 000.00 ) D=es proposed elevation Denotes drolnage Dow direction ® Denotes spike Denotes rertrlalol eecesa to Oeketo —e— County per the recorded plat of KENNERICK FOURTH ADDITION � }� T D PIO V EERenoY eefiylYlg P,A. ,-„(b CIVILENGINEEAS U \'DiLANKFAS i. \ND SVItVEVORS U.YDSCAPE AgCIIIEF.CIS (651)681 -1914 2422 Hme ryrise Drive Fax: 681.9486 Mendota Heights, A1N 55120 www.ptoneereng.cam Revisions: IJ05 -01.14 Setback Exhibit Cad File: 114097000 A Folder #: 738 Drawn by: kth WOVE!` MAY 0 7 ?014 SIGNED: PIONEER ENGINEERING, P.A. Pa Land Surveyor Minnesota License No. 42299 emall-phawkinvon@pioncereng.com CONFORMING Setback Exhibit for: Thorson Homes Inc. Thorson Homes, Inc. purchased lots 4 and 5 Kennerick 2 "d Addition from Brad Swenson in June of 2003. In 2005 Thorson Homes, Inc . tried to build a home on lot 5 and was unsuccessful because of the steep slopes on the rear of the lot. Our building permit was approved using the 50' setback. The housing industry decided it needed a time out. We realized we would not be able to build on either of the lots separately. We also realized we would need to combine both lots to be able to build one home. Thorson Homes, Inc. replatted in 2013 to combine the 2 lots into a single parcel and in the process, the County required dedication of an additional 5' ROW for Lone Oak Road. Thorson Homes, Inc. now has a buyer who loves this lot and wants to relocate to Eagan. City Code requires the front setback from Lone Oak Road to be 50' or 125' from the centerline, whichever is greater. The measure from the centerline is greater in this case, and pushes the back of the house into the rear slope of the lot. The Variance Request is to set the house at less than 125' from the centerline and meet the setback requirement of 50' from the road. By going with the 50' setback we would be able to build the home with the rear of the home abutting the top of the slope. This Variance should have no impact on any of the neighboring properties or the public. Thank you. MN 0 Y X0114 Agenda Information Memo June 3, 2014, Eagan City Council Meeting OLD BUSINESS A. Planned Development Amendment (Fiesta Cancun) — Tri -Star Management Action To Be Considered: To approve (or direct preparation of Findings of Fact for Denial) a Planned Development Amendment to allow outdoor patio dining in conjunction with a restaurant with an on- sale liquor license upon property located at 4250 Lexington Avenue South, subject to the conditions listed in the APC minutes. * New information on this Agenda Memo appears in bold italics. Required Vote For Approval: ➢ At least three votes Facts: ➢ This proposal appeared before the City Council on May 5, 2014, and was continued to the June 3, 2014 meeting to allow the applicant time to address concerns about screening and landscaping, seating, and noise. ➢ The property was developed in 1986 with a 18,430 sf strip retail center. ➢ In 2013, the City approved a PD Amendment for on -sale liquor in conjunction with a full- service restaurant, Fiesta Cancun. ➢ Fiesta Cancun is now proposing to add outdoor patio dining in the yard area at the south end of the building. ➢ The patio is proposed to be 20' x 50', contains 52 seats, 2 trees, a gas fireplace and gas fire pit. ➢ A 42" decorative railing is proposed to enclose the patio, and access to the patio would be controlled through the principal building. ➢ Because the proposed patio has more than 24 seats, involves on -sale liquor and is located within 200' of residential property, a PD Amendment is required to allow the proposed outdoor patio dining. ➢ An evaluation of the proposal relative to the performance standards in the Code for outdoor dining is included in the staff report. ➢ City Code parking standards are satisfied. Required parking for the building with the proposed patio is 118 stalls, 133 stalls are provided. ➢ Policy considerations include: • Proposed Patio is set back 10' vs. 20' from the Patrick Road right -of -way • Hours of operation — outdoor dining patio shall not be utilized after 10:00 p.m., per APC recommendation • Use of outdoor sound system prohibited, per APC recommendation • With proposed net loss of green space, conditions of approval require patio to be constructed of permeable pavers rather than concrete • Extend landscaping around north side of patio Issues: ➢ The City received a few items of public correspondence from neighboring residents expressing concern about the proposal. ➢ The applicant has submitted a revised patio plan and narrative which speaks to the design considerations and benefits of the proposed Amendment. ➢ The revised patio plan shifts seating 15' to the west, incorporates evergreen plantings for screening east of the patio, adds a walk -in cooler at the east end of the patio, reduces the number of seats from 52 to 48, and eliminates one tree and one fire pit within the patio area. 60 -Day Agency Action Deadline: ➢ Extended to July 17, 2014 (initially May 18, 2014) Attachments: (6) OBA -1 Location Map OBA -2 Revised Plan and Narrative OBA -3 City Meeting Minutes OBA -4 Staff Report OBA -5 Report Exhibits OBA -6 Correspondence CC7 w 0 4c O ■L T V O B1 ba-MISKS C CD O N 0 E �p •p U ❑ E L Q 0. v O E o Joslim O Q. p limp V E m N ❑ M wU eP o Z za 0 M d CG .(D o� �a U) C4 ba-MISKS LLO LL o - o N O O O 0 0 a ���',�1®,���' ®1111 �� _ .® ► ®® 111111 � ' • �'� � ; X111111► � ®► ®'�1 . 111 ..,,x,11 ®^: ' I '•�® �' NINE ♦♦ son MEMO i■ ■■ MEMO ■r NONE mom mi �� G�i�p ® _ •.� a .� � :..�' /,L. ®I� of O N 00 O �p •p U :5 . C m a m 0. v Joslim limp LLO LL o - o N O O O 0 0 a ���',�1®,���' ®1111 �� _ .® ► ®® 111111 � ' • �'� � ; X111111► � ®► ®'�1 . 111 ..,,x,11 ®^: ' I '•�® �' NINE ♦♦ son MEMO i■ ■■ MEMO ■r NONE mom mi �� G�i�p ® _ •.� a .� � :..�' /,L. ®I� City Council Meeting Minutes May 5, 2014 5 page Councilmember Bakken moved, Councilmember Fields seconded a motion to close the public hearing for the vacation of public drainage and utility easements located on Outlot A, Great Oaks and Outlots A and B, The Woodlands North, and continue action to coincide with future City Council consideration of the Great Oaks 2nd Addition final plat and subdivision. Aye: 4 Nay: 0 OLD BUSINESS There were no old business items to be heard. NEW BUSINESS PLANNED DEVELOPMENT AMENDMENT (FIESTA CANCUN) —TRI STAR MANAGEMENT City Administrator Osberg introduced the item noting the property was developed in 1986 with a 18,430 sf strip retail center. In 2013, the City approved a Planned Development Amendment for on -sale liquor in conjunction with a full- service restaurant, Fiesta Cancun. Osberg noted Fiesta Cancun is now proposing to add outdoor patio dining in the yard area at the south end of the building. City Planner Ridley gave a staff report. Kris Ballard, applicant representative, was available for questions. Mayor Maguire opened the public comment. Claudia Danner, 1004 Coneflower Court, addressed the Council with her concerns for the size of the proposed patio, liquor service on the patio, noise and odors, given the proximity to the neighborhood. There being no further public comment, Mayor Maguire turned the discussion back to the Council. The Council discussed the planned development amendment stating their concerns with the size and location of the patio. Mayor Maguire also suggested Ms. Ballard, the architect and the restaurant owner meet with City staff to look at patio size and the possibility of an alternative patio location. After further discussion it was the consensus of the Council to continue the item to the June 3, 2014 City Council meeting. Councilmember Fields moved, Councilmember Bakken seconded a motion to continue the Planned Development Amendment to allow outdoor patio dining in conjunction with a restaurant with an on- sale liquor license upon property located at 4250 Lexington Avenue South to the June 3, 2014 City Council meeting. Aye: 5 Nay: 0 CONDITIONAL USE PERMIT — SPECTRUM DEVELOPMENT GROUP City Administrator Osberg introduced the item noting the Council approved a Conditional Use Permit allowing the outdoor storage of 600+ passenger vehicles and storage racks earlier this year. The present request remains the same save for the addition of 26 rental trucks and an equal reduction of passenger vehicles. City Planner Ridley gave a staff report. Mayor Maguire opened the public comment. There being no public comment, Mayor Maguire turned the discussion back to the Council. Advisory Planning Commission April 22, 2014 Page 2 of 10 IV. PUBLIC HEARING New Business A. Fiesta Cancun Outdoor Dining Applicant Name: Mark Ravich, Lexington Center, LLC c/o Tri- Star Management Location: 4250 Lexington Ave S; Lot 1, Block 1, Eagan Center 1st Addition Application: Planned Development Amendment A Planned Development Amendment to allow outdoor patio dining in conjunction with a restaurant with an on -sale liquor license. File Number: 26- PA- 04 -03 -14 Planner Dudziak introduced this item and highlighted the information presented in the City Staff report dated April 15, 2014. Kris Ballard, applicant representative, staffed she was available for questions Chair Heaney opened the public hearing. Claudia Danner, 1004 Coneflower Court, stated her concern for the size of the proposed patio, liquor service on the patio, loss of green space, traffic, and increase in crime, noise and odors, I ` given the proximity to the neighborhood. She also stated that her and neighbors have experienced strangers walking through their yards. Tom Stoesz, 1001 Coneflower Court, shared his concern that the patio would generate additional noise and traffic in the area. There being no further public comment, Chair Heaney closed the public hearing and turned the discussion back to the Commission. Member Vanderpoel asked if the restaurant intended to have an audio system on the patio. Ms. Ballard stated she did not know but assured the commission that if they did, the system would be operated in a way that met all City standards. Member Supina stated the commission needed to focus on items relevant to the patio request. He said increased crime and trespassing are concerning but are issues that are separate from the land use request, in his opinion. He stated screening of the patio is important and that he is not in favor of amplified sound on the patio. The commission discussed ingress /egress to the proposed patio. Member Prashad suggested limiting use of the patio to 10:00 PM. Vice Chair Filipi asked if the parking he noticed on Patrick Road was legal. City Planner stated Patrick Road is a public street and the public can legally park upon it. Secretary Piper asked about what type of patio, if any, would be allowed without a Planned Development Amendment. Advisory Planning Commission April 22, 2014 Page 3 of 10 Planner Dudziak stated that the ordinance requires a Conditional Use Permit or PD Amendment for outdoor dining in excess of 24 seats, involving on -sale liquor, or within 200' of residential property and this site has all three of those circumstances. Vice Chair Filipi stated the landscape buffer could be extended to the east side of the patio to help screen the use from the neighborhood. Vice Chair Filipi moved, Secretary Piper seconded the motion to recommend approval of a Planned Development Amendment to allow outdoor patio dining in conjunction with a restaurant with an on -sale liquor license, subject to the following conditions as amended: 1. The outdoor dining area shall be kept in a clean and orderly manner. No food or beverages may be stored outdoors, unless a suitable means for such storage has been reviewed and approved by the City. 2. The hours of operation of the outdoor dining area shall be restricted to the hours of operation within the principal restaurant's interior space. In no case shall the outdoor dining patio be utilized after 10:00 p.m. 3. Use of an outdoor sound system shall be prohibited. 4. The applicant shall be responsible for obtaining a SAC determination and payment of associated fees. 5. Landscaping shall be added along the south and east sides of the patio outside the fence to provide a screen buffer between the patio and the neighborhood and public right -of -way, as well as for aesthetic reasons. A Landscape Plan shall be provided for staff review and approval and for inclusion in the PD Amendment Agreement. 6. The outdoor patio shall be constructed of permeable pavers rather than concrete to offset decreased green space and provide additional on -site infiltration of storm water runoff. Details of the paver design and installation specification shall be submitted with the Building Permit, and shall be subject to review and approval by City Engineering staff to ensure permeable design and function. Member Supina stated his belief that the buffer needed to provide more screening than buffering. City Planner Ridley stated it appeared the landscaping could be wrapped around the patio. He cautioned the Eagan Police Dept. would likely want to maintain visibility of the patio for security purposes, so there would need to be a balance achieved. Additionally, he stated the commission and neighbors needed to be cognizant that even with additional screening the patio would not be invisible. The motion maker and seconder agreed to the suggested condition modifications. All voted in favor. Motion carried 7 -0. PLANNING REPORT CITY OF EAGAN REPORT DATE: April 15, 2014 APPLICANT: Tri -Star Management PROPERTY OWNER: Lexington Center, LLC REQUEST: Planned Development Amendment LOCATION: 4250 Lexington Avenue South CASE: 26- PA- 04 -03 -14 HEARING DATE: April 22, 2014 APPLICATION DATE: March 19, 2014 PREPARED BY: Pamela Dudziak COMPREHENSIVE PLAN: RC, Retail Commercial ZONING: PD, Planned Development SUMMARY OF REQUEST The applicant is requesting approval of a Planned Development Amendment to allow outdoor patio dining in conjunction with a restaurant with an on -sale liquor license upon property located at 4250 Lexington Avenue South, legally described as Lot 1, Block 1, Eagan Center 1St Addition. AUTHORITY FOR REVIEW Chapter 11, Section 11.50, Subdivision 5 states, in part, 1. The provisions of this chapter may be amended by the majority vote of the council, except that amendments changing the boundaries of any district or changing the regulations of any district may only be made by an affirmative vote of two- thirds of all members of the council. 2. The Council shall not rezone any land or area in any zoning district or make any other proposed amendment to this chapter without first having referred it to the advisory planning commission for its consideration and recommendation. BACKGROUND/HISTORY The property is a component of the 1,100 acre Lexington South Planned Development and was developed in 1986. The massive Lexington South Planned Development was approved in 1976 and spanned from Wescott Road to the north to Cliff Road to the south, generally along either side of Lexington Ave. Uses provided for included single family, twin home, apartments, commercial retail, places of worship and parkland (Northview Park). In 2013, the City approved an on -sale liquor use in conjunction with a full- service restaurant located on the south end of the building. The restaurant recently opened after tenant finish Planning Report — Fiesta Cancun Outdoor Dining April 22, 2014 Page 2 construction over the past several months. The applicant is now requesting to add an outdoor dining patio. EXISTING CONDITIONS The 2.4 acre parcel contains a single 18,430 SF multi- tenant strip retail building and associated parking of 133 stalls. The current tenant mix includes a fitness center, fast casual restaurant, nail salon, professional office and a delivery /take out restaurant. The Fiesta Cancun restaurant is located in the south endcap of the building. The south side of the property abuts the public street of Patrick Road, which provides access to this site and the commercial zoned properties to the south and northeast. The patio is proposed to be located in the existing yard area between the building and Patrick Road. SURROUNDING USES The following existing uses, zoning, and comprehensive guide plan designations surround the subject property: EVALUATION OF REQUEST Proposal /Site Plan — The proposal is to install a 20' x 50' outdoor dining patio in the yard area on the south side of the building in conjunction with the restaurant. The proposed patio layout consists of 52 seats and includes two trees and a gas fireplace and a gas fire pit. The patio is proposed to be access directly from the building, and also from the sidewalk in front of the building. A 42" decorative railing is proposed to enclose the patio area. Compatibility with Surrounding Area — City Code allows outdoor dining in conjunction with restaurants. A Conditional Use Permit or Planned Development Amendment is required where the outdoor dining area is within 200 feet of residential property, where on -sale liquor is involved, or where seating for more than 24 is proposed. Outdoor dining areas are subject to the following performance standards: Existing Use Zoning Land Use Designation North Retail (Walgreen's) PD - Planned Development RC - Retail Commercial East Single- family residential PD - Planned Development LD - Low Density South Vacant PD - Planned Development O/S - Office /Service West Park (Lexington Diffley Athletic Complex) P - Park P - Parks, Open Space and Recreation EVALUATION OF REQUEST Proposal /Site Plan — The proposal is to install a 20' x 50' outdoor dining patio in the yard area on the south side of the building in conjunction with the restaurant. The proposed patio layout consists of 52 seats and includes two trees and a gas fireplace and a gas fire pit. The patio is proposed to be access directly from the building, and also from the sidewalk in front of the building. A 42" decorative railing is proposed to enclose the patio area. Compatibility with Surrounding Area — City Code allows outdoor dining in conjunction with restaurants. A Conditional Use Permit or Planned Development Amendment is required where the outdoor dining area is within 200 feet of residential property, where on -sale liquor is involved, or where seating for more than 24 is proposed. Outdoor dining areas are subject to the following performance standards: Planning Report — Fiesta Cancun Outdoor Dining April 22, 2014 Page 3 No portion of the outdoor dining area shall be located or occur within any public right - of -way, include the sidewalks /trails, boulevard areas or streets. The outdoor patio is proposed to be set back 10' from the Patrick Road right -of way, and approximately 10' from the service drive behind this building. 2. The outdoor dining area shall meet the following setbacks requirements: 20 feet from a public right -of -way, five (5) feet from side lot line, and five (5) feet from rear lot line. The 20' setback from Patrick Road right -of -way is not met, as the patio is proposed to have a 10' setback from the right -of -way. The 10' setback is a deviation from City Code standards, and may be accommodated within PD zoning. Patrick Road is a public street, and provides access to the commercial properties to the north and south, as well as to Diffley Marketplace to the northeast. The acceptability of this setback deviation is a policy matter to be determined by City officials. The proposed patio does satisfy the 5' setback from the rear lot line. 3. The outdoor dining area shall not interfere with any pedestrian traffic or walkways intended for the general public. A minimum 4 feet wide area shall remain clear for pedestrian traffic on walkways and for entry into the restaurant building and adjacent uses. An outdoor dining area shall not be permitted to be located in or occupy any parking or other areas intended for vehicular traffic. There is an existing sidewalk along the north side of Patrick Road adjacent to the site. A new 4' wide sidewalk is proposed to connect the walkway in front of the building and the proposed patio. 4. The outdoor dining area shall be handicap accessible and not restrict accessibility in other areas inside or outside the restaurant. A Building Permit is required prior to the installation of the patio and accessibility will be verified at that time. 5. The outdoor dining area shall be used subordinate to the principal restaurant building. The proposed patio area is 20' x 50' and is smaller than the indoor restaurant space. 6 The outdoor dining area shall be kept in a clean and orderly manner. No food or beverages may be stored outdoors, unless a suitable means for such storage has been reviewed and approved by the City. Compliance with this standard will be a condition of approval. 7. The hours of operation of an outdoor dining area shall be restricted to the hours of operation within the principal restaurant's interior space. Notwithstanding the Planning Report — Fiesta Cancun Outdoor Dining April 22, 2014 Page 4 foregoing, the operation of business within an outdoor dining area shall not occur between the hours of 1: 00 a.m. and 7:00 a.m. If an outdoor dining area is subject to a conditional use permit or a planned development approval, the city council may be more restrictive in the hours of operation based upon the proximity of the area to residential dwelling units and upon consideration relating to the public health, safety, and welfare of residents, businesses, and other uses near the restaurant establishment. The proposed patio is set back approximately 100' from the residential properties to the east. Retail businesses in the nearby Diffley Marketplace development are restricted to between 6:00 a.m. and 12 :00 a.m. (midnight) because of proximity to residential neighbors. Through the Planned Development and due to proximity to residential uses, hours of operation of the outdoor dining patio may be further restricted than what is in the ordinance. The hours of operation of the outdoor dining area should be restricted to the hours of operation within the principal restaurant's interior space. In no case should the outdoor dining patio be utilized after 11:00 p.m. If an outdoor sound system is utilized, City Code states it shall not be operated in a manner in which it is plainly audible at a distance of 50 feet or more, and shall not be used after 10:00 p.m. without a permit. The nearest residential property is approximately 100' from the outdoor dining patio. While that is less than the 200' special use setback, it is a greater distance that the 50' at which sound is measured. Staff has included a condition of approval requiring compliance with City Code. City officials may choose to further limit or prohibit or the use of any outdoor sound system. 8. A fence, constructed of color and material suitable for the intended use, surrounding the outdoor dining area shall be required if the outdoor dining area provides seating for 24 or more persons or alcoholic beverages are served within the outdoor dining area. If a fence is required, a fencing plan shall be submitted with the site plan for the outdoor dining area for review and approval by the City. A 42" decorative railing is proposed to enclose the patio area. A gate will be provided at the north and south ends of the patio. The patio also has direct access to and from the building. 9. If alcoholic beverages are served in the outdoor dining area, the restaurant establishment shall have an on -sale alcohol license that specifically includes and permits the sale or service of alcoholic beverages in the outdoor dining area. All regulations in Chapter 5 of the Code shall apply and compliance shall be met. Planning Report — Fiesta Cancun Outdoor Dining April 22, 2014 Page 5 The restaurant currently has an on -sale liquor license. A modification of the license is not required. However, service of alcoholic beverages outdoors requires the area to be enclosed, with direct access to the patio only from inside the building. The plans show the patio access directly to and from the building. The gates in the surrounding fence should be for exiting only. 10. The outdoor dining area must conform to all Fire and Building Codes related to the number and types of exits that are required. A Building Permit will be required prior to installation of the patio and fireplaces. Compliance with exiting requirements and other Building and Fire Codes will be verified at that time. 11. The parking regulations related to minimum required spaces for the restaurant establishment, plus one (1) stall for every twelve (12) seats within the outdoor dining area of more than 24 seats, as set forth in this Chapter shall apply and compliance met. Total required parking for the entire building, including the restaurant, is 114 stalls. At one stall for each 12 outdoor seats, for the 52 -seat patio an additional 4 parking stalls are required, bringing total required parking to 118 stalls. The site currently provides 133 stalls. Thus, the required parking standards are met. 12. All sewer availability charges imposed as a result of additional seating in the outdoor dining area shall be paid prior to the operation of any business within the outdoor dining area. The applicant is responsible for submitting the proposal to the Metropolitan Council for a determination of any additional SAC (sewer availability charge) units. Payment of any associated SAC fees shall be made before the patio is opened for use. Landscaping /Tree Preservation — The yard area proposed for the patio currently contains turf grass, a few shrubs, and three trees. This existing landscaping is proposed to be removed and two new trees planted within the patio area. Since the patio is adjacent to a public street and with a reduced setback, landscaping should be added along the south side of the patio outside the fence to provide a buffer between the patio and the public right -of -way, as well as for aesthetic reasons. A Landscape Plan should be provided for staff approval and for inclusion in the PD Amendment Agreement. Green Space — Under current City Code, Commercial zoning districts require a minimum of 30% green space. The purpose of the minimum green space standards is both for its impacts on stormwater runoff as well as aesthetics. The development of this property pre -dates the minimum green space standards. Planning Report — Fiesta Cancun Outdoor Dining April 22, 2014 Page 6 Current conditions provide 23.8% green space on this lot. It has been the City's practice to evaluate existing non - conforming properties when improvements are proposed, with the goal of achieving no net decrease in green space. The current proposal adds 1,173 sq. ft. of impervious coverage, and does result in a net decrease of green space to 22.7 %. For this reason, the outdoor patio should be constructed of permeable pavers rather than concrete to offset decreased green space and provide additional on -site infiltration of storm water runoff. Details of the paver design and installation specification should be submitted with the Building Permit, and should be subject to review and approval by City Engineering staff to ensure permeable design and function. With the site exceeding City Code standards for parking by 15 stalls, there may also be an opportunity to replace some green space elsewhere on the site by converting some of the parking stalls to green space through the addition or enlargement of parking lot islands. The extent and type of mitigating measures to offset the additional impervious is a policy matter for City Officials. SUMMARY /CONCLUSION The applicant is proposing to add an outdoor dining patio in conjunction with an existing full - service restaurant at 4250 Lexington Avenue. An amendment to the Planned Developent is necessary because the proposed patio exceeds 24 seats, is located within 200' of residential uses, and restaurant service includes the on -sale alcoholic beverages. The proposal largely satisfies the performance standards outlined in the City Code, except for the setback from a public right - of -way which is proposed at 10' rather than 20'. Also, since the proposed patio is less than 200' from residential property, the conditions of approval specify more limited hours of operation. ACTION TO BE CONSIDERED To recommend approval of a Planned Development Amendment to allow outdoor patio dining in conjunction with a restaurant with an on -sale liquor license upon property located at 4250 Lexington Avenue South, legally described as Lot 1, Block 1, Eagan Center 1St Addition. If approved the following conditions shall apply: The outdoor dining area shall be kept in a clean and orderly manner. No food or beverages may be stored outdoors, unless a suitable means for such storage has been reviewed and approved by the City. 2. The hours of operation of the outdoor dining area shall be restricted to the hours of operation within the principal restaurant's interior space. In no case shall the outdoor dining patio be utilized after 11:00 p.m. 3. Any use of an outdoor sound system shall be subject to City Code standards, including that it may not be plainly audible at a distance of 50 feet or more and shall not be used after 10:00 p.m. Planning Report — Fiesta Cancun Outdoor Dining April 22, 2014 Page 7 4. The applicant shall be responsible for obtaining a SAC determination and payment of associated fees. 5. Landscaping shall be added along the south side of the patio outside the fence to provide a buffer between the patio and the public right -of -way, as well as for aesthetic reasons. A Landscape Plan shall be provided for staff review and approval and for inclusion in the PD Amendment Agreement. 6. The outdoor patio shall be constructed of permeable pavers rather than concrete to offset decreased green space and provide additional on -site infiltration of storm water runoff. Details of the paver design and installation specification shall be submitted with the Building Permit, and shall be subject to review and approval by City Engineering staff to ensure permeable design and function. <1Z z a) a> LL 0 0 0 0 0 N N c >, a G C O '- N O N C � N N •- U 'O C C N ttf O C ` j O 0 N N N a p O N N C 7 E .N N M Lo L O M O N O) Q O O L Q i= d B E L O C O 4a E v � O T U > ci m o 0 ii d a ra E to Zoo 8z a�U $3 g �3A z a �4 � n .- a 011tld b0001NO Mom tl153Id 6Z— OL9 —Zl9 tl1OUNNIN 'Ntl0V3 M 9 tl10O3NNIN vm Ox mu lo 11 11 11 11 "IT 1111.1"Al T m n I lal xelxlx LL0 -601 HWOS 3NN3AV NOlONIX3l 09ZV Av a43NNIYi H1ElON 3NN3Atl OHtl01 Sfb Q xouvaunlas xna :ou lru anuna i 831N3O NOIDNIX31 P811 .40JV 1e 140Id uene ;g $3 g �3A z a �4 � n .- a ,.7 C.� 0 �o z 3„ } $as agX 62 a x 3 0 a a o: o. 011tld H000lnO NHONVO VIS312 OO" -OL9 -" V10S3NNIW 'NV0V3 S9 ViO N O ao uru n sxn 3 nx mu C m 103tl 3ima °3'i -d - a0ei W l ll� -601/j HMOS 3nN3AV NOMIX31 09ZV HINON3HN3AV OHV INSC4 Q n xourxin3as IJ31NRQ NOlcJNIXM P8U.40Jb Iel4Plcl uenelg ,.7 C.� 0 �o z 3„ } $as agX 62 a x 3 0 a a o: o. C r� � � 1 �j �8 �a b y�yHg bR 7 EgR�y IR � Sri s NAaoN s S 0 8 �i Ocz i' ' LU -JIN 'dl 'Oltl osmxin usmo Ixncduvr3rovx o ru ltl s xl' iw vmn sxt aaSl V x rn irulw r uw 14 , ii lrri uwm'iaixr +i 011Yd UOOOM NnONYO YAS311 0062- 049 —Z19 Q v N w a - Ill / ^001M VA05NNIY 'NtlOV3 Z4 HlnOS 30N3AY HOAONIM O HEILNEO NOiDNIXd'1 13 99 VAO93 NNI9 '9nOdUNNIY1 H1NON NNW OHY01 SSY 100A40JV 101401d u0A018 — C r� � � 1 �j �8 �a b y�yHg bR 7 EgR�y IR � Sri s NAaoN s S 0 8 �i Ocz i' ' LU Nj K k OLLVd a000.LAO NL10NVJ Vls31d OOSZ— OL9 —ZL9 °3H N ro •a3 road awls ala A SM 3u wo ra�u p m sH#1n AYIO tl rM I lrl3l DM• •NOLS93d114 VIOMNNIY1 'NdOV3 LZ499 L31,99 NIY1 'Sf10dr3NNI1V g 3ann 30 3n AS mMON GYM MaW 3p luk' a wm slu Im mum mm" 1 L L L# —BOL# Nif108 3nN3AV N010NIX31 09Zi d31N30 NOIJNIX31 MON 3nNMV OHV01 9£1' PGML PTV I4e UOA649 Q Id Nj K k I%1 Nil iii u4i k i h a 1 FARM �§ ! }» of _ ._ ~ \ 5 / % / 7 V __e( " ' d a� m _,� % . a 1 1 N,X \� d k �\ ee S h§ ass �§ ! }» of ~ \ 5 / / 7 a A ( . . ass (ED m �§ ! }» of Lexington Center Shopping Center, Eagan, Minnesota Narratives We are requesting an amendment to the planned unit development covering the Lexington Shopping Center at the intersection of Lexington and Diffley to allow for the addition of an outdoor dining patio to the existing Fiesta Cancun restaurant. We would like to begin construction of the patio as soon as all of the approvals and permits can be obtained. The surrounding land uses consist of primarily commercial uses with residential use behind the property and park areas across the street from the location. Due to the short summer season in Minnesota, outdoor dining is highly sought after by restaurant customers and would be a valuable amenity to Lexington Center and Eagan residents. There is more than adequate parking at the center for the proposed patio addition, and we feel that it will bring some additional traffic to the merchants of the shopping center and the overall commercial area. As Fiesta Cancun is already existing at the center, we do not feel that the addition of the patio will significantly affect traffic in the area, nor will there be any impact on sewer water run off. Overall we believe the addition of the patio for outdoor dining will be a benefit to the public by adding a positive addition to the mix of services provided to the residents of Eagan at this location, as well as generating additional jobs and taxes for the community for many years to come. RECEIVED MAR 19 201k NARRATIVE Para Dudziak From: Claudia Danner <cdanner @michaelswilder,corn> Sent: Wednesday, April 16, 2014 9:52 AM To: Pam Dudziak Subject: Fiesta Cancun Attachments: photo 1JPG; photo 2.JPG; photo 3JPG; photo 4.JPG; photo S.JPG Hi Pam, Thank you for taking the time to speak with me earlier today. Attached you'll find photos illustrating the items we discussed. I have also briefly recapped below. Based on our conversation the outdoor storage of kegs would violate the city code. We appreciate you bringing this to the attention of the owner. -1 questioned if the amount of parking is adequate for the current amount of seating the restaurant is offering. You stated that it is and would also meet code with the 52 new seats the proposed patio would hold. -1 shared that we have noticed the lot is often full and people are parking on the side of the street causing blind spots and blocking the sidewalk. The photos attached illustrate this. I appreciate you stating that you will talk with the owner about parking their company truck in the lot and encouraging both employees and customers to use the lot as well. - The third photo shows outdoor storage of kegs on the patio, Again, this is now allowed per city code. Thank you, Claudia Danner Claudia Danner Sr, Director of Client Services Direct: 952.232.6396 877.258.8568 / 952.657,7199 Ext:305 Fax: 952.843,2375 Michaels Wilder, Inc. Interactive, Marketing & Media Services Talent Management Solutions CONFIDENTIALITY NOTICE: This transmission may contain information that is privileged, confidential, legally privileged, and /or exempt from disclosure under applicable law. if you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution, or use of the information contained herein (including any reliance thereon) is STRICTLY PROHIBITED. Although this transmission and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by Michaels Wilder, Inc,, its subsidiaries and affiliates, as applicable, for any loss or damage arising in any way from its use. If you received this transmission in error, please immediately contact the sender or call 623 - 334 -0100 and destroy the material in its entirety, whether in electronic or hard copy format. Thank you. F p Pam Dudzialc From: Mike Ridley Sent: Thursday, April 17, 201411 :10 AM To: Pain Dudzial< Cc: Julie Strid Subject: FW: Fiesta Cancun Outdoor Patio Dining From: Sadie Haugdahl [mailto:sadiedahnCcbyahoo.com] Sent: Thursday, April 17, 2014 11 :05 AM To: APC Subject: Fiesta Cancun Outdoor Patio Dining To Whom It May Concern: We are very excited to have Fiesta Cancun as a new neighbor. We have already been to the restaurant and were very impressed with their food and service. However, when we received the notice that they would like to have outdoor patio dining, we are less than enthused. Living where we live, we already get a lot of noise from Cub Foods and other traffic from nearby retail establishments. Luckily, once it gets dark, the noise tends to die down. We are opposed to outdoor dining at Fiesta Cancun because we do not want to deal with more noise in our neighborhood, particularly in the evening hours. I hope the planning commission takes this concern into consideration. Thank you, Sadie & Jim Haugdahl 1009 Trillium Court; Eagan, MN 55123 507 -351 -7663 sadiedahn &ahoo.com Para Dudzialc From: Mike Ridley Sent: Friday, April 18, 2014 12:17 PM To: Pam Dudzialc Cc: Julie Strid Subject: FW: Fiesta Cancun outdoor patio From: ROMAN MELAMED [mailto :romanmelamed(o )msn.com] Sent: Friday, April 18, 2014 12 :13 PM To: APC Subject: Fiesta Cancun outdoor patio We are unable to attend the APC meeting on 4/22 but would like to express our concerns regarding the Fiesta Cancun's outdoor dining patio plan. We feel this is not a good idea for the following reasons: - Our house as well as many other neighboring houses are in the close proximity of the restaurant. The noise and commotion that is unavoidable in this type of an establishment will be constant and disruptive to the normal afternoon /evening activities of the neighborhood. It will greatly reduce our ability to spend time outside and will likely affect the property values. - Eagan Athletic Fields are located just opposite to Fiesta Cancun on the other side of Lexington Avenue. It is common for the children athletes and their families to use the mall that Fiesta Cancun is now part of to get food or drinks. It would be unacceptable to have an outdoor patio serving alcohol right in front of children and their families. The athletic tournaments are common and invite people from all areas of the Twin Cities and out of state. The alcohol - serving, noisy patio would not reflect well on he image of City of Eagan. - It is common for school children to pass by the area under discussion when they walk to /from school, or just take a dog for a walk after school hours or during vacations /weekends. It would be totally unacceptable to have an outdoor alcohol- serving facility right in front of them. In summary, we do support the business development in our area. However, the Fiesta Cancun's outdoor patio proposal is completely unacceptable. We will seek active support from the School District and Eagan Athletic Association should the proposal goes forward. Please fell free to contact us. Roman Melamed and family. 1000 Coneflower Ct, Eagan 612 -961 -5874 cell Pam Dudzialc From: Pam Dudziak Sent: Tuesday, May 06, 2014 10:06 AM To: Pam Dudziak Subject: FW: PDA 26- PA- 04 -03 -14 - Fiesta Cancun From: 'me"01 comcast.net CmailtoJmej01 comcast.netJ Sent: Monday, April 21, 2014 11:05 PM To: APC Subject: PDA 26- PA- 04 -03 -14 - Fiesta Cancun My name is Jeff Greenwell. I live at 1010 Trillium Court. My property line is approximately 120' from the proposed outdoor patio at Fiesta Cancun. My wife and I would oppose the proposed patio unless the city will require, AND ENFORCE, landscaping and privacy parameters that put the interests of the surrounding homeowners above the interests of the restaurant. I emphasize enforcement because the city has thus far abandoned homeowners when it pertains to landscaping requirements for the CUB Foods development. Boulevard grass is not maintained and trees that were required for screening along the roadway aren't replaced when they die. The owner just cuts them down without replacing them and our screening is now minimal. The city does nothing to hold them to the agreement. I bring this into the discussion because I feel the city is quick to approve, afraid to enforce. While I want small businesses to succeed in Eagan, the city has to hold them responsible for agreements made. Eagan does not have a great track record of that. Also, I don't know of any other place in Eagan where a restaurant's outdoor patio is less than 50 yards from a residential home. That said, we would be ok with approval if: 1. Noise and parking issues are addressed as a top priority. - We would ask that a tall, natural privacy screen be required. Staggered rows of arborvitaes and /or trees, a tall wood enclosure or fence, or a combination would be acceptable. We would ask that they be required to install an 8' -10' tall barrier with natural plantings (trees, etc.). They need to be required to maintain that barrier with the city.applying consequences to non - compliance. - Overflow parking along Patrick Road presents a problem for us. Our bedroom window faces that area and we have already had an incidence of two over served patrons commenting on the view from Patrick Road. I shouldn't have to bear the cost of fortifying screening of my property to accommodate a new business, 2. Public urination is policed and punished. - The strip mall that houses Fiesta Cancun has long been a problem with kids partying on the roof and, I would assume employees of certain establishments, peeing behind the building. Saturday night (19th) a couple of guys decided to relieve themselves behind Fiesta Cancun before hopping in their car to leave. The restaurant needs to be responsible to police that behavior. The police need to crack down if it becomes more prevalent. 3. Safety concerns need to be addressed. - We don't want a bunch of drunk people walking through my yard because they can't drive, can't find their car or need to pee. - Such close proximity to our home is a concern. Basically, we oppose approval of the patio if the city will just continue the practice of approve and ignore. As homeowners, we have been here for 20 years and would prefer to keep our corner of the neighborhood quiet and safe. If the above issues can't be addressed through strict requirements that are enforced, I don't see a benefit to the homeowners. I see the city taking their taxes and leaving homeowners to fend for themselves. If you have any specific questions or concerns, please contact me at 612 - 3600754. Thank you. Jeff Greenwell 1010 Trillium Court a To Council Members and Mayor -City of Eagan My name is Paul Danner and I reside on property within 200' of the Fiesta Cancun Restaurant. I am writing to address the proposed patio and its potential impact on the adjacent residential development to the East and areas surrounding the patio. I am opposed to the addition of a patio at Fiesta Cancun, and I am opposed to the most recent patio design plans as submitted by Tri -Star Management on behalf of the restaurant owners. The addition of an outdoor patio will increase both human and vehicle traffic in an already congested area. It will add to the unpleasant odor that already permeates our neighborhood. It will lead to an increase in noise pollution on Minnesota's most desirable outdoor days. It will increase the amount of trespassing and other undesirable behavior. An outdoor patio serving alcohol will contribute to the number of nuisance - related calls for our Police Department. The addition of a patio serving alcohol will promote irresponsible drinking much as the existing sign above their current bar encourages. The sign above the bar, translated from Spanish, reads "Bar for the Drunks." Furthermore, it will negatively impact the area when considering pedestrian safety and personal security. Lastly, the addition of a patio allows a poorly maintained property to expand. In sum, the addition of the proposed patio is unnecessary and inappropriate given its location and lasting, detrimental impact. The addition of an outdoor patio, as proposed by Tri -Star Management on behalf of the restaurant owners whom have yet to introduce themselves, should not be approved. Despite numerous discussions involving the Council, Mayor, and City Staff, the proposed patio design is lacking nearly all of the recommendations and "inklings" as expressed by the City of Eagan representatives. It is too big in footprint and eliminates green space. It is designed to accommodate a number of patrons double that of what is recommended by city guidelines. Its scale is inappropriately large given the lack of available parking. It is incomparable in size and unprecedented in location when considering other restaurants adjacent to residential property. It is located in an area already not suitable for an establishment to serve on -sale alcohol, specifically outdoors. It situates a refrigerator in a location vulnerable to unapproved /illegal access. The proposed East gate allows for a more direct access to residential property. The East section of concrete is conducive to "hanging out" which currently occurs on a regular basis. The addition of Fiesta Cancun has added a new level of activity to the area. It is unfortunate that we will need to be vigilant in our own back yards given recent events associated with the property. To conclude, a patio at the proposed location and of the proposed design does not consider recommendations with regard to size, location, noise management and visual screening. It should not be approved. It is for the reasons stated above that I oppose the amendment allowing for the proposed Fiesta Cancun Patio. It is for the reasons stated above that I oppose the current proposed design, and location of the proposed patio. The high standards maintained by the City of Eagan will have been compromised if the amendment is approved. Thank you for your consideration. Paul Danner 1004 Coneflower Court (651) 263 - 3623 Received by the City 05 -29 -2014 Cheryl Stevenson From: Dave Berthiaume <dave.berthiaume @g mail. com> Sent: Friday, May 30, 2014 12:19 PM To: City Council Subject: Fiesta Cancun patio proposal Hello. My name is Dave Berthiaume, and I live in the Wildflower development near Diffley and Lexington. It has come to my attention that the Fiesta Cancun restaurant on Lexington Avenue is proposing an outdoor patio addition. A petition is currently being circulated in our development that urges the council to reject this proposal. I would just like to state that I am NOT against a patio. I believe it would be a great asset to our neighborhood, and I want to do whatever is possible to support businesses in the area. This patio sounds like it would be a wonderful place to spend a summer evening. Having said that, I hope steps can be taken to minimize noise and disruption to the homes closest to the restaurant. Whether that's some sort of barrier or some limitation on operating hours, I don't know, but I hope these concerns are addressed if the patio is approved. Regards, Dave Berthiaume 949 Coneflower Ct. 651456 -5711 dave.borthiaume@gmail.com Council Members, As you revisit the request for an outdoor patio at Fiesta Cancun, we wanted to express our concerns on the latest proposal. We don't feel a true effort was made by the property management company and Fiesta Cancun to modify the original layout to address the concerns of surrounding residents and the Council. The resulting design really doesn't do much more than shift a few things around. Since my previous letter from the May 5th Council Meeting addressed general noise, traffic and pedestrian issues, I'll try to keep comments pertinent to the current proposed layout. Our first concern is that the patio size and number of tables was not adequately addressed. Removal of one table and shifting some space forward does not alleviate the problem of patron noise since customer volume and capacity is basically unchanged. A second concern is the addition of outdoor alcohol storage, or storage of any kind. Being so close to a residential neighborhood with children of all ages, storing alcohol outside obviously makes no sense. I would have to think multiple city ordinances, as well as safety and access concerns, will prohibit this. As for the patio design itself, we have a few issues. • The overall size is just too big for the location. I understand Fiesta Cancun wanting to maximize customer capacity, but due to the residential proximity issues, we feel a scaled down version of 6 -8 tables maximum would be more appropriate. That number would allow the tables to be concentrated toward the front of the patio and allow for the noise and sight line barrier to be increased slightly. • The current plan calls for a secondary exit at the rear of the patio with a sidewalk leading to the drive lane behind the strip mall. As stated in my initial letter, pedestrian traffic in the general area of the rear of the mall has increased just from restaurant operation alone. Direct access for patio patrons to a rear exit gate will only increase that volume. Another issue to consider with the gate placement is that it funnels people, some possibly impaired, toward a drive lane with a blind approach at the end of the proposed sidewalk. Patrons could potentially exit the sidewalk into the drive lane without realizing vehicles, such as Pizza and Pasta delivery drivers, could be exiting the drive lane at the same time. We would like to see the secondary gate exit toward Patrick Drive onto the sidewalk that already exists. • The current proposed landscaping we feel is a good start, but is inadequate overall. We would ask that you require slightly taller initial plantings of 10' as well as a little denser concentration. For all affected residents, noise and visual concerns are a top priority. I think these enhanced planting requirements would be a good, relatively inexpensive compromise and should adequately screen and buffer the patio. Through this entire process, the property management company has shown no desire to contact and work with the surrounding homeowners. And while I feel the business owners may have been slightly mislead on what they would be able to put in for a patio, it is still ultimately their responsibility to work with the neighborhood to ensure their support for the success of the business. To my knowledge, they too have made no effort to work with the homeowners. Client Company Name Project XX -00 -00000 June 1, 2014 Page 2 We had hoped the owners and the property management company would contact homeowners in an effort to work together on a solution palatable to all parties. Since that did not happen, I have attached a version of the most recent design submittal that represents what we feel would address homeowner concerns and give Fiesta Cancun a viable outdoor patio area. Table spacing seems a little tight, but it follows the scale of their latest submission so they must feel it is adequate. However, knowing layouts can change slightly from approval to build -out , we're hoping to see a spacific cap put on the number of seats allowed, preferably in the 24 to 32 range, and the square footage allowed. Also, we would like to see a mandate to maintain the screening should trees die over time. Despite our concerns, we would like to see Fiesta Cancun succeed in business and are very open to welcoming them to our neighborhood, patio and all. We are simply asking that the concerns of the residents be addressed. We feel the compromises we have proposed are fair to all parties and will hopefully lead to a successful relationship between Fiesta Cancun and it's surrounding neighbors. We're trusting the City Council members will weigh all interests and approve a design package that will satisfy everyone. Thank you for your time in listening to our input. Jeff and Mary Greenwell 1010 Trillium Court Fiesta Cancun Patio EXISTING RESTAURANT SCALE: 1 "= 10' DRIVE LANE Fol 1 o\/o 20' Y >J W U in (V Q O Y U I- Q Agenda Information Memo June 3, 2014 Eagan City Council Meeting NEW BUSINESS A. Conditional Use Permit and Variance — Scott and Karl: Anderson Actions To Be Considered: To approve (or direct Findings of Fact for Denial) a Conditional Use Permit to exceed 25% impervious surface coverage in a Shoreland Overlay District for a sport court and hardscape improvements for property located at 3844 Big Timber Trail, subject to the conditions listed in the APC minutes. To approve (or direct findings of fact for denial) a Variance of 7 ft. to the required maximum driveway width of 22 ft. for property located at 3844 Big Timber Trail, subject to the conditions listed in the APC minutes. Required Vote For Approval: Majority of Council Members Present Facts: ➢ The applicants have made improvements to their property, which include replacement /expansion of the driveway and construction of a sport court and patios on a single - family lot within the Shoreland Overlay District of Bald Lake. ➢ Shoreland zoning limits impervious coverage to a maximum of 25% of the lot size. The ordinance allows for impervious coverage above that amount with a Conditional Use Permit. ➢ The Zoning Ordinance limits the maximum width of a driveway to 22 ft. at the right - of -way (ROW). The applicants expanded the driveway to be the width of the three stall garage, adding an additional seven feet at the ROW, which requires a Variance. ➢ The applicants have stated the practical difficulty was access to the third stall garage. Further, a number of neighboring properties have similar driveway widths. ➢ The existing impervious coverage on the lot is 29.5% which equates to 417 ft of runoff. Prior to the improvements the impervious coverage on the lot was 20.75 %. ➢ The applicants have stated they were unaware of the code requirements. They are proposing to mitigate the impacts of the increased impervious surface by and installing several rain gardens within the site. ➢ As proposed the rain gardens should capture approximately 487.5 ft 3 of the runoff from a 100 -year, 24 -hour, 6" rainfall event. ➢ If installed correctly and routinely maintained, the rain gardens will sufficiently offset the excess impervious area. To ensure on -going maintenance and functionality, the landowner should enter into a long -term maintenance agreement with the City, in a form acceptable to the City Attorney. ➢ The Advisory Planning Commission (APC) held a Public Hearing on May 27, 2014 and did recommend approval. Issues: None 60 =Day Agency Action Deadline: June 17, 2104 Attachments: (4) NBA -1 Location Map NBA -2 Draft May 27, 2014 APC minutes NBA -3 Staff Report NBA -4 Exhibits Advisory Planning Commission May 27, 2014 Page 3 of 10 V. PUBLIC HEARINGS New Business A. 3844 Big Timber Trail Applicant Name: Scott Anderson, Homeowner Location: 3844 Big Timber Trail; Lot 1, Block 4, Gardenwood Ponds 2nd Addition Application: Conditional Use Permit A Conditional Use Permit to exceed the maximum impervious surface coverage of 25% in the Shoreland District. File Number: 23- CU- 11 -11 -13 Application: Variance A Variance to the maximum driveway width. File Number: 23- VA- 06 -04 -14 Planner Thomas introduced this item and highlighted the information presented in the City Staff report dated May 22, 2014. The applicant was available for questions. Chair Filipi opened the public hearing. Neighbors at 854 Govern Circle and 3848 & 3856 Big Timber Trail spoke in favor of the of the Anderson's request. There being no further public comment, Chair Filipi closed the public hearing and turned the discussion back to the Commission. Secretary Piper asked for clarification on the need for the rain gardens. Planner Thomas explained the impervious surface standards. Vice Chair Vanderpoel stated that she understood the applicant had the choice to remove the improvements that exceed the impervious surface standards or mitigate the excess. Secretary Piper moved, Member Heaney seconded a motion to approve a Conditional Use Permit to exceed the maximum impervious surface coverage of 25% in the Shoreland District, subject to the following conditions: 1. This Conditional Use Permit shall be recorded at Dakota County within 60 days of approval by the City Council with the following exhibit: • Mitigation Plan received April 18, 2014 2. The impervious surface of this lot shall not exceed 29.5% per the Site Plan dated November 20, 2013. 3. Prior to the release of the Conditional Use Permit for recording, the applicant shall provide a $1,000 escrow deposit for inspection of the raingarden(s) installation. Advisory Planning Commission May 27, 2014 Page 4 of 10 4. The proposed rain gardens /infiltration basins shall be designed and constructed to accommodate a minimum of 100% of the runoff from a 100 -year, 24 -hour event (6.0 "), from the lot's excess impervious surfaces (over 25% impervious coverage). 5. All rain gardens /infiltration basins shall be constructed so that temporary ponded runoff has infiltrated below the surface within 48 hours after the end of a rain event. 6. During construction of the rain gardens /infiltration basins, the applicant shall notify the City, with minimum of 24- hour's notice, for inspection opportunities during critical construction stages (over- excavation, prior to soil replacement, prior to mulching, etc.). City time involved in project inspection shall be withdrawn from the applicant's project escrow. 7. As -built drawings and capture volume measurements shall be provided to the City that verify minimum storage volume requirement is being met. 8. The applicant shall enter into a long -term stormwater facility inspection and maintenance agreement, detailing the maintenance required to maintain proper operation and performance of the rain gardens /infiltration basins, in a form acceptable to the City Attorney, to be filed in the property records with Dakota County Recorder's Office, at the applicant's expense. All voted in favor. Motion carried 7 -0. Secretary Piper moved, Member Heaney seconded motion to approve a Variance to the maximum driveway width, subject to the following condition: 1. The driveway shall not exceed the size as shown on the Site Plan received November 20, 2013. Motion carried 6 -1, (Piper opposed). PLANNING REPORT CITY OF EAGAN REPORT DATE: May 22, 2014 APPLICANT: Scott and Kari Anderson PROPERTY OWNER: Same CASE: 23-CU-11-11-13;23-VA-06-04-14 HEARING DATE: May 27, 2014 APPLICATION DATE: April 18, 2014 REQUEST: Conditional Use Permit and Variance PREPARED BY: Sarah Thomas LOCATION: 3844 Big Timber Trail COMPREHENSIVE PLAN: LD, Low Density Residential ZONING: R -1, Residential Single Family SUMMARY OF REQUESTS The applicants are requesting approval of: • Conditional Use Permit to exceed 25% impervious surface coverage in a Shoreland Overlay District for a sport court and hardscape improvements; and • Variance of 7 ft. to the required maximum driveway width of 22 ft. The above requests pertain to property located at 3844 Big Timber Trail. AUTHORITY FOR REVIEW Conditional Use Permit: City Code Chapter 11, Section 11.50, Subdivisions 4C and 4D provide the following. Subdivision 4C states that the Planning Commission shall recommend a conditional use permit and the Council shall issue such conditional use permits only if it finds that such use at the proposed location: 1. Will not be detrimental to or endanger the public health, safety, or general welfare of the neighborhood or the City. 2. Will be harmonious with the general and applicable specific objectives of the Comprehensive Plan and City Code provisions. Planning Report — 3844 Big Timber Trail May 27, 2014 Page 2 3. Will be designed, constructed, operated and maintained so as to be compatible in appearance with the existing or intended character of the general vicinity and will not change the essential character of that area, nor substantially diminish or impair property values within the neighborhood. 4. Will be served adequately by essential public facilities and services, including streets, police and fire protection, drainage structures, refuse disposal, water and sewer systems and schools. 5. Will not involve uses, activities, processes, materials, equipment and conditions of operation that will be hazardous or detrimental to any persons, property or the general welfare because of excessive production of traffic, noise, smoke, fumes, glare or odors. 6. Will have vehicular ingress and egress to the property which does not create traffic congestion or interfere with traffic on surrounding public streets. 7. Will not result in the destruction, loss or damage of a natural, scenic or historic feature of major importance. 8. Is appropriate after considering whether the property is in compliance with the City Code. Subdivision 41), Conditions, states that in reviewing applications of conditional use permits, the Planning Commission and the Council may attach whatever reasonable conditions they deem necessary to mitigate anticipated adverse impacts associated with these uses, to protect the value of other property within the district, and to achieve the goals and objectives of the Comprehensive Plan. In all cases in which conditional uses are granted, the Council shall require such evidence and guarantees as it may deem necessary as proof that the conditions stipulated in connection therewith are being and will be complied with. Variance: City Code Chapter 11, Section 11.50, Subdivision 3, B., 3, states that the Council may approve, approve with conditions or deny a request for a variance. In considering all requests for a variance, and whether the applicant established that there are practical difficulties in complying with the provisions(s) of this Chapter, the City Council shall consider the following factors: a. Exceptional or extraordinary circumstances apply to the property which do not apply generally to other properties in the same zone or vicinity, and result from lot size or shape, topography, or other circumstances over which the owner of property has no control. b. The literal interpretation of the provisions of this Code would deprive the applicant property use commonly enjoyed by other properties in the same district under the provisions of this Code. Planning Report — 3844 Big Timber Trail May 27, 2014 Paize 3 c. The exceptional or extraordinary circumstances do not result from the actions of the applicant. d. The granting of the variance will not confer on the applicant any special privilege that is denied by this Chapter to owners of other lands, structures or buildings in the same district. e. The variance requested is the minimum variance which would alleviate the practical difficulties. f. The variance would not be materially detrimental to the purposes of this Code or to properties in the same zone. g. The property for which the variance is requested is otherwise in compliance with the City Code. The ordinance also states "A variance will be denied when it is not in harmony with the general purposes and intent of the zoning provisions of this Code or when the variance is inconsistent with the comprehensive plan. Any condition imposed upon the approved variance must be directly related to and must bear a rough proportionality to the impact created by the variance." BACKGROUNDMISTORY The Garden Ponds Second Addition subdivision was platted in 1996. The property is zoned R -1, and is developed with a single family home. The property is located in the Shoreland Overlay District of Bald Lake, a General Development Lake. Residential zoning standards limit building coverage to 20 %, and in the Shoreland Overlay District, impervious surface coverage is limited to 25% of the lot area. EXISTING CONDITIONS The 18,526 sq. ft. lot consists of a single family home with an attached garage constructed in 1997. 25% of the lot area equals 4,631 sq. ft. Improvements to the property have occurred since 2011 that have increased the impervious surface coverage. These include replacement /expansion of the width of the driveway, construction of an impermeable base sport court and the addition of impermeable base patios and paths. Based on data supplied by the homeowner's contractor, the site was previously at 20.75% impervious surface coverage prior to the improvements. Currently the lot's impervious coverage is approximately 29.5% or 5,466.33 sq. ft. (834.83 sq. ft. over the 25% maximum impervious coverage total). The excess impervious area equates to a volume runoff of 417 cubic feet (3,119 gallons) of stormwater from a 100 -year, 24 -hour (6.0 ") rainfall event. Planning Report — 3844 Big Timber Trail May 27, 2014 Page 4 SURROUNDING USES The subject site is surrounded by single family residences. EVALUATION OF REQUEST Compatibility with Surrounding — The subject site is surrounded by single family residences. The patios and sport court are compatible with the surrounding area. Code Requirements — Eagan City Code ( §11.65 — Shoreland Overlay District) stipulates that impervious coverage must not exceed 25% of the lot area within the Shoreland Overlay District. However, the Code does allow for an increase in the impervious area, provided the City has: 1) issued a Conditional Use Permit permitting an increase in impervious coverage; 2) approved and implemented a community -wide stormwater management plan affecting the subject site; and 3) required the necessary water quality mitigation features to meet non - degradation standards for phosphorus for the nearest downstream recreational waterbody. In addition, the general CUP standards listed at the beginning of this report are applicable to the evaluation of this request. Minnesota Department of Natural Resources (DNR) — Notice of the proposed CUP was sent to the DNR as required by the Shoreland zoning ordinance. The South Metro Area Hydrologist stated the rain gardens appear to be well planned out and should account for the additional runoff from the new impervious surfaces. The DNR is not opposed to the CUP. Description of Proposal — Impervious coverage includes all hardcover areas: home, garage, driveway, sidewalk, patios, fire pit and sport court. According to the narrative, the applicant's contractor made the improvements but was unaware of the impervious surface requirements for the site until after the improvements were made. The applicant applied for an after - the -fact Zoning Permit which is when the non - conformities were discovered. A summary of these numbers is provided in the table below. Mitigative Measures — The applicant proposes to construct three (3) rain gardens /infiltration basins that combined would capture approximately 487.5 cubic feet of storm water runoff, which Square Footage Ratio to Lot Area of Impervious 18,526 s . ft. Maximum Allowable 4,631.5 25.0% in Shoreland Overlay District Existing Conditions 5,466 29.5% Pre - Construction Impervious 3,844 20.75% Coverage Excess Impervious Coverage 834.83 4.5% (over 25% maximum) Mitigative Measures — The applicant proposes to construct three (3) rain gardens /infiltration basins that combined would capture approximately 487.5 cubic feet of storm water runoff, which Planning Report — 3844 Big Timber Trail May 27, 2014 Page 5 would be able to contain a 100 -year, 24 -hour (6.0 ") rainfall event from the "excess" impervious surface. Although the 25% maximum impervious area allowance has been significantly exceeded, the applicant has demonstrated how the excess could be mitigated. Capturing 100% of the runoff from the "excess" impervious area from a 100 -year, 24 -hour (6.0 ") event would be a conservative mitigation approach. Rain Garden — Much of the beneficial impact of the rain gardens /infiltration basins is dependent upon the design, soil conditions and implementation methods. Infiltration basins also require ongoing monitoring and maintenance of the vegetation and sedimentation to ensure continued functionality as intended. It could be very challenging for City staff to monitor to ensure that long -term maintenance on each rain garden on private property is occurring, to verify continued functionality. If rain gardens /infiltration basins are allowed to mitigate the "excess" imperious area, they should be installed according to the guidelines of the Minnesota Storm Water Manual and the Dakota County Low Impact Development Standards. During construction steps, the applicant should provide notification to the City, for inspection at critical construction stages (over- excavation, prior to soil replacement, prior to mulching, etc.). After completion, the applicant should provide documentation (as -built drawings and volume measurements) to verify they were constructed as designed with required minimum sizing and no additional impervious area should be added to this lot. Maintenance — Because the proposed additional impervious area will be permanent, the rain gardens /infiltration basins should be inspected and maintained on an ongoing basis to function properly. Since the proposed mitigative measures will be located on private property and privately maintained, the City should have legal assurances that the necessary maintenance will be performed to ensure proper functionality. Therefore, the landowner should enter into a long- term maintenance agreement with the City, in a form acceptable to the City Attorney. VARIANCE The Zoning Ordinance states that relief may be granted from a required ordinance provision where practical difficulties result from carrying out the strict letter of the regulations of such Code provision, provided "the applicant proposes to use the property in a reasonable manner not permitted by the zoning provisions of this Code; the plight of the applicant is due to circumstances unique to the property not created by the applicant; and the variance, if granted, will not alter the essential character of the locality. Economic considerations alone do not constitute practical difficulties." The Zoning Ordinance states that relief may be granted provided the applicant proposes to use the property in a reasonable matter not permitted by the zoning provisions of the Code. The applicant has constructed a driveway which has a width that exceeds City Code requirements. Planning Report— 3844 Big Timber Trail May 27, 2014 Paae 6 The applicant's narrative explains the former driveway was expanded to allow for easier access to the third stall garage. Further, the applicant states they were unaware the City Code restricted the width of the driveway to a maximum of 22 feet at the right -of -way as nine neighbors have larger driveways consisting of the width of a three stall garage that goes straight to the road. City staff contacted a number of communities regarding their curb cut requirements. The required size varied from 24' to 32'. For example, Bloomington has a 30' maximum and then allows an increase with a formula dependent upon the width of the garage. The City of Burnsville discussed reduction from 24' to 22' in 2008 and how driveway width relates to impervious coverage, but decided to maintain the 24' requirement and establish a maximum front yard impervious coverage instead. The requested Variance does appear to be the minimum required to alleviate the practical difficulties as the driveway does not exceed the width of the garage. It does not appear that granting of the Variance would result in detrimental effects to the adjacent properties or the public. As noted by the applicant and visible from aerial photography, numerous adjacent properties have similar driveway widths. The Zoning Ordinance states the property for which the Variance is requested must otherwise be in compliance with City Code. Except for the impervious surface coverage, the property appears to be in compliance. SUMMARY /CONCLUSION The applicants have invested in their property by malting hardscape improvements to their lot which is within the Shoreland Overlay District of Bald Lake. Shoreland zoning limits impervious coverage to a maximum of 25% of the lot size. The applicant is requesting approval of a Conditional Use Permit to allow 29.5% impervious coverage and a Variance of 7 ft. to the required maximum driveway width of 22 ft. The applicants are proposing to mitigate the impacts of the increased impervious surface by installing three rain gardens within the site. Based upon the proposed plans, the mitigative measures should accommodate 100% of the runoff from a 6.0" rain event from the "excess" impervious area. If installed correctly and routinely maintained, they will sufficiently offset the excess impervious area. To ensure on -going maintenance and functionality, the landowner should enter into a long -term maintenance agreement with the City, in a form acceptable to the City Attorney. The applicant has stated that they were unaware of the driveway width requirement given nine of their neighbors have a wide driveway. While the additional driveway width adds to the impervious lot surface and does not meet City Code requirements, it is not dissimilar to a number of existing driveways on surrounding properties. Planning Report — 3844 Big Timber Trail May 27, 2014 Paize 7 ACTIONS TO BE CONSIDERED To recommend approval of a Conditional Use Permit to exceed 25% impervious surface coverage in a Shoreland Overlay District for a sport court and hardscape improvements at 3844 Big Timber Trail. If approved, the following conditions should apply: 1. This Conditional Use Permit shall be recorded at Dakota County within 60 days of approval by the City Council with the following exhibit: • Mitigation Plan received April 18, 2014 2. The impervious surface of this lot shall not exceed 29.5% per the Site Plan dated November 20, 2013. 3. Prior to the release of the Conditional Use Permit for recording, the applicant shall provide a $1,000 escrow deposit for inspection of the raingarden(s) installation. 4. The proposed rain gardens /infiltration basins shall be designed and constructed to accommodate a minimum of 100% of the runoff from a 100 -year, 24 -hour event (6.0 "), from the lot's excess impervious surfaces (over 25% impervious coverage). 5. All rain gardens /infiltration basins shall be constructed so that temporary ponded runoff has infiltrated below the surface within 48 hours after the end of a rain event. 6. During construction of the rain gardens /infiltration basins, the applicant shall notify the City, with minimum of 24- hour's notice, for inspection opportunities during critical construction stages (over- excavation, prior to soil replacement, prior to mulching, etc.). City time involved in project inspection shall be withdrawn from the applicant's project escrow. 7. As -built drawings and capture volume measurements shall be provided to the City that verify minimum storage volume requirement is being met. 8. The applicant shall enter into a long -term stormwater facility inspection and maintenance agreement, detailing the maintenance required to maintain proper operation and performance of the rain gardens /infiltration basins, in a form acceptable to the City Attorney, to be filed in the property records with Dakota County Recorder's Office, at the applicant's expense. To recommend approval of a Variance of 7 ft. to the required maximum driveway width of 22 ft. for property located at 3844 Big Timber Trail. If approved, the following condition shall apply: The driveway shall not exceed the size as shown on the Site Plan received November 20, 2013. cn (1, O lilt ago! Oc A -u iri o 1 E z: 0 lit 1 A2 'a" cn (1, WHO 14 MAN IF! P111, Ai . ..... . . . .... LL-IWLLLL� O lilt WHO 14 MAN IF! P111, Ai . ..... . . . .... LL-IWLLLL� O ago! A -u WHO 14 MAN IF! P111, Ai . ..... . . . .... LL-IWLLLL� LL LL 0 LO I 0 01 N aw 0 0 0 "---�� 0 a d Q M a m a `:. � � c o �- d a N C C N � .- r U 'i3 C C C � m n +� 'v � c m � c O K �D N N V N @ .Q C C�J C ? L N N � V N .O f" � d 1 • • 1 L LL U.1 ............................. rX m Q .................... 9 oz {_ j l bCU�I. Utlfl hF171 �tlflPi' � &011 � Aiyi - i•n} Not CQ SCBIP I RECEIVED APR 2 3 MIN Zlf��� f),E(,�EIVEED APR 2 3 201h Q, XFINITY Connect Agustie@comcastmat F,fr,,-,',,(,"EIVED APRI 2 3 2014 Before 91 "F A MVE NOV 2 0 20-113 - i- ROY After ,NOV 2 a ��, .RFr,Ej,V'VJD NOV 2 0 Site Location: 3844 Big Timber Trail, Eagan MN 55123 PID: 102880104010 This property is situated in the Bald Eagle Shoreline district and has an allotment of 25% impervious surface. We are applying for a Conditional Use Permit as our site improvements has increased the impervious surface of this site from 20.75% to 29.50 %. We applied for a zoning permit for our sport court and deck improvements but were not aware of the impervious surface requirements for this site until after improvements were made. We would like to explain what improvements were made and how this has impacted storm water run -off on the site. Attached at the end of this narrative are photos illustrating before and after site conditions. Our 2013 improvements to the site included: Deck improvements and expansion Revised patio shape below deck Sport Court Fire --pit patio Mulch beds with soil, peat moss and plantings Retaining walls under 4' Grading, top soil and sod. Throughout the design process we were focused on minimizing any run -off into neighboring properties. As a 51 -year old company (with an 11 -year landscape design vet trained at the U of M) we are very conscious of a site's natural drainage patterns and how to properly design a site to improve holding capacity instead of adding run -off volume, During the design /build part of the improvements we leveled off previously sloped areas of the yard with the use of retaining walls. We planned for large mulched planting beds with amended soil to help retain water and used boulder outcroppings to help slow run -off in these areas. In areas around the top of the sport court we lowered the planting bed grade so water will hold and slowly seep into these. We kept the existing grading along the back and side 5' drainage easements. We kept the existing swale location and actually decreased the slope percentage to slow water and hold more on -site through this swale than was previously in place. We created semi - permeable flagstone patios to help hold water on -site, These are constructed with 6" of W clear rock for the base with flagstones that are set and tamped right on this clear drainage rock. Then we added eco -grout (a permeable joint filler). In all disturbed areas we mixed in approximately 3- 6 "pulverized top soil to help improve the existing clay soil quality and holding capacity. RECEIVE0 NOV 2 0 2013 NARRATIVE It is our belief that even though we added extra impervious surface we also mitigated these additions with grading, soil amendments and planting beds. If future mitigation is required the homeowner has expressed interest in rain barrels as one option. Thank you for your time. Megan Aune, CNLP, SLS Design RECD ED NOV 22 0 2913 Date: April 23, 2014 Applicant: Scott and Karl Anderson 3844 Big Timber Trail Eagan, MN 55123 PID: 10- 28801 -04 -010 Request for: Variance to Section 11.70 Land Use Reguations, Subd.10 "Residential Driveways" This property is located Gardenwood Ponds Second Addition in Eagan, zoned R -1 single family, located at 3844 Big Timber Trail, legally described as Lot 1, Block 4 Gardenwood Ponds 2nd Addition. The home is also part of the Bald Lake Shoreland District. We are retroactively requesting a Variance to City of Eagan Municipal Code Section 11.70 "Land Use Regulations ", Subdivision 10 "Residential Driveways" where in the Code states as follows: "Subd.10. Residential Driveways. The maximum width of a residential driveway at the right -of -way shall be 22 feet." We are requesting our driveway be allowed to remain in its current state, which is 28 feet, I I inches width at the right of way. History of Project: In June 2011, Pace Construction tore out and replaced our existing asphalt drive and concrete walkway. Our previous asphalt drive had settled, or sunk, at least 4 -5 inches toward the upper left corner which allowed water to pool and enter our basement along the garage subfloor. It also created an unsafe entry into our garage, causing several household members and guests to trip and fall. Our previous concrete walkway had heaved and cracked the previous spring so as to create an unsafe walkway for household members, guests, delivery people, etc. Our home has a three car garage consisting of one double garage door and one single garage door, standard size of 16 and 8 feet respectively. Because of the odd shape of our driveway, which we now believe to have curved in at or just below the right of way, we were unable to fully access the third stall of our garage. Our teenage drivers managed to take out more than one side -view mirror on a family car and several scrapes trying to get in and out on the curved driveway. It made access to the third stall very difficult. When we replaced the driveway, we requested it be brought straight down to the roadway. This did not seem to be a problem as 9 of our neighbors on Big NARRATIVE - VARIANCE RECEIVED APR 2 3 2014 of these large driveways when they finished the home across the street in 2001. Our driveway began construction before the requirement of obtaining a Zoning Permit for installation of the driveway was enacted (published July 1, 2011). Had the permitting process been in place, I assume we would have been advised about the right -of -way ordinance, Neither we nor our contractor were aware of the right of way requirement in the Land Use Regulations. We replaced the driveway and walk with a beautiful stamped concrete design. It was quite expensive (see exhibit B attached). The driveway and walk add to the visual beauty and value of our home and neighborhood. (See photos attached as exhibit C). It also allows us to park a third vehicle in the third stall without injury to the car or home, It is much more practical to approach the third stall straight on rather than trying to navigate a sharp curve. We have committed to staying in our home for several years and have spent considerable time and resources to maintain and improve its esthetic value. Because of the extensive improvements we have made to our home, its taxable value has increased from our original purchase price of $375,000 to its current assessed value of $515,000 (taxable 2015). To remove the driveway would be at great cost to us, would deter from the beauty of the home, and revert to the difficulties we had in accessing our third stall. We respectfully request a Variance to allow our driveway to remain as it is at 28 feet, 10 inches. As part of our Conditional Use Permit, we are planning to install a large rain garden in the front of the house to mitigate runoff from the roof, driveway and walkway. We live on a large corner lot. The existing driveway is more than 18 feet from the property line abutting our neighbors to the south (in the City's right of way area) on a corner lot which is .43 acres. It is our understanding that should the City for some reason need to remove part of the driveway for any reason in conjunction with its 10 foot easement in the right of way, they will not be required to replace the portion of the driveway exceeding the 22 -feet in width in the right of way. Thank you for your consideration. RECEIVED APR 2 3 201k OSCARS 6fuinoble h4coping Estimate Scott & Kari Anderson 3344 Big Timber Trail Eagan, MN 55123 H: 651 -994 -1076 C :651- 303 -7296 skgustle @comoest.net Project: Raingarden project. RECEIVED APR 18 2014 Proposal #1 :: Install 1 raingarden in the center of the back yard totaling approx., 400 sq. ft. with a ponding depth of 6 ". Raingarden will also have 12 inches of soil replaced with a 70/30 sand /compost mix for more holding capacity. Install 1 -10 gal. River Birch, 1I- 5gal. shrubs, 45 —1 gal. perennials, and 4 yards of shredded hardwood mulch, Plant selection and layout to be decided on -site. Burm will be reinforced with coco- erosion control mat. Raingardens will have a holding capacity of 260 cu.ft. of water or 1944.8 gallons, Approx. 15 yards of soil removed and replaced with sand /compost, Raingarden will collect from approx.. 2500 sq.ft, of impervious surface and approx. 8000 sq.ft, of turf and landscaping. A 6" lain will contribute 1250 cu.ft, of water from impervious surfaces to this raingarden. Soils shall be loosed to 4' below existing grade or more. $4500.00 Proposal #2:: Install 1 raingarden near the corner of the back yard before sport court totaling approx,. 150 sq. ft, with a ponding depth of 6 ". Raingarden will also have 12 inches of soil replaced with a 70/30 sand /compost mix for more holding capacity. Install 3 -5gal shrubs, 30 —1 gal perennials, and 2 yards of shredded hardwood mulch. Plant selection and layout to be decided on -site. Burm will be reinforced with coco- erosion control mat. Raingardens will have a holding capacity of 97,5 cu.ft, of water or 7293 gallons, Approx, 5 yards of soil removed and replaced with sand /compost. Raingarden will collect from approx.. 650 sq.ft, of impervious surface and approx. 2000 sq.ft. of turf and landscaping, A 6" rain will contribute 325 cu.ft, of water from impervious surfaces to this raingarden. Soils shall be loosed to .4' below existing grade or more. $1800.00 Proposal #3: Install 1 raingarden in the front yard totaling approx., 200 sq. ft, with a ponding depth of 6 ". Raingarden will also have t2 inches of soil replaced with a 70/30 sand /compost mix for more holding capacity. Install 1- 10 gal ornamental tree, 5 - 5gal shrubs, 45 — 1 gal perennials, and 2 yards of shredded hardwood mulch. Plant selection and layout to be decided on -site, Burm will be reinforced with coco- erosion control. mat, Raingarden will have a holding capacity of 130 cu.ft, of water or 972.4 gallons. Approx,.. 7.5 yards of soil removed and replaced with sand /compost, Raingarden will collect from approx.. 500 sq.ft, of impervious surface and approx. 2000 sq,ft, of turf and landscaping. A 6" rain will contribute 250 cuft of water from impervious surfaces to this raingarden. Soils shall be loosed to 4' below existing grade or snore. $2600.00 2133 Storland Road — Eagan, MN — 612.965.0346 — craigstark @ecoscapes1.com — www.ecoscapesl.com NARRATIVE -RAIN GARDEN 3+ �. , Suslaina6le landscaping Proposals; #1 -3 will hold and infiltrate a minimum of 487.5 cu.ft. or 3646.5 gallons of wat. r Yrciti'i'gate the impervious surface overage of 834 sq.ft. and more for a 100 year Stornl..event Total Contract Terms This is an agreement between "Customer ", defined on previous pages, and Ecoscapes Sustainable Landscaping. Under the terms set forth below, Customer agrees to purchase the services of Ecoscapes in preparing and constructing the landscaping and /or brick paving and /or retaining wall design as set forth in the Proposals, and Ecoscapes agrees to render such services. As consideration, Customer agrees to pay Ecoscapes the amount shown as "Total" in the Project Description ( "Contract Price ") in exchange for performing the services described in the Contract Description. The parties further agree as follows: Payments Customer will pay Ecoscapes 50 % of the Contract Price upon acceptance of the Proposal. Ecoscapes will invoice Customer for the remaining balance along with any change orders due to site conditions, customer's changes or additions, and design changes, when work is substantially complete, as determined by Ecoscapes. The invoice shall be paid by Customer within 15 days of the invoice date. If the total balance is not received by Ecoscapes by the end of the 15 -day period, interest will be paid on that balance by Customer at a rate of 1.5% per month. Failure by Customer to pay the remaining balance within 105 days will constitute breach of this agreement. Upon breach of this agreement, Customer agrees to pay all costs of collecting any remaining balances, including attorney's fees. No warranties will be issued until full payment is received. Brick Paving/ Retaining Walls Ecoscapes warrants that brick paving or retaining wall material used in this contract will be free from defects and the installation will be functional for a period of two (3) years from the date of completion of the Contract, provided the installation was used as was intended when the Contract was designed, and was not misused. Any repairs /replacements made to any installation after expiration of the warranty will be made at Customer's expense. Any repairs made to any installation by any party other than Ecoscapes voids any warranties offered by Ecoscapes. Plants Ecoscapes will offer one -time only replacement of any tree, shrub, evergreen, woody vine, or perennial that has died within one (1) year from the date of installation, provided the plant has been cared for as instructed, and not misused. Ecoscapes will not replace plants killed by animals, rodents, insects, mechanical damage, neglect, natural disasters or other reasons over which Ecoscapes has no control. This warranty does not cover annuals, seeds, bulbs, roses and non - winter hardy plants. An additional labor charge for plant removal and reinstallation will apply. Any repairs /replacements made to any installation after expiration of the warranty will be made at Customer's expense. Any repairs made to any installation by any party other than Ecoscapes voids any warranties offered by Ecoscapes. 2183 Storland Road — Eagan, MN — 612.955.0848 — craigstark @ecoseapesl.com www.econcapesl.com in RWAKS Sustainable landscaping Changes Ecoscapes will make reasonable efforts to complete the Contract as designed, Circumstances may arise beyond the control of Ecoscapes that may prevent construction of the Contract exactly as planned. Ecoscapes will make reasonable efforts to minimize this impact on the design and construction, Customer acknowledges this possibility and accepts the action Ecoscapes will take to minimize the potential change in design. If Customer wishes to change any part of the installation after this agreement is signed, but prior to commencement of installation, which results in additional material or labor costs for Ecoscapes or results in delays in the completion of the Contract, said costs will be added to the remaining balance of the Contract and billed as part of the original Contract, Any changes in the design or Contract, whether the changes result in additional time, cost, or neither, must be made in writing and signed by both parties, using an Additional Work Order Form, Permits Customer is responsible for securing all necessary permits. Unless specified in writing, Ecoscapes is not responsible for code violation made at Customer request, PROJECT START AND COMPLETION An estimate of the number of days to complete the contracted work and an expected start date are provided as a courtesy, There may be delays in the beginning date and completion date due to poor weather or other circumstances beyond the control of Ecoscapes. Those delays will not alter or invalidate any part of this Contract, nor will they entitle Customer to additional rights under the Contract Termination This agreement may be canceled by Customer by mailing written notice to Ecoscapes before midnight the third business day after Customer has signed this agreement. If after that time Customer wishes to terminate this Contract, Customer must give Ecoscapes five (S) days advance written notice, Ecoscapes will retain any monies paid by Customer up to the effective date of termination, and is entitled to any expenses for materials or other expenses incurred by Ecoscapes. Estimates Ecoscapes will make reasonable effort to accurately estimate the materials needed to complete the Contract, However, Customer acknowledges that there may be differences between the estimate and the final price, If the actual price is less than the estimated Contract Price, that amount will be discounted on the final payment due Ecoscapes. If the actual price is more than the estimated Contract Price, that additional amount will be added to the final payment due Ecoscapes. Customer will pay Ecoscapes that additional amount. Notice of Lien Rights AS REQUIRED BY THE MINNESOTA CONSTRUCTION LIEN LAW, BUILDER HEREBY NOTIFIES OWNER THAT PERSONS OR COMPANIES FURNISHING LABOR OR MATERIALS FOR TIIE CONSTRUCTION ON OWNER'S LAND MAY HAVE LIEN RIGHTS ON OWNER'S LAND AND BUILDINGS IF NOT PAID. THOSE ENTITLED TO LIEN RIGHTS, IN ADDITION TO THE UNDERSIGNED 2183 Storland Road w Eagan, MN — 612.966,0848 w craigstark@ecoscapesl.com a www.ecoscapesl.com ROSCARS Suifainable Landscaping BUILDER, ARE THOSE WHO CONTRACT DIRECTLY WITH THE OWNER OR THOSE WHO GIVE THE OWNER NOTICE WITHIN 60 DAYS AFTER THEY FIRST FURNISH LABOR OR MATERIALS FOR THE CONSTRUCTION. ACCORDINGLY, OWNER PROBABLY WILL RECEIVE NOTICES FROM THOSE WHO FURNISH LABOR OR MATERIALS FOR THE CONSTRUCTION, AND SHOULD GIVE A COPY OF EACH NOTICE RECEIVED TO THE MORTGAGE LENDER, IF ANY, TO SEE THAT ALL POTENTIAL LIEN CLAIMANTS ARE DULY PAID. The failure of Ecoscapes to enforce any right accruing under this agreement shall not be construed as a waiver of a subsequent right of Ecoscapes to enforce the same or any other right, term or condition. This agreement shall be interpreted and enforced in accordance with the laws of the State of Minnesota. To agree to individual proposals of contract, initial next to price of agreed proposal and write in calculated total contract price in space provided. Sign contract below to create a binding agreement. Customer Signature Date 2183 Storland Road — Eagan, MN w 612.965.0848 — creigstark @ecoscapesl.com M www.ecoscapesl.com Agenda Information Memo June 3, 2014 Eagan City Council Meeting NEW BUSINESS B. Conditional Use Permit and Variance — Verizon Wireless Actions To Be Considered: To approve (or direct Findings of Fact for Denial) a Conditional Use Permit to allow a 100 -foot telecommunications tower with a 15 -foot cross for property located at 2950 Hwy. 55, subject to the conditions listed in the APC minutes. To approve (or direct findings of fact for denial) a Variance to locate a telecommunications tower in a side yard for property located at 2950 Hwy. 55, subject to the conditions listed in the APC minutes. Required Vote For Approval: Majority of Council Members Present Facts: ➢ The parcel is zoned Public Facility (PF) and developed as Trinity Lutheran Lone Oak church and school. The parcel is surrounded by business warehouse uses except for a single family home to the south. Access to the site is provided from Hwy 55. ➢ The Applicant proposes the 100 -foot telecommunication tower be located in the side yard due to the existing building location and improvements on the site as well as the topography. ➢ The Applicant sought co- location options on nearby towers and buildings, but was unable to find a suitable location. ➢ The Advisory Planning Commission (APC) held a Public Hearing on May 27, 2014 and did recommend approval. Issues: None 60 -Day Agency Action Deadline: June 22, 2104 Attachments: (4) NBB -1 Location Map NBB -2 Draft May 27, 2014 APC minutes NBB -3 Staff Report NBB -4 Exhibits r <� N M LLO O O O CN M E o 0 CV o m a L 1 a CL @ m a v a o J i ■® 7 ®� E r ® is d Q Q M O O ■ s �~ Q Q _ > O w � 0 U) U U r O Q O C G =O v = Z - d N N .L M rL .L N 4w ❑> Q> U <� N LLO O O CN M 0 CV o m a w c Y m a CL @ m a v o J ■® 7 ®� 0 0 LO O Advisory Planning Commission May 27, 2014 Page 5of10 B. Verizon Wireless Applicant Name: Blake Conklin, Faulk and Foster Real Estate, Inc. Location: 2950 Hwy 55; Section 1, Township 27, Range 23, Trinity Lone Oak Lutheran Church Application: Conditional Use Permit A Conditional Use Permit to allow a cell tower. File Number: 01- CU- 04 -03 -14 Application: Variance A Variance to allow a cell tower in the side yard. File Number: 01- VA- 02 -03 -14 Planner Thomas introduced this item and highlighted the information presented in the City Staff report dated May 19, 2014. Applicant Blake Conklin, Faulk and Foster Real Estate representing Verizon, provided background information and the need for increased coverage in the area. Chair Filipi opened the public hearing. A Trustee of the church stated the church's support of the Verizon request. There being no further public comment, Chair Filipi closed the public hearing and turned the discussion back to the Commission. Vice Chair Vanderpoel states she appreciated the applicant's efforts to develop a monopole design that complements the church and surrounding area. Secretary Piper stated he understood the Variance was not created by the applicant and could be supported due to the odd shape of the parcel but was concerned that approving the Variance would confer upon the applicant a special privilege denied to other parcels in the same district. Secretary Piper moved, Member Sagstetter seconded a motion to approve a Conditional Use Permit to allow a 100 -foot monopole telecommunications tower with a 15 -foot cross, subject to the following conditions: 1. This Conditional Use Permit shall be recorded at Dakota County within 60 days of approval by the City Council. 2. The property shall be platted prior to issuance of a Building Permit. 3. The monopole and cross shall be the same color. 4. The applicant shall provide the City documentation from a registered structural engineer confirming the structural integrity of the proposed monopole. The documentation shall be submitted with the Building Permit application. 5. The equipment building shall be constructed of similar material, color and trim to match the existing building. 6. The monopole and equipment building shall be maintained in premium condition. Advisory Planning Commission May 27, 2014 Page 6of10 7. The existing private storm sewer that runs near the site shall be relocated if it conflicts with the proposed tower or associated equipment. All voted in favor. Motion carried 7 -0. Secretary Piper moved, Vice Chair Vanderpoel seconded a motion to approve Variance to allow the side yard location of a 100 -foot monopole telecommunications tower with a 15 -foot cross, subject to the following conditions: 1. If within one year after approval, the variance shall not have been completed or utilized, it shall become null and void unless a petition for extension has been granted by the council. Such extension shall be requested in writing at least 30 days before expiration and shall state facts showing a good faith attempt to complete or utilize the use permitted in the variance. 2. The monopole telecommunications tower shall be located as shown on the proposed Site Plan received March 19, 2014. Motion carried 6 -1 (Piper opposed). REPORT DATE: May 19, 2014 PLANNING REPORT CITY OF EAGAN CASE: 01- CU- 04 -03 -14 01- VA- 02 -03 -14 APPLICANT: Faulk and Foster Real Estate, Inc. HEARING DATE: May 27, 2014 PROPERTY OWNER: Trinity Lone Oak Lutheran Church REQUEST: Conditional Use Permit; Variance LOCATION: 2950 Hwy. 55 COMPREHENSIVE PLAN: QP, Quasi Public ZONING: PF, Public Facility APPLICATION DATE: April 23, 2014 PREPARED BY: Sarah Thomas SUMMARY OF REQUEST Faulk and Foster Real Estate Inc., on behalf of Verizon Wireless, is requesting approval of: • Conditional Use Permit to allow a 100 -foot monopole telecommunications tower with a 15 -foot cross; and • Variance to locate the telecommunications tower in a side yard. The above requests pertain to property located at 2950 Hwy 55. AUTHORITY FOR REVIEW Conditional Use Permit: City Code Chapter 11, Section 11.50, Subdivisions 4C and 41) provide the following. Subdivision 4C states that the Planning Commission shall recommend a conditional use permit and the Council shall issue such conditional use permits only if it finds that such use at the proposed location: 1. Will not be detrimental to or endanger the public health, safety, or general welfare of the neighborhood or the City. 2. Will be harmonious with the general and applicable specific objectives of the Comprehensive Plan and City Code provisions. Plaiming Report — Verizon Wireless May 27, 2014 Page 2 3. Will be designed, constructed, operated and maintained so as to be compatible in appearance with the existing or intended character of the general vicinity and will not change the essential character of that area, nor substantially diminish or impair property values within the neighborhood. 4. Will be served adequately by essential public facilities and services, including streets, police and fire protection, drainage structures, refuse disposal, water and sewer systems and schools. 5. Will not involve uses, activities, processes, materials, equipment and conditions of operation that will be hazardous or detrimental to any persons, property or the general welfare because of excessive production of traffic, noise, smoke, fumes, glare or odors. 6. Will have vehicular ingress and egress to the property which does not create traffic congestion or interfere with traffic on surrounding public streets. 7. Will not result in the destruction, loss or damage of a natural, scenic or historic feature of major importance. 8. Is appropriate after considering whether the property is in compliance with the City Code, Subdivision 4D, Conditions, states that in reviewing applications of conditional use permits, the Planning Commission and the Council may attach whatever reasonable conditions they deem necessary to mitigate anticipated adverse impacts associated with these uses, to protect the value of other property within the district, and to achieve the goals and objectives of the Comprehensive Plan. In all cases in which conditional uses are granted, the Council shall require such evidence and guarantees as it may deem necessary as proof that the conditions stipulated in connection therewith are being and will be complied with. Variance: City Code Chapter 11, Section 11.50, Subdivision 3, B., 3, states that the Council may approve, approve with conditions or deny a request for a variance. In considering all requests for a variance, and whether the applicant established that there are practical difficulties in complying with the provisions(s) of this Chapter, the City Council shall consider the following factors: a. Exceptional or extraordinary circumstances apply to the property which do not apply generally to other properties in the same zone or vicinity, and result from lot size or shape, topography, or other circumstances over which the owner of property has no control. b. The literal interpretation of the provisions of this Code would deprive the applicant property use commonly enjoyed by other properties in the same district under the provisions of this Code. Planning Report — Verizon Wireless May 27, 2014 Page 3 c. The exceptional or extraordinary circumstances do not result from the actions of the applicant. d. The granting of the variance will not confer on the applicant any special privilege that is denied by this Chapter to owners of other lands, structures or buildings in the same district. e. The variance requested is the minimum variance which would alleviate the practical difficulties. f. The variance would not be materially detrimental to the purposes of this Code or to properties in the same zone. g. The property for which the variance is requested is otherwise in compliance with the City Code. The ordinance also states "A variance will be denied when it is not in harmony with the general purposes and intent of the zoning provisions of this Code or when the variance is inconsistent with the comprehensive plan. Any condition imposed upon the approved variance must be directly related to and must bear a rough proportionality to the impact created by the variance." BACKGROUND/MISTORY A Conditional Use Permit (CUP) was approved in 2003 to allow a pylon sign with a maximum height of 16 feet. Planning Report — Verizon Wireless May 27, 2014 Page 4 EXISTING CONDITIONS The site contains a church, school, parking lot and cemetery on 9.5 acres within three parcels. A condition of approval requires platting of the property to combine the three parcels prior to issuance of a Building Permit for the monopole telecommunication tower. The church/school building faces Hwy 55 and is west - centrally located on the lot, with an entrance drive south of the building to gain access to the parking lot area which is also south of the building. The cemetery is located north and northwest of the church building. A ball field, open apace, and woods are located north and east of the school and parking lot. The church's existing parking lot and building were constructed with previous development of the site. The three parcels drain to the north and the east with elevations ranging from 880' to 852'. The southern end of the parking lot has one access onto Hwy. 55. The building is connected to City sewer and water services. The building's water service and underground gas, electric, and cable lines all run under the northern parking lot and through the proposed cell tower location. A private storm sewer pipe runs from the northeast corner of the parking lot and outlets in the open field to the east. The storm sewer pipe location was not identified on the construction plans provided by the applicant, although it appears to be in the vicinity of proposed tower. SURROUNDING USES The following existing uses, zoning, and comprehensive guide plan designations surround the subject property: EVALUATION OF REQUEST Compatibility with Surrounding Area — Code allows freestanding towers via a CUP in PF zoning districts. Existing Use Zoning Land Use Designation North Warehouse- PD, Planned BP, Business Park Business Center Development South Single - family A, Agricultural RC, Retail Commercial Residential East Warehouse- PD, Planned BP, Business Park Business Center Development West Warehouse- I -1, Limited Industrial IND, Limited Industrial Business Center EVALUATION OF REQUEST Compatibility with Surrounding Area — Code allows freestanding towers via a CUP in PF zoning districts. Planning Report — Verizon Wireless May 27, 2014 Page 5 Site Plan — The Site Plan shows a 48' x 17'6" (840 sq. ft.) lease area along the north side of the building. The tower and equipment shelter will be located within the lease area. The 100 ft. tower will have a 15' cross atop it. The equipment shelter satisfies the minimum setback of 50 feet from the right -of -way. There is no setback requirement for the tower, except when located in a residential use zoning district. A 12' access right -of -way easement is proposed and will consist of bituminous path to provide access to the lease area. A 10' utility right -of -way is also proposed. The tower is proposed to have the antenna rays shrouded, thereby being of a "stealth" design. The plans identify the tower as painted white with a 15 (h) x 8 (w) bronze cross atop the pole. The photo simulations depict the cross as white; however, a church representative has stated the color has not yet been decided upon. Code Requirements - City Code Chapter 11, Section 11.70, Subd. 26, G sets forth the general standards applying to all towers and antennae regarding illumination, signage, security, screening, location and color, design, and building permit requirements as following. An assessment of this proposal relative to these provisions follows each item. (1) Location and color shall be in a manner to minimize off -site visibility to the greatest possible extent; The 100 foot stealth monopole tower is proposed to be located on the north side yard of the property due to existing utility locations and limited availability in the rear yard. The code requires freestanding towers to be located in the rear yard and therefore a variance is necessary as discussed later in this report. The white color of the stealth monopole should blend with the sky and if the cross is painted a different color it will be in contrast to the tower. (2) Compliance with all applicable provisions of the City Code, including provisions of the state building code therein adopted, in addition to the requirements set out in this subdivision; The proposed tower must comply with these general standards. (3) No signs, other than for public safety warnings or equipment information, shall be affixed to any portion thereof; No signs are proposed. (4) No artificial illumination, except when required by law or by a governmental agency to protect the public's health and safety, shall be utilized; No lighting is proposed to illuminate the tower. Planning Report — Verizon Wireless May 27, 2014 Page 6 (5) The placement of transmitting, receiving and switching equipment shall be integrated within the site, be located within an existing structure whenever possible; any new accessory equipment structure shall be attached to the principal building, if possible, and constructed of materials and of a color scheme compatible with the principal structure and /or surrounding area or within an equipment encasement not exceeding 10 feet (w) x 10 feet (1) x 5 feet (h) in size. A new prefabricated 12 x 30 foot (360 square foot) equipment building with a generator room is proposed. The structure is detached from the principal building. The brick color is to be "terra cotta" to match the principal building. (6) Accessory equipment or buildings shall be screened by suitable landscaping, as set forth in this chapter, except where a design of non - vegetative screening better reflects and compliments the architectural character of the surrounding neighborhood. The accessory equipment building is screened from the south and east by the principal building and the north/west by proposed landscaping. The applicant proposes 13 arborvitae shrubs along with 13 hosta plants to providing screening and to aesthetically enhance the site. (7) Building permits shall be required for the installation of building mounted satellite dishes in excess of five feet in diameter, towers, and wind energy conversion systems, Not applicable to the tower. (8) Structural design, mounting and installation of a tower, antenna or satellite dish which requires a building permit shall be verified and approved by a qualified licensed engineer; and A Building Permit will be required prior to construction of the tower and equipment building. (9) Towers, and any equipment attached thereto, shall be unclimbable by design for the first 12 feet or completely surrounded by a six-foot high security fence with a lockable gate. A seven foot tall wrought iron fence is proposed with a gate, surrounding the perimeter of the monopole and enclosing the leased area including the equipment building and generator. The stealth design of the tower also assists with the tower being unclimbable. Additionally, City Code Chapter 11, 11.70, Subd. 26, E., 2, states that freestanding towers and antennae in non - residential use districts shall be pennitted pursuant to a conditional use permit approved by the City Council in Public Facility zoning districts. Such freestanding towers and antennae shall be subject to the following requirements. An assessment of this proposal relative to these provisions follows each item. Planning Report — Verizon Wireless May 27, 2014 Page 7 a) The combined height of any freestanding tower and antennae or satellite dishes mounted thereto shall not exceed: (ii) 100 feet, measured from ground elevation of the tower to the highest point of the tower- antenna/satellite dish combination. The proposed tower is 100 feet in height (with a 15 foot cross) and while not required, allows for two additional, unknown, future carriers. The centerline of the Verizon antennae will be mounted at 95 feet. b) All setback requirements for any accessory equipment building or structure shall be met as set forth in this chapter, provided the minimum setback distance of the tower from any property line of a parcel or lot within a residential use district shall be equal to two times the height of the tower or 300 feet, whichever is greater. All setbacks exceed the minimum requirement for the proposed tower and accessory equipment building. c) The tower shall be located in the rear yard. The proposed tower is located in the northern side yard; therefore, a Variance is required. d) The tower shall be self - supporting through the use of a design that uses an open - -frame or monopole configuration. The applicant's proposal is a stealth monopole design. e) Permanent platforms or structures, exclusive of the tower or antennae, that increase off -site visibility are prohibited. The plans do not show any extraneous platforms or structures associated with the tower. f) Existing vegetation on the site shall be preserved to the greatest possible extent practical. The tower is proposed to be located in an open area. There will be no impact on existing landscaping. New landscaping will be added to the site. g) Accessory equipment associated with freestanding towers and antennae shall be located within an equipment building constructed of materials and color compatible with principal building and surrounding area or within an equipment encasement not exceeding 10 feet (w) x 10 feet (l) x 5 feet (h) in size. As previously mentioned, Verizon proposes to construct a 12 by 30 foot (360 square foot) equipment building. The structure is detached from the principal building and proposed to be constructed of brick to match the principal building. h) The applicant shall provide a color manipulated "as built" photograph of the tower as proposed for the location. The applicant has provided a photo simulation showing a view of the property with the tower. Plamiing Report — Verizon Wireless May 27, 2014 Paae 8 i) No new tower shall be permitted unless the city council finds that the equipment planned for the proposed tower cannot be accommodated at any preferred collocation site. The city council may find that a preferred collocation site cannot accommodate that planned equipment for the following reasons: (i) The planned equipment would exceed the structural capacity of the preferred collocation site, and the preferred collocation site cannot be reinforced, modified, or replaced to accommodate the planned equipment or its equivalent at a reasonable cost, as certified by a qualified radio frequency engineer, (ii) The planned equipment would interfere significantly with the usability of existing or approved equipment at the preferred collocation site, and the interference cannot be prevented at a reasonable cost, as certified by a qualified radio frequency engineer; (iii) A preferred collocation site cannot accommodate the planned equipment at a height necessary to function reasonably, as certified by a qualified radio frequency engineer, or (iv) The applicant, after a good faith effort, is unable to lease, purchase or otherwise obtain space for the planned equipment at a preferred collocation site. A letter from Craig Ciecmierowski, RF Engineer for Verizon, notes current coverage in the area is either poor or non - existing within buildings. An existing monopole located on Argenta Trail south of 494 as well as multiple water tanks (Eagan and Mendota Heights) were studied but were found unfavorable for many reasons including too much overlap from existing Verizon Wireless sites. Two supporting snaps compare the current coverage with the improved coverage. Wetlands — Because there are no wetlands on either of the two subject parcels, City Code § 11.67, wetland protection and management regulations, does not apply. The church owns a third parcel further to the east. City Pond FP -7, classified as a natural wetland, slightly encroaches onto the eastern most portion of that parcel, which is about 300' east of the church building. The proximity of this wetland does not appear to have any impact the placement of a cell tower anywhere on the two western parcels. Utilities — No additional connections or modifications to public utilities are proposed with this application. The existing water service and private utilities that run through the proposed site are shown on the construction plans to be re- located to avoid conflicts. A new fiber optic line, covered by a private utility easement, is proposed to serve the tower. The existing private storm sewer that runs near the site should be relocated if it conflicts with the proposed tower or associated equipment. Streets /Access /Circulation — Public street access will remain unchanged at the existing location onto Hwy. 55. From the northeast corner of the existing parking lot, a 12' wide bituminous access road and a 6' wide bituminous walk are proposed to be constructed to provide access to the tower site. A private access easement is proposed through the parking lot to Hwy. 55. Financial Obli ag tion — At this time, there are no pending assessments on the parcel. Planning Report — Verizon Wireless May 27, 2014 Page 9 VARIANCE The Zoning Ordinance states that relief may be granted from a required ordinance provision where practical difficulties result from carrying out the strict letter of the regulations of such Code provision, provided "the applicant proposes to use the property in a reasonable manner not permitted by the zoning provisions of this Code; the plight of the applicant is due to circumstances unique to the property not created by the applicant; and the variance, if granted, will not alter the essential character of the locality. Economic considerations alone do not constitute practical difficulties." The Zoning Ordinance states that relief may be granted provided the applicant proposes to use the property in a reasonable matter not permitted by the zoning provisions of the Code. The applicant is proposing to locate a cellular monopole in a side yard. The applicant's narrative states, "Because of the size and topography of the parcel ... the presence of a wetland..., it will be necessary to locate the tower on the northern side of the church, in what would constitute the "side yard "." Aerial photography does show a wooded area near a pond along the rear of the property. However, there is open/play space behind the existing building where a tower could potentially be located. Utilities to this portion of the property would not be as accessible compared to the proposed location. The monopole and its location, not being closer to the right -of -way than the building itself, appears to be a reasonable use of the property. The Zoning Ordinance states relief may be granted provided the plight of the applicant is due to circumstances unique to the property not created by the applicant. The applicant is hindered by the existing building location and built areas upon the site such as the play area behind the building. Additionally, the wooded area and wetland reduce the options in the rear yard. The requested Variance does appear to be the minimum required to alleviate the practical difficulties. The site is rather large (9.5 acres) compared to the narrowness of the structure footprint given the additions that have occurred over the years. This limits the depth of the rear of the property as does the natural environment of the rear yard. The relief sought by the applicant does not appear to be contrary to the Comprehensive Guide Plan, but may be inconsistent with the intent of the Zoning Ordinance. That is, the purpose of the rear yard provision is to prevent a monopole from appearing to be the principal use of the property; however, given the monopole is proposed to be located behind the original church, on the side of the addition, the church remains as the prominent structure on the property. It does not appear that granting of the Variance would result in detrimental effects to the adjacent properties or the public. The impact to the site compared to the existing development appears to be minimal. Verizon has worked with a church committee to incorporate the tower into the site as much as possible which is evident with the proposed 15 ft. cross and the wrought iron fence versus a standard chain link fence. Planning Report — Verizon Wireless May 27, 2014 Page 10 The Zoning Ordinance states the property for which the Variance is requested must otherwise be in compliance with City Code. Except for the parcel being unplatted, the property appears to be in compliance. A condition of approval includes platting of the property. SUMMARY /CONCLUSION Verizon Wireless is requesting approval of a Conditional Use Permit to construct a 100 -foot stealth monopole telecommunications tower with a 15 -foot cross and a Variance to permit the tower within the side yard on property located at 2950 Hwy. 55. Verizon indicates that their service lacks coverage in this area and that they were unable to identify a suitable existing tower that wouldn't overlap signals or collocate on an existing water tower. The applicant has stated that the proposed side yard location is due to the size and topography of the property as well as a wetland in the rear yard. The proposal appears to satisfy the performance standards outlined in the City ordinance. ACTIONS TO BE CONSIDERED To recommend approval of a Conditional Use Permit (CUP) to allow a 100 -foot monopole telecommunications tower with a 15 -foot cross for property located at 2950 Hwy. 55. If approved, the following conditions shall apply: 1. This Conditional Use Permit shall be recorded at Dakota County within 60 days of approval by the City Council, 2. The property shall be platted prior to issuance of a Building Permit. 3. The monopole and cross shall be the same color. 4. The applicant shall provide the City documentation from a registered structural engineer confirming the structural integrity of the proposed monopole. The documentation shall be submitted with the Building Permit application. 5. The equipment building shall be constructed of similar material, color and trim to match the existing building. 6. The monopole and equipment building shall be maintained in premium condition. 7. The existing private storm sewer that runs near the site shall be relocated if it conflicts with the proposed tower or associated equipment. Planning Report — Verizon Wireless May 27, 2014 Page 11 To recommend approval of a Variance to allow the side yard location of a 100 -foot monopole telecommunications tower with a 15 -foot cross for property located at 2950 Hwy. 55. If approved, the following conditions shall apply: 1. If within one year after approval, the variance shall not have been completed or utilized, it shall become null and void unless a petition for extension has been granted by the council. Such extension shall be requested in writing at least 30 days before expiration and shall state facts showing a good faith attempt to complete or utilize the use permitted in the variance. 2. The monopole telecommunications tower shall be located as shown on the proposed Site Plan received March 19, 2014. im r M C fx iu @ i4 r R 0 Ca [ 0 4 > N /1 C) V V L) 4 r oQf y a N C+ C } LE N 4A n�� U im LL � M N 0 N O @ 9 W G O � @ O 0 fx iu @ eat wnya� LL � M N 0 N O @ 9 W G O � @ O 0 �z L LL C, 0 a 0 ro .v =a c c o •- 0 0 N U J C C QI (D N � � o O N � y N � •� C Et. N N a F iE P a • �iir I- i z al al- Uq O'� ZZ -��4 i . . ........ 64, ON 0 IN i ..env . . ........ 64, ON IN i E Z \ \41 1� X IN o f fir- \ \41 1� X gi IN Wg of zz vi t a m aR 4� sri IC jWkM no JA I 8E 1 L%S WfIFOeUfOH1 I `�/ b i / \ N i {•z�ii � ._� 4 it ii• li i t�``Ai � ii ti �,�\ '. 8.., Q W P� R UACE H Z z tl ............ la RAM a §0 uj Is :�L—j MOO t9 51 91 El Ails IN jig, Rig ...... . . . ....... Rl CJ oLL gi _NJ LU 0 LL, 0 Fl. � Q V & A-J f hokI . ....... . .. .. .... . .. .... - JI U2 o 0 z 110 10. 0 0 0 0 0 0 0 o o o o". ',Z�, w z AM 0 Zo F2 Cr col z z 0 M HIM ? ZO I I I z z i f5 Z la 14 (D w 41 H 5in 1, KAI iul YnE s I P -16 w z H I tt E Ile i, 9 -1771) -0 iT ME, o z Lu �i= n z 0 LO L-U4 uj E H C.8 Al zN ;I ld i N 1 � Egg 19 Z 1.13 ' ul Rp at :lei pp (D .-A fla P A No l �,�. �1_ °r' Of b Nub NE mma 1 1 dug [R 1 joe I f 14MUH INS TON R MIA T W Si ftT- FP SP k H T lig Ch #€ . F "Sipf Ykk is� i 01 , " 11 g SHP M I Bit 11 i J"I N 7 • 2 2 pa-l" 1 WHO HNNIN I - 14MUH INS TON R pup ftT- FP SP k O H T lig Ch #€ . F "Sipf K m'ER§Hj i It In i il . ......... .. & ii JA Wn' NU It 1-f iq -M A It I j I P I oil lot L 0 Yn. iW i St Al ilk 14 NATO I V I 00 not u m NARRATIVE March 17, 2014 City of Egan Planning Commission 3830 Pilot Knob Road Eagan, Minnesota 55122 Re: Verizon Wireless Conditional Use Permit and Variance Dear Members of the Planning Commission: Faulk and Foster Real Estate, Inc. submits the enclosed application for a conditional - use permit and variance on behalf of Verizon Wireless. The last 1 -2 years has seen two important changes in the wireless industry. First, there -has- bee -n- an- e- xplosive— gr-o-- wth -in- the - use -ef data- i- ntensi- ve- sma-r -t phones— - - -- Second, there has been a large increase in the number of households replacing the traditional land -line phone with a wireless phone. In fact, 36.7% of people in the twin cities area rely solely on a wireless phone for communication.' These two changes have placed significant burden on the existing wireless infrastructure and have led to a "capacity problem" within Verizon's network. A capacity problem exists where there are too few antennas to accommodate the number of users within a given area. The capacity problems in the vicinity of the proposed site have led to dropped calls, slow data connection, or no data connection at all. The attached Exhibits A and B reflect the current coverage in the area and the coverage with the proposed site. The colors reflect the following: Green = Excellent /Reliable in- building coverage Yellow = Reliable outdoor coverage. Reliable in- building coverage near the green areas and marginal reliable coverage towards the red areas. Red = Mostly outdoor coverage White = Poor and unreliable coverage 1 (See U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, Wireless Substitution: State -level Estimates From the National Health Interview Survey, 2012 (December 18, 2013), p.6 at Table 1 (http: / /www.cdc.gov /nchs /data /nhsr /nhsr07O.pdf).) PCMIUM 91 A F1, In order to remedy the capacity issues in the area, Verizon Wireless has proposed to build a 100' tall stealth telecommunications tower on property owned by Trinity Lone Oak Lutheran Church. This stealth tower will be accompanied by a 12' by 30' equipment shelter. The equipment shelter will be made out of brick colored to match the existing structure. The stealth tower and stealth equipment enclosure will minimize the negative visual impact of the telecommunication tower. The proposed tower meets all zoning ordinance requirements, except where discussed below, and will be built and operated in compliance with all applicable federal, state, and local laws and regulations. Because of the size and topography of the parcel, it will be necessary to locate the tower on the northern side of the church, in what would constitute the "side yard" of the property. Under the relevant zoning code, telecommunications towers are supposed to be located in the `rear yard ". However, due to the size of the parcel, the presence of a wetland, and the topography of the subject parcel, it will not be possible to locate the tower in the rear yard. Under the City of Egan's Zoning Ordinance, this use will require a conditional -use permit. Thus property -i-s curreently- zoned -PF —Pu l-ic - Faci,l"itios- and - the - zoning cl-assificatiori will-- - not change. The existing use is a church, and that will not change. Access to high - quality, dependable wireless service, including voice and data, is no longer a luxury. Businesses and residents depend on reliable wireless service. When a City grows and develops it is necessary to build new roads, parks, sewers, and wireless infrastructure goes hand -in -hand. Thank you in advance for your consideration. Sincerely, Blake Conklin Faulk and Foster RFCF' -VED TSAR 19 2014 RF 'REPORT April 21, 2014 City o£ Eagan 3830 Pilot Knob Road Eagan, Minnesota 55122 RECEIVED APR P;.3 2014 EiII*ED ver, wireless Re: Radiofrequency Enigineer Justification and Analysis for2950 Highway 55 To whom it may concern: I am the Verizon Wireless RF Engineer responsible for the location and design of the proposed MIN Dodd 55 site. The primary purpose of this site: to improve coverage inside of the commercial and residential buildings within our primary target area. The primary_ target area includes the signifleant commercial and industrial development off of Lona Oak Drive to the north of the proposed site i -miftfftifD odd Rz ci t Ir wise t a�ad o t v t�f t��d it . Verizon has attached two coverage maps as Items 1 and 2 depicting the .existing coverage in the area and the coverage that will be provided by the proposed site, The colors indicate the following coverage levels. -Green = Excellent/Reliable in- building coverage Yellow = Reliable outd.00r_coverage. Reliable in- building coverage near the green areas and marginal reliable coverage towards the red areas, -Red w Mostly outdoor coverage -White = Poor and.unreliable coverage Item I is the existing coverage and hem! is the proposed coverage, The existing' Verizon Wireless neighbor sites to the proposed site are: MIN Argenta -- monopole located on Argenta Trail road south of U.S. 494 - MIN Mendota— Mendota Heights water tank off of Lexington Avenue South - MIN Yankee —Eagan water tank located on Towerview Road MIN Tranquility— Fagan water tank located on Yankee Doodle Road Verizon Wireless site acquisition specialists searched the area in the vicinity of the proposed site for existing buildings or towers that have the height and distance froze. existing VIeri'oi ; iretess neighbor sites in order to function properly. There are two potential tower co- locations within Verizon's search area, but they are both too close to existing Verizon installations to effectively operate. There is an American Tower Company owned tower located on Aldrin Drive just east of Neil Armstrong Boulevard. This tower is located too close to the existing Tranquility and Yankee sites. It is very important to consider distance from existing Verizon Wireless sites as too much overlap of signals between sites will cause interference that degrades our service and customer experience. Locating on the Arzi'efxcan Tower Company site will degrade network performance for both the proposed site and the two existing neighbor sites, Furthermore, this site is located two far to the southwest of the ppmary target area to address the coverage issues of the commercial and industrial development off of Lone Oak Drive to the north. There is also an AT &T 125' monopole that is located on the northwest corner of the intersection of Highway 55 and US, 494. This monopole is located only 2,500 -cot from the existing Verizon Mendota site. This distance will cause too much interference on the existing and proposed sites in order to property operate, There is a potential building co -locations within the search area, a nine story building located at 3400 Yankee Doodle Road. The building on Yankee Doodle Road is located too close to Verizon's water tower attachment MIN Yankee. Verizon'-s- site -selection-pxeference iso- favor- existingtower /building-co= lacatious -ifat all possible. The reason for doing so is they are typically cheaper to construct and easier to get the required permits and regulatory approval. Please feel free to contact me if you have any questions or require any additional information, Sincerely, Craig Cioemierowski RF Engineer Verizon Wireless crai .ciecmicrowski verizonwireless.com. (952) 946 -4689 Agenda Information Memo June 3, 2014 Eagan City Council Meeting NEW BUSINESS C. Ordinance Amendments — Microbreweries, Brewer Taprooms, Farm Wineries & Microdistilleries Actions To Be Considered: To approve an Ordinance Amendment to Chapter 11 regarding microbreweries, brewer tap rooms, farm wineries and microdistilleries and direct the City Attorney to publish the amendment or summary accordingly. To approve an Ordinance Amendment to Chapter 5 regarding microbreweries, brewer tap rooms, farm wineries and microdistilleries, set the license fee for brewer tap rooms to $600 and the license fee for brewer off -sale licenses to $200 and direct the City Attorney to publish the summary amendment. Required Vote For Approval: Majority of Council Members Present Facts: ➢ The City Council was made aware of information gathered relative to microbreweries and brewer taprooms and suggested expanding the list to include farm wineries and microdistilleries. ➢ City staff shared recently that the most efficient approach to the ordinance amendments was to incorporate all of the proposed changes in a single amendment. ➢ Per Council direction, the City Attorney's office drafted the ordinance language. The amendments intend to allow breweries to serve beer on -site, sell beer for off - site consumption, clarify that distilleries are allowed in Industrial districts and allow farm wineries as a permitted use in Agricultural districts. ➢ The regulations set forth in the Chapter 5 amendment adopt the licensing requirements in State Statute without adding any additional restrictions or regulations. ➢ The APC held a Public Hearing on May 27, 2014 and recommended approval of the amendment to Chapter 11. Issues: ➢ As part of the ordinance amendment to Chapter 5, Council will need to set a license fee for the brewer taproom license and the brewer off -sale (growler) license. A survey of other cities indicates a brewer taproom license fee averages $600 and a brewer off -sale (growler) license is typically $200. Under State Statute, the City may not charge more than $380 for the brewer off -sale (growler) license. Staff has proposed license fees consistent with the average across other communities; however, the Council has the discretion to determine the fees for both licenses. 60 -Day Agency Action Deadline: N/A Attachments: (5) NBC -1 Draft May 27, 2014 APC minutes NBC -2 Staff Report NBC -3 Draft Chapter 11 Amendment NBC -4 Draft Chapter 5 Amendment NBC -5 License Fee Survey Advisory Planning Commission May 27, 2014 Page 7of8 C. Ordinance Amendment Applicant Name: City of Eagan File Number: 01- OR- 03 -03 -14 Planner Thomas introduced this item and highlighted the information presented in the City Staff report dated May 16, 2014. Chair Filipi opened the public hearing. There being no public comment, Chair Filipi closed the public hearing and turned the discussion back to the Commission. Secretary Piper asked if the City has been approached by parties interested in this land use. City Planner Ridley stated that staff has fielded inquiries in this regard. Secretary Piper moved, Member Sagstetter second a motion to approve an Ordinance Amendment to Chapter 11, Sections 11.30 & 11.60, regarding the provision of microbreweries, brewer taprooms, farm wineries and micro distilleries. All voted in favor. Motion carried 7 -0. PLANNING REPORT CITY OF EAGAN REPORT DATE: May 16, 2014 APPLICANT: City of Eagan PROPERTY OWNER: N/A REQUEST: Ordinance Amendment LOCATION: City -wide COMPREHENSIVE PLAN: N/A ZONING: N/A SUMMARY OF REQUEST CASE: 01- OR- 03 -03 -14 HEARING DATE: May 27, 2014 PREPARED BY: Sarah Thomas The City of Eagan is requesting approval of an Ordinance Amendment to Chapter 11, Sections 11.30 & 11.60, regarding the provision of microbreweries, brewer taprooms, farm wineries and microdistilleries. BACKGROUNDIHISTORY In 2013, the City Council directed city staff to research and prepare an Ordinance Amendment regarding the standards for "microbreweries" and brewer taprooms. There are two distinct categories of craft brewers: brewpubs and microbreweries. Brewpubs are restaurant establishments with a small brewing component as part of its operations. The malt liquor brewed at a brewpub may be sold only for on -site consumption or off -sale in growlers. An example of a brewpub is Granite City. Microbreweries are production facilities that sell wholesale to retailers on a small scale basis. The Minnesota Statutes were amended in 2011 (nicknamed "Surly Bill" after the Surly Brewing Co.) to allow smaller breweries to offer on -site retail malt liquor sales (i.e. "brewer taprooms "), as well as off -sale of malt liquor packaged in 64 ounce containers (i.e. "growlers "). Planning Report — Ordinance Amendment May 27, 2014 Page 2 Brewer taprooms are allowed if the brewer manufactures 250,000 or less barrels per year. Off - sale retail growler sales from the brewery are allowed if the brewer manufactures 20,000 barrels per year and its off -sale sales are more than 50,000 barrels per year. A license is required for brewer taprooms and off -sale growler sales. The City approves the license and then notifies the State of the approval. State law prohibits the retail sale of bottle beer (e.g. 6- packs, 40's) by microbreweries to individual customers; microbreweries may only sell bottles wholesale to retailers. The state law also restricts "tasting" and "complimentary samples ". In 2014, the City Council asked city staff to expand their research to include microdistilleries and (farm) wineries. A separate, but related amendment to Chapter 5 (Licensing) is also being processed. Microdistilleries manufacture distilled spirits, such as vodka, gin and rum. City staff determined that the production of "spirits" is already an allowed use, via "manufacturing ", in the Limited Industrial (I -1) zoning district. With regard to "farm wineries ", an important requirement of the State Statute is that as of March 1, 2012, a winery license can only be issued for operation of a farm winery on agricultural land. A farm winery is the only type of winery currently allowed by State Statute. The City of Eagan consists of 21,000 acres and only 532 acres are currently zoned Agricultural (120 acres are McCarthy property). This limits the location and would also introduce a retail component to agricultural parcels. EXISTING CONDITIONS The current Eagan City Code permits: o Manufacturing (generally) including bottling works; I -l. o Manufacturing, assembly, packaging; including brewing in the I -2, (General Industrial) district; however, there are no parcels currently zoned I -2. o On -sale liquor sales (related to restaurants) permitted in 1 -1 and other districts. o Retail sales are allowed as an accessory use in I -1 and BP (Business Park) districts provided the following conditions are met. a. The retail sales are subordinate to the principle use. b. The gross floor area used for the retail sales is not more than 20 percent of the total gross floor area of the principle building if a single user /occupant or of the principle user's occupied space if within a multiple -user structure. (The BP district allows retail sales so long as it is not more than 15 percent of the total gross floor area or 3000 square feet, whichever is less.) c. The retail sales are owned and operated solely by the principle user /occupant of the subject site. Planning Report — Ordinance Amendment May 27, 2014 Page 3 o Expanded retail sales are allowed via CUP (Conditional Use Permit) in I -1 and BP districts provided the following conditions are met. a. The retail sales are subordinate to the principle use. b. The gross floor area used for the retail sales is more than 20 percent but not more than 30 percent of the total gross floor area of the principle building if a single user /occupant or of the principle user's occupied space if within a multiple -user structure. (The BP district allows retail from 15- 30% of the gross floor area.) c. The retail sales are owned and operated solely by the principle user /occupant of the subject site. d. The site can accommodate the minimum parking requirement for both the retail and principle use components as set forth elsewhere in this Chapter. The Eagan City Code does not permit: • A microbrewery /taproom as defined by State Statue. • A farm winery as defined by State Statute. EVALUATION OF REQUEST As proposed, the amendment intends to allow breweries to serve beer on site, clarify that distilleries are allowed by specifically listing the use in Industrial districts and allow farm wineries as a permitted use in Agricultural zoning districts. Accommodating farm wineries would simultaneously allow retail sales (of wine) in the Ag zoning district. A restaurant would not be allowed with a microbrewery in I -2 because a restaurant is not an allowed use. SUMMARY /CONCLUSION City staff conducted research of communities based on similar size and location regarding the use of microbreweries and taprooms. Of the communities staff surveyed, no issues or concerns regarding these uses were noted. Based on the information provided, the City Council requested additional research regarding wineries and microdistilleries. Subsequently, the City Council directed the preparation of this ordinance amendment. A separate but related amendment to Chapter 5 (Licensing) is also being processed. ACTION TO BE CONSIDERED To recommend approval of an Ordinance Amendment to Chapter 11, Sections 11.30 & 11.60, regarding the provision of microbreweries, brewer taprooms, farm wineries and microdistilleries. ORDINANCE NO. 2ND SERIES AN ORDINANCE OF THE CITY OF EAGAN, MINNESOTA, AMENDING EAGAN CITY CODE CHAPTER ELEVEN ENTITLED "LAND USE REGULATIONS (ZONING)" BY AMENDING SECTIONS 11.30 AND 11.60 REGARDING REGULATIONS OF A BREWERY, BREWER TAPROOM, MICRODISTIL,LERY AND FARM WINERY; AND BY ADOPTING BY REFERENCE EAGAN CITY CODE CHAPTER 1 AND SECTION 11.99. The City Council of the City of Eagan does ordain: Section 1. Eagan City Code Chapter Eleven is hereby amended by amending Section 11.30 to add the following definitions to read as follows: Brewery shall have the meaning as the term is defined in the alcohol licensing regulations in Chapter 5 of this Code. Brewpub shall have the meaning as the term is defined in the alcohol licensing regulations in Chapter 5 of this Code. Brewer Taproom shall have the meaning as the term is defined in the alcohol licensing regulations in Chapter 5 of this Code. Farm winery shall have the meaning as the term is defined in the alcohol licensing regulations in Chapter 5 of this Code. Microdistillery shall have the meaning as the term is defined in the alcohol licensing regulations in Chapter 5 of this Code. The term proof gallon as used in the definition of microdistillery shall have the meaning as that term is also defined in the alcohol licensing regulations in Chapter 5 of this Code. Section 2. Eagan City Code Chapter Eleven is hereby amended by adding Section 11.60, subd. 3(C)(10) to read as follows: Subd. 3. "A " Agricultural District. C. Conditional Uses. 10. Farm winery, provided it holds a farm winery license issued by the Commissioner of Public Safety and meets all requirements thereof. Section 3. Eagan City Code Chapter Eleven is hereby amended by amending Section 11.60, subd. 14(B)(8) to read as follows: Subd. 14. I -1 Limited Industrial District. B. Permitted Uses. 8. Processing, fabrication, storage or manufacturing light materials;; brewery or microdistillery; or wholesaling operation or service. Section 4. Eagan City Code Chapter Eleven is hereby amended by amending Section 11.60, subd. 14(C)(10) to read as follows: Subd. 14. I -1 Limited Industrial District. C. Conditional Uses. 10. On -sale liquor, 3.2 beer or wine, on -sale malt liquor in conjunction with a brewer taproom, or off -sale malt liauor from the premises of and in coniunction with a brewerv. Section 5. Eagan City Code Chapter Eleven is hereby amended by amending Section 11.60, subd. 14(D)(4) to read as follows: Subd. 14. I -1 Limited Industrial District. X X D. Permitted accessory uses. 4. An outdoor dining area in conjunction with a full service or casual restaurant or an outdoor patio in conjunction with a brewer taproom, except an outdoor dining area or patio that does not meet the special use setback from a residential property or that provides seating for more than 24 persons is subject to a conditional use permit or planned development approval as applicable, and any outdoor dining area or outdoor atio shall be subject to the regulations theFee f of outdoor dining area set forth elsewhere in this chapter. Section 6. Eagan City Code Chapter Eleven is hereby amended by amending Section 11.60, subd. 15(B)(1) to read as follows: Subd. 15. I -2 General Industrial District. B. Permitted uses. 1. The manufacturing, compounding, assembly, packaging, treatment or storage of the following products or materials: bmwing; cement; concrete; stone cutting; brick; glass; batteries (wet cell); ceramic products; mill working; metal polishing and plating; paint (pigment manufacturing); vinegar works; rubber products; plastics; meat packing; flour, feed or grain milling; coal or tar asphalt distillation; rendering works; distillation of bones; sawmill; lime; gypsum; plaster of Paris; glue; size; cloth; and similar uses products; a brewery or a microdistillery. Section 7. Eagan City Code Chapter Eleven is hereby amended by adding Section 11.60, subd. 15(C)(10) to read as follows: Subd. 15. 1 -2 General Industrial District. C. Conditional uses. 10. On -sale malt liquor in conjunction with a brewer taproom, or off -sale malt liquor from the premises of and in conjunction with a brewery. Section 8. Eagan City Code Chapter Eleven is hereby amended by adding Section 11.60, subd. 15(D)(3) to read as follows: Subd. 15. I -2 General Industrial District. D. Permitted accessory uses. (3) An outdoor patio in conjunction with a brewer taproom, except an outdoor patio that does not meet the special use setback from a residential property or that provides seating for more than 24 persons is subject to a conditional use permit or planned development approval as applicable, and any p outdoor patio shall be subject to the regulations of outdoor dining area as set forth elsewhere in this chapter. Section 9. Summary approved. The City Council hereby determines that the text of the summary marked "Official Summary of Ordinance No. ", a copy of which is attached hereto, clearly informs the public of the intent and effect of the ordinance. The City Council further determines that publication of the title and such summary will clearly inform the public of the intent and effect of the ordinance. Section 10. Eagan City Code Chapter 1 entitled "General Provisions and Definitions Applicable to the Entire City Code Including 'Penalty for Violation "' and Section 11.99, entitled "Violation a Misdemeanor" are hereby adopted in their entirety by reference as though repeated verbatim. Section 11. Effective Date. This ordinance shall take effect upon its adoption and publication according to law. ATTEST: CITY OF EAGAN City Council By: Christina M. Scipioni By: Mike Maguire Its: City Clerk Its: Mayor Date Ordinance Adopted: Date Ordinance Published in the Legal Newspaper: Date of Advisory Planning Commission Hearing: The following is the official summary of Ordinance No. _ as approved by the City Council of the City of Eagan on ORDINANCE NO. SECOND SERIES AN ORDINANCE OF THE CITY OF EAGAN, MINNESOTA, AMENDING EAGAN CITY CODE CHAPTER ELEVEN ENTITLED "LAND USE REGULATIONS (ZONING)" BY AMENDING SECTIONS 11.30 AND 11.60 REGARDING REGULATIONS OF A BREWERY, BREWER TAPROOM, MICRODISTILLERY AND FARM WINERY; AND BY ADOPTING BY REFERENCE EAGAN CITY CODE CHAPTER 1 AND SECTION 11.99. Chapter 11, regulating the City's land use and zoning, was amended to add definitions and to revise land use regulations for agricultural, limited industrial and general industrial districts relating to the operations of a brewery, brewer taproom, micordistillery and farm winery. A printed copy of the ordinance is available for inspection by any person during regular office hours at the office of the City Clerk at the Eagan Municipal Center, 3830 Pilot Knob Road, Eagan, Minnesota 55122. Effective date. This ordinance shall take effect upon its passage and publication. ORDINANCE NO. 2ND SERIES AN ORDINANCE OF THE CITY OF EAGAN, MINNESOTA, AMENDING EAGAN CITY CODE CHAPTER 5 ENTITLED 'BEER, WINE, AND LIQUOR LICENSING AND REGULATIONS" BY AMENDING SECTION 5.01 TO ADD DEFINITIONS AND ADDING SECTIONS 5.62, 5.63, 5.64 and 5.65 REGULATING BREWER TAPROOMS, MICRODISTILLERIES & FARM WINERIES; AND BY ADOPTING BY REFERENCE EAGAN CITY CODE CHAPTER 1 AND SECTION 5.99. The City Council of the City of Eagan does ordain: Section 1. Eagan City Code, Chapter 5, is hereby amended by amending Section 5.01 to add or revise the following definitions to read as follows: Brewpub means a* a restaurant establishment holding an on -sale intoxicating liquor license in which malt liquor is brewed or manufactured solely for sale and consumption on tap on the licensed premises that shall be owned by the brewer where the malt liquor is brewed ^r for ^ ^'° Brewer taproom means an area on the premises of a brewery or on premises adjacent to a brewery owned by the brewer in which the brewer sells or otherwise provides exclusively malt liquor produced by the brewer for consumption within the brewer taproom. Farm winery means is a winery perated by the owner of a Minnesota farm and producing table, able, sparkling, or fortified wines from rapes, grape juice, other fruit bases, or honey with a majority of the ingredients grown or produced in Minnesota. Microdistillery means a distillery perated within the state producing premium, distilled spirits in total quantity not to exceed 40,000 proof gallons in a calendar ,year. Proof gallon means one liquid gallon of distilled spirits that is 50 percent alcohol at 60 degrees Fahrenheit. Section 2. Eagan City Code Chapter 5 is hereby amending by adding Section 5.62 to read as follows: Sec. 5.62. Brewer taproom on -sale license. Subd. 1. It is unlawful for any person or entity, directly or indirectly, to operate a brewer taproom or to sell, barter, keep for sale or otherwise dispose of malt liquor on or from the premises on which the malt liquor is manufactured or brewed without an on -sale brewer taproom license or an off -sale malt liquor license from the City. This section does not apply to the disposal of home brewed or manufactured of malt liquor which is defined as brewed malt liquor in quantities of ten gallons or less. Subd. 2. An on -sale brewer taproom license may be issued only to a brewer who holds a brewer license issued by the Minnesota Commissioner of Public Safety under Minn. Stat. §340A.301, subdivision 6, clause (c),(i) or j). An on -sale brewer taproom license shall be subject to the following requirements: A. Only malt liquor produced by the brewer on the licensed premises may be sold or consumed on the licensed premises. B. The financial responsibilities required under this Chapter for on -sale intoxicating licenses shall apply to an on -sale brewer taproom license issued under this Section. C. All provisions of this Chapter that apply to an on -sale intoxicating liquor license shall apply to an on -sale brewer taproom license issued under this Section unless the provision is explicitly inconsistent with this Section. D. An on -sale brewer taproom licensee may only have one taproom license under this Section. E. An on -.sale brewer taproom licensee may not have an ownership interest in a brewpub brewery licensed under Minn. Stat. 040A.301, subdivision 6, clause (d). F. No on -sale brewer taproom license shall be issued to a brewer if the brewer seeking the license, or any person having an economic interest in the brewer seeking the license or exercising control over the brewer seeking the license, is a brewer that brews more than 250.000 barrels of malt liauor annuallv or a winery that produces more than 250.000 aallons of wine annually. G. The license hereunder shall be subject to the payment of an annual on -sale brewer taproom license fee of $ Section 3. Eagan City Code Chapter 5 is hereby amending by adding Section 5.63 to read as follows: Sec. 5.63. Brewer off -sale malt liquor license. Subd. 1. It is unlawful for anv person or entitv to sell, barters, keep for sale or otherwise dispose of malt liquor, directly or indirectly, on or from the premises on which the malt liquor is manufactured or brewed for off- -.site consumption without an off -sale malt liquor license from the City. This section does not apply to the disposal of home brewed or manufactured of malt liquor which is defined as brewed malt liquor in quantities of ten gallons or less. Subd. 2. An off -sale malt liquor license may be issued only to a brewer who holds a brewer license issued by the Minnesota Commissioner of Public Safety under Min. Stat. §340A.301, subdivision 6, clause (c), (i) or (j). An off -sale malt liquor license shall be subject to the following requirements: A. An off -sale malt liquor license shall be issued exclusively for the premises on which the malt liquor is brewed and packaged. B Only malt liquor brewed and packaged by the brewer on the licensed premises ma_y be sold from the licensed premises. C. The off -sale malt liquor license issued by the city must be approved by the Commissioner to be valid and effective. D. The amount of malt liquor sold at off -sale may not exceed 500 barrels annually. Commencing with a license renewal immediately following the year in which the license was initially issued, the licensee shall submit to the City Clerk a certified statement declaring the number of barrels of malt liquor sold off -sale for the most recent preceding 12 -month period beginning September 1 the preceding year and ending August 31of the current license year. E. Off -sale of malt liquor shall be limited to the hours of sale permitted for off -sale liquor licenses issued b,, thy. F. The malt liquor sold off -sale under the off -sale malt liquor license shall be packed in 64 -ounce containers commonly known as "growlers" or in 750 milliliter bottles. The containers or bottles shall bear a twist -type closure, cork, stopper, or plug. At the time of the sale, a paper or plastic adhesive band, strip, or sleeve shall be applied to the container or bottle and extended over the top of the twist -type closure, cork, stopper, or plug forming a seal that must be broken upon opening of the container or bottle. The adhesive band, strip, or sleeve shall bear the name and address of the brewer. The containers or bottles shall be identified as malt liquor, contain the name of the malt liquor, bear the name and address of the brewer selling the malt liquor, and shall be considered intoxicating liquor unless the alcoholic content is labeled as otherwise in accordance with the provisions of Minnesota Rules, part 7515.1100. G. A brewer may have one license under this Section. H. No off -sale malt liquor license may be issued a brewer if the brewer seeking the license, or any person having an economic interest in the brewer seeking the license or exercising control over the brewer seeking the license, is a brewer that brews more than 20,000 barrels of its own brands of malt liquor annually or a winery produces more than 250,000 gallons of wine annually. 1. The license hereunder is subject to the payment of an annual off -sale malt liquor license fee of $ Section 4. Eagan City Code Chapter 5 is hereby amending by adding Section 5.64 to read as follows: Sec. 5.64. Microdistilleries. It is unlawful for any person or entity, directly or indirectly, to sell, barter, keep for sale or otherwise dispose of distilled spirits on or from the premises on which the distilled spirits are manufactured or produced without a microdistillery license from the Minnesota Commissioner of Public Safety. It is unlawful for any licensed microdistillery to provide samples of distilled spirits manufactured on its premises in an amount exceeding 15 milliliters per variety per person or 45 milliliters per person per day. Section 5. Eagan City Code Chapter 5 is hereby amending by adding Section 5.65 to read as follows: Sec. 5.65. Farm Winery. No farm winery within the City may sell any alcoholic beverage at retail on -sale or off - sale or by wholesale lots, unless it holds and is in accordance with a farm winery license issued by the Commissioner and all requirements of Minnesota Statutes and Minnesota Rules governing farm wineries. Section 6. Summary approved. The City Council hereby determines that the text of the summary marked "Official Summary of Ordinance No. ", a copy of which is attached hereto, clearly informs the public of the intent and effect of the ordinance. The City Council further determines that publication of the title and such summary will clearly inform the public of the intent and effect of the ordinance. Section 7. Eagan City Code Chapter 1 entitled "General Provisions and Definitions Applicable to the Entire City Code Including 'Penalty for Violation "' and Section 11.99, entitled "Violation a Misdemeanor" are hereby adopted in their entirety by reference as though repeated verbatim. Section 8. Effective Date. This ordinance shall take effect upon its adoption and publication according to law. ATTEST: CITY OF EAGAN City Council By: Christina M. Scipioni By: Mike Maguire Its: City Cleric Its: Mayor Date Ordinance Adopted: Date Ordinance Published in the Legal Newspaper: The following is the official summary of Ordinance No. as approved by the City Council of the City of Eagan on ORDINANCE NO. 2ND SERIES AN ORDINANCE OF THE CITY OF EAGAN, MINNESOTA, AMENDING EAGAN CITY CODE CHAPTER 5 ENTITLED 'BEER, WINE, AND LIQUOR LICENSING AND REGULATIONS" BY AMENDING SECTION 5.01 TO ADD DEFINITIONS AND ADDING SECTIONS 5.62, 5.63, 5.64 and 5.65 REGULATING BREWER TAPROOMS, MICRODISTILLERIES & FARM WINERIES; AND BY ADOPTING BY REFERENCE EAGAN CITY CODE CHAPTER 1 AND SECTION 5.99. Eagan City Code, Chapter 5, governing the City's beer, wine and liquor licensing and regulations, is amended to add and revise definitions and to add sections regulating brewer taproom and off -sale malt liquor licenses, microdistilleries and farm wineries. A printed copy of the ordinance is available for inspection by any person during regular office hours at the office of the City Clerk at the Eagan Municipal Center, 3830 Pilot Knob Road, Eagan, Minnesota 55122. Effective date. This ordinance shall take effect upon its passage and publication. Brewer Taproom and Brewer Off -Sale License Fee Survey City Taproom Off -Sale (Growler) Brooklyn Center $600.00 $200.00 Lino Lakes $500.00 $200.00 Roseville $750.00 $300 or $200 St. Louis Park $600.00 $200.00 Excelsior $1,000.00 $250.00 Minneapolis $1,179 to $5,384 $1,500.00 St. Paul $605.00 $174.00 Stillwater 1 $500.001 $300.00