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Home My WebLink AboutJuly 05, 2017 Shakopee City Council P"tj July 5,2017 HAKE 7:00 PM City Hall 129 Holmes St. Shakopee Mission Statement The Mission of the City of Shakopee is to provide the opportunity to live, work and play in a community with a proud past,promising future, and small town atmosphere within a metropolitan setting. A.Keep Shakopee a safe and healthy community where residents can pursue active and quality lifestyles. B.Positively manage the challenges and opportunities presented by growth,development and change. C.Maintain the City's strong financial health. D.Maintain,improve and create strong partnerships with other public and private sector entities. E.Deliver effective and efficient public services by a staff of well-trained,caring and professional employees. E Housekeeping item. Mayor Bill Mars presiding 1. Roll Call 2. Pledge of Allegiance 3. Approval of Agenda 4. Consent Business - (All items listed in this section are anticipated to be routine. After a discussion by the Mayor there will be an opportunity for members of the Council to remove any items from the consent agenda for individual discussion. Those items removed will be considered following the Public hearing portion of the agenda. Items remaining on the Consent Agenda will not be discussed and will be approved in one motion.) A. Police and Fire *4. A.1. *Declare Surplus Property B. Public Works and Engineering *4. B.1. *Assessment Policy Revision *4. B.2. *Extended Construction Hours - Ridge Creek 1 st Addition C. Parks and Recreation *4. C.1. *Donations to Fun For All Playground D. General Administration *4. D.1. *City Council Minutes *4. D.2. *Mobile Communications Policy *4. D.3. *Massage Business and Massage Therapist License *4. D.4. *On-Sale and Sunday Liquor licenses for MCMC LLC dba Muddy Cow Pagel of 334 *4. D.S. *Gambling Premise Permit for Shako Valley Amateur Hockey Association E. Planning and Development *4. E.1. *Blue Cross Funding for Comprehensive Plan Community Engagement Activities 5. RECOGNITION OF INVOLVED CITIZENS BY CITY COUNCIL- Provides an opportunity for the public to address the Council on items which are not on the agenda. Comments should not be more than five minutes in length. The Mayor may adjust that time limit based upon the number of persons seeking to comment. This comment period may not be used to make personal attacks, to air personality grievances, to make political endorsements or for political campaign purposes. Council Members will not enter into a dialogue with citizens, and questions from Council will be for clarification only. This period will not be used to problem solve issues or to react to the comments made, but rather for informational purposes only. 6. Business removed from consent will be discussed at this time 7. General Business A. Parks and Recreation 7. A.1. Park Dedication Fees B. General Administration 7. B.1. 2016 Annual Financial Report, Audit Presentation and Review by Staff from BerganKDV C. Planning and Development 7. C.1. Text Amendment to Allow Residential Use in Major Rec Zone 7. C.2. Orderly Annexation Agreement with Jackson Township 7. C.3. Set Public Hearing for Canterbury Tax Increment Financing District 7. C.4. Request for Extended Construction Hours by School District Contractor 7. C.5. Update on City Owned Property at 69/169 7. C.6. Vierling Drive Improvements Contract 8. Reports 8.A. Liaison and Administrator 8.13. City Bill List 9. Other Business 10. Adjournment to July 18, 2017 at 7:00 p.m. Page 2 of 334 *4.A.1. SH+ K PEE Shakopee City Council July 5, 2017 FROM: Chris Dellwo, Captain TO: Mayor and Council Members Subject: Declare Seven Forfeited Vehicles as Surplus Property Policy/Action Requested: Declare seven forfeited vehicles as surplus property and authorize their disposal. Recommendation: Approve the policy/action as requested. Discussion: The following vehicles were obtained through successful forfeiture proceedings: 1. 1999 GMC Yukon, VIN: 1GKEK13R9XJ769864 2. 2001 Subaru Forester, VIN: JF 1 SF65681 H744817 3. 2001 Cadillac Deville, VIN: 1G6KE57YO1U254436 4. 2003 Buick Regal, VIN: 2G4WB52K431289212 5. 2004 Volvo S40, VIN: YV1 VS27594F034559 6. 2007 Chevrolet Trailblazer, VIN: 1 GNDT13 5972278218 7. 2008 Dodge Ram, VIN: 1D7HU182X8S533739 After being declared surplus, the vehicles will be sold at auction and the proceeds, if any, will be disbursed according to Minnesota State Statute. Budget Impact• None Page 3 of 334 *4.B.1. SH+ K PEE Shakopee City Council July 5, 2017 FROM: Bruce Loney, Public Works Director TO: Mayor and Council Members Subject• *Amend the Special Assessment Policy for Alleys. Policy/Action Requested: Approve Resolution 7908, which amends the Special Assessment Policy in regard to alleys in the Central Business District (CBD). Recommendation: Approve Policy/Action requested Discussion• Previously the assessment percentage for alleys in the downtown central business district has been 25%. For instance, the alley associated with the Lewis Street Parking Lot was proposed at 25% assessed. Council has indicated a desire to have the assessment policy for alley reconstruction be consistent with street reconstruction which is 30%. The attached resolution amends the special assessment policy for alleys in the central business district. Further analysis and research is needed to recommend any changes to the assessment policy for alleys outside the central business district. Budget Impact• This amendment to the special assessment policy would decrease the amount the City would pay. ATTACHMENT S: a Resolution 7908 a Assessment Policy Page 4 of 334 RESOLUTION 7908 A Resolution Amending the Special Assessment Policy WHEREAS, on January 19, 1992, the City Council of Shakopee adopted the Special Assessment Policy by Resolution No. 3735; and, WHEREAS, the Special Assessment Policy was recently amended by Resolution 7025 on August 17, 2010; and, WHEREAS,the City Council desires to amend the Special Assessment Policy. NOW, THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE,MINNESOTA, The Special Assessment Policy is hereby amended as follows: 1. In Section X, Paragraph A.6. "Alleys" the last sentence is changed to read: For CBD alleys, the City Council will assess 30% of the alley improvement. These policy changes shall become effective on July 5, 2017. Adopted in regular session of the City Council of the City of Shakopee, Minnesota, held this 5th day of July , 2017. Mayor of the City of Shakopee ATTEST: City Clerk ENGR/2017-PROJECTS/COUNCIL/RES7908-Amendspeciala sessmeritpohcy Page 5 of 334 SECTION IX POLICIES OF REASSESSMENT The City of Shakopee in constructing or reconstructing any public improvement shall design such improvement to last for a definite period. The life expectancy or service life shall be as stated in the policy statement of this section, or if different, shall be as stated in the Resolution ordering improvement and preparation of plans. When such project needs renewing or replacement, the amount to be assessed against the property owner shall be limited to an amount determined by dividing the actual life of the original improvement by the expected service life of the original improvement. Policy Statement The following are hereby established as the "life expectancies" or `service lives" of public improvements unless otherwise stated in the resolution ordering improvement and preparation of plans, in which case, the life set forth in the resolution shall govern. 1. Sidewalks - 20 years 2. Street improvements, including surfacing and curb and gutter - 20 years 3. Ornamental street lighting - 20 years 4. Water Mains - 30 years 5. Sanitary Sewers - 30 years 6. Storm Sewers - 30 years SECTION X ASSESSMENT COMPUTATIONS A. STREET AND CURS & GUTTER IMPROVEMENTS 1. New Constructions All new streets will be assessed 100% to the abutting benefitted properties. Street and curb and gutter improvements will normally be assessed by the adjusted front foot method, however other methods may be utilized if conditions warrant it. Cost of construction of streets shall be assessed based on the minimum design of 36 feet wide, 7-ton axle load in residential areas and 9-ton axle load in commercial and industrial areas. Oversizing costs which are incurred in excess of the above may be paid by: {1) State Aid Funds, (2) larger assessment rates to properties, (3) general obligation funds, or (4) Page 6 of 334 any other method or combination of methods authorized by the City Council. 2. Collector Streets Collector streets will be assessed to the equivalent local street costs. All street oversizing costs associated with collector streets will not be assessed. 3. Reconstructions/Reclamations All street reconstructions and reclamations shall be 30% assessed. 4. Gravel Streets a. Urban Areas Upgrading an existing gravel street located in the Urban Service Area by adding pavement, curb and gutter shall be considered new construction and all costs assessed 100%. b. Rural Areas Only those items added to rural gravel roads by upgrading (i.e. pavement, curb and gutter, etc.) will be assessed 100%, but not the costs to replace the existing gravel roadbed. The City Council may elect to revise the assessable areas to establish additional assessment credits due to the large landowners abutting rural gravel roads or for rural collector roads that have little or no direct driveway accesses to it. S. Overlay, Seal Coats Bituminous overlay projects and bituminous sealcoats will not be assessed. 6. Alleys Upgrading existing gravel alleys by adding pavement will be assessed 100% to the block in question. Reconstructing existing paved alleys will be 100% assessed also, except in the Central Business District (CBD). For CBD alleys, the City Council will d,tetzEn ne the afnetin assessed 30% of the alley improvement. at the public hearing eenside-r-ing th i Page 7 of 334 4 *4.B.2. SH+ KOPEE Shakopee City Council July 5, 2017 FROM: Ryan Halverson, Assistant City Engineer TO: Mayor and Council Members Subject: Request for Extended Construction Hours for Lennar and Ridge Creek 1 st Addition development contractors. Policy/Action Requested: Approve suspension of City Code Sec. 130.45, Noise Elimination and Noise Prevention, Subd. C, Hourly Restrictions on Certain Operations, 4, allowing Lennar and their contractors to perform work from 7 a.m. to 8 p.m. on weekdays and 8 a.m. to 5 p.m. on Saturdays through the end of October 2017 subject to the conditions recommended by staff, and direct publication of notice of the suspension terms. Recommendation: Approve Policy/Action requested subject to the following conditions: 1. Approval is contingent upon minimizing noise exposure adjacent to residents 2. If the property owner complaints are received by the City, the suspension can be revoked at the discretion of the City Engineer. Discussion: The above named section of the City Code restricts the hours of construction operation from 7 a.m. to 10 p.m. on weekdays, and 9 a.m. to 9 p.m. on weekends and holidays. Attached is a letter from Lennar requesting extended work hours on Saturday to start at 8 a.m. until the Ridge Creek 1 st Addition project is completed by the end of the construction season. This request is being made to help expedite the work and meet the schedule for this project to be completed prior to the end of the construction season. If Council approves the suspension, a public notice to meet the City Code requirements and notice such as a news release would be placed in the Shakopee Valley News. Page 8 of 334 Budget Impact• None ATTACHMENTS: D Lennar Letter - Extended Work Hours Page 9 of 334 Dear Mr. Halverson, Lennar is asking on behalf of Enebak Construction for permission to start 1 hour earlier on Saturdays at 8:00 am instead of 9:00 am on our Ridge Creek project. Thank you for your consideration, Mark Bode Lennar Homes Page 10 of 334 *4.C.1. SH+ KOPEE Shakopee City Council July 5, 2017 FROM: Jamie Polley TO: Mayor and City Council Subject: Fun For All Inclusive Playground Donation, Res. No. 7910 Policy/Action Requested: Offer Resolution No. 7910, A Resolution of the City of Shakopee, MN Accepting A Donation of$1000 and a Bench for the Shakopee Fun For All Playground. Recommendation: Recommend accepting the donations for the Fun For All Inclusive Playground. Discussion: On March 2, 2016 the City Council approved the concept of an inclusive playground at Lions Park and authorized the fundraising efforts of the Fun For All Task Force. Task Force members have applied for grants as well as met with local business owners, corporations and various organizations seeking donations. Many generous donators have come forward in many ways and the park was mostly completed in October of 2016. The donor wall is currently under construction however donors can also be recognized on a bench or piece of equipment. Per city requirements for donations, any monetary donation of$1000 or more needs to be accepted by two-thirds vote of the City Council. The City has received a donation of$1000 from Joe Theis in honor of his grandparents, Gene and Esther Brown and his uncle Tim Ratigan. The Shakopee Valley Lions would also like to donate an additional bench to the perimeter of the playground. Budget Impact• The donations will assist the city to complete the donor wall and add benches to the playground. ATTACEMENTS: Page 11 of 334 Resolution No 7910 Page 12 of 334 RESOLUTION NO. 7910 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA ACCEPTING A DONATION OF $1,000.00 AND A BENCH FOR THE SHAKOPEE FUN FOR ALL PLAYGROUND. WHEREAS, on November 6, 2002, the City Council adopted Resolution No. 5794, which established procedure relating to the receipt of gifts and donations by the City; and WHEREAS, Resolution No. 5794 specifies that donations or gifts shall be accepted by resolution of the City Council, and shall require a two-thirds majority of the Council for acceptance; and WHEREAS, avid supporters of the City of Shakopee have generously donated $1,000 and a bench to the Shakopee Fun For All Inclusive Playground; and WHEREAS, the $1000 donator is Joe Theis in honor of his grandparents and uncle and the bench donator is the Shakopee Valley Lions; and WHEREAS, donations will assist in funding a unique playground that will provide a positive playing experience for all community members, young to old and of all abilities. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, that the donations are gratefully accepted; and FURTHER, the City staff is directed to send a letter to the donors, acknowledging receipt of the gift and expressing the appreciation of the City Council. Adopted in regular session of the City Council of the City of Shakopee, Minnesota held this 5t" day of July, 2017. William Mars Mayor of the City of Shakopee ATTEST: City Clerk Page 13 of 334 *4.D.1. ST-TAKOPF.F. Shakopee City Council July 5, 2017 FROM: Lori J. Hensen, City Clerk TO: Mayor and Council Members Subject: City Council Minutes from June 20, 2017 Policy/Action Requested: Approve the minutes of June 20, 2017 as presented. Recommendation: Approve the above motion. Discussion: Budget Impact• ATTACHMENT S: June 20, 2017 Page 14 of 334 Shakopee City Council Minutes P"tj June 20,2017 SHAKOPEE 7:00 PM City Hall 129 Holmes St. Mayor Bill Mars presiding 1. Roll Call -At the June 20, 2017 Shakopee City Council meeting one member will be participating via interactive television. The regular meeting location; Council Chambers, 129 Homes St. S, Shakopee, MN, is the primary meeting location and will be open to the public as usual. The secondary meeting location; Council Member Matt Lehmans hotel room, Flamingo Inn, 2011 South Atlantic Avenue, Daytona Beach, FL 32118, is also open to the public. For further details about attending the June 20, 107 Shakopee City Council meeting from the secondary meeting location, contact City Hall at 952-233-9300. Present: Mayor William Mars, Councilmember Mike Luce, Councilmember Matt Lehman, Councilmember Jay Whiting, Councilmember Kathi Mocol Staff Present: Administrator Bill Reynolds, Assistant Administrator Nate Burkett, City Attorney Jim Thomson, Fiance Director Darin Nelson, Assistant City Engineer Ryan Halverson, Planning and Development Director Michael Kerski, Senior Planner Mark Noble, Senior Planner Kyle Sobota, Park and Recreation Director Jamie Polley, City Clerk Lori Hensen 2. Pledge of Allegiance 3. Special Presentation 3.A. MRPA Award of Excellence 4. Approval of Agenda Councilmember Jay Whiting made a motion to approve the agenda as presented, seconded by Councilmember Kathi Mocol and the motion passed. 5 - 0 5. *Consent Business - (All items listed in this section are anticipated to be routine. After a discussion by the Mayor there will be an opportunity for members of the Council to remove any items from the consent agenda for individual discussion. Those items removed will be considered following the Public hearing portion of the agenda. Items remaining on the Consent Agenda will not be discussed and will be approved in one motion.) Page 1 ED66334 Councilmember Jay Whiting made a motion to approve consent agenda, seconded by Councilmember Kathi Mocol and the motion passed. 5 - 0 A. Planning and Development *5. A.1. *Vacation of Public Right-of-Way and Drainage & Utility Easements Approve Resolution No. 7896, a resolution setting the public hearing date to consider the vacation of a public right-of-way (Shenandoah Drive) and public drainage & utility easements for property located north of Eagle Creek Blvd., East of Shenandoah Drive extended at Eastway Avenue, South of 4th Avenue East and West of Vierling Drive at 12th Avenue East. (Motion was carried under consent agenda.) B. Public Works and Engineering *5. B.1. *Parl6ng Control Change on Garden Lane Approve the parking control change on Garden Lane as outlined in the memo and the attached drawing. (Motion was carried under consent agenda.) *5. B.2. *Extended Construction Hours Approve a suspension of City Code Sec. 130.45, Noise Elimination and Noise Prevention, Subd. C, Hourly Restrictions on Certain Operations, 4, allowing D.R. Horton and their contractors to perform work from 7 a.m. to 8 p.m. on weekdays and 8 a.m. to 5 p.m. on Saturdays through the end of October or earlier if worked is completed and directing staff to publish notice of the suspension terms with conditions as recommended by staff. (Motion was carried under consent agenda.) C. Parks and Recreation *5. C.1. *Lease Agreement with Xcel Energy Approve a lease agreement with Xcel Energy for use of 30 acres of land south of Quarry Lake Park for soft surface trails. (Motion was carried under consent agenda.) D. General Administration *5. D.1. *City Council Minutes Approve the minutes from June 6, 2017. (Motion was carried under consent agenda.) *5. D.2. *Reorganization of IT Division Approve reclassification of one IT Assistant to the position of IT Specialist - Applications. (Motion was carried under consent agenda.) *5. D.3. *Temporary Liquor License - Saint Joachim&Anne Page 8®66334 Approve the temporary liquor license for Saint Joachim&Anne's annual Julifest event being held July 28 through July 30, 2017. (Motion was carried under consent agenda.) *5. D.4. *Badger Hill request to allow alcohol to be consumed in Parking Lot Approve the suspension of city code 114.11 Consumption and possession of alcoholic beverages on street, public property, private parking lots to which the public has access, and other private property, allowing Badger Hill Brewery to hold their 5th Beerthday Party Event held on June 24, 2017. (Motion was carried under consent agenda.) *5. D.S. *Performance Measurement Program Adopt Resolution No. 7906 Which Adopts the State of Minnesota Performance Measurement Program. (Motion was carried under consent agenda.) 6. RECOGNITION OF INVOLVED CITIZENS BY CITY COUNCIL- Provides an opportunity for the public to address the Council on items which are not on the agenda. Comments should not be more than five minutes in length. The Mayor may adjust that time limit based upon the number of persons seeking to comment. This comment period may not be used to make personal attacks, to air personality grievances, to make political endorsements or for political campaign purposes. Council Members will not enter into a dialogue with citizens, and questions from Council will be for clarification only. This period will not be used to problem solve issues or to react to the comments made, but rather for informational purposes only. 7. Business removed from consent will be discussed at this time 8. Public Hearings 8.A. Vacation of Public Drainage & Utility Easement - SPUC Councilmember Jay Whiting made a motion to open the public hearing, seconded by Councilmember Kathi Mocol and the motion passed. 5 - 0 Councilmember Mike Luce made a motion to close public hearing, seconded by Councilmember Jay Whiting and the motion passed. 5 - 0 Councilmember Jay Whiting made a motion to adopt Resolution No. 7898, a Resolution approving a vacation of Public Drainage and Utility Easements at 2168- 2188 Kelly Circle, seconded by Councilmember Mike Luce and the motion passed. 5 - 0 Page 1-b66334 8.B. (SPUC) Shakopee Avenue Electric Underground Project 2017-9 Councilmember Kathi Mocol made a motion to open the public hearing, seconded by Councilmember Mike Luce and the motion passed. 5 - 0 Councilmember Jay Whiting made a motion to close the public hearing, seconded by Councilmember Mike Luce and the motion passed. 5 - 0 Councilmember Jay Whiting made a motion to approve Resolution 7900, a resolution ordering an improvement and preparation of plans and specifications for the (SPUC) Shakopee Avenue Electric Underground, Project No. 2017-9, seconded by Councilmember Mike Luce and the motion passed. 5 - 0 9. Recess for Economic Development Authority Meeting 10. Reconvene 11. General Business A. Planning and Development 11. A.1. Vacation of Easement at 2400 Jennifer Lane Councilmember Jay Whiting made a motion to adopt Resolution No. 7782, approving a vacation of a public drainage & utility easement adjacent to 2400 Jennifer Lane, seconded by Councilmember Kathi Mocol and the motion passed. 5 - 0 11. A.2. Purchase Agreement with Booyaah Properties Councilmember Jay Whiting made a motion to approve Resolution Number 7901 to acquire 339 1 Ave W 100. PID 270010810, seconded by Councilmember Kathi Mocol and the motion passed. 3 - 1 Nays: Lehman Abstain: Luce 11. A.3. Approval for Redevelopment of City Hall and First Avenue Properties Councilmember Kathi Mocol made a motion to approve Resolution 7903 and enter Page 4a)66334 into an agreement with CPM or its affiliates to redevelop sites for housing (City Hall) and Hotel (First Ave), seconded by Councilmember Jay Whiting and the motion passed. 3 - 1 Nays: Lehman Abstain: Luce 11. A.4. West Vierling Acres Apartments Councilmember Jay Whiting made a motion to adopt Ordinance No. 965, which rezones the property from R-3 Multiple Family Residential to R-4, High Density Residential, seconded by Councilmember Kathi Mocol and the motion passed. 3 - 2 Nays: Lehman, Luce Councilmember Jay Whiting made a motion to adopt Resolution No. 7905, which approves the Final Plat of West Vierling Acres Third Addition, a conditional use permit for an over-height structure, and a Planned Unit Development (PUD) Amendment to allow development of no more than a 133-unit apartment building, seconded by Councilmember Kathi Mocol and the motion passed. 3 - 2 Nays: Lehman, Luce 11. A.5. Purchase Agreement with Booyaah Properties II Councilmember Kathi Mocol made a motion to approve Resolution Number 7902 to acquire to parcels, 321 1 Ave W, PID Numbers 270010820 and 270010830, seconded by Councilmember Jay Whiting and the motion passed. 3 - 2 Nays: Lehman, Luce 11. A.6. Property Acquisition for Nonpayment of Taxes Councilmember Jay Whiting made a motion to adopt Resolution 7904 to acquire the two parcels to protect the rail spurs for the industrial park, seconded by Councilmember Kathi Mocol and the motion passed. 5 - 0 B. General Administration 11. B.1. Monthly Financial Review 11. B.2. Updated Liaisons List Page Vb66334 Councilmember Jay Whiting made a motion to approve updated liaisons list as presented, seconded by Councilmember Kathi Mocol and the motion passed. 5 - 0 11. B.3. Capital Bonding Request Councilmember Kathi Mocol made a motion to adopt Resolution 7899, the City of Shakopee's application to the State of Minnesota's 2018 capital budget, seconded by Councilmember Jay Whiting and the motion passed. 5 - 0 12. Reports 12.ALiaison and Administration 12.B.City Bill List 13. Other Business 14. Adjournment to Wednesday July 5, 2017 at 7:00 p.m. Councilmember Kathi Mocol made a motion to adjourn to July 5, 2017 at 7:00 p.m., seconded by Councilmember Matt Lehman and the motion passed. 5 - 0 Page 8(b66334 *4.D.2. SH+ K PEE Shakopee City Council July 5, 2017 FROM: Nate Burkett, Assistant City Administrator TO: Mayor and Council Members Subject: Mobile Communications Policy, establishing standards for mobile device usage and a stipend for authorized employees to use personal mobile devices. Policy/Action Requested: Approve the mobile communications policy as proposed, establishing standards for employee mobile device usage in the conduct of city business, and authorizing a stipend for eligible employees using a personally owned mobile device for city business. Recommendation: Approve the policy/action requested. Discussion: Mobile technology has become an important tool for many city employees. The City currently provides and pays for service for over 100 devices (both cell phones and mobile data terminals). This policy establishes a policy that clarifies those circumstances where it is appropriate for the city to provide wireless service to an employee for the performance of their duties and gives options as to how that service will be provided. The biggest change in this policy from the existing practice is that the city will offer eligible employees a $25.00/month stipend for use of their personal device. The biggest concern with this policy is data practices. Employees opting to use their personal device for city business must be aware that in the event there is a data practices request, employees must report certain data in accordance with the law. This will include work related (not personal) text messages and phone records. Personal information on personally owned devices is not available through public data requests. Emails on personally owned devices will be retained through the city's server and are not of concern. Page 21 of 334 Data security is also of concern. This policy allows for the IT division to create rules related to password protection and mobile device management to ensure data security when data is stored on a personally owned device. The $25/per month stipend is set at that level to ensure that each device transitioned from city-paid to a stipend will result in a cost savings for the city. Budget Impact• This policy will not increase the city's expense. Depending on how many employees choose to use their personally owned device - adoption of this policy may save up to approximately $10,000 per year. ATTACHMENTS: a Mobile Communications Policy Page 22 of 334 Mobile Device Policy (Chapter, Section, Code -Added by Administration) Adopted: SHAKOPEE Amended: POLICY CONTENTS A. Scope.................................................................................................................................................................1 B. Purpose ............................................................................................................................................................1 C. Business Need Required............................................................................................................................1 D. Mobile Communication Device and Service Options......................................................................2 E. City Issued Mobile Devices and Service...............................................................................................2 F. Personal Mobile Devices and Service with city Stipend................................................................3 G. Personal Mobile Devices and Service without city Stipend.........................................................3 H. Mobile Device Usage, Generally..............................................................................................................4 A. SCOPE This policy applies to all city of Shakopee employees. B. PURPOSE This purpose of this policy is to ensure that city employees can use mobile communication devices in the course of their duties to promote efficiency, ensure effective communication and improve customer service in a cost-effective manner. This policy defines acceptable use of mobile communication devices, the circumstances under which the city will provide for a mobile communication device and/or service, and how the city will provide for mobile communication devices and/or service. Employees who abuse and/or misuse mobile communication devices under this policy may be subject to disciplinary action. C. BUSINESS NEED REQUIRED Department heads (or their designees) shall determine if there is a business need based on the employee's job duties. An initial determination of business need does not guarantee an employee will be provided with mobile communications, or that the determination may not change. Business needs that justify provision of a mobile communication device include: • The employee's safety or the safety of others is dependent on mobile communications. • The employee's job duties frequently require the employee to be out of the office and it is required that the employee be available to respond to immediate inquiries or requests for information from other employees or the public. • The employee is frequently required to be available to receive communication outside of normal working hours. Page 23 of 334 • The employee's position is such that providing for mobile communications will improve the employee's efficiency. • Other justification as approved by the city administrator. D. MOBILE COMMUNICATION DEVICE AND SERVICE OPTIONS If the department head has determined that there is a business need for an employee to have access to mobile communications in the course of their duties the employee may choose from the following options: • The city will issue a mobile communications device and provide service at the city's expense subject to the requirements of this policy; or • The city will provide a monthly stipend to the employee, and the employee will provide a mobile communications device and service subject to the requirements of this policy; or • The employee may use their personal device and service subject to the requirements of this policy. E. CITY ISSUED MOBILE DEVICES AND SERVICE The Information Technology Division will provide standard hardware and service to employees who choose this option. The device remains the property of the city and must be returned upon request by the city, or upon termination. • City issued devices will have a Mobile Device Management (MDM) software enforcing policy requirements regarding security, applications, and data. • City issued devices must have appropriate security technology and password protection as determined by the Information Technology Division. • Information Technology supports standard services including Outlook and Skype. The Information Technology may support other mobile applications with a demonstrated business need. No applications may be downloaded to city owned devices without approval of the Information Technology Division. • Incidental personal use is allowed provided such use does not interfere with city business, does not increase the city's costs and such use complies with the city's Acceptable Use Policy. Under no circumstances should an employee use a city provided mobile device as their primary personal mobile communications device. • Replacement of devices will be based on business needs and is not guaranteed. • The cellular phone number will be listed in the internal city staff directory and on business cards and email signature lines as appropriate. • Managers and supervisors are responsible for periodically monitoring and reviewing cellular phone billings of their staff to ensure proper employee usage and billing accuracy. • All data maintained on city owned devices is subject to data practices laws and policies. Page 2 of 4 Page 24 of 334 F. PERSONAL MOBILE DEVICES AND SERVICE WITH CITY STIPEND If the department head has determined that there is a business need and the employee desires to use their personal mobile device for city business, the city may offer a stipend of $25.00 per month for reasonable use of the employee's personal mobile device and service. • The approved stipend is agreed upon as full and complete compensation by the city to the employee for the use of their personal mobile device for business purposes. The stipend is inclusive of minutes, data, text messaging, access and all other charges. The city shall not reimburse the employee for overages of minutes, data or texts or other expenses beyond the approved stipend. • Employees accepting the stipend under this section are responsible to ensure that their service is active. Employees who allow their service to lapse may be required to reimburse the city all or part of the stipend if service lapses. • The cellular phone number will be listed in the city Staff Directory and on business cards and email signature lines as appropriate. • Personal mobile devices used for business purposes must have appropriate security technology and password protection as determined by the Information Technology Division. • As determined by the Information Technology Division, mobile devices under this section may have mobile device management software in place to enforce security protocols. • An employee separating employment with the city who has used their personal device for city business must delete all business-related data from their device, to be verified by the Information Technology Division. • The Information Technology Division will not support the device or applications on the device. • Loss or damage of the device during city or personal use will not be reimbursed by the city. • Employees who use their personal mobile device for business purposes under this section acknowledge and agree to comply with data practices laws and policies. Data on personal mobile devices under this section may be subject to data practices laws and policies including but not limited to: o Emails, documents, texts, and any other data created or maintained on the device for business use o Phone records, including numbers called, times, and durations of calls made for business purposes. G. PERSONAL MOBILE DEVICES AND SERVICE WITHOUT CITY STIPEND Employees may choose to use their personal device for business purposes and not receive a stipend. Page 3 of 4 Page 25 of 334 • The city shall not reimburse employees for overages or use of overages of minutes, data or texts or other expenses related to personal mobile device usage for business purposes. • The employee shall not have official city email or records on their personal mobile device unless the Information Technology Department approves. • An employee separating employment with the city who has used their personal device for city business must delete all business-related data from their device, to be verified by the Information Technology Division. • The Information Technology Division will not support the device or applications on the device. • Loss or damage of the device during city or personal use will not be reimbursed by the city. • Employees who use their personal mobile device for business purposes under this section acknowledge and agree to comply with data practices laws and policies. Data on personal mobile devices under this section may be subject to data practices laws and policies including but not limited to: o Emails, documents, texts, and any other data created or maintained on the device for business use o Phone records, including numbers called, times, and durations of calls made for business purposes. H. MOBILE DEVICE USAGE, GENERALLY Employees using mobile devices for city business or during working hours are subject to the following provisions. • When driving a vehicle for city business, employees shall be aware that driving is their primary responsibility. Use of a mobile device in a vehicle must comply with state laws. • Managers and supervisors are expected to ensure compliance with the Fair Labor Standards Act, other federal and state laws, and city policy with regard to working hours. Generally,the city shall not expect non-exempt employees to monitor the device outside of scheduled work hours unless terms and agreements for on-call, emergency and other business needs are required. Page 4 of 4 Page 26 of 334 *4.D.3. SH+ K PEE Shakopee City Council July 5, 2017 FROM: Lori J. Hensen, City Clerk TO: Mayor and Council Members Subject• Massage Business License and Massage Therapist License for Andrea Zitzloff Policy/Action Requested: Approve a massage therapy business license and a massage therapist license to Andrea Zitzloff. Recommendation: Approve the above motion. Discussion• Andrea Zitzloff has applied for a massage therapy business license and massage therapist license at 1850 Sarazin Street. She will be providing massages to staff and resident's at St. Gertrude's Health & Rehab Center. The Police Department has conducted the customary background investigation and has advised that it identified nothing that would prohibit the issuance of the licenses. Budget Impact• None. Page 27 of 334 *4.D.4. SH+ KOPEE Shakopee City Council July 5, 2017 FROM: Lori J. Hensen, City Clerk TO: Mayor and Council Members Subject: On-Sale and Sunday Liquor licenses for MCMC LLC dba Muddy Cow. Policy/Action Requested: Approve the On-Sale and Sunday Liquor licenses for MCMC LLC. dba Muddy Cow on condition that final inspections are performed and passed. Recommendation: Approve the above motion. Discussion: Patrick Conroy is opening a restaurant located at 1244 Canterbury Road, Shakopee and has applied for an on-sale and a Sunday on-sale liquor license. The applications and required evidence of insurance are in order. The Police Department has conducted the customary background investigation and has advised that it identified nothing that would prohibit the issuance of the licenses. Inspections by the Building Department and Fire Department are still needed and will be completed before final issuance of the licenses. Budget Impact• None. Page 28 of 334 *4.D.5. SH+ K PEE Shakopee City Council July 5, 2017 FROM: Lori J. Hensen, City Clerk TO: Mayor and Council Members Subject: Gambling Premise Permit for the Shako Valley Amateur Hockey Association Policy/Action Requested: Approve Resolution 7907, a resolution of the City of Shakopee approving a premises permit for Shako Valley Amateur Hockey Association located at Muddy Cow 1244 Canterbury Road . Recommendation: Approve the above motion. Discussion: The Shako Valley Amateur Hockey Association is applying for a premises permit for gambling activities at the Muddy Cow located at 1244 Canterbury Road. The permit will ultimately be issued by the State Gambling Control Board. When application is made, the board requires that the local unit of government pass a resolution specifically approving or denying the application. Budget Impact• None. ATTACHMENTS: a Resolution 7907 Page 29 of 334 RESOLUTION 7904 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING PREMISES PERMIT FOR SHAKO VALLEY AMATEUR HOCKEY ASSOCIATION WHEREAS, the 1990 legislature adopted a law which requires municipal approval in order for Gambling Control Board to issue or renew premises permits; and WHEREAS, the Shako Valley Amateur Hockey Association is seeking a Premises Permit for the site at the Muddy Cow, 1244 Canterbury Road, Shakopee, Minnesota. NOW,THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: That the Premises Permit for the Shako Valley Amateur Hockey Association at Muddy Cow, 1244 Canterbury Road, Shakopee, Minnesota, be approved. Adopted in regular session of the City Council of the City of Shakopee, Minnesota, held this 5th day of July, 2017. Mayor of the City of Shakopee ATTEST: City Clerk Page 30 of 334 *4.E.1. SH+ K PEE Shakopee City Council July 5, 2017 FROM: Michael Kerski, Director of Planning and Development TO: Mayor and Council Members Subject: Blue Cross Blue Shield of Minnesota funding for comprehensive plan community engagement activities as part of the Center for Prevention's "Active Place Demonstration Project" initiative. Policy/Action Requested: Approve an agreement with Blue Cross Blue Shield of Minnesota for funding to support the city's community engagement efforts related to the 2040 comprehensive planning process for $12,500 and direct the appropriate city representative to execute the agreement, subject to review by the City Attorney. Recommendation: Staff recommends approval of the agreement. Discussion: In March, the council authorized staff to submit an application to the Center for Prevention's "Active Place Demonstration Project" funding initiative. The Center for Prevention is a department within Blue Cross Blue Shield of Minnesota focused on improving community health. The city's application included a request for funds to support increased community engagement activities supporting Envision Shakopee, the city's 2040 comprehensive planning process. The application was successful and the city was awarded $12,500 in funding. Blue Cross offers the funding via a funding agreement. The application included six small subcontracts to six community-based organizations to assist with community engagement, marketing and outreach. Staff will bring forth these subcontracts at a later date. Budget Impact• Page 31 of 334 The city's request was fully funded at $12,500. This includes $6,500 to fund additional printed materials, food, and workshop and engagement supplies and $6,000 in community- based organization subcontracts. ATTACHMENTS: a Active Places Demonstration Projects Agreement Page 32 of 334 ACTIVE PLACES DEMONSTRATION PROJECTS AGREEMENT This Active Places Demonstration Projects Agreement ("Agreement") is entered into as of June 13, 2017, (the "Effective Date")by and between City of Shakopee, Minnesota("Shakopee"),with its address at 129 Holmes St South, Shakopee, Minnesota 55379, and BCBSM, Inc., dba Blue Cross and Blue Shield of Minnesota ("Blue Cross") located at 3535 Blue Cross Road, Eagan, Minnesota 55122. WHEREAS, Blue Cross is committed to initiatives that increase walking and bicycling for both transportation and recreation as a means of improving the health of Minnesotans through active living. An "Active Places Demonstration Project" supports Blue Cross's goals of increasing walking and biking rates by creating community destinations and improving walking and biking routes. An Active Places Demonstration Project will transform previously abandoned or avoided places into areas where people want to be physically active. An Active Places Demonstration Project aims to build support for wider community changes over time. An Active Places Demonstration Project address the well-researched principal that people are more likely to walk or bike if the route and the route's surroundings are pleasant, if there are destinations along the route, and if they can reach those destination on foot or bike. NOW, THEREFORE, the parties agree as follows: 1. Description of the Project. Shakopee desires to participate in an Active Places Demonstration Project throughout the city to engage the growing number of people of color in the 2040 Comprehensive Plan which sets the tone for future planning, making it the community's greatest opportunity to influence policy future infrastructure projects, and contribute to the future of the city. Activities include: A. Conducting a "hands-on"workshop using maps and craft supplies. The workshop will be conducted throughout the community with small, targeted focus groups. People will be able to share their specific ideas while doing art-based activities. B. Engaging students of all cultures using photovoice which is a visual engagement technique. The city, Shakopee High School, and District 288 will partner and use photovoice to use imagery to promote engagement among students. C. Establishing city presence at community events, festivals, and gatherings. The city will bring a pop-up engagement booth to community gatherings, for example a five-week summer concert series in which the city will be present. D. Creating and providing "Meeting in a Box" materials which allows organizations, residents, and businesses the opportunity to host vision meetings without city staff being present. Materials will be created to help facilitate discussions and gather feedback. The first phase of the community engagement, focused on the vision of the community, will take place April through November 2017. Creative workshops will take place intermittently throughout the city during this time period. A summer concert series will take place in downtown Shakopee for five weeks in July and August. Student engagement at the Shakopee High School will take place in the fall. Collectively, these activities constitute the "Project." 2. Fees. Blue Cross shall make a $12,5000 financial contribution to Shakopee to support the Project, subject to the terms and conditions of this Agreement. Shakopee shall refund Blue Cross' financial contribution if it is unable to execute the terms and conditions of this Agreement within 30 days. 3. Term and Termination. This Agreement will be effective as of the last date of signature below. This Agreement may be terminated by either party by providing the other with at least 30 days written notice. In the event of termination by Shakopee prior to Project completion, Shakopee shall refund any unused funds. 4. Shakopee shall provide Blue Cross with (a) proofs for review and approval prior to publication (including paper or electronic publishing, and creation of audio/video documentation) of any Project-related materials containing Blue Cross's name, logo, or references to Blue Cross's funding; and (b) the opportunity to approve or reject the placement, color or size of Blue Cross's name or logo on all Project-related materials. Blue Cross retains all right, title, and interest in its corporate name, logo, and taglines, and nothing in this Agreement will be construed to constitute a waiver of any other right or remedy Blue Cross may have relative to the use of its corporate name or logo by Shakopee. Page 1 of 9 city of shakopee,minnesota apdp 19jun2017.docx Page 33 of 334 5. Shakopee shall acknowledge Blue Cross in all promotional materials related to the Project including but not limited to fliers, posters, brochures, programs, website, signage, banners, T-shirts, advertisements (both print and electronic), event signage, onsite messages related to community health, promotional literature, brochures, publications, press releases, advertisements and digital/multi-media content. Shakopee will provide Blue Cross the opportunity to include promo item(s)in giveaway bags, if applicable, and/or to distribute promo items onsite. Shakopee shall use the following language: • Preferred copy: Funding for this project is provided by the Center for Prevention at Blue Cross and Blue Shield of Minnesota, as part of Blue Cross' long-term commitment to tackling the leading causes of preventable disease: tobacco use, lack of physical activity and unhealthy eating. • Abbreviated copy(for times when you have space constraints): Funding for this project is provided by the Center for Prevention at Blue Cross and Blue Shield of Minnesota. • Copy for use when Blue Cross is not the primary funder: Funding for this project is provided in part by the Center for Prevention at Blue Cross and Blue Shield of Minnesota. 6. Shakopee will work with Blue Cross on public relations efforts related to the Project. Shakopee shall not make any media statements on behalf of Blue Cross under any circumstance. However, Shakopee may publicize that Blue Cross has funded the Project and advise media to contact Blue Cross directly for more information. In addition, if any media outlet contacts Shakopee requesting comment on behalf of Blue Cross, Shakopee shall contact Blue Cross's communications staff immediately. Any proactive outreach to media regarding the Project shall be coordinated with Blue Cross's communications staff in advance. 7. Grant of license. Shakopee hereby grants to Blue Cross and its affiliates a worldwide, transferable, sublicensable, perpetual, non-exclusive, royalty free, fully paid, license to use, reproduce, display, and/or create derivative works (including to adapt or excerpt for Blue Cross's use, including for commercial purposes) from any written reports, promotional materials, toolkits, educational materials, audio, video and/or other works created by or on behalf of Shakopee in connection with the use, display, operation, modification, distribution and/or commercial exploitation of the Project. Further, Shakopee hereby grants to Blue Cross and its affiliates a non-transferable, non-sublicensable, non- exclusive, royalty free, fully paid, license to use, reproduce and display such representations of the Project (including its name and logo) as are reasonably necessary for Blue Cross to fulfill the purposes of this Agreement. 8. Deliverables: A. Within 12 months after the Project closes, Shakopee's project manager will participate in a one-hour key information interview with Blue Cross, or with Blue Cross's contracted vendor, to provide feedback on progress towards Project's long term goals and (earnings. B. Within one month of the completion of the Project, or by December 31, 2017, whichever occurs first, Shakopee shall submit to Blue Cross a written report that includes (i) a description of the process through which the Project was implemented; (ii) the Project's budget; (iii) how the Project advanced Shakopee's long term visions, as described in Project's application for funding; and (iv) an evaluation of the Project, which shall include an assessment of the Project's successes, weaknesses, and community responses to the Project. 9. Shakopee acknowledges and agrees that it will comply with all applicable laws, rules, and regulations in executing the work under this Schedule including compliance with any tax withholdings, filings, or other reporting obligations. 10. The parties acknowledge that execution of this Agreement does not constitute an association for the purpose of establishing a partnership or a joint venture, nor create any trustee or agency relationship between the parties. 11. Each party hereby represents that it has full power and authority to enter into this Agreement and to perform its obligations; it has obtained all permits, licenses, and other governmental authorizations and approvals required for its performance under this Agreement; and to the best of its knowledge and belief, the services to be rendered and the materials provided by each party under this Agreement neither infringe nor violate any patent, copyright, trade secret, trademark, or other proprietary right of any third party. Page 2 of 9 city of shakopee,minnesota apdp 19jun2017.docx Page 34 of 334 12. Indemnification. Shakopee shall indemnify, defend and hold harmless Blue Cross, its trustees, officers, employees and affiliates from and against all claims, damages, actions, expenses and costs (including reasonable attorneys' fees) which result or arise from the Project, from this Agreement or a breach of this Agreement. 13. Governing Law. This Agreement will be governed by, and construed in accordance with, the laws of the State of Minnesota. 14. Assignment. Neither party shall sell, transfer or assign this Agreement, or delegate its obligations hereunder, without the prior written consent of the other party, except that Blue Cross may assign this Agreement in whole or in part to any affiliate of Blue Cross upon notice to Shakopee. 15. Shakopee shall not solicit, and shall not engage as a sponsor, any other health insurance plan or third party claim administrator, or any entity owned or controlled by, or under common ownership or control with, any other health insurance plan or third party claim administrator with respect to funding, promotion or engagement in the Project. 16. Shakopee warrants that it has not performed services funded by or to the benefit of the tobacco industry within the past five (5) years. Furthermore, Shakopee will not pursue or accept a contract, including sponsorship or participation, with a tobacco company during the term of this Agreement. Shakopee will make every reasonable effort to ensure that any sponsors or corporate participants in the Project have not been involved with other projects funded directly or indirectly by the tobacco industry, or any other projects that could reasonably be considered counter to tobacco reduction or cessation efforts. In addition, Shakopee will make every reasonable effort to ensure that any subcontractors performing Services under this Agreement have not been involved in projects funded directly or indirectly by the tobacco industry, or any projects that would be considered counter to Blue Cross's initiatives on tobacco use reduction or cessation. 17. Shakopee represents and warrants that it has not had any relationship with a representative of, nor entity involved in, the tobacco industry within the past 5 years. 18. Audit. During the term of this Agreement, and for a period of one year after its termination or expiration date, Blue Cross may utilize its internal auditors or engage a third-party auditor reasonably acceptable to Shakopee to perform a confidential audit of Shakopee's compliance with its obligations under this Agreement. In addition, Shakopee shall reasonably participate in any audits initiated by a customer or regulator of Blue Cross, to the extent that Shakopee's performance of the Project is within the scope of such audit. Blue Cross's reasonable cooperation with audits is part of the Project, and will be provided at no additional cost to Blue Cross. If any audits of Shakopee result in an adverse or qualified opinion, (a) Shakopee shall provide Blue Cross a detailed remediation plan (including dates), and use reasonable efforts to remediate (at its own expense)the condition(s)giving rise to such opinion, and (b) Blue Cross may utilize its internal auditors or engage a third party to specifically re-test activities related to such opinion, to verify closure, or identify potential impact to Blue Cross. This Agreement represents the entire agreement between the parties with respect to its subject matter, and supersedes all prior agreements relating to its subject matter. Page 3 of 9 city of shakopee,minnesota apdp 19jun2017.docx Page 35 of 334 This Agreement has been duly executed by the parties hereto as of the dates set forth below. BCBSM, INC., dba Blue Cross and Blue Shield City of Shakopee, Minnesota of Minnesota By: By: Signature Signature Janelle Waldock Vice President, Community Health & Health Equity Print Name Print Name Date Date Page 4 of 9 city of shakopee,minnesota apdp 19jun2017.docx Page 36 of 334 EXHIBIT A TO THE ACTIVE PLACES DEMONSTRATION PROJECTS AGREEMENT Page 5 of 9 city ofshakopee,minnesota apdp 19jun2017.docx Page 37 of 334 7.A.1. SH+ KOPEE Shakopee City Council July 5, 2017 FROM: Jamie Polley TO: Mayor and Council Members Subject• Park Dedication Fee Revisions and Ordinance Updates Policy/Action Requested: Approve revisions to the park dedication fees required for single family, multi-family and commercial/industrial development as recommended by the Parks and Recreation Advisory Board (PRAB). Adopt Ordinance No. 962, Amending the City's Adopted 2017 Fee Schedule. Adopt Ordinance No. 963, Amending Shakopee City Code Section 150.65, Parks and Dedications. Recommendation: Approve the actions requested. Discussion• Park Dedication Fees Development is increasing within the city and many of the city fees are under review. The current park dedication fees have not been revised since 2005. Revisions to the fees have been recommended over the last 10 years however the fees remain unchanged. There is a potential for a number of higher density housing projects which have encouraged the city to review the park dedication fees. In many studies the city's park dedication rate is higher then average for both single family ($5,340/unit) and multi-family ($4,450/unit) residential housing development and below average for commercial/industrial ($6,930/acre) development. The park dedication fees collected are used to construct new parks within the city for the residents of Shakopee to enjoy. The city also wants to encourage development or redevelopment that offers the residents nice places to live and work. To find the balance Page 38 of 334 between the fees needed to construct the park system and encouraging development, data was collected from a number of metropolitan cities including 10 cities that have been designated as comparable cities to Shakopee. After reviewing the data collected staff and the PRAB is recommending that the fees for single family ($5,340/unit) and townhouses ($4,450/unit) remain unchanged and the fee for commercial/industrial development increase from $6,930/acre to $11,000/acre. The increase to the commercial/industrial fee is calculated utilizing a formula that the city has used in the past to determine this fee. The formula averages current land sale prices divided by a dwelling per unit amount of 2.5 multiplied by 10%. The cost per dwelling unit is then multiplied by 2.5/acre to get the per acre price. ($110,000/acre/2.5 DUA *10% = $4,400*2.5 DUA= $11,000/acre). The recommended changes to the multi-family fees are based on the kind of units being proposed: Market Rate units with less than 60% 1 BR and studios $4,450/unit (unchanged) Market Rate units with more than 60% 1 BR and studios $2,225/unit Projects in redevelopment areas will be discussed as part of the Redevelopment TIF. The reduced rate for projects that have more then 60% 1 BR and studios is based on the fact that typically 1-2 people are living in each smaller unit, versus 2-6 people living in 2 or 3 bedroom units. Projects in redevelopment areas are unique to the City of Shakopee and relate only to the downtown district or possible Canterbury Park area. These area have a number of challenges and higher costs of development due to reduced space and existing facilities and infrastructure. The City Council has the ability to negotiate the park dedication fees for Redevelopment TIF projects. City Code Revision Minor revisions to City Code Section 150.65, Parks and Dedications are recommended to clarify the expectations of the developer pertaining to trail development and the calculation of park dedication fees. As part of any development it has been required that the developer construct all public trails. The developers have complied with this requirement in the past. To make it clear to developers moving forward the requirement has been added to the City Code. Page 39 of 334 In addition, in calculating park dedication fees or land to be dedicated all wetland, ponding and city accepted drainageways and utility easements were deducted. The ordinance states in item B.10 that "Buildable" park land must be dedicated. Wetlands and ponding are not considered buildable park land and are therefore are still removed from the calculation however land that has a drainageway and/or utility easement through it is still buildable parkland. Drainageways and utility easements have therefore been removed as a deduction to the park dedication calculation. Budget Impact• Revising the park dedication fees is anticipated to have a positive impact on development within the city resulting in increased park dedication revenue. Attached is an example of the results of the proposed fees. ATTACHMENTS: a Ordinance No. 962 a Ordinance No. 963 a Results of proposed fees a Park Dedication Fee Proposal Page 40 of 334 ORDINANCE NO. 962,FOURTH SERIES AN ORDINANCE OF THE CITY OF SHAKOPEE,NHNNESOTA, AMENDING THE CITY'S ADOPTED 2017 FEE SCHEDULE THE CITY COUNCIL OF THE CITY OF SHAKOPEE,NHNNESOTA, ORDAINS: WHEREAS,by Ordinance No. 954, the City Council established a fee schedule effective January 1, 2017; and WHEREAS, the City Council has determined that it is desirable to modify the portion of the 2017 Fee Schedule pertaining to Park Dedication Fees for Multi-Family Apartments and Commercial/Industrial property. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Shakopee that Section III. B. in the Land Use Administration Fees portion of the Adopted 2017 City Fee Schedule is amended to read as follows: B. Park Dedication Fees (City Code 150.65. These are set by City Council in consultation with Park and Recreation Advisory Board) Cash in lieu of land dedication fees: 1. Residential/Single-family/Duplex(per unit) $5,340/unit 2. Multi-family Apartment less than 60% 1B or Studio (per unit) $4,450/unit Multi-family partment 60% or more IBR or Studio (per unit) $2,225/unit 3. Commercial/Industrial (per acre) $6,930 $11,000 acre Adopted in regular session of the City Council of the City of Shakopee, Minnesota held this 51' day of July, 2017. Mayor of the City of Shakopee ATTEST: Acting City Clerk Published in the Shakopee Valley News on 502292v2 JJT SH155-23 Page 41 of 334 ORDINANCE NO. 963 AN ORDINANCE OF THE CITY OF SHAKOPEE,NHNNESOTA AMENDING SHAKOPEE CITY CODE SECTION 150.65,PARKS AND DEDICATIONS THE CITY COUNCIL OF THE CITY OF SHAKOPEE,NHNNESOTA, ORDAINS: Section 1. Section 150.65,Paragraph(B)of the Shakopee City Code is amended to read as follows: (B) Standards for accepting dedication of land for public purposes. It should be the policy of the city that the following standards and guidelines for the dedication of land for park,playground, and open space purposes (or cash contribution in lieu of such dedications) in the subdividing and developing of land within the city, shall be directly related to density and intensity of each subdivision and development. (1) As a prerequisite to subdivision approval, subdividers shall dedicate land for parks, playgrounds,public open spaces, and trails and/or shall make a cash contribution to the City's Park Fund and Trail Fund as provided by this section. (2) Land to be dedicated shall be reasonably suitable for its intended use and shall be at a location convenient to the people to be served. Factors used in evaluating the adequacy of the proposed park and recreation areas shall include size, shape,topography, geology,hydrology,tree cover, access, and location. (3) The Parks and Recreation Advisory Board shall recommend to the Planning Commission and City Council the land dedication and cash contribution requirements for proposed subdivisions. (4) Changes to the density of plats shall be reviewed by the Parks and Recreation Advisory Board for reconsideration of park dedication and cash contribution requirements. (5) When a proposed park, playground, recreational area, school site, or other public ground has been indicated in the city's official map or comprehensive plan and is located in whole or in part within a proposed plat, it shall be designated as such on the plat and shall be dedicated to the appropriate governmental unit. If the subdivider elects not to dedicate an area in excess of the land required hereunder for such proposed site,the city may consider acquiring the site through purchase or condemnation. (6) Land conveyed or dedicated to the city shall not be used in calculating density requirements of the city zoning ordinance, and shall be in addition to and not in lieu of open space requirements for planned unit developments. (7) In establishing the amount of land to be dedicated or preserved or the amount of the cash contribution, the city will give due consideration to the open space, recreational, or common areas and facilities proposed by the applicant to be open to the public. Page 42 of 334 (8) The city,upon consideration of the particular type of development,may require larger or lesser parcels of land to be dedicated if the city determines that present or future residents would require greater or lesser land for park and playground purposes. (9) In residential plats, the city shall have a standard of 1 acre of park land for every 75 people. Thus, 1 acre of land shall be conveyed to the city as an outlot warranty for every 75 people the platted land could house based on the following population calculations. Apartments, townhouses, condominiums, other multiple- 1 person per bedroom family dwelling units Duplex-twin homes 3.0 persons per dwelling unit Single-family detached dwelling lots 3.0 persons per lot (10) In plats other than residential, the city hereby finds that, as a general rule, it requires that an amount of land equal to 10% of the buildable land proposed to be subdivided be dedicated or reserved to the public for public use for parks, playgrounds, trails, wetlands, or open space. "Buildable land" is determined by calculating the gross acreage of all land in the proposed subdivision in its pre-subdivided condition excluding wetlands as defined in § 151.002. Should the land to be dedicated have greater fair market value than the average fair market value in the plat, the city shall only be authorized to require dedication of an amount of land equal to 10% of the fair market value of all the property being platted. (11) In lieu of park land dedication, the city may require an equivalent cash dedication based upon the average fair market value of undeveloped land that is, or under the city's adopted comprehensive plan, may be served by municipal sanitary sewer and water service. The cash dedication requirement shall be established annually by the City Council. (12) The subdivider will be required to construct all public trails within the development or adjacent at the time of development. (1-23) In lieu of trail donation,trail construction, or trail easement dedication,the city may require a cash donation for the trail system. The cash dedication requirement shall be established annually by the City Council.Dedication for trails in the form of cash shall apply only to residential plats. (134) The city may elect to receive a combination of land and cash for park use. The city shall determine the amount of land dedication it requires, and the cash contribution shall be calculated based on the percentage of unmet land dedication. (145) Planned unit developments with mixed land uses shall make cash and/or land contributions in accordance with this section based upon the percentage of land devoted to the various uses. (136) Park and trail cash contributions are to be calculated based on the fees in place at the time of the final plat approval. Page 43 of 334 (167) The cash contributions for parks and trails shall be deposited in either the city's Park Reserve Develepme Fund or Multi-Purpose Pedestrian Fund and shall be used only for acquisition, improvement, development, or redevelopment of parks and trails. (178) If a subdivider is unwilling or unable to make a commitment to the city as to the type of building that will be constructed on lots in the proposed plat,the land and cash contribution will be a reasonable amount determined by the City Council. (1-99) Wetland and ponding areas, a,..,:,,.,,.ow ays and fility o o ents accepted by the city shall not be considered in the park land and/or cash contribution to the city. (4320) When a proposed trail has been indicated in the city's official comprehensive plan map, and it is located in whole or in part within the proposed plat, it should be designated on the plat and should be dedicated to the city. If the subdivider elects not to dedicate an area in excess of the land required for a trail, the city may consider acquiring it through condemnation. (2921) Required land dedication and/or payment of fees in lieu of land dedication shall be required at the time of recording the final plat. Section 2. Effective Date. This ordinance becomes effective from and after its passage and publication. Adopted in regular session of the City Council of the City of Shakopee, Minnesota held this 51 day of July, 2017. Mayor of the City of Shakopee Attest: City Clerk Published in the Shakopee Valley News on the day of , 2017. 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SH+ K PEE Shakopee City Council July 5, 2017 FROM: Darin Nelson, Finance Director TO: Mayor and Council Members Subject: 2016 Annual Financial Report, Audit Presentation and Review by Staff from BerganKDV Policy/Action Requested: Accept the 2016 Audit and accompanying reports, as presented by the audit staff from BerganKDV Recommendation: Approve the 2016 Comprehensive Annual Financial Report (CAFR) as presented. Discussion: Annually the City of Shakopee's finance staff and BerganKDV audit staff undertake an extensive audit process, beginning in December and continuing into April. The audit results, Comprehensive Annual Financial Report (CAFR), and accompanying data will be presented and discussed at the July 5, 2017 meeting by Steve Wischmann, Government Audit Partner with BerganKDV. Budget Impact• No budget impact ATTACHMENTS: 2016 CAFR 2016 Compliance Report D 2016 Communication Letter Page 47 of 334 Comprehensive ANNUAL FINANCIAL REPORT For the fiscal year ended December 31, 2016 y JAI 1 y II�pQ c arm. � M- A y 2016 Show Off Shakopee Photo Contest Submissions Shakopee Page 48 of 334 City of Shakopee 1129 Holmes St.S.,Shakopee MN 55379 952233-9300 www.ShakopeeMN.gov ✓i i n n es ota CITY OF SHAKOPEE, MINNESOTA Scott County COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2016 Department of Finance Darin Nelson, Director of Finance Melissa Schlingman, Accounting Manager 129 Holmes Street South Shakopee, MN 55379 Page 49 of 334 (THIS PAGE LEFT BLANK INTENTIONALLY) Page 50 of 334 CITY OF SHAKOPEE TABLE OF CONTENTS SECTION I Page INTRODUCTORY SECTION Elected Officials and Administration................................................................................ 1 OrganizationChart............................................................................................................ 2 Letterof Transmittal......................................................................................................... 3 Certificate of Achievement for Excellence in Financial Reporting.................................. 9 SECTION II FINANCIAL SECTION Independent Auditor's Report........................................................................................... 11 Management's Discussion and Analysis (Unaudited)...................................................... 15 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position..................................................................................... 28 Statement of Activities.......................................................................................... 29 Fund Financial Statements: Balance Sheet—Governmental Funds.................................................................. 30 Reconciliation of the Balance Sheet to the Statement of Net Position— GovernmentalFunds........................................................................................... 31 Statement of Revenues, Expenditures and Changes in Fund Balances— GovernmentalFunds........................................................................................... 32 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities—Governmental Funds ............... 33 Statement of Revenues, Expenditures and Changes in Fund Balances— Budget and Actual—General Fund..................................................................... 35 Statement of Net Position—Proprietary Funds..................................................... 36 Statement of Revenues, Expenses and Changes in Fund Net Position— ProprietaryFunds................................................................................................ 37 Statement of Cash Flows—Proprietary Funds...................................................... 38 Combined Statement of Fiduciary Net Position ................................................... 41 Statement of Net Position—Component Unit....................................................... 42 Statement of Revenues, Expenses and Changes in Fund Net Position— ComponentUnit................................................................................................. 43 Notes to the Financial Statements............................................................................... 45 Required Supplementary Information: Schedule of Funding Progress—Other Post Employment Benefits ........................... 96 Schedule of City's Proportionate Share of Net Pension Liability General Employees Retirement Fund.............................................................................. 97 Schedule of City's Proportionate Share of Net Pension Liability Public Employees Police and Fire Retirement Fund..................................................... 98 Schedule of Component Units' Proportionate Share of Net Pension Liability General Employees Retirement Fund................................................................ 99 Schedule of City Contributions General Employees Retirement Fund ..................... 100 Schedule of City Contributions Public Employees Police and Fire Retirement Fund .................................................................................................................. 101 Schedule of Component Unit Contributions General Employees Retirement Fund . 102 Schedule of Changes in the Net Pension Liability and Related Ratios— Fire Relief Association ...................................................................................... 103 Page 51 of 334 CITY OF SHAKOPEE TABLE OF CONTENTS SECTION II (Continued) FINANCIAL SECTION Required Supplementary Information: (Continued) Schedule of City Contributions and Non Employer Contributing Entities— Fire Relief Association ...................................................................................... 104 Notes to Required Supplementary Information.......................................................... 105 Supplementary Information: Schedule of Revenues, Expenditures and Changes in Fund Balance— Budget and Actual—General Fund........................................................................... 108 Combining and Individual Fund Financial Statements and Schedules: Combining Balance Sheet—Nonmaj or Governmental Funds.............................. 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balances—Nonmaj or Governmental Funds....................................................... 116 Combining Statement of Fund Net Position—Internal Service Funds................. 122 Combining Statement of Revenues, Expenses and Changes in Fund Net Position—Internal Service Funds....................................................................... 123 Combining Statement of Cash Flows—Internal Service Funds........................... 124 Combined Statement of Fiduciary Net Position ................................................... 125 Statement of Changes in Assets and Liabilities—Agency Fund........................... 126 SECTION III STATISTICAL SECTION NetPosition by Component.............................................................................................. 1 132 Changesin Net Position.................................................................................................... 2 134 Fund Balances—Governmental Funds............................................................................. 3 136 Changes in Fund Balances—Governmental Funds .......................................................... 4 138 Tax Capacity and Estimated Actual Value of Taxable Property...................................... 5 140 Direct and Overlapping Property Tax Rates..................................................................... 6 141 PrincipalTaxpayers .......................................................................................................... 7 142 Property Tax Levies and Collections................................................................................ 8 143 Ratio of Outstanding Debt by Type.................................................................................. 9 144 Ratio of General Bonded Outstanding.............................................................................. 10 145 Direct and Overlapping Governmental Activities Debt.................................................... 11 147 Legal Debt Margin Information........................................................................................ 12 148 Pledged Revenue Coverage .............................................................................................. 13 150 Demographic and Economic Statistics ............................................................................. 14 151 PrincipalEmployers.......................................................................................................... 15 153 Full-Time Equivalent City Government Employees by Function/Program..................... 16 154 Operating Indicators by Function/Program ...................................................................... 17 156 Capital Asset Statistics by Function/Program................................................................... 18 158 Page 52 of 334 CITY OF SHAKOPEE ELECTED OFFICIALS AND ADNIINISTRATION DECEMBER 31,2016 Elected Officials Position Term Expires William Mars Mayor December 31, 2018 Matthew Lehman Council Member December 31, 2020 Jay Whiting Council Member December 31, 2020 Michael Luce Council Member December 31, 2018 Kathleen Mocol Council Member December 31, 2018 Administration Bill Reynolds City Administrator Assistant City Nathan Burkett Administrator Darin Nelson Finance Director Jennifer Gabbard HR Manager Andy Hutson IT Director Lori Hensen City Clerk Director of Planning & Michael Kerski Development Dave Kriesel Building Official Jeff Tate Police Chief Rick Coleman Fire Chief Public Works Bruce Loney Director/Engineer Jamie Polley Park and Recreation Director 1 Page 53 of 334 CITY OF SHAKOPEE ORGANIZATION CHART DECEMBER 31,2016 Electorate City Council Planning Commission&Board of Park and Recreation Advisory Adjustment&Appeals Board Shakopee Public Utilities Police Civil Service Commission Commission :H Environmental Advisory Economic Development Advisory Committee Committee City Administrator Police Fire Finance Department of Engineering& Department of Parks& Department Department Department Administration Public Works Planning& Recreation Department Development Department HR Division Planning Division IT Division Building City Clerk Inspection Division Facility Maintenance Division Economic Development 2 Page 54 of 334 SHAKOPEE May 18, 2017 To the Honorable Mayor,Members of the City Council, and Citizens of the City of Shakopee: The Comprehensive Annual Financial Report for the City of Shakopee,Minnesota, for the fiscal year ended December 31,2016, is submitted herewith: Management assumes full responsibility for the completeness and reliability of the information contained in this report,based upon a comprehensive framework of internal control that it has established for this purpose. The costs of internal control should not exceed anticipated benefits and therefore the object is to provide reasonable rather than absolute assurance that the financial statements are free from material misstatement. The City of Shakopee's financial statements have been audited by BerganKDV, Ltd., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the city for the year ended December 31, 2016, are fairly presented in conformity with GAAP(generally accepted accounting principles). Based on the audit, the independent auditor concluded that there was reasonable basis for rendering an unmodified("clean") opinion on the city's financial statements for the year ended December 31, 2016. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used; significant estimates made by management; as well as evaluation of the overall financial statement presentation. The independent auditor's report is presented as the first component of the financial section of this report. Management Discussion and Analysis (MD&A)immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis to accompany the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Profile of the City The City of Shakopee was incorporated for the second time in 1870 and is located approximately 25 miles southwest of Minneapolis. Bound by the Minnesota River on the north, Shakopee is in the northern part of Scott County and is the county seat. In recent years,the city has been one of the most rapidly growing communities in the state. The 2000 population of the city was 20,568 and the land area covered is approximately 30 square miles. The 2010 census confirmed that the population had increased to 37,076 and has been continuing to experience growth into the current year,with an estimated population of 40,254, in 2016. The city comprises a unique blend of residential,commercial and industrial properties,which provides a wide range of opportunities that are the result of the strong economic health of the community and region. More than 80% of the community is developed,with approximately 35% of the developed land as residential. The city levies a property tax on both real and personal property located within its boundaries except for land owned or controlled by the Shakopee Mdewakanton Sioux Community (SMSC), a federally recognized Native American Tribe. The city may COMMUNITY PRIDE SINCE 1857 129 Holmes Street South•Shakopee,Minnesota•55379-1351 •952-233-9300•FAX 952-233-3801 •www.ShakopeeMN.gov 3 Page 55 of 334 also by state statute, extend its corporate limits by annexation,which historically has occurred periodically. Shakopee is organized in Minnesota under Plan A,which includes a City Administrator,but the City Council retains primary decision making authority such as policy setting, adopting ordinances and budget and staffing. The City Council has four members who serve staggered terms of four years plus the Mayor who serves a two-year term. All council positions are non-partisan,part-time and members are elected at large. In 2019, the Mayor's term will also become a four-year term. The city provides typical municipal services such as police and fire protection, street and infrastructure construction, public works maintenance,parks,recreation, planning and zoning. Also provided are utilities such as sewer and storm drainage utilities, organized refuse collection, and recycling. Electric and water utilities are operated by Shakopee Public Utilities Commission which is appointed by the City Council but operates independently of the City of Shakopee. Economic development and redevelopment are controlled by the Shakopee Economic Development Authority (the Authority). The Authority is comprised of the Mayor and City Council members and is included as an integral part of the city's report. The economic development activities of both staff and Council continue to increase from past years, as the strong economic climate in the region has provided the city with the benefit of planned commercial and industrial growth as well as expansion of several existing businesses and commercial sites. 2016 activity has already confirmed that the continuation of the growth trend will carry into the current year as the valuation of building permits for the first quarter of 2017 was $35 million compared to a similar amount of$36 million for the same timeframe in 2016. The annual budget is the basis for the city's financial planning and control. The budget is prepared by fund(e.g., General), function(e.g.,Public Works) and division(e.g.,Engineering). Major budget requests or initiatives are submitted in July by Department Heads. The City Administrator reviews the submittals with the Finance Director and Department Heads,to determine the prioritization of specific budget requests. The City Council is presented with a proposed budget and a maximum tax levy in September of each year. This information succinctly details changes in the upcoming year budget, such as changes in personnel and position structure. It also includes funding requests that are unique to the specific budget year,the basis for the request, as well as requests for transfers and internal funding needs, such as internal service fund reviews. City Council is required to adopt a maximum tax levy by September 30. The final tax levy and budget are adopted in December after a public meeting,which provides the City Council and community impact information relating to both the budget decisions and property tan levies. Final levy information is submitted to the County for inclusion in the development of the upcoming year property tax statements. Budgeting control is provided by an annual budget resolution passed by City Council. Formal control is at the division level and Council action is necessary to change budgeted amounts between divisions and/or funds. The Finance Director or City Administrator may make changes within divisions. Along with the operating budget, the city annually prepares a five-year capital improvement plan (CIP) that is the basis for the long term goal of providing and maintaining a functional public facility program, that provides the residents and businesses with infrastructure necessary for the on-going growth and development. The capital plans have historically provided details on the infrastructure projects that are 4 Page 56 of 334 funded through property tax levy, special assessments,utility funds and other intergovernmental revenue sources. These projects primarily allow for the upgrades, expansion and coordination of transportation based needs, as well as trails, signals and other infrastructure improvements. The City Council also reviews and discusses the park planned improvements that are funded through the Park Reserve fund, which provides for the use of park and community facilities that have historically been funded through the collection of Park Dedication fees. The capital plans are reviewed with the Council and city staff, and the funding sources and priorities developed for the annual and future budget practices. A five-year major equipment list is also annually prepared and presented to Council. The funding for this program is through the Internal Service fund rate charges,which are determined by departmental use,replacement plans and determination of the remaining life. Internal Service funds are utilized for the definition and application of other charges, including governmental buildings,park assets facilities, and information technology. These charges are integrated into the individual budgets of the General fund and departments that are benefitted by the activities of the programs. The Internal Service funds continue to be reviewed and updated as the community needs and council directives are considered during each budget cycle. Local Economy Shakopee is the county seat of Scott County, and it abuts the largest county in the region, Hennepin County. Shakopee continues to benefit from its strategic location within the metropolitan region, as well as its direct access to TH 169,which connects the city to other major regional roadways, the MSP International Airport, and major employment centers. The city is also at the heart of regional attractions which includes Valleyfair, Canterbury Park horse racing track, Mystic Lake and Little Six casinos, and the Minnesota Renaissance Festival. These and other factors have propelled the city through a period of strong and consistent growth that is likely to continue for years to come. In 2016 and 2017,permits were issued for the construction of the following: • Marcus Theatres constructed a 54,000-square foot, ten screen movie theatre which opened in April 2017. • Minnesota Municipal Power Agency (MMPA)constructed a 46-megawatt(MW) natural gas powered electric plant. The plant went online in March of 2017. • Hy-Vee is constructing a 96,000-square foot grocery store along with an additional convenience store and attached car wash. The grocery store is expected to open in the fall of 2017. • Apple Chrysler Jeep Dodge Ram constructed a new dealership building that opened in the spring of 2017 • The Shakopee School District is undertaking a major the expansion of the high school which includes an additional 335,000-square feet of learning space. Completion is expected prior to the beginning of the 2018-19 school year. These projects are in addition to major projects that were issued building permits in 2015 and completed construction in 2016. These major projects included: • Rahr Malting expansion • Amazon fulfillment center construction • Amerisource Bergan pharmaceutical distribution facility construction 5 Page 57 of 334 • St. Francis Regional Medical Center expansion • Construction of a 55-unit senior assisted living facility near downtown In addition, two major residential developments are in the works to break ground in the spring of 2017. The first development is in the Ridge Creek addition, which will include 104 single family homes. The second is the Windermere addition. This development is planned to be a mix of 197 residential lots, seven commercial lots and multifamily housing. Major Initiatives The recent commercial, industrial and residential growth has required the city to maintain a commitment to infrastructure plans, and integration with other local and regional projects. The City Council committed funding in 2013 for a dedicated transfer of the property tax levy to fund a portion of the planned capital improvements. The initial $500,000 commitment allows for street reconstruction and overlays, and miscellaneous other construction projects. The 2014, 2015 and 2016 budgets provided $750,000, $1.0 million and$1.2 million,respectively for continued and expanded capital improvement funding. The 2017 budget continues with the commitment, dedicating $1,135,000 million towards capital improvement funding through a combination of property and franchise taxes. This will provide for a consistent funding source needed to address recently deferred infrastructure programs. The city also continues to work with Scott County, the State of Minnesota(MnDOT), as well as private developers, to allow for a strong coordination of project planning and benefits to the region's transportation system and business climate. Supporting retail opportunities, such as restaurants and small retail sites, are investigating locating in Shakopee due to increased employee counts from the commercial ventures that have recently been built in the community. Scott County has historically dealt with a daily out-migration of workers who work in neighboring counties. This issue is being addressed by decision makers,who want to utilize the skilled and educated work force as an attraction to businesses. The commercial and industrial growth that the city has recently and will continue to experience will eliminate some of the loss of daily work force from the area. By seeking a solution to both transportation and employment issues,the residents of the Shakopee area will be able to benefit by living and working close to home. The city's community center and ice rink renovation broke ground April 1, 2016. This $30.4 million project includes the construction of a new two-sheet arena, addition of an aquatic facility, and the expansion of fitness, senior lounge,indoor playground, and child care areas. This project is being funded through the issuance of tax abatement bonds. Project completion is scheduled for the summer of 2017. The city is also constructing a 25,000-square foot City Hall that will be adjacent to the police station. The City Hall addition will create a centralized city campus. Completion is anticipated to be in July 2017. The project cost is $8.5 million with financing from a mix of internal transfers and an interfund loan. 6 Page 58 of 334 Long-Term Financial Planning Historically, the city has issued only limited debt, in the form of bonds and internal funding for planned infrastructure projects, expansion specific to streets,underground utilities, trails and sidewalk expansion. A portion of the long term debt is funded by special assessments against benefited properties. The city applies special assessments against benefitted properties at a rate of 30% of the assessable project costs. This limited amount of special assessment revenue does require the city to clearly define the other recognized components of the payment of project costs. The city does not assess for overlays,which then requires funding from the tax levy or other regional revenues sources. The City Council has recently allowed for the use of inter-fund transfers,use of existing fund balance position, as well as review of charges and fees that may be applicable to the projects, and currently not tapped for future funding sources. In addition, the City Council passed an ordinance effective January 1, 2017 assessing the private gas and electric utilities a franchise tax based on three percent of energy sales. This franchise tax is estimated to generate $750,000 in 2017,with revenue dedicated to the Capital Improvement Fund. City equipment needs are currently identified and funded in a manner that will not place an undue burden or single year expense fluctuation on the taxpayers. The planned equipment replacement program clearly identifies the equipment needs for current projects as well as future use. This is based on known and anticipated programs and mandates, such as environmental program adjustments and possible community expansion and growth. The capital and equipment needs of the city require constant appraisal for replacement cost, life span and the assurance that the insurance coverage is providing for the most comprehensive,yet affordable, coverage. A self-insurance internal service fund was created in 2016 to aid in controlling insurance costs by monitoring the premiums against deductible expenses. The long-term goal of the fund is to eventually self-insure for non-catastrophic type of losses. Relevant Financial Policies The city's target General Fund balance is to maintain an unassigned level between 40% and 45% of expenditures. This level is to provide working capital for cash flow, expected declines in revenues, and for unforeseen expenditures such as natural disasters, or for unforeseen but urgent requests. Replenishing the fund balance when it falls below the target level shall be accomplished by inter-fund transfers, or adjusting of expenditures or revenues, over a period not to exceed three years. The city historically receives no local government aid (LGA). Annual legislative actions may impact the financial position of those cities that are currently reliant on these and other government derived revenue sources,which leaves them vulnerable to the economies of the State as a whole. As of this writing, it was not anticipated that actions by the Minnesota Legislature would negatively impact the city and its operations and planning. The standard budget process,which provides for the presentation and approval of the property tax levies for the General fund (including Economic Development), debt service and referendum debt, will be consistent with prior year actions. 7 Page 59 of 334 The accounting, auditing and financial reporting policies are designed to maintain a system of financial monitoring, control and reporting for all operations and funds to provide effective means of ensuring that overall city goals and objectives will be met and to assure the city's residents and investors that the city is well managed and fiscally sound. The investment policy provides for conservative investing,preserving capital and maintaining adequate liquidity for forecasted cash needs. A third party investment manager handles the majority of the portfolio and all investments are held in a trust account. The debt policy ensures that the city's debt; 1) does not weaken the city's financial structure; and 2) provides limits on debt to avoid problems in servicing debt. This policy is critical for maintaining the best possible credit rating. Capital policies include having expenditures forecasted ahead for five to ten years and are updated annually. Internal Service Funds for major equipment,major buildings and facilities,park asset replacement and information technology costs stabilize the annual impact of those items to the General fund. Awards and Acknowledgements 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 Shakopee for its Comprehensive Annual Financial Report(CAFR) for the fiscal year ended December 31, 2015. This was the 31St consecutive year that the city has received this award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current CAFR 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 would not have been possible without the efficient and dedicated services of the Finance Department,Accounting Manager Melissa Schlingman, and the entire city staff. We express appreciation to those staff members who assisted and contributed to the preparation of this report. Credit also must be given to the Mayor and City Councilors for their support in maintaining the highest standards of professionalism in the management of the City of Shakopee's finances. Respectfully submitted, William H. Reynolds Darin Nelson City Administrator Finance Director 8 Page 60 of 334 0 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Shakopee Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2015 Executive Director/CEO 9 Page 61 of 334 (THIS PAGE LEFT BLANK INTENTIONALLY) 10 Page 62 of 334 berganKDV Independent Auditor's Report Honorable Mayor and Members of the City Council City of Shakopee Shakopee, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Shakopee,Minnesota, as of and for the year ended December 31, 2016, and the related notes to 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the 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. BerganKDV, Ltd. bergankdv.com 11 Page 63 of 334 (: berganKov Auditor's Responsibility (Continued) 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 in first paragraph present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information of the City of Shakopee,Minnesota, as of December 31, 2016, 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. 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 letter, and Required Supplementary Information, as listed in the Table of Contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board(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 of Shakopee's basic financial statements. The introductory section, supplementary information and statistical section, are presented for purposes of additional analysis, and are not a required part of the basic financial statements. 12 Page 64 of 334 (: berganKov Other Matters (Continued) Other Information (Continued) The supplementary information is the responsibility of management and was derived from and relates 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 supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued our report dated May 18, 2017, on our consideration of the City of Shakopee's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Shakopee's internal control over financial reporting and compliance. .. v, . St. Cloud,Minnesota May 18, 2017 13 Page 65 of 334 (THIS PAGE LEFT BLANK INTENTIONALLY) 14 Page 66 of 334 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2016 As management of the City of Shakopee (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 year ended December 31, 2016. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our Letter of Transmittal,which can be found on pages 3 to 8 of this report. Financial Highlights • The assets of the City exceeded its liabilities at the close of the most recent year by $ 245.3 million (net position). Of this amount, $ 40.0 million (unrestricted net position)may be used to meet the City's ongoing obligations to citizens and creditors. • The City's total net position decreased$ 1,988,045. • As of the close of the current year, the City's governmental funds reported combined ending fund balances of$ 30,666,344, increasing from the prior year. Approximately 34.9% of this total amount, $ 10.7 million is available for spending at the City's discretion (unassigned fund balance). • At the end of the current year, unassigned fund balance for the General Fund was $ 10.7 million, or 49.0%, of total General Fund 2016 expenditures and 44.3% of the 2017 budgeted expenditures. • The City's total bonded debt increased$ 27.8 million. 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 comprise 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 private-sector business. The Statement of Net Position presents information on all of the City's assets and deferred outflows of resources and liabilities and deferred inflows of resources,with the difference between them reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City's net position changed during the most recent 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 employee leaves). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business- type activities). The governmental activities of the City include general government, public safety, 15 Page 67 of 334 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2016 highways and streets, economic development and recreation. The business-type activities of the City include sewer, storm drainage utilities and refuse. The government-wide financial statements include not only the City itself(known as the primary government),but also two legally separate entities for which the City is financially accountable. The component units are Shakopee Public Utilities Commission(SPDC) and the Economic Development Authority (EDA). SPUC's financial information is reported separately from the financial information presented for the primary government as a discretely presented component unit. The EDA, which functions like a department of the City although it is a legally separate entity, is presented within the City's government-wide financial statements. The City Council is the EDA Board. The government-wide financial statements can be found on pages 28 and 29 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments,uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Government Funds Government 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 year. Such information may be useful in evaluating a City's near-term financing's requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City's near-term financing decisions. The governmental funds Balance Sheet and the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 29 individual governmental funds. Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund, the Capital Improvements and Community Center and Ice Arena Capital Project Funds. Those are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been prepared for the fund to demonstrate compliance with the budget. The basic governmental funds financial statements can be found on pages 30 to 35 of this report. 16 Page 68 of 334 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2016 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 government-wide financial statements. The City uses enterprise funds to account for its sewer, storm drainage and refuse operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its fleet of vehicles and mobile equipment, its major buildings, the replacement of park assets, information technology items, insurance funding and for employee compensated absences. All of these services predominantly benefit governmental rather than business-type functions. Proprietary funds provide the same type of information as the government-wide financial statements. The proprietary fund financial statements provide separate information for the sewer, storm drainage and refuse operations, all of which are considered to be major funds of the City. Conversely, all internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. 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 36 to 39 of this report. Component Units Component units are legally separate organizations for which the City is financially accountable. The government-wide financial statements present information for the component units in a single column on the Statement of Net Position. Also, some information on the Statement of Changes in Net Position is aggregated for component units. The component units' Statements of Net Position and Statement of Changes in Net Position provide detail for each major component unit. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City's own programs. The basic fiduciary fund financial statements can be found on page 41 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The Notes to the Financial Statements can be found on pages 45 to 94 of this report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its employees. 17 Page 69 of 334 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2016 The combining statements referred to earlier in connection with non-major governmental funds, internal service funds and fiduciary funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 110 to 127 of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier,net position may serve over time as a useful indicator of a City's financial position. For the City, assets exceeded liabilities by $ 245.3 million at the close of the most recent year. By far the largest portion of the City's net position (81.0%)reflects its investment in capital assets (e.g., land, buildings and equipment); less any related debt used to acquire those assets that is still outstanding. The City used these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Net Position (Expressed in Thousands) Governmental Activities Business-Type Activities Total 2016 2015 2016 2015 2016 2015 Current and Other Assets $ 56,638 $ 46,317 $ 23,992 $ 27,526 $ 80,630 $ 73,843 Capital Assets 155,754 129,046 70,099 68,986 225,853 198,032 Total Assets $ 212,392 $ 175,363 $ 94,091 $ 96,512 $ 306,483 $ 271,875 Deferred Outflows of Resources $ 17,410 $ 2,352 $ 199 $ 44 $ 17,609 $ 2,396 Long-Term Liabilities Outstanding $ 65,120 $ 18,776 $ 589 $ 419 $ 65,709 $ 19,195 Other Liabilities 9,795 5,224 268 1,132 10,063 6,356 Total Liabilities $ 74,915 $ 24,000 $ 857 $ 1,551 $ 75,772 $ 25,551 Deferred Inflows of Resources $ 2,970 $ 1,398 $ 52 $ 37 $ 3,022 $ 1,435 NET POSITION: Net Investment in Capital Assets $ 128,560 $ 120,831 $ 70,099 $ 68,986 $ 198,659 $ 189,817 Restricted 6,637 7,547 - - 6,637 7,547 Unrestricted 16,720 23,939 23,282 25,982 40,002 49,921 Total Net Position $ 151,917 $ 152,317 $ 93,381 $ 94,968 $ 245,298 $ 247,285 An additional portion of the City's net position (2.7%)represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($ 40.0 million) may be used to meet the City's ongoing obligations to citizens and creditors. At the end of the current year, the City was 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. The same situation held true for the prior year. 1g Page 70 of 334 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2016 During the current year, the City's net position decreased $ 2.0 million. Governmental activities decreased as a result of additional bituminous overlay projects during 2016. The business-type activities decreased as a result of expenses exceeding revenues during the year. Expenses also increased due to increased fees from Met Council and increased storm costs related to cost sharing agreements. Increased utility rates are still not covering operational expenses. In addition, the business type activities transferred funds to governmental fund for operations and construction resulting in an overall decrease in net position. Changes in Net Position (Expressed in Thousands) Governmental Activities Business-Type Activities Total 2016 2015 2016 2015 2016 2015 REVENUES: Program Revenues: Charges for Services $ 8,366 $ 7,920 $ 5,030 $ 4,699 $ 13,396 $ 12,619 Operating Grants and Contributions 2,778 2,510 - - 2,778 2,510 Capital Grants and Contributions 2,187 1,735 183 66 2,370 1,801 General Revenues: Property Taxes 18,016 16,807 - - 18,016 16,807 Other Taxes 465 407 - - 465 407 Other 546 540 291 367 837 907 Total Revenues 32,358 29,919 5,504 5,132 37,862 35,051 EXPENSES: General Government 4,206 4,238 - - 4,206 4,238 Public Safety 13,281 10,582 13,281 10,582 Public Works 8,594 8,552 8,594 8,552 Culture and Recreation 4,653 4,355 4,653 4,355 Economic Development 2,105 2,604 2,105 2,604 Interest on Long-Term Debt 1,191 275 - - 1,191 275 Sewer - - 31843 3,824 3,843 3,824 Storm 1,849 1,726 1,849 1,726 Refuse - 127 128 127 128 Total Expenses 34,030 30,606 5,819 5,678 39,849 36,284 Increase(Decrease in Net Position before Transfers (1,672) (687) (315) (546) (1,987) (1,233) Transfers 1,272 496 (1,272) (496) - Special Items - (634) - (634) Change in Net Position (400) (825) (1,587) (1,042) (1,987) (1,867) NET POSTION: January 1 152,317 160,386 94,968 96,317 247,285 256,703 Change in Accounting Principle; - (7,244) - (307) - (7,551) January 1 As Restated* 152,317 153,142 94,968 96,010 247,285 249,152 December 31 $ 151,917 $ 152,317 $ 93,381 $ 94,968 $ 245,298 $ 247,285 *GASB Statement No. 68 was implemented for the year ended December 31, 2015 and required a $ 7,244,500 and $ 306,917 restatement of beginning net position for governmental activities and business type activities,respectively. 19 Page 71 of 334 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2016 Governmental Activities Governmental activities decreased the City's net position by $ 400,905. The major decrease was due to additional bituminous overlay projects during 2016. These projects are considered maintenance and are not capitalized. Expenses and Program Revenues — Governmental Activities $14,000,000 $12,000,000 $10,000,000 $8,000,000 ■Program Revenues $6,000,000 ■Expense s $4,000,000 $2,000,000 $- 74. o N U 0 UU Revenues by Source—Governmental Activities Other Revenues Operating Grants 2% and Charges for Contributions Services 8% 26% Capital Grants and Contributions Other Taxes 7% 1% Property Taxes 56% 20 Page 72 of 334 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2016 Business-Type Activities Business-type activities decreased the City's net position by $ 1,587,140. Revenues and expenses both increased between the current and prior year however overall expenses exceeded revenues as the revenue collected for sewer services does not cover the payments made to suppliers. Additionally, Business type activities transferred$1,271,853 to the governmental funds for operational and construction expenses. The sewer and storm water activities will continue to experience a higher degree of expense, as the deferral of maintenance and increasing mandates will continue to put pressure on the funds, to meet the demands of on-going and future development needs. Expenses and Program Revenues —Business-Type Activities $4,000,000 $3,500,000 $3,000,000 $2,500,000 C7 Program $2,000,000 Revenues $1,500,000 ■Expenses $1,000,000 $500,000 Sewer Storm Refuse Revenues by Source— Business-Type Activities Capital Grants and Contributions 3% Investment Earnings 5% Charges for Services 92% FINANCIAL ANALYSIS OF THE CITY'S FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. 21 Page 73 of 334 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2016 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, assigned and unassigned fund balance may serve as a useful measure of a City's net resources available for spending at the end of the year. As of the end of the current year, the City's governmental funds reported combined ending fund balances of$30,666,344, an increase of$9,164,952 in comparison with the prior year. Approximately 34.9%, ($10,699,250), of the total amount constitutes unassigned fund balance,which is available for spending at the City's discretion. Approximately 23.0%, ($7,059,661), of the total amount constitutes assigned fund balance,which is assigned for designated purposes. The remainder of fund balance, ($12,907,433), is not available for new spending because it has already been restricted or is non-spendable. The General Fund is the chief operating fund of the City. At the end of the current year, fund balance of the General Fund was $ 10,761,366. As a measure of the General Fund's liquidity, it may be useful to compare fund balance (unassigned) to total fund expenditures. Unassigned fund balance represents 49.0% of total General Fund expenditures. Fund balance of the City's General Fund increased by $ 921,256 during the current year. Key factors in this increase consist of the following: • Before transfers, the fund balance of the General Fund showed a$ 4,010,877 increase. After the net transfer out of$ 3,098,755, fund balance increased$ 921,256. Transfers provided the necessary funding for several significant capital infrastructure programs and projects,payment of some debt service funds, economic development operations as well as funding insurance. • Overall revenues increased approximately $ 1,596,205 as a result of increased property taxes. Licenses and permits increased due to increased growth and development during the year. Charges for services increased due to additional contracted services being performed in 2016 as well as increased community center usage. Miscellaneous revenue decreased as a result of insurance moving to a new internal service fund. The City typically receives property and liability insurance dividends each year, which is now being redirected toward the new self- insurance internal service fund to match revenues with expenses. • Overall expenditures increased approximately $ 852,000 due to cost of living increases and new positions added in 2016 as well as filling many open positions that were open at the end of 2015. Fund balance of the Capital Improvements fund decreased $ 1,385,919. The decrease was attributed to projects being completed that were funded with special assessment and tax increment which will be received in future years. The City paid for the following projects in 2016 from this fund: • Street Reconstruction Projects • Bituminous Overlay • 4t'Avenue Reconstruction • Bituminous Reclaimation Fund balance of the Community Center and Ice Arena fund increased$ 8,223,533. This project began in 2015 with design work only. In 2016 bond proceeds of approximately $28 million were received to fund this project. As of December 31, 2016, approximately $22 million has been completed. The remodel of the community center and the creation of the new indoor pool is still under construction. 22 Page 74 of 334 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2016 Fund balance of the Non-major Governmental Funds increased$ 1,406,082. Major changes are as follows: • Economic Development special revenue fund increased$829,007 due to the downtown redevelopment project not being completed in 2016 as well as revaluing the land held for resale back to cost. • Debt service funds increased $ 627,427 due to regular bond payments offset by bond proceeds, tax levies and assessment revenue related to the bonds. Bond proceeds were received on the 2016A Tax Abatement Bond to pay the first 2 interest payments. • Park Reserve decreased$789,587. Quarry Lake Park project that took place during the year along with the completion of Southbridge Community Park and Taphah West baseball fields. • City Hall increased $732,502 as a result of transfers from the General fund, Building internal service fund and Sewer and Storm Drainage fund to fund the construction of a new city hall. Proprietary funds The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position of the enterprise funds (expressed in thousands): Storm Sewer Drainage Refuse Beginning of Year $ 12,061 $ 14,741 $ (1,008) Change During Year (1,737) (1,193) 95 End of Year $ 10,324 $ 13,548 $ (913) The City has undertaken several new development projects and continues to review fees charged to make sure costs are covering operations of the funds. The capital assets of the projects will increase the capital assets of these funds, as well as the offsetting future year depreciation charges.A portion of these projects are funded through special assessments,but a significant portion of this is funded through the anticipated future revenues collected for services. The Refuse fund was created during 2014 with the City's purchase of garbage carts. The negative net position is anticipated to be reduced each year as service charges continue to be collected from customers. GENERAL FUND BUDGETARY HIGHLIGHTS Budget amendments of$902,710 between original and final amended budget were approved during 2016. Following are the main components of the amendments: • Revenues were increased $1,032,777 as a result of increased licenses and permits, increased contracted services in public safety and additional state grants for maintenance and pension. • Expenditures were reduced $1,114,333. Wages and benefits were reduced approximately $426,000 due to unfilled positions during 2016. Additionally,budgets were reduced for pavement preservation, motor fuel and contracted services for reductions in spending in 2016. • Transfers out were increased $1,245,000 to help fund insurance,make future debt service payments and partially fund the city hall construction. 23 Page 75 of 334 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2016 Actual expenditures of$21,916,614 were $203,924 over budget. The variances are noted below: • General government was under budget as a result of not spending contingency funds. Various staff members wage distributions were not adjusted to reflect actual distribution resulting in administration being over budget. Finance was over budget due to lodging tax coming in over budget. Lodging tax is a budget neutral expenditure since we disburse what the city receives so the variance is also noted in revenues. Compensated absences are not budgeted, actual was approximately $53,000. • Public safety was over budget due to the implementation of an electronic review system, Project Docs,resulting in approximately $95,000 in expenditures. Compensated absences are not budgeted, actual was approximately $110,300. • Public works was over budget due to street light change outs on Southbridge Parkway of approximately $53,000 was added when sealcoating was completed. Fleet implemented a new management system for tracking vehicles for approximately $26,000. Compensated absences are not budgeted, actual was approximately $39,700. • Park and recreation actual was consistent with the budget. Compensated absences are not budgeted, actual was approximately $28,300. Actual revenues of$25,927,491 were $666,691 over budget. The variances are noted below: • Property taxes came in under budget as a result of tax abatements paid to 3 companies during 2016. Tax abatements are a reduction in the property taxes received by the city. Also, lodging tax come in over budget as noted above. • Licenses and permits came in over budget as a result of an increases in development and building and conservative budgeting. • Intergovernmental revenue came in over budget due to additional police aid and PERA aid related to pensions. • Charges for services come in over budget due to increased community center admissions and memberships as well as additional contracted police services during 2016. Additionally, engineering and grading fees were over budget because of the increased development. 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, 2016, amounts to $225,853,229 (net of accumulated depreciation). This investment in capital assets includes land, buildings and systems, improvement,machinery and equipment,park facilities,roads,highways and bridges. Major capital assets events during the current year included the following: • Purchase of 2 zambonies • New two sheet ice arena and community center remodel as well as furnishings in both buildings • Quarry Lake Park phase I construction and a new pedestrian bridge on quarry lake trail • Reconstruction of streets, sanitary sewer, storm sewer and water mains and bituminous reclaimation projects on 4d' Avenue, Hilldale Drive, 3rd Avenue,Market Street,Marcia Lane, Eagle Creek,Mckenna Road, County Highway 16, 7d' Street, Shumway Street, St Marks Street, Minnesota Street, Shumway Street, and Shenandoah Drive. • Vehicle replacements in police, fire, streets and parks 24 Page 76 of 334 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2016 Additional information on the City's capital assets can be found in Note 6 on pages 64 to 66 of this report. CAPITAL ASSETS (Net of Depreciation) Expressed in Thousands Governmental Activities Business-Type Activities Total 2016 2015 2016 2015 2016 2015 Land $ 21,005 $ 20,907 $ 3,797 $ 3,797 $ 24,802 $ 24,704 ROW 254 254 508 447 762 701 Construction in Progress 29,933 4,136 58 212 29,991 4,348 Line Rights - - 792 817 792 817 Infrastructure 69,308 69,489 63,014 61,499 132,322 130,988 Buildings 24,665 25,631 - - 24,665 25,631 Machinery and Equipment 10,589 8,629 1,930 2,214 12,519 10,843 Total $ 155,754 $ 129,046 $70,099 $ 68,986 $ 225,853 $ 198,032 In 2016, several projects that were"in progress"were continued and completed, as these projects often involved the coordination with County, State and Federal entities. The status of these projects is highly dependent on weather and the funding and staffing of cooperating entities, and will often impact the ability of the City to complete these projects in the anticipated year. Long-Term Debt At the end of the current year, the City had total bonded debt outstanding of$ 36,030,000. Of this amount, $ 33,935,000 comprises debt backed by the full faith and credit of the government and $ 2,095,000 is special assessment debt for which the government is liable in the event of default by the property owners subject to the assessment. Outstanding Debt G.O. and Revenue Bonds Expressed in Thousands Governmental Activities 2016 2015 G.O. Bonds $ 33,935 $ 5,100 Special Assessment Debt with Governmental Com *n-rrit 2,095 3,115 Total $ 36,030 $ 8,215 25 Page 77 of 334 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2016 The City's total bonded debt increased by $ 27,815,000 during the current year. The 2016A Tax Abatement bond was issued in 2016 for$29,500,000 to fund the community center remodel and ice arena construction. Additionally, another year of payments were made on all outstanding bonds totaling $1,685,000. Minnesota Statutes limit the amount of general obligation(G.O.) debt a government entity may issue to a net figure of 3% of the taxable market value. The current legal debt margin for the City is $83 million, which is significantly in excess of the City's outstanding G.O. debt. Additional information on the City's long-term debt can be found in Note 7 on pages 66 to 69 of this report. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The City is currently experiencing the construction and development of several new commercial business sites. These companies such as Marcus Theatres,Minnesota Municipal Power Agency, Hy- Vee and Apple Chrysler Jeep Dodge Ram are expanding and enhancing the economic tax base as well as the employment options in the community. These business ventures will bring not only a strong base of varied jobs to the area but enhanced tax base for the recently developed commercial and industrial sites. The City is also experiencing growth in residential developments with the addition of two developments in 2017. During the current year, the unassigned fund balance in the General Fund was $10,739,178. This can be similarly compared to the unassigned fund balance of 2015 of$9,818,537. The City continues to maintain a strong financial position as the economic climate and the economic diversification of the region and the state continue to improve. The general tax levy for 2017 is increased to$18,926,341, in comparison to the prior year amount of $16,825,900. This levy was increase to provide needed funding for city positions, infrastructure needs through the capital improvement fund and debt service levies. Historically only 30% of some of the project costs are funded through special assessments which will require a firm commitment of the Council to provide needed resources for maintenance, improvements and additions to the existing infrastructure. City staff continues to refine and coordinate multi-department development related activities. This is done through review of fees, charges, consistent practices and detailed discussions specific to each development review. As staff continues to refine these practices the achieved outcome will be to provide a higher level of positive customer and development satisfaction. REQUESTS FOR INFORMATION This financial report is designed to provide a general view of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Finance Director, 129 Holmes St. S., Shakopee,Minnesota, 55379. 26 Page 78 of 334 BASIC FINANCIAL STATEMENTS 27 Page 79 of 334 CITY OF SHAKOPEE STATEMENT OF NET POSITION December 31,2016 Governmental Business-Type Activities Activities Total Component Unit ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets Cash and Investments(IncludingCash Equivalents) $ 48,102,133 $ 23,095,073 $ 71,197,206 $ 36,630,116 Restricted Cash and Investments - - - 13,403,450 Property Tax Receivable 76,631 - 76,631 - Accounts Receivable(Net of Allowance for Uncollectible Accounts) 501,242 22,000 523,242 4,114,344 Interest Receivable 191,437 106,042 297,479 46,511 Due From Other Governments 593,611 500,462 1,094,073 121,604 Special Assessments Receivable 4,826,856 268,188 5,095,044 - Inventories - - - 1,173,161 Prepaid Expenses 205,804 - 205,804 52,000 Land Held for Resale 1,023,612 - 1,023,612 - Net Pension Asset 1,117,106 - 1,117,106 - Capital Assets,Net of Accumulated Depreciation(Where Applicable): Land and Land Improvements 21,004,655 3,796,803 24,801,458 5,097,532 RightofWay 253,904 507,746 761,650 - Constroction in Progress 29,933,034 58,296 29,991,330 8,268,479 Line Rights - 792,008 792,008 - Infiastrocture 69,308,222 63,014,542 132,322,764 - Plant inService - - - 71,712,938 Buildings 24,665,239 - 24,665,239 - Machinery and Equipment 10,588,887 1,929,893 12,518,780 Total Assets 212,392,373 94,091,053 306,483,426 140,620,135 Deferred Outflows of Resources Deferral on Refunding - - - 225,899 Deferred Outflows of Resources Related to Pensions 17,410,230 199,023 17,609,253 2,139,453 Total Deferred Outflows of Resources 17,410,230 199,023 17,609,253 2,365,352 Total Assets and Deferred Outflows of Resources $ 229,802,603 $ 94,290,076 $ 324,092,679 $ 142,985,487 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities Accounts and Contracts Payable $ 6,128,960 $ 140,857 $ 6,269,817 $ 4,960,728 Other Current Liabilities - - - 364,607 Due to Other Governments 212,072 99,791 311,863 467,394 Salaries and Benefits Payable 292,498 - 292,498 - Deposits Payable - - - 2,243,180 Interest Payable 519,065 - 519,065 144,346 Unearned Revenue 1,765 - 1,765 1,661,410 Customer Advances - - - 310,312 Bond Principal Payable,Net: Payable Within One Year 11685,000 - 1,685,000 425,000 Payable After One Year 36,480,590 - 36,480,590 7,581,402 Compensated Absences Payable: Payable Within One Year 956,190 27,639 983,829 - Payable After One Year 1,168,676 33,781 1,202,457 Net Other Post Employment Benefits(OPEB)Obligation 1,591,366 77,308 1,668,674 - Net Pension Liability 25,879,138 478,013 26,357,151 5,042,212 Total Liabilities 74,915,320 857,389 75,772,709 23,200,591 Deferred Inflows of Resources Deferred Inflows of Resources Related to Pensions 2,970,605 51,916 3,022,521 531,951 Total Deferred Inflows of Resources 2,970,605 51,916 3,022,521 531,951 Total Liabilities and Deferred Inflows of Resources $ 77,885,925 $ 909,305 $ 78,795,230 $ 23,732,542 Net Position Net Investment in Capital Assets 128,559,527 70,099,288 198,658,815 77,072,547 Restricted for: Economic Development 1,503,917 - 1,503,917 - Cable PEG Fees 70,795 - 70,795 - Forfeiture 186,965 - 186,965 - Debt Service 4,875,714 - 4,875,714 - Component Units - - - 10,915,924 Unrestricted 16,719,760 23,281,483 40,001,243 31,264,474 Total Net Position 151,916,678 93,380,771 245,297,449 119,252,945 Total Liabilities and Net Position $ 229,802,603 $ 94,290,076 $ 324,092,679 $ 142,985,487 The Notes to the Financial Statements are an integral part of this statement. 28 Page 80 of 334 ' ' ' ' ' ' ' N 'n ' ' N �D 00 'n O 'n N O, .--i 00 00 lD 00 lD V V �D dD 'Nn O Y N N N O1 N O N 00 00 O Oi U Goll Gl� l— N 'n M r- 'n O� O O1 M r- O N M N 'n N a1 M O c*l O V 00 V O1 O M W l� M o0 00 �N V O 00 l �O l0 Vl '/i V 00 N �O 00 ll M00 ,--i a1 a1 D N O O W 'n ,--i W 00 o0 Cl ` N 60 .--i l0 .M..�.N..� O O O d;'n N O 00 Oi ,--i l 'n O z Go,) Gl� 7J �" 7J W i i i i i r Orq i i i O a1 W Obi al 7J U m � N O O 00 l� 00 00 000 �O 00 N N O, "1 Ol M . 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A M V W > N N N N N Gz A U U Goll Goll Gl� G W W r, 'n 00 N N 0 j tipr. .o rn v o 'Nn rn rn rn o°000vm r- r- � � � Mo rq � o O o �i �i rn rn rn Gl� o on � O1 M V O N N O O V N 00 N a1 O O1 W 'n O 'n W M 00 O O1 M V N M �O 00 N O y U_ 00 O �O �O N N 'n O1 �D O1 �D �c N �O O1 M O N O1 O �D r W z N 00 l- l- N M N O N N 00 M.--i 'n MGoll Goll Goll Gl� V N blI a73 U � c 'n N 00 v v rn o, 0 0,. r- 00 �D 00 N v M �o M M r- n o n F '� a1 Wm 'n o0 M N r� O Om M M V O O M 00 l— z O1 o0 00 �O V N V M .--i W) 00 O, V �O iii O m m •bD O O pp n n n Gl� ° ° y o a0i i� p. °J °� OZ p a . y 0 0A 0 y o �A ai H 3F F v 49 F" o 0 0 ° o ^� 29 Page 81 of 334 CITY OF SHAKOPEE BALANCE SHEET-GOVERNMENTAL FUNDS December 31,2016 Capital Projects Community Other Total Capital Center&Ice Governmental Governmental General Fund Improvements Arena Funds Funds ASSETS Cash and Investments $ 10,962,029 $ 4,923,524 $ 10,409,129 $ 9,855,981 $ 36,150,663 Delinquent Taxes Receivable 76,491 - - 140 76,631 Special Assessments Receivable: Delinquent 4,364 - 29,840 34,204 Deferred 19,369 3,121,051 - 1,652,232 4,792,652 Accounts Receivable 321,322 - 16,463 157,328 495,113 Interest Receivable 56,647 22,666 16,777 38,672 134,762 Due from Other Funds - 7,802 - - 7,802 Due From Other Governments 355,857 13,569 192,645 31,540 593,611 Prepaid Items 22,188 - - - 22,188 Land Held for Resale - - - 1,023,612 1,023,612 Total Assets $ 11,818,267 $ 8,088,612 $ 10,635,014 $ 12,789,345 $ 43,331,238 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts Payable $ 450,767 $ 157,598 $ 3,055,187 $ 896,801 $ 4,560,353 Contracts Payable - 65,287 1,032,370 247,866 1,345,523 Due to Other Funds - - - 7,802 7,802 Due to Other Governments 211,647 401 24 212,072 Salaries and Benefits Payable 292,498 - - 292,498 Advance from Other Funds - 1,341,394 1,341,394 Unearned Revenue 1,765 - - - 1,765 Total Liabilities 956,677 223,286 4,087,557 2,493,887 7,761,407 Deferred Inflows of Resources Unavailable Revenue-Property Taxes 76,491 - - 140 76,631 Unavailable Revenue-Special Assessments 23,733 3,121,051 1,682,072 4,826,856 Total Deferred Inflows of Resources 100,224 3,121,051 1,682,212 4,903,487 Fund Balances Nonspendable 22,188 - - - 22,188 Restricted - - 6,547,457 6,337,788 12,885,245 Assigned - 4,744,275 - 2,315,386 7,059,661 Unassigned 10,739,178 - - (39,928) 10,699,250 Total Fund Balances 10,761,366 4,744,275 6,547,457 8,613,246 30,666,344 Total Liabilities,Deferred Inflows of Resources and Fund Balances $ 11,818,267 $ 8,088,612 $ 10,635,014 $ 12,789,345 $ 43,331,238 30 Page 82 of 334 CITY OF SHAKOPEE RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION-GOVERNMENTAL FUNDS December 31,2016 Total Fund Balances-Governmental Funds $ 30,666,344 Amounts reported for governmental 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 202,910,031 Less Accumulated Depreciation (80,247,087) Long-term assets from pensions reported in governmental activities are not financial resources and therefore are not reported as assets in the funds. 1,117,106 Long-term liabilities,including bonds payable,are not due and payable in the current period and, therefore,are not reported as liabilities in the funds. Long-term liabilities at year-end consist of: Bond Principal Payable (36,030,000) Unamortized Bond Premium (2,135,590) Net OPEB Obligation (1,591,366) Net Pension Liability (25,879,138) Delinquent property taxes and assessments receivable will be collected this year,but are not available soon enough to pay for the current period's expenditures and,therefore, are reported as unavailable revenue in the funds. Property Taxes 76,631 Special Assessments 34,204 Deferred special assessments receivable are not available to pay for current expenditures and, therefore,are reported as unavailable revenue in the funds. Deferred Special Assessments 4,792,652 Governmental funds do not report a liability for accrued interest due and payable. (519,065) Deferred Outflows of Resources and Deferred Inflows of Resources are created as a result of various differences related to pensions that are not recognized in the governmental funds. Deferred Inflows of Resources Related to Pensions (2,970,605) Deferred Outflows of Resources Related to Pensions 17,410,230 Internal service funds are used by management to charge the costs of equipment,buildings,park assets and employee benefits to individual funds. A portion of the assets and liabilities of those funds are included in governmental activities in the Statement of Net Position. 44,282,331 Total Net Position-Governmental Activities $ 151,916,678 The Notes to the Financial Statements are an integral part of this statement. 31 Page 83 of 334 CITY OF SHAKOPEE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-GOVERNMENTAL FUNDS For the Year Ended December 31,2016 Capital Projects Community Other Total Capital Center&Ice Governmental Governmental General Fund Improvements Arena Funds Funds REVENUES Property Taxes $17,022,204 $ - $ - 1,062,630 $ 18,084,834 Tax Increment - - - 464,634 464,634 Special Assessments 15,818 830,701 - 768,642 1,615,161 Licenses and Permits 2,564,729 - - 582,089 3,146,818 Intergovernmental 1,344,279 1,039,329 192,645 1,043,557 3,619,810 Charges for Services 4,750,514 - - 8,730 4,759,244 Fines and Forfeitures 11,213 46,300 - 47,430 104,943 Miscellaneous 218,734 62,076 139,620 456,678 877,108 Total Revenues 25,927,491 1,978,406 332,265 4,434,390 32,672,552 EXPENDITURES Current General Government 3,999,953 - - 16,918 4,016,871 Public Safety 10,585,899 - - 57,443 10,643,342 Public Works 3,061,172 - - - 3,061,172 Culture and Recreation 4,232,167 - - 37,044 4,269,211 Economic Development - - - 2,092,337 2,092,337 Debt Service Principal - - - 1,685,000 1,685,000 Interest and Other Charges - - 86,433 778,061 864,494 Capital Outlay 37,423 4,564,325 22,639,151 4,918,513 32,159,412 Total Expenditures 21,916,614 4,564,325 22,725,584 9,585,316 58,791,839 Excess of Revenues Over (Under)Expenditures 4,010,877 (2,585,919) (22,393,319) (5,150,926) (26,119,287) OTHER FINANCING SOURCES (USES) Proceeds from Sale of Capital Asset 9,134 - - - 9,134 Bonds Issued - - 28,379,125 1,120,875 29,500,000 Premium on Bonds Issued - - 2,237,727 - 2,237,727 Transfers In 250,000 1,200,000 - 5,466,355 6,916,355 Transfers Out (3,348,755) - - (30,222) (3,378,977) Total Other Financing Sources(Uses) (3,089,621) 1,200,000 30,616,852 6,557,008 35,284,239 Net Change in Fund Balances 921,256 (1,385,919) 8,223,533 1,406,082 9,164,952 FUND BALANCES Beginning of Year 9,840,110 6,130,194 (1,676,076) 7,207,164 21,501,392 End of Year $10,761,366 $ 4,744,275 $ 6,547,457 $ 8,613,246 $ 30,666,344 32 Page 84 of 334 CITY OF SHAKOPEE RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES-GOVERNMENTAL FUNDS For the Year Ended December 31,2016 Net Change in Fund Balances-Governmental Funds $ 9,164,952 Amounts reported for governmental activities in the Statement of Activities are 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 31,081,158 Depreciation Expense (4,769,425) Loss on Disposal of Fixed Assets (9,594) Contributed Assets 36,135 Principal payments on long-term debt are recognized as expenditures in the governmental funds but as an increase in the net position in the Statement of Activities. 1,685,000 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. (428,467) Governmental funds report the effects of bond premiums when debt is first issued,whereas these amounts are deferred and amortized in the Statement of Activities 102,137 Proceeds from long-term debt are recognized as an other financing source in the governmental funds but as a decrease in net assets in the Statement of Activities. Bonds Payable (29,500,000) Unamortized Bond Premium (2,237,727) Certain revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Special Assessments Delinquent 5,862 Special Assessments Deferred (493,348) OPEB obligations are recognized when paid in the government funds but recognized when incurred in the Statement of Activities (246,342) Delinquent receivables will be collected this year,but are not available soon enough to pay for the current period's expenditures and,therefore,are not revenues in the funds. (69,327) Capital assets transferred from proprietary funds to governmental funds 68,840 Governmental funds recognized pension contributions as expenditures at the time of payment whereas the statement of activities factors in items related to pensions on a full accrual perspective. Pension Expense (2,934,439) Internal service funds are used by management to charge the costs of certain activities such as buildings,equipment,park assets and employee benefits to individual funds. (See Note 2.13.) (1,856,320) Change in Net Position-Governmental Activities $ (400,905) The Notes to the Financial Statements are an integral part of this statement. 33 Page 85 of 334 (THIS PAGE LEFT BLANK INTENTIONALLY) 34 Page 86 of 334 CITY OF SHAKOPEE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL-GENERAL FUND For the Year Ended December 31,2016 Budget Variance with Actual Final Budget- Original Final Amounts Over (Under) REVENUES Property Taxes $17,150,900 $ 17,150,900 $ 17,022,204 $ (128,696) Special Assessments 11,500 11,500 15,818 4,318 Licenses and Permits 1,504,100 2,269,100 2,564,729 295,629 Intergovernmental 1,108,500 1,251,900 1,344,279 92,379 Charges for Services 4,226,275 4,368,150 4,750,514 382,364 Fines and Forfeitures 1,500 1,500 11,213 9,713 Miscellaneous Revenues: Investment Income 145,000 125,000 118,764 (6,236) Contributions and Donations 4,800 6,800 7,266 466 Rents 9,500 9,500 9,460 (40) Other 65,948 66,450 83,244 16,794 Total Revenues 24,228,023 25,260,800 25,927,491 666,691 EXPENDITURES Current General Government 4,686,001 4,096,290 3,999,953 (96,337) Public Safety 10,374,766 10,357,100 10,585,899 228,799 Public Works 3,393,889 2,965,440 3,061,172 95,732 Parks and Recreation 4,370,867 4,233,860 4,232,167 (1,693) Capital Outlay Public Safety - 60,000 37,423 (22,577) Park and Recreation 1,500 - - - Total Expenditures 22,827,023 21,712,690 21,916,614 203,924 Excess of Revenues Over (Under)Expenditures 1,401,000 3,548,110 4,010,877 462,767 OTHER FINANCING SOURCES(USES) Proceeds from Sale of Capital Asset - 600 9,134 8,534 Transfers In 250,000 250,000 250,000 - Transfers Out (2,100,000) (3,345,000) (3,348,755) (3,755) Total Other Financing Sources(Uses) (1,850,000) (3,094,400) (3,089,621) 4,779 Net Change in Fund Balances $ (449,000) $ 453,710 921,256 $ 467,546 FUND BALANCES Beginning of Year 9,840,110 End of Year $ 10,761,366 The Notes to the Financial Statements are an integral part of this statement. 35 Page 87 of 334 CITY OF SHAKOPEE STATEMENT OF NET POSITION-PROPRIETARY FUNDS December 31,2016 Business-Type Activities-Enterprise Funds Governmental Activities- Storm Internal Sewer Drainage Refuse Total Service Funds ASSETS Current Assets Cash and Investments,Including Cash Equivalents $ 9,176,744 $13,595,766 $ $ 22,772,510 $12,274,033 Accounts Receivable - 22,000 22,000 6,129 Interest Receivable 42,912 63,406 (276) 106,042 56,675 Special Assessment Receivable: Deferred 267,330 858 - 268,188 - Due from Other Funds 59,355 - 59,355 Due from Other Governments 350,068 150,394 500,462 - Prepaid Expenses 183,616 Total Current Assets 9,896,409 13,832,424 (276) 23,728,557 12,520,453 Noncurrent Assets Advances to Other Funds,Noncurrent 853,627 - - 853,627 1,341,394 Capital Assets: Land 4,500 3,792,303 3,796,803 221,876 Right of Way - 507,746 507,746 - Construction in Progress 35,990 22,306 58,296 401,288 Line Rights 1,368,569 - 1,368,569 - Infmstructure 43,791,973 43,514,667 87,306,640 3,617,493 Buildings - - - 34,592,888 Machinery and Equipment 1,894,016 1,024,239 1,172,068 4,090,323 15,324,414 Total Cost 47,095,048 48,861,261 1,172,068 97,128,377 54,157,959 Less Accumulated Depreciation (13,697,024) (13,097,523) (234,542) (27,029,089) (21,066,962) Net Capital Assets 33,398,024 35,763,738 937,526 70,099,288 33,090,997 Total Noncurrent Assets 34,251,651 35,763,738 937,526 70,952,915 34,432,391 Total Assets 44,148,060 49,596,162 937,250 94,681,472 46,952,844 Deferred Outflows of Resources Deferred Outflows of Resources Related to Pensions 96,356 102,667 199,023 Total Assets and Deferred Outflows of Resources $44,244,416 $49,698,829 $ 937,250 $ 94,880,495 $46,952,844 LIABILITIES AND NET POSITION Current Liabilities Accounts Payable $ 28,036 $ 23,402 $ $ 51,438 223,084 Contracts Payable 89,419 - 89,419 - Due to Other Funds - - 59,355 59,355 Due to Other Governments 79,695 20,096 - 99,791 - Current Compensated Absences 13,459 14,180 27,639 956,190 Total Current Liabilities 210,609 57,678 59,355 327,642 1,179,274 Noncurrent Liabilities Advances from Other Funds - - 853,627 853,627 - Compensated Absences 16,449 17,332 - 33,781 1,168,676 Net OPEB Obligation 38,654 38,654 77,308 - Net Pension Liability 231,428 246,585 478,013 Total Noncurrent Liabilities 286,531 302,571 853,627 1,442,729 1,168,676 Total Liabilities 497,140 360,249 912,982 1,770,371 2,347,950 Deferred Inflows of Resources Deferred Inflows of Resources Related to Pensions 25,135 26,781 51,916 Net Position Investment in Capital Assets 33,398,024 35,763,738 937,526 70,099,288 33,090,997 Unrestricted 10,324,117 13,548,061 (913,258) 22,958,920 11,513,897 Total Net Position 43,722,141 49,311,799 24,268 93,058,208 44,604,894 Total Liabilities,Deferred Inflows of Resources and Net Position $44,244,416 $49,698,829 $ 937,250 $46,952,844 Adjustment to Reflect the Consolidation of Internal Service Fund Activity Related to Enterprise Funds(See Note 2c) 322,563 Total Business-Type Activities Net Position $ 93,380,771 The Notes to the Financial Statements are an integral part of this statement. 36 Page 88 of 334 CITY OF SHAKOPEE STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION-PROPRIETARY FUNDS For the Year Ended December 31,2016 Business-Type Activities-Enterprise Funds Governmental Activities- Internal Service Sewer Storm Drainage Refuse Total Funds OPERATING REVENUES Charges for Services $ 3,085,500 $ 1,202,004 $ 105,309 $ 4,392,813 $ Rental Charges - - - - 2,364,368 Other Charges 9,943 - 9,943 - Special Assessments 4,578 249 - 4,827 Total Operating Revenues 3,100,021 1,202,253 105,309 4,407,583 2,364,368 OPERATING EXPENSES Salaries and Benefits 302,773 524,343 - 827,116 38,214 Depreciation 812,027 803,609 117,431 1,733,067 1,847,874 Professional Services 115,733 204,323 - 320,056 1,358 Sewer Disposal Charges 2,443,356 - 2,443,356 - Repairs and Maintenance 44,160 249,068 293,228 59,124 Materials and Supplies 35,784 53,041 88,825 379,138 Rent 38,530 40,179 78,709 - Insurance 67,060 12,360 79,420 134,014 Utilities 79,297 1,916 - 81,213 - Total Operating Expenses 3,938,720 1,888,839 117,431 5,944,990 2,459,722 Operating Income(Loss) (838,699) (686,586) (12,122) (1,537,407) (95,354) NONOPERATING REVENUES (EXPENSES) Investment Income 122,703 167,402 (1,104) 289,001 155,581 Donations - - - 366,622 Insurance Dividends 145,757 Interest Expense - (9,603) (9,603) - Gain(Loss)on Sale of Asset 1,911 1,911 40,998 Capital Asset Transfer (7,966) (7,967) (15,933) (52,907) Trunk Charges 192,145 431,271 623,416 - Total Nonoperating Revenues (Expenses) 306,882 592,617 (10,707) 888,792 656,051 Income before Capital Contributions and Transfers (531,817) (93,969) (22,829) (648,615) 560,697 Capital Contributions from Special Assessments 183,142 (1,306) 181,836 - Transfers In - - 105,222 Transfers Out (630,920) (625,000) (1,255,920) (2,386,680) Change in Net Position (979,595) (720,275) (22,829) (1,722,699) (1,720,761) NET POSITION Beginning of Year 44,701,736 50,032,074 47,097 94,780,907 46,325,655 End of Year $ 43,722,141 $ 49,311,799 $ 24,268 $ 93,058,208 $ 44,604,894 Adjustment to Reflect the Consolidation of Internal Service Fund Activity Related to Enterprise Funds(See Note 2d) 135,559 Change in Net Position-Business-Type Activities $ (1,587,140) The Notes to the Financial Statements are an integral part of this statement. 37 Page 89 of 334 CITY OF SHAKOPEE STATEMENT OF CASH FLOWS-PROPRIETARY FUNDS For the Year Ended December 31,2016 Business-Type Activities-Enterprise Funds Governmental Activities- Storm Internal Sewer Drainage Refuse Total Service Funds CASH FLOWS-OPERATING ACTIVITIES Receipts from Customers and Users $ 3,026,147 $ 1,163,649 $ 105,309 $ 4,295,105 $ 2,358,736 Receipts from Interfund Services - - 12,023 12,023 1,091,174 Payments to Suppliers (3,118,865) (1,133,211) - (4,252,076) (826,383) Payments to Employees (295,209) (498,763) (793,972) Payments for Interfund Services (12,023) - (12,023) - Net Cash Flows-Operating Activities (399,950) (468,325) 117,332 (750,943) 2,623,527 CASH FLOWS-NONCAPITAL FINANCING ACTIVITIES Payment Received on Interfund Loan 106,703 (106,703) 50,000 Interest Expense on Interfund Loan Repayment - (9,603) (9,603) - Insurance Dividends 145,757 Transfer from Other Funds 105,222 Transfer to Other Funds (630,920) (625,000) (1,255,920) (2,386,680) Net Cash Flows-Noncapital Financing Activities (524,217) (625,000) (116,306) (1,265,523) (2,085,701) CASH FLOWS-CAPITAL AND RELATED FINANCING ACTIVITIES Trunk Charges 192,145 431,271 623,416 Capital Related Special Assessments 190,964 - 190,964 - Donations - - - 366,622 Proceeds(Loss)from Disposal of Capital Assets 62,183 62,183 409,903 Acquisition of Capital Assets (1,577,369) (1,344,822) (2,922,191) (2,437,853) Net Cash Flows-Capital and Related Financing Activities (1,194,260) (851,368) (2,045,628) (1,661,328) CASH FLOWS-INVESTING ACTIVITIES Interest Received 127,455 168,488 (1,026) 294,917 158,215 Net Cash Flows-Investing Activities 127,455 168,488 (1,026) 294,917 158,215 Net Change in Cash and Cash Equivalents (1,990,972) (1,776,205) (3,767,177) (965,287) CASH AND CASH EQUIVALENTS Beginning of Year 11,167,716 15,371,971 26,539,687 13,239,320 End of Year $ 9,176,744 $ 13,595,766 $ $ 22,772,510 $ 12,274,033 The Notes to the Financial Statements are an integral part of this statement. 38 Page 90 of 334 CITY OF SHAKOPEE STATEMENT OF CASH FLOWS-PROPRIETARY FUNDS (Continued) For the Year Ended December 31,2016 Business-Type Activities-Enterprise Funds Governmental Activities- Storm Internal Sewer Drainage Refuse Total Service Funds RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH FLOWS-OPERATING ACTIVITIES Operating Income(Loss) $ (838,699) $ (686,586) $ (12,122) $ (1,537,407) $ (95,354) Adjustments to Reconcile Operating Income(Loss)to Net Cash Flows-Operating Activities: Depreciation Expense 812,027 803,609 117,431 1,733,067 1,847,874 Pension Expense (686) 16,156 - 15,470 - Changes in: Accounts Receivable - (22,000) (22,000) (6,129) Due from Other Funds (12,023) (12,023) 897,344 Due from Other Governments (13,773) (14,675) (28,448) 497 Special Assessments (60,101) (1,929) (62,030) - Due to Other Governments (293,674) (268,946) (562,620) Accounts and Contracts Payable (1,271) (303,378) (304,649) (69,133) Prepaid Expenses - - (183,616) Due to Other Funds - - 12,023 12,023 - Compensated Absences Payable 2,904 4,078 - 6,982 232,044 Net OPEB Obligation 5,346 5,346 - 10,692 - Total Adjustments 438,749 218,261 129,454 786,464 2,718,881 Net Cash Flows-Operating Activities $ (399,950) $ (468,325) $ 117,332 $ (750,943) $ 2,623,527 NONCASH INVESTING,CAPITAL AND FINANCING ACTIVITIES Transfer of Capital Assets $ (7,966) $ (7,967) $ - $ (15,933) $ (52,907) The Notes to the Financial Statements are an integral part of this statement. 39 Page 91 of 334 (THIS PAGE LEFT BLANK INTENTIONALLY) 40 Page 92 of 334 CITY OF SHAKOPEE COMBINED STATEMENT OF FIDUCIARY NET POSITION December 31, 2016 Total Agency Funds ASSETS Current Cash and Investments $ 3,156,064 Due from Other Governments 91,644 Prepaids 9,152 Total Assets $ 3,256,860 LIABILITIES Accounts Payable $ 378,410 Deposits Payable 2,839,140 Due to Other Governments 39,310 Total Liabilities $ 3,256,860 The Notes to the Financial Statements are an integral part of this statement. 41 Page 93 of 334 CITY OF SHAKOPEE STATEMENT OF NET POSITION-COMPONENT UNIT-SPUC December 31,2016 Electric Water Total ASSETS Current Assets Cash and Investments $ 30,515,896 $ 6,114220 $ 36,630,116 Restricted Assets: Sinking Account 533,930 - 533,930 Accrued Interest Receivable 37,587 8,924 46,511 Customer Accounts Receivable 3,601,559 264,166 3,865,725 Allowance for Uncollectible Accounts (31,510) (9,742) (41252) Other Accounts Receivable 107,200 182,671 289,871 Due from City of Shakopee 102,319 19,285 121,604 Inventory 1,136281 36,880 1,173,161 Prepaid Expenses 39,000 13,000 52,000 Total Current Assets 36,042262 6,629,404 42,671,666 Noncurrent Assets Restricted Assets: Customer Deposits Account 2,210,076 33,104 2243,180 Connection Account - 10,526,340 10,526,340 Emergency Repairs Account 100,000 - 100,000 Capital Assets: Plant in Service 62,220,987 53,985,582 116,206,569 Accumulated Depreciation (22,415,902) (16,980,197) (39,396,099) Construction in Progress 6,586,352 1,682,127 8,268,479 Total Noncurrent Assets 48,701,513 49,246,956 97,948,469 Total Assets 84,743,775 55,876,360 140,620,135 Deferred Outflows of Resources Deferred Outflows of Resources Related to Pensions 1,604,590 534,863 2,139,453 Unamortized loss on refunding 225,899 225,899 Total Deferred Outflows of Resources 1,830,489 534,863 2,365,352 Total Assets and Deferred Outflows of Resources $ 86,574264 $ 56,411,223 $142,985,487 LLABILITIES AND NET ASSETS Current Liabilities Accounts Payable $ 4,846,190 $ 114,538 $ 4,960,728 Due to City of Shakopee 415,529 51,865 467,394 Other Current Liabilities 245,474 119,133 364,607 Total Current Liabilities 5,507,193 285,536 5,792,729 Liabilities Payable from Restricted Assets Current Portion of Revenue Bonds 425,000 - 425,000 Accrued Interest Payable 144,346 - 144,346 Customer Deposits 2,210,076 33,104 2,243,180 Total Liabilities Payable from Restricted Assets 2,779,422 33,104 2,812,526 Noncurrent Liabilities Revenue Bonds 7,590,000 - 7,590,000 Unamortized Bond Discount (8,598) (8,598) Unearned Revenues 1,661,410 - 1,661,410 Customer Advances 259,511 50,801 310,312 Net Pension Liability 3,781,660 1,260,552 5,042212 Total Noncurrent Liabilities 13,283,983 1,311,353 14,595,336 Total Liabilities 21,570,598 1,629,993 23,200,591 Deferred Inflows of Resources Related to Pensions 398,962 132,989 531,951 Total Liabilities and Deferred Inflows of Resources $ 21,969,560 $ 1,762,982 $ 23,732,542 Net Position Investment in Capital Assets 38,385,035 38,687,512 77,072,547 Restricted for Debt Service 389,584 - 389,584 Restricted for Connections&Reconstruction - 10,526,340 10,526,340 Unrestricted 25,830,085 5,434,389 31,264,474 Total Net Position 64,604,704 54,648,241 119,252,945 Total Liabilities and Net Position $ 86,574,264 $ 56,411,223 $142,985,487 42 The Notes to the Financial Statements are an integral part of this statem%ge 94 of 334 CITY OF SHAKOPEE STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION - COMPONENT UNIT- SPUC For the Year Ended December 31,2016 Electric Water Total Operating Revenues $ 46,202,101 $ 4,568,096 $ 50,770,197 Operating Expenses 41,152,902 4,677,855 45,830,757 Operating Income 5,049,199 (109,759) 4,939,440 NONOPERATING REVENUES (EXPENSES) Rentals and Miscellaneous 317,749 212,328 530,077 Interdepartmental Rent from Water 90,000 - 90,000 Investment Income 164,029 41,653 205,682 Interest Expense (358,055) (145) (358,200) Amortization of Debt Issuance Costs and Loss on Refunding (17,802) - (17,802) Gain(Loss) on Disposition of Property 4,886 (14,222) (9,336) Total Nonoperating Revenues (Expenses) 200,807 239,614 440,421 Income Before Contributions and Transfers 5,250,006 129,855 5,379,861 Capital Contributions 430,031 2,446,393 2,876,424 Change in Net Position 5,680,037 2,576,248 8,256,285 NET POSITION Beginning of Year 58,924,667 52,071,993 110,996,660 End of Year $ 64,604,704 $ 54,648,241 $ 119,252,945 43 The Notes to the Financial Statements are an interal part of this statement. Page 959f 33 (THIS PAGE LEFT BLANK INTENTIONALLY) 44 Page 96 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Shakopee 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 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 Unit—Reported as if they were part of the City. Discretely Presented Component Unit—Entails reporting the component unit financial data in statements separate from the financial date 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 follows: 1. Blended Component Unit The Shakopee Economic Development Authority (EDA)was organized to promote development, improve housing and reduce blighted areas in the City. It is included by reason of the City Council having final approval for Shakopee EDA actions and the Shakopee EDA Board being comprised entirely of City Council Members. City staff handles Shakopee EDA activity including Shakopee EDA funds and the City approves Shakopee EDA tax levies and bonding activity. Therefore, the City has financial oversight for Shakopee EDA activities. The City also has operational responsibility of the EDA. The activity of the Shakopee EDA is shown in the Shakopee EDA Special Revenue Fund in the City's financial statements. No separate financial statements for the Shakopee EDA are issued. For any information desired beyond what is presented in this report, contact the Finance Director for the City of Shakopee at 129 Holmes Street South, Shakopee,Minnesota 55379-1351. 45 Page 97 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity(Continued) 2. Discretely Presented Component Unit The electric and water utilities of the Shakopee Public Utilities Commission(SPDC) are self- supporting entities and collectively comprise separate enterprise funds of the City of Shakopee (the "City"). The utility provides electric and water operations to properties within the City as well as electric distribution to certain other areas outside of the City. The utility accounts for the costs of electric and water operations on a continuing basis and is managed by the SPDC. The SPUC Board consists of five members who serve three year consecutive terms. SPUC is presented as a discretely presented component unit because of the nature and significance of its relationship with the primary government. Separate financial statements are included in this report for the SPUC Funds to emphasize that it is legally separate from the City. Based on its relationship with the City, it would be misleading to exclude SPUC as a component unit. It is this criterion that results in SPUC being reported as a discretely presented component unit. The complete financial statements can be obtained from the Shakopee Public Utility Commission, 225 Sarazin Street, Shakopee,Minnesota 55379. 3. Joint Ventures and Jointly Governed Organizations Local Government Information Systems Local Government Information Systems (LOGIS) is a joint venture of approximately 44 governmental entities that provides computerized data processing and support services to its members. Legally separate, the City does not appoint a voting majority of the Board and LOGIS is fiscally independent of the City. During 2016, the City paid $ 163,777 to LOGIS for services provided which is included in expenditures of the General Fund. Financial statements are available by contacting LOGIS, 5750 Duluth Street, Golden Valley,Minnesota 55422-4036. 4. Other Organizations Shakopee Volunteer Fire Department Relief Association The Shakopee Volunteer Fire Department Relief Association(the "Association") is organized as a nonprofit organization, legally separate from the City,by its members to provide pensions and other benefits to such members in accordance with Minnesota Statutes. It is not a component unit of the City because the Board of Directors is appointed by the membership of the Association and not by the City Council. The financial oversight of the City is limited to approval authority for amending the Association bylaws when the change results in an increase in the pension benefit level requiring an increased City contribution. The Association has the authority to levy its own taxes for pensions and deficits and would continue to exist for its members if the City was dissolved. Because the Association is fiscally independent of the City, the financial statements of the Association have not been included within the City's reporting entity. 46 Page 98 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 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. 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. 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 Escrow Agency Fund is presented in the fiduciary fund financial statements. 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, this Fund is not incorporated into the government-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 financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred,regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The Agency Funds report only assets and liabilities and have no measurement focus, but do use the accrual basis of accounting to recognize receivables and payables. 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. 47 Page 99 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Measurement Focus,Basis of Accounting and Financial Statement Presentation (Continued) However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current 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. 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 City, except those required to be accounted for in another fund. Capital Improvements Capital Project Fund—This Fund accounts for the capital projects of the City not accounted for in separate capital funds. Community Center& Ice Arena Capital Project Fund—This Fund accounts for the construction costs associated with the construction of the community center and ice arena. Proprietary Funds: Sewer Fund—This Fund accounts for operations of the City's sewer utility. Storm Drainage Fund—This Fund accounts for the activities of the City's storm drainage utility. Refuse Fund—This Fund accounts for operations associated with the City's garbage carts and recycling operations. 48 Page 100 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 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: Equipment Fund—This Fund accounts for the City's acquisition of larger pieces of equipment. Buildings Fund—This Fund accounts for the City's funds accumulated for construction, improvement or major repairs of major public buildings. Park Assets Fund—This Fund accounts for the City's funds accumulated for the replacement of park assets. Employee Benefits Fund—This Fund accounts for the City's funds accumulated for compensated absences and OPEB. Information and Technology Fund—This Fund accounts for the City's funds accumulated for information technology resources. Self Insurance Fund—This Fund is used to account for all revenues and expenses associated with premiums, deductibles and claims for general liability and workers compensation policy through LMCIT. The City's internal service funds are allocated between governmental and business-type activities and are combined, as allocated in Note 2,with the respective governmental activities and business-type activities in the government-wide financial statements. Fiduciary Funds: Escrow Agency Fund—This Fund accounts for the monies held for specific purposes for individuals, private organizations, other government units and other funds. Escrows are held on behalf of builders and developers, for security deposits and police evidence deposits. Holiday Lighting Agency Fund—This Fund accounts for the monies held for holiday lighting. Southwest Metro Drug Task Force Agency Fund—This Fund accounts for the activity related to the task force held by the City in a strictly custodial capacity. Component Unit Funds: Electric Fund—This Fund accounts for the operations of the SPUC's electric utility. Water Fund—This Fund accounts for the operations of the SPUC's water utility. 49 Page 101 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Measurement Focus,Basis of Accounting and Financial Statement Presentation (Continued) As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments, where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the City's utility function 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. D. Assets,Liabilities and Net Position or Equity 1. Deposits and Investments Cash and investments include balances from all funds that are combined and invested to the extent available in various securities as authorized by state law. Earnings from the pooled investments are allocated to the individual funds based on the average of month-end cash and investment balances. All funds of the City are included in the pooled investments with the exclusion of the 2016A bond proceeds which is included in the non-pooled investments. The City's cash and cash equivalents are considered to be cash on hand, demand deposits and highly liquid debt instruments purchased with original maturities of three months or less from the date of acquisition. Certain investments for the City and Component Unit are reported at fair value as disclosed in Note 4. The City and Component Unit categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The Hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. 50 Page 102 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets,Liabilities and Net Position or Equity (Continued) 1. Deposits and Investments (Continued) 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, 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 Money Market Fund. In accordance with GASB Statement No. 79, the Minnesota Municipal Investment Pool securities are valued at amortized cost, which approximates fair value. There are no restrictions or limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period will be subject to a penalty equal to seven days interest on the amount withdrawn. Seven days'notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series for any charges, losses, and other costs attributable to the early redemption. 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 "advances to/from other funds". 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 "interfund 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. Scott 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. 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. 51 Page 103 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets,Liabilities and Net Position or Equity (Continued) 3. Inventory,Prepaid Items and Other Assets 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 expenditures of governmental funds are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. Inventories of enterprise funds are valued at average cost using the first in, first out(FIFO)method. Inventory in the governmental funds are recorded as an expenditure when consumed rather than when purchased. Other assets include unamortized debt issuance costs, the Emergency Repairs Account and the asset and related amortization relating to the Electric Plant Acquisition. 4. Land Held for Resale Land is acquired by the City for subsequent resale for redevelopment purposes. Land held for resale is reported as an asset at the lower of cost or estimated realized value in the fund that acquired it. 5. Restricted Assets Certain cash and investments in the component units are classified as restricted. The Electric Fund has monies restricted for customer deposits and debt service. The Water Fund has monies restricted for water production and trunk distribution facility acquisition,based on trunk and connection fees collected from users, construction projects and debt service. 6. Capital Assets Capital assets,which include property, plant, equipment and infrastructure assets (e.g.,roads, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City, excluding the component unit, as assets with an initial, individual cost of more than $ 10,000 and an estimated useful life in excess of two years. Capital assets for the component unit are defined as assets with an initial, individual cost of more than $ 1,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. 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. 52 Page 104 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets,Liabilities and Net Position or Equity (Continued) 6. Capital Assets (Continued) Property, plant and equipment of the City are depreciated using the straight-line method over the following estimated useful lives. Assets Years Buildings 3 0-50 Park Buildings 30 Building Improvements 25 Light Vehicles 4-10 Machinery and Equipment 4-20 Utility Distribution System 50-75 Infrastructure 3 0-50 Fire Trucks 20-25 7. 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 has one item that qualifies for reporting in this category. The City and Component Unit present deferred outflows of resources on the Statement of Net Position for the deferred charge related to pensions. The Component Unit also has one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the statement of net position- component unit- SPUC. 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. The City presents deferred outflows of resources on the Statements of Net Position for deferred outflows of resources related to pensions. Deferred outflows of resources related to pensions results from the net effect of the change in proportionate share, the difference between projected and actual investments earnings and employer contributions paid to PERA and the firefighters relief association subsequent to the measurement date. In addition to liabilities, the statement of financial position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources,represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue)until that time. The City only has one type of item,which arises only under the modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item is reported only in the governmental funds balance sheet as unavailable revenue. 53 Page 105 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets,Liabilities and Net Position or Equity (Continued) 7. Deferred Outflows/Inflows of Resources (Continued) The governmental funds report unavailable revenues from two sources: property taxes and special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City presents deferred inflows of resources on the Statements of Net Position for deferred inflows of resources related to pensions. Deferred inflows of resources related to pensions results from the net difference between projected and actual earnings on plan investments, changes in proportionate share and the differences between expected and actual economic experience. 8. Compensated Absences Vacation and sick leave benefits are recorded as expenditures in the Employee Benefits Internal Service Fund and governmental funds when the obligations have matured and are expected to be liquidated with expendable financial resources. City employees earn vacation time based on years of City service. Employees who have 0 to 15 years of employment may accumulate no more than 240 hours. Employees who have 16 or more years of service may accumulate no more than 360 hours of vacation leave. Upon termination, employees will receive compensation for all unused vacation. Employees earn sick leave and may accumulate to a maximum of 960 hours. The City compensates employees who leave municipal service at the rate of 45%up to 15 years of service. After 15 years of service, employees who leave are compensated at the rate of 55%plus 2% for each year of service beyond 15 years up to 75% of unused sick leave. 9. 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. Enterprise fund bond premiums and discounts, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. 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 expenditures. 54 Page 106 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets,Liabilities and Net Position or Equity (Continued) 10. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and the relief association and additions to/deductions from PERA's and the relief association's fiduciary net position have been determined on the same basis as they are reported by PERA and the relief association except that PERA's fiscal year end is June 30. For this purpose,plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 11. 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. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form. 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 are classified as restricted fund balances. 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 are classified as committed fund balances. Amounts that are constrained by the City's intent to be used for specific purposes but are neither restricted nor committed are classified as assigned fund balances. Assignments are made by the City's Finance Director based on the City Council's direction. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed or assigned to a specific purpose in the General Fund. The City's policy is to consider unrestricted fund balance to be spent by City Council action, appropriations or emergency situations. The City applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned and unassigned) are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. a. Minimum Fund Balance The City's target General Fund balance is to maintain an unassigned level between 40% (minimum) and 45% of budgeted expenditures. This level is to provide working capital for cash flow, expected decline in revenues and unforeseen expenditures such as natural disasters. Replenishing fund balance when it falls below the target level shall be accomplished by interfund transfers or budgeting for expenditures and other uses to be less than revenues or other sources over a period not to exceed three years. 55 Page 107 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets,Liabilities and Net Position or Equity (Continued) 12.Net Position Net position represents the difference between assets and deferred outflows and liabilities and deferred inflows 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. Net position 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. 13. 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—RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Position The governmental fund Balance Sheet includes reconciliation between fund balance—total governmental funds and net position—governmental activities as reported in the government-wide Statement of Net Position. One element of that reconciliation explains that"Internal Service Funds are used by management to charge the costs of providing certain services for the City." Net Position of the Internal Service Funds $ 44,604,894 Less Portion Loss Related to Business-Type Activities (322,563) Net Adjusmtent to Increase Fund Balance- Total Governmental Funds to Arrive at Net Position- Governmental Activities $ 44,282,331 56 Page 108 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 2—RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS B. Explanation of Certain Differences between the Governmental Fund Statements of Revenues,Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities Another element of that reconciliation states that"Internal Service Funds are used by management to charge the costs of providing various services for the City." The details of this difference are as follows: Change in Net Position of the Internal Service Fund $ (1,720,761) Less the Net of Indirect Revenues and Expense (135,559) Net Adjustment to Decrease Net Change in Fund Balances -Total Government Funds to Arrive at Changes in Net position of Government Activities $ (1,856,320) C. Explanation of Certain Differences between the Proprietary Fund Statements of Net Position and the Government-Wide Statement of Net Position The proprietary fund Statement of Net Position includes reconciliation between net position—total enterprise funds and net position of business-type activities as reported in the government-wide Statement of Net Position. The description of the sole reconciliation is "adjustment to reflect the consolidation of internal service fund activities related to enterprise funds." The details are as follows: Internal Payable Representing Costs less than Charges to Business- Type Activities-Current Year $ 322,563 D. Explanation of Certain Differences between the Proprietary Fund Statements of Revenues,Expenses, and Changes in Fund Net Position and the Government-Wide Statement of Activities Another element of that reconciliation states that"Internal Service Funds are used by management to charge the costs of providing various services for the City." The details of this difference are as follows: Net adjustment to Increase Net Change in Fund Balances-Total Enterprise Funds to Arrive at Changes in Net Position of Business- Type Activities $ 135,559 57 Page 109 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 3 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annually appropriated budgets are adopted for the General Fund. Budgeted amounts present 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. 1. In August of each year, City staff submits to the City Council, a proposed operating budget for the year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them for the upcoming year. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution after obtaining taxpayer comments. 4. Expenditures may not legally exceed budgeted appropriations at the division level. The division level expenditures are presented in the schedule of revenues, expenditures and changes in fund balances—budget and actual—general fund. No fund's budget can be increased without City Council approval. The City Council may authorize transfer of budgeted amounts between divisions within any fund. Management may amend budgets within a division level, so long as the total division budget is not changed. 5. An annual budget is adopted for the General Fund. Annual appropriated budgets are not adopted for Debt Service Funds because effective budgetary control is alternatively achieved through bond indenture provisions. Budgetary control for Capital Projects Funds is accomplished through the use of project controls and budgets are not adopted. 6. Budgeted amounts are as originally adopted and as amended by the City Council. Individual amendments were not material in relation to the original amounts budgeted. Budgeted expenditure appropriations lapse at year-end NOTE 4—DEPOSITS AND INVESTMENTS A. Deposits In accordance with applicable Minnesota Statutes, the City and the Component Unit maintains deposits at depository banks authorized by the City Council and the Commissioners. 58 Page 110 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 4 —DEPOSITS AND INVESTMENTS A. Deposits (Continued) Custodial Credit Risk: This is the risk that an issuer or other counterparty to an investment will not fulfill its obligation to the holder of the investment. Minnesota Statutes 1 I8A.04 and 188A.05 limit investments that are in the top two ratings issued by nationally recognized statistical rating organizations. The City's investment policy references Minnesota Statutes and further limits the types of investments that the City is allowed to invest in. The Commission has a deposit policy that requires the Commission's deposits to be collateralized as required by Minnesota Statues 118.03 for an amount exceeding FDIC, SAIF, BIF, FCUA, or other federal deposit coverage. As of December 31, 2016, the City and Commission's bank balances were not exposed to custodial credit risk because they were insured through Federal Deposit Insurance Corporation (FDIC) and properly collateralized with securities held by the pledging financial institutions' trust departments or agents in the City's name. As of December 31, 2016, the City had the following deposits: City Deposits $ 289,709 Component Unit Deposits 9,183,823 Total Deposits $ 9,473,532 B. Investments As of December 31, 2016, the City held the following investments: Years to Maturity Less than Moody's Fair Value One Year 1-5 Years 5-10 Years 10-15 Years Concentration Rating Pooled Investments: Certificate of Deposit $ 5,493,668 $ 3,739,223 $ 1,754,445 $ $ 8.70% NR Money Market Fund 103,326 103,326 - 0.16% NR Mortgage FFCB 1,202,772 1,202,772 - 1.91% AAA FBLB 9,408,563 7,655,383 1,753,180 14.91% AAA FBLMC 4,634,419 501,981 2,202,998 272,740 1,656,700 7.35% AAA FNMA 3,830,112 6,908 164,131 - 3,659,073 6.07% NR Municipal Bond 13,279,434 1,957,720 9,383,789 1,937,925 - 21.05% AAA-AA3 US Treasury Notes 25,143,262 300,171 24,843,091 - 39.85% AAA Non-Pooled Investments: Money Market Fund 2,636,185 2,636,185 - 24.05% NR Mortgage FBLB 681,020 681,020 6.21% AAA FBLMC 5,892,460 5,892,460 53.75% AAA FNMA 1,752,642 1,752,642 - - 15.99% NR Total Investments $ 74,057,863 $ 26,429,791 $40,101,634 $ 2,210,665 $ 5,315,773 59 Page 111 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 4 —DEPOSITS AND INVESTMENTS B. Investments (Continued) As of December 31, 2016, the component units had the following investments: Years to Maturity Less than Fair Value One Year 1-5 Years Concentration Rating US Agencies $ 6,514,828 $ 4,488,742 $ 2,026,086 15.95% AAA U.S.Treasuries 11,877,365 4,078,618 7,798,747 29.09% AAA 4M Fund 22,440,673 22,440,673 - 54.92% N/A Money Market Fund 15,177 15,177 - 0.04% N/A Total $ 40,848,043 $ 31,023,210 $ 9,824,833 100.00% The City's investment policy,which covers all funds except the component units, addresses the following risks. The City's component units also have a formal policy to address the following risks. Credit Risk: This is the risk that an issuer or other counterparty to an investment will not fulfill its obligation to the holder of the investment. Minnesota Statutes 118A.04 and 188A.05 limit investments that are in the top two ratings issued by nationally recognized statistical rating organizations. The City's investment policy references Minnesota Statutes and further limits the types of investments that the City is allowed to invest in. The Commission's policy states to ensure safety, it is the policy of the Shakopee Public Utilities Commission that when Considering an investment, all depositories under consideration be cross-checked against existing investments to make certain that funds in excess of insurance limits are not made in the same institution unless collateralized as outlined below. Furthermore, the Shakopee Public Utilities Commission will approve all financial institutions, brokers, and advisers with which the Shakopee Public Utilities Commission will do business. Custodial Credit Risk—Investments: For an investment, this is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investment policy states all securities purchased, including appropriate collateral, shall be placed with an independent third party for custodial safekeeping. The Commission's policy states they will minimize risk by only purchasing investments that are held in safekeeping with a Federal Reserve bank,United States Bank with corporate trust powers, a primary reporting dealer to the Federal Reserve Bank of New York, or a broker dealer having its principal executive office in Minnesota and that designated brokers have insurance through the SIPC (Securities Investor Protection Corporation). As of December 31, 2016, all investments of the City and the component units were insured, registered and held by the City or its agent and in the City's name, or by the SPUC and in the SPUC's name. Interest Rate Risk: This is the risk that changes in market interest rates will adversely affect the fair value of an investment. The City's policy states the investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. To the extent possible, the City shall attempt to match its investments in short-term operating funds with anticipated cash flow requirements. 60 Page 112 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 4 —DEPOSITS AND INVESTMENTS B. Investments (Continued) Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than ten years from the date of purchase. Long-term funds shall not be invested in securities exceeding 10 years in modified duration, at time of purchase. The Commission's policy states that will minimize interest rate risk by structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operation, thereby avoiding the need to sell securities on the open market prior to maturity. Concentration of Credit Risk: This is the risk of loss attributed to the magnitude of an investment in a single issuer. According to the City's investment policy, the aggregate investment portfolio shall be diversified by: • Limiting investments to avoid over concentration in securities from a specific issuer or business sector. • Limiting investments in securities that have higher credit risks. • Investing in securities with varying maturities. • Continuously investing a portion of the portfolio in readily available funds, such as Local Government Investment Pools (LGIP),money market funds or repurchase agreements to ensure appropriate liquidity is maintained in order to meet ongoing obligations. • Having all investments, other than those in direct obligations or agencies of the United States, secured by collateral or repurchase agreements, shall not exceed 50% of the aggregate investment portfolio. Mortgage backed securities shall not exceed 35% of the aggregate investment portfolio, at the time of investment(i.e., commercial paper or bankers' acceptance). • Limiting investments in any one corporation to 5% of the aggregate investment portfolio. The Commission's policy states they will minimize risk by only purchasing investments that are held in safekeeping with the Federal Reserve bank,United States Bank with corporate trust powers, a primary reporting dealer to the Federal Reserve Bank of New York, or a broker dealer having its principal executive office in Minnesota and that designated brokers have insurance through a SIPC (Securities Investor Protection Corporation). As of December 31, 2016, the City held investments that exceeded 5% of its total investments for all funds as noted in the table on the previous page. The component units' investments noted in the table above exceeded 5% of its total investments as of December 31, 2016. 61 Page 113 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 4 —DEPOSITS AND INVESTMENTS B. Investments (Continued) The City has the following recurring fair value measurements as of December 31, 2016: Fair Value Measurement Using Fair Value Level l Level 2 Level 3 Investments at Fair Value: Certificate of Deposit $ 5,493,668 $ - $ 5,493,668 $ - Mortgage FFCB 1,202,772 - 1,202,772 - FHLB 10,089,583 - 10,089,583 - FHLMC 10,526,879 - 10,526,879 - FNMA 5,582,754 - 5,582,754 - Municipal Bond 13,279,434 - 13,279,434 - US Treasury Notes 25,143,262 25,143,262 - - TotaUSubtotal 71,318,352 $ 25,143,262 $ 46,175,090 $ - Investments at Amortized Cost: Money Market Fund 2,739,511 Total $ 74,057,863 All of the Component Unit's investments at December 31, 2016 are valued using quoted market prices (Level 1 inputs). The following is a summary of total deposits and investments as of December 31, 2016: Deposits(Note 3.A.) $ 9,473,532 City Investments 74,057,863 Component Unit Investments 40,848,043 City Petty Cash 5,698 Component Unit Petty Cash 1,700 Total Deposits and Investments $ 124,386,836 62 Page 114 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 4 —DEPOSITS AND INVESTMENTS B. Investments (Continued) Deposits and investments are presented in the December 31, 2016 basic financial statements as follows: City Component Funds Units Total Statement of Net Position: Cash and Investments $ 71,197,206 $ 36,630,116 $ 107,827,322 Restricted Assets - 13,403,450 13,403,450 Statement of Fiduciary Net Position: Cash and Investments 3,156,064 - 3,156,064 Total $ 74,353,270 $ 50,033,566 $ 124,386,836 NOTE 5—RECEIVABLES/UNAVAILABLE REVENUE A. Taxes and Assessments Governmental funds report unavailable revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current year, the various components of unavailable revenue reported in the governmental funds were as follows: Delinquent Delinquent Deferred Property Special Special Taxes Assessments Assessments Total General Fund $ 76,491 $ 4,364 $ 19,369 $ 100,224 Capital Improvements - - 3,121,051 3,121,051 Nonmajor Funds 140 29,840 1,652,232 1,682,212 Total $ 76,631 $ 34,204 $ 4,792,652 $ 4,903,487 63 Page 115 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 6—CAPITAL ASSETS Governmental capital asset activity for the year ended December 31, 2016 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets not being Depreciated: Land $ 20,907,105 $ 97,550 $ - $ 21,004,655 Right-Of-Way 253,904 - - 253,904 Construction in Progress 4,136,075 27,675,690 1,878,731 29,933,034 Total Capital Assets not being Depreciated 25,297,084 27,773,240 1,878,731 51,191,593 Capital Assets being Depreciated: Buildings 38,314,495 - 125,080 38,189,415 Infrastructure 144,552,591 4,511,522 - 149,064,113 Machinery and Equipment 16,434,014 3,297,679 1,108,824 18,622,869 Total Capital Assets being Depreciated 199,301,100 7,809,201 1,233,904 205,876,397 Less Accumulated Depreciation for: Buildings 12,683,403 891,372 50,599 13,524,176 Infrastructure 75,063,491 4,692,400 - 79,755,891 Machinery and Equipment 7,805,261 1,033,527 804,806 8,033,982 Total Accumulated Depreciation 95,552,155 6,617,299 855,405 101,314,049 Total Capital Assets being Depreciated,Net 103,748,945 1,191,902 378,499 104,562,348 Governmental Activities Capital Assets,Net $129,046,029 $ 28,965,142 $ 2,257,230 $155,753,941 Depreciation expense was charged to functions/programs of the City as follows: Governmental Activities: General Government $ 147,812 Public Safety 692,943 Public Works 4,878,142 Parks and Recreation 898,402 Total Depreciation Expense- Governmental Activities $ 6,617,299 64 Page 116 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 6—CAPITAL ASSETS Business-type capital asset activity for the year ended December 31, 2016 was as follows: Beginning Ending Balance Increases Decreases Balance Business-Type Activities: Capital Assets not being Depreciated: Land $ 3,796,803 $ - $ - $ 3,796,803 Right-Of-Way 447,746 60,000 - 507,746 Construction in Progress 211,774 58,296 211,774 58,296 Total Capital Assets not being Depreciated 4,456,323 118,296 211,774 4,362,845 Capital Assets being Depreciated: Line Rights 1,368,569 - - 1,368,569 Plant in Service 84,410,270 2,896,370 - 87,306,640 Machinery and Equipment 4,053,941 103,366 66,984 4,090,323 Total Capital Assets being Depreciated 89,832,780 2,999,736 66,984 92,765,532 Less Accumulated Depreciation for: Line Rights 551,760 24,801 - 576,561 Plant in Service 22,911,452 1,380,646 - 24,292,098 Machinery and Equipment 1,839,522 327,620 6,712 2,160,430 Total Accumulated Depreciation 25,302,734 1,733,067 6,712 27,029,089 Total Capital Assets being Depreciated,Net 64,530,046 1,266,669 60,272 65,736,443 Business-Type Activities Capital Assets,Net $ 68,986,369 $ 1,384,965 $ 272,046 $ 70,099,288 Depreciation expense was charged to functions/programs of the City as follows: Business-Type Activities: Sanitary Sewer $ 812,027 Storm Drainage 803,609 Refuse 117,431 Total Depreciation Expense-Business-Type Activities $ 1,733,067 65 Page 117 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 6—CAPITAL ASSETS Component unit capital asset activity for the year ended December 31, 2016 was as follows: Beginning Ending Balance Increases Decreases Balance Component Unit Capital Assets not being Depreciated: Land and Land Rights $ 5,097,532 $ - $ - $ 5,097,532 Construction in Progress 8,274,803 7,843,214 7,849,538 8,268,479 Total Capital Assets not being Depreciated 13,372,335 7,843,214 7,849,538 13,366,011 Capital Assets being Depreciated: Distribution 87,302,196 9,575,444 182,898 96,694,742 General 14,093,273 347,595 26,573 14,414,295 Total Capital Assets being Depreciated 101,395,469 9,923,039 209,471 111,109,037 Less Accumulated Depreciation 36,443,485 3,041,315 88,701 39,396,099 Total Capital Assets being Depreciated,Net 64,951,984 6,881,724 120,770 71,712,938 Component Unit Capital Assets,Net $ 78,324,319 $ 14,724,938 $ 7,970,308 $85,078,949 Depreciation expense was charged to functions/programs of the component units as follows: Component Units: Electric $ 1,841,744 Water 1,199,571 Total Depreciation Expense- Component Units $ 3,041,315 NOTE 7—LONG-TERM DEBT A. General Obligation Bonds The City issues general obligation (G.O.)bonds to provide for financing tax increment projects, street improvements and construction of government buildings. Debt service is covered respectively by tax increments and special assessments against benefited properties with any shortfalls being paid from general taxes. G.O. bonds are direct obligations and pledge the full faith and credit of the City. These bonds generally are issued as serial bonds with equal debt service payments each year. G.O. bonds currently outstanding are shown on the following page. 66 Page 118 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 7—LONG-TERM DEBT B. Revenue Bonds The Commission issues Revenue Bonds for electric and water activity. Debt service is covered through the revenue producing activities of these funds. C. Components of Long-Term Liabilities Issue Interest Original Final Principal Due Within Date Rates Issue Maturity Outstanding One Year Governmental Activities: G.O.Bonds: G.O.Improvement Bonds: 2006A 07/01/06 4.00% 3,440,000 02/01/17 $ 360,000 $ 360,000 2007A 02/01/07 4.00% 1,370,000 02/01/17 150,000 150,000 2007B 09/01/07 4.00% 1,445,000 02/01/18 310,000 155,000 2008A 09/01/08 3.50%-4.00% 2,170,000 02/01/19 635,000 210,000 2010A 08/01/10 0.50%-2.90% 1,555,000 02/01/21 640,000 135,000 G.O.Building Refunding Bonds 2004B 05/01/04 2.25%-4.00% 2,275,000 02/01/17 225,000 225,000 G.O.Building Refunding Bonds 2012A 06/14/12 1.50%-2.125% 4,865,000 02/01/25 4,210,000 450,000 G.O.Tax Abatement Bonds 2016A 01/21/16 3.00%-5.00% 29,500,000 02/01/36 29,500,000 - Total G.O.Bonds 36,030,000 1,685,000 Unamortized Premiums 2,135,590 - Compensated Absences 2,124,866 956,190 Total Governmental Activities $ 40,290,456 $ 2,641,190 Business-Type Activities Compensated Absences $ 61,420 $ 27,639 Component Unit Long-Term Liabilities: Utility Revenue Bonds: Series 2006A Crossover Refunding Bonds 11/21/06 4.125%-4.375% 10,570,000 02/01/30 $ 8,015,000 $ 425,000 Unamortized Discounts (8,598) - Total Component Unit Long-Term Liabilities $ 8,006,402 $ 425,000 Long-term bonded indebtedness listed above were issued to finance acquisition and construction of capital facilities or to refinance (refund)previous bond issues. For the most part, the General Fund and the Employee Benefits Internal Service Fund are typically used to liquidate governmental compensated absences payable. The Sewer and Storm Drainage funds are typically used to liquidate business type compensated absences payable. 67 Page 119 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 7—LONG-TERM DEBT D. Changes in Long-Term Liabilities Long-term liability information for the year ended December 31, 2016 was as follows. Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Bonds Payable $ 8,215,000 $ 29,500,000 $ 1,685,000 $ 36,030,000 $ 1,685,000 Unamortized Premiums - 2,237,727 102,137 2,135,590 - Compensated Absences 1,892,822 1,214,891 982,847 2,124,866 956,190 Total Governmental Activities $ 10,107,822 $ 32,952,618 $ 2,769,984 $ 40,290,456 $ 2,641,190 Business-Type Activities Compensated Absences $ 54,438 $ 40,671 $ 33,689 $ 61,420 $ 27,639 Component Unit Activites: G.O.Utility Revenue Bonds $ 8,425,000 $ - $ 410,000 $ 8,015,000 $ 425,000 Unamortized Discounts (9,218) - (620) (8,598) - Total Component Unit Activites $ 8,415,782 $ - $ 409,380 $ 8,006,402 $ 425,000 E. Governmental Activity G.O.Bonds Debt service to maturity for outstanding G.O. bonds is as follows: Year Ending Governmental Bonds December 31, Principal Interest Total 2017 $ 1,685,000 $ 1,229,781 $ 2,914,781 2018 1,995,000 1,163,474 3,158,474 2019 1,910,000 1,086,058 2,996,058 2020 1,750,000 1,012,644 2,762,644 2021 1,760,000 941,161 2,701,161 2022-2026 8,790,000 3,717,956 12,507,956 2027-2031 8,395,000 2,128,031 10,523,031 2032-2036 9,745,000 759,741 10,504,741 Total $36,030,000 $12,038,846 $ 48,068,846 68 Page 120 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 7—LONG-TERM DEBT F. Component Unit Revenue Bonds Debt service to maturity for outstanding revenue bonds is as follows: Year Ending Utility Revenue Bonds December 31, Principal Interest Total 2017 $ 425,000 $ 337,400 $ 762,400 2018 445,000 318,912 763,912 2019 460,000 299,681 759,681 2020 480,000 279,706 759,706 2021 500,000 258,881 758,881 2022-2026 2,870,000 944,081 3,814,081 2027-2031 2,835,000 256,047 3,091,047 Total $ 8,015,000 $ 2,694,708 $ 10,709,708 NOTE 8—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. 69 Page 121 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 8 —CONDUIT DEBT OBLIGATIONS As of December 31, 2016, the following conduit debt was outstanding: Date of Original Amount Balance Project Issue of Issue Outstanding Scott County CDA Housing Development 07/15/06 $ 905,000 $ 215,000 2006D Reffmding- River City Center Project Scott County CDA Housing Development 04/26/12 5,885,000 5,170,000 2012A Refimding- North Ridge Court Redevelopment Scott County CDA Housing Development 12/01/13 2,330,000 2,005,000 2013A Refimding- River City Center Project Scott County CDA Housing Development 12/01/13 1,220,000 1,170,000 2013E Refimding- River City Center Project Benedictine Health System Obligated Group 12/01/13 9,485,000 7,762,869 Health Care and Housing Facilities Revenue Refimding Note Series 2013A Benedictine Health System Obligated Group 12/01/13 9,575,000 8,511,032 Health Care and Housing Facilities Revenue Refunding Note Series 2013B St_Francis Regional Medical Center 06/18/14 41,865,000 39,630,000 Health Care Facilities Revenue Refimding Bond Series 2014 Total $ 64,463,901 70 Page 122 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 9—INTERFUND ASSETS/LIABILITIES The composition of interfund balances as of December 31, 2016 is as follows: Receivable Fund Payable Fund Amount Capital Improvement Fund Nonmajor Governmental Funds $ 7,802 Sewer Fund Refuse Fund 59,355 Total $ 67,157 The due from/due to other funds balance represents borrowing to eliminate a cash deficit. This will be repaid as funds are available. NOTE 10—ADVANCE FROM/TO OTHER FUNDS The composition of advance from/to other funds as of December 31, 2016 is as follows: Receivable Fund Payable Fund Amount Sewer Fund Refuse Fund $ 853,627 Internal Service Fund Nonmajor Governmental Funds 1,341,394 Total $ 2,195,021 The advance between the Sewer Fund and Refuse Fund represents a long term interfund loan which was used to purchase garbage carts. This will be repaid over 10 years with revenue collected for cart usage at rate of 1% interest. The advance between the Internal Service fund and Nonmajor Governmental Fund represents a long term interfund loan which was used to recreate a Property Acquisition Fund. This will be repaid over 10 years with proceeds from the sale of land or tax levy at rate of 0% interest. The advance between the Internal Service fund and Economic Development Authority Fund represents a long term interfund loan which was used to purchase land which will be resold. This will be repaid once the parcels are sold or developed at rate of 0% interest. 71 Page 123 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 11 —INTERFUND TRANSFERS Transfer In Transfer Out Governmental Funds: General Fund (1) (2) (3) (4) (6) (8) (9) $ 250,000 $ 3,348,755 Capital Improvements (3) 1,200,000 - Other Governmental Funds (2) (4) (5) (6) (7) (9) 5,466,355 30,222 Total Governmental Funds 6,916,355 3,378,977 Proprietary Funds: Sewer Fund (1) (5) (6) - 630,920 Storm Drainage Fund (1) (6) - 625,000 Total Proprietary Funds - 1,255,920 Internal Service Funds: Buildings (4) (6) - 2,386,680 Park Asset (7) 30,222 - Self Insurance (8) 75,000 - Total Internal Service Funds 105,222 2,386,680 Total $ 7,021,577 $ 7,021,577 (1) Annual transfer to finance General Fund (2) Annual transfer to fund operations and improvement loan program (3) Annual transfer to fund infrastructure projects (4) Annual transfer for bond payment (5) Transfer SAC Credit funds to EDA as business subsidies (6) Transfer to City Hall Fund for city hall construction (7) Transfer related to Fun for all Playground from the Lions Club (8) Transfer to provide workers compensation funding. (9) Transfer to close Dare Fund to General Fund 72 Page 124 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 12—PENSION PLANS The city participates in various pension plans. Total pension expense for the year ended December 31, 2016 was $4,481,742. The components of pension expense are noted in the following plan summaries. Public Employees' Retirement Association A. Plan Description The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by PERA. PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 ad 356. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. General Employees Retirement Plan (General Employees Plan (accounted for in the General Employees Fund)) All full-time and certain part-time employees of the City are covered by the General Employees Plan. General Employees Plan members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. The Basic Plan was closed to new members in 1967. All new members must participate in the Coordinated Plan. Public Employees Police and Fire Plan (Police and Fire Plan (accounted for in the Police and Fire Fund)) The Police and Fire Plan, originally established for police officers and firefighters not covered by a local relief association,now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the Police and Fire Plan also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA. B. Benefits Provided PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan. Members in plans that are at least 90% funded for two consecutive years are given 2.5% increases. Members in plans that have not exceeded 90% funded, or have fallen below 80%, are given 1% increases. The benefit provisions stated in the following paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. 73 Page 125 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 12—PENSION PLANS Public Employees' Retirement Association (Continued) B. Benefits Provided (Continued) General Employees Plan Benefits General Employees Plan 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 ten years of service 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 ten years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan members and 1.7% for Coordinated Plan members for each year of service. For members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66. Police and Fire Plan Benefits Benefits for the Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for Police and Fire Plan members first hired after June 30, 2014,vest on a prorated basis from 50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For Police and Fire Plan who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. C. Contributions Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. 74 Page 126 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 12 —PENSION PLANS Public Employees' Retirement Association (Continued) C. Contributions (Continued) General Employees Fund Contributions Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.50%, respectively, of their annual covered salary in calendar year 2016. The City was required to contribute 11.78% of pay for Basic Plan members and 7.50% for Coordinated Plan members in calendar year 2016. The City's contributions to the General Employees Fund for the year ended December 31, 2016, was $459,555. The City's contributions were equal to the required contributions as set by state statute. The Commission's contributions to the General Employees Fund for the year ended December 31, 2016, was $299,473. The Commission's contributions were equal to the required contributions as set by state statute. Police and Fire Fund Contributions Plan members were required to contribute 10.8% of their annual covered salary in calendar year 2016. The City was required to contribute 16.20% of pay for Police and Fire Fund members in calendar year 2016. The City's contributions to the Police and Fire Fund for the year ended December 31, 2016,were $ 761,951. The City's contributions were equal to the required contributions as set by state statute. D. Pension Costs General Employees Fund Pension Costs At December 31,2016, the City reported a liability of$ 7,575,497 for its proportionate share of the General Employees Fund's net pension liability. The City's net pension liability reflected a reduction due to the State of Minnesota's contribution of$6 million to the fund in 2016. The State of Minnesota is considered a non-employer contributing entity and the State's contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the City totaled$ 98,919. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2015, through June 30, 2016,relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2016, the City's proportion share was 0.0933%,which was an increase of 0.0003% from its proportion measured as of June 30, 2015. For the year ended December 31, 2016, the City recognized pension expense of$ 1,002,782 for its proportionate share of General Employees Fund's pension expense. In addition, the City recognized an additional $ 29,495 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of$6 million to the General Employees Fund. 75 Page 127 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 12 —PENSION PLANS Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) At December 31, 2016, the City reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources, and its contributions subsequent to the measurement date, related to pensions from the sources as follows. Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual economic experience $ - $ 615,395 Changes in actuarial assumptions 1,483,289 - Difference between projected and actual investment earnings 1,437,860 - Changes in proportion 11,895 207,356 Contributions paid to PERA subsequent to the measurement date 221,054 - Total $ 3,154,098 $ 822,751 $ 221,054 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2017. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending Pension Expense December 31, Amount 2017 $ 550,574 2018 550,572 2019 735,511 2020 273,636 Total $ 2,110,293 76 Page 128 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 12 —PENSION PLANS Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) Police and Fire Fund Pension Costs At December 31,2016, the City reported a liability of$ 18,781,654 for its proportionate share of the Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2015, through June 30, 2016,relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2016, the City's proportion share was 0.4680 %which was a decrease of 0.0040% from its proportion measured as of June 30, 2015. For the year ended December 31, 2016, the City recognized pension expense of$ 3,269,763 for its proportionate share of the Police and Fire Fund's pension expense. The City also recognized$ 42,120 for the year ended December 31, 2016, as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's on-behalf contributions to the Police and Fire Fund. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the Police and Fire Fund each year, starting in fiscal year 2014. At December 31, 2016, the City reported its proportionate share of the Police and Fire Fund's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual economic experience $ - $ 2,154,609 Changes in actuarial assumptions 10,336,366 - Difference between projected and actual investment earnings 2,866,217 - Changes in proportion 171,342 35,892 Contributions paid to PEPFF subsequent to the measurement date 369,101 - Total $ 13,743,026 $ 2,190,501 $ 3 69,101 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2017. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense on the following page. 77 Page 129 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 12 —PENSION PLANS Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) Year Ending Pension Expense December 31, Amount 2017 $ 2,411,970 2018 2,411,970 2019 2,411,984 2020 2,180,345 2021 1,767,155 Total $ 11,183,424 Component Unit's General Employees Fund Pension Costs At December 31,2016, the Commission reported a liability of$ 5,042,212 for its proportionate share of the General Employees Fund's net pension liability. The Commission's net pension liability reflected a reduction due to the State of Minnesota's contribution of$6 million to the fund in 2016. The State of Minnesota is considered a non-employer contributing entity and the State's contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the Commission totaled $ 65,842. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Commission's proportion of the net pension liability was based on the Commission's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2015, through June 30, 2016,relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2016, the Commission's proportion share was 0.0621%, which was an increase of 0.0013% from its proportion measured as of June 30, 2015. For the year ended December 31, 2016, the Commission recognized pension expense of$ 681,569 for its proportionate share of General Employees Fund's pension expense. In addition, the Commission recognized an additional $ 19,632 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of$6 million to the General Employees Fund. At December 31,2016, the Commission reported its proportionate share of General Employees Fund's deferred outflows of resources and deferred inflows of resources, and its contributions subsequent to the measurement date, from the following sources on the subsequent page. 78 Page 130 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 12 —PENSION PLANS Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual economic experience $ - $ 409,605 Changes in actuarial assumptions 987,271 - Difference between projected and actual investment earnings 957,033 - Changes in proportion 45,412 122,346 Contributions paid to PERA subsequent to the measurement date 149,737 - Total $ 2,139,453 $ 531,951 $ 149,737 reported as deferred outflows of resources related to pensions resulting from Commission contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2017. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense on the following page. Year Ending Pension Expense December 31, Amount 2017 $ 3865792 2018 3865792 2019 5025051 2020 182,130 Total $ 1,457,765 E. Actuarial Assumptions The total pension liability in the June 30, 2016, actuarial valuation was determined using the entry age normal actuarial cost method and the following actuarial assumptions: Inflation 2.50 % Per Year Active member payroll growth 3.25 % Per Year Investment rate of return 7.50 % 79 Page 131 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 12 —PENSION PLANS Public Employees' Retirement Association (Continued) E. Actuarial Assumptions (Continued) Salary increases were based on a service-related table. Mortality rates for active members,retirees, survivors, and disabilitants were based on RP-2014 tables for the General Employees Plan and RP-2000 tables for the Police and Fire Plan for males or females, as appropriate,with slight adjustments. Cost of living benefit increases for retirees are assumed to be 1% for all future years for the General Employees Plan and Police and Fire Plan. Actuarial assumptions used in the June 30, 2016,valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the General Employees Plan was completed in 2015. The experience study for Police and Fire Plan was for the period July 1, 2004 through June 30, 2009. The following changes in actuarial assumptions occurred in 2016: General Employees Fund • The assumed post-retirement benefit increase rate was changed from 1.0%per year through 2035 and 2.5%per year thereafter to 1.0%per year for all future years. • The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%. • Other assumptions were changed pursuant to the experience study dated June 30,2015. The assumed future salary increases,payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Police and Fire Fund • The assumed post-retirement benefit increase rate was changed from 1.0%per year through 2037 and 2.5% thereafter to 1.0%per year for all future years. • The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%. • The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. The State Board of Investment,which manages the investments of PERA,prepares an analysis of the reasonableness of the long-term expected rate of return on a regular basis using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the table on the following page. 80 Page 132 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 12 —PENSION PLANS Public Employees' Retirement Association (Continued) E. Actuarial Assumptions (Continued) Long-Term Expected Real Asset Class Target Allocation Rate of Return Domestic stocks 45% 5.50 % International stock 15% 6.00 Bonds 18% 1.45 Alternative assets 20% 6.40 Cash 2% 0.50 Total 100% F. Discount Rate The discount rate used to measure the total pension liability in 2016 was 7.5%, a reduction from the 7.9%used in 2015. The projection of cash flows used to determine the discount rate assumed that contributions from Plan members and employers will be made at rates set in Minnesota Statutes. Based on those assumptions, the fiduciary net position of the General Employees Fund was projected to be available to make all projected future benefit payments of current Plan members. Therefore, the long- term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. In the Police and Fire Fund, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members through June 30, 2056. Beginning in fiscal years ended June 30, 2057 for the Police and Fire Fund,when projected benefit payments exceed the funds' projected fiduciary net position,benefit payments were discounted at the municipal bond rate of 2.85% based on an index of 20-year general obligation bonds with an average AA credit rating at the measurement date. An equivalent single discount rate of 5.60% for the Police and Fire Fund was determined that produced approximately the same present value of projected benefits when applied to all years of projected benefits as the present value of projected benefits using 7.50% applied to all years of projected benefits through the point of asset depletion and 2.85% after. 81 Page 133 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 12 —PENSION PLANS Public Employees' Retirement Association (Continued) G. Pension Liability Sensitivity The following table presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1%Decrease in 1%Increase in Discount Rate Discount Rate Discount Rate (6.5%) (7.5%) (8.5%) City's proportionate share of the General Employees Fund net pension liability $ 10,759,451 $ 7,575,497 $ 4,952,786 Commission's proportionate share of the General Employees Fund net pension liability $ 7,161,435 $ 5,042,212 $ 3,296,549 1%Decrease in 1%Increase in Discount Rate Discount Rate Discount Rate (4.6%) (5.6%) (6.6%) City's proportionate share of the Police and Fire Fund net pension liability $ 26,291,823 $ 18,781,654 $ 12,645,276 H. Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. Public Employees Defined Contribution Plan (Defined Contribution Plan) Four Council Members of the City are covered the Defined Contribution Plan, a multiple-employer deferred compensation plan administered by PERA. The Defined Contribution Plan 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. 82 Page 134 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 12 —PENSION PLANS Public Employees' Retirement Association (Continued) H. Pension Plan Fiduciary Net Position (Continued) The defined contribution plan consists of individual accounts paying a lump-sum benefit, plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses, therefore, there is no future liability to the employer. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. 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% (.0025) of the assets in each member's account annually. Pension expense for the year is equal to contributions made. Total contributions made by the City during fiscal year 2016 were: Contribution Amount Percentage of Covered Payroll Employee Employer Employee Employer Required Rate $ 2,503 $ 2,503 5% 5% 5% Defined Benefit Pension Plan—Volunteer Fire Fighter's Relief Association A. Plan Description The Shakopee Firefighter's Relief Association is the administrator of a single employer defined benefit pension plan established to provide benefits for members of the Shakopee Fire Department per Minnesota State Statutes. The Association issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to Shakopee Fire Relief Association, 129 Holmes Street South, Shakopee, Minnesota 55379 or by calling 952-233-9570. 83 Page 135 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 12—PENSION PLANS Defined Benefit Pension Plan—Volunteer Fire Fighter's Relief Association (Continued) B. Benefits Provided Volunteer firefighters of the City are members of the Shakopee Fire Fighter's Relief Association.Full retirement benefits are payable to members who have reached age 50 and have completed 20 years of service for lump sum service pension. Partial benefits are payable to members who have reached 50 and have completed 5 years of service. Disability benefits and widow and children's survivor benefits are also payable to members or their beneficiaries based upon requirements set forth in the bylaws. These benefit provisions and all other requirements are consistent with enabling state statutes. C. Employees Covered by Benefit Terms At December 31, 2015, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 0 Inactive employees entitled to but not yet receiving benefits 14 Active Employees 44 Total 58 D. Contributions. Minnesota Statutes Chapter 424A.092 specifies minimum support rates required on an annual basis. The minimum support rates from the municipality and from State aids are determined as the amount required to meet the normal cost plus amortizing any existing prior service costs over a ten year period. The City's obligation is the financial requirement for the year less state aids. Any additional payments by the City shall be used to amortize the unfunded liability of the relief association. The Association is comprised of volunteers: therefore, there are no payroll expenditures (i.e. there are no covered payroll percentage calculations). During the year, the City recognized as revenue and as an expenditure an on behalf payment of$ 246,910 made by the State of Minnesota for the Relief Association. E. Net Pension Liability The City's net pension liability was measured as of December 31, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. 84 Page 136 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 12—PENSION PLANS Defined Benefit Pension Plan—Volunteer Fire Fighter's Relief Association (Continued) E. Net Pension Liability (Continued) Actuarial assumptions. The total pension liability in the December 31, 2015, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.75 % Salary increase 0.00 %, average, including inflation Investment rate of return 6.00 %,net of pensions plan investment expense: including inflation The Association is comprised of volunteers; therefore, there are no salary increases. The value of death benefits is similar to the value of the retirement pension. Because of low retirement ages, the plan assumes no pre-retirement mortality. Post-retirement mortality does not apply as the benefit structure and form of payment do not reflect lifetime benefits. The long-term return on assets has been set based on the plan's target investment allocation along with long-term return expectations by asset class. When there is sufficient historical evidence of market outperformance, historical average returns may be considered. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of the measurement date are summarized in the table below. Target Long-Term Expected Asset Class Allocation Real Rate of Return Domestic Equity 39.82% 5.58% International Equity 14.50% 5.71% Fixed Income 25.81% 2.27% Real Estate and Altematives 2.02% 4.44% Cash and Equivalents 17.85% 0.84% Total 100.00% Discount rate. The discount rate used to measure the total pension liability was 6.00%. Assets were projected using expected benefit payments and expected asset returns. Expected benefit payments by year were discounted using the expected asset return assumption for years in which the assets were sufficient to pay all benefit payments. Any remaining benefit payments after the trust fund is exhausted are discounted at the municipal bond rate. The equivalent single rate is the discount rate. 85 Page 137 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 12—PENSION PLANS Defined Benefit Pension Plan—Volunteer Fire Fighter's Relief Association (Continued) F. Changes in the Net Pension Liability Increase(Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a)-(b) Balances at January 1,2015 $ 3,664,402 $ 5,182,390 $ (1,517,988) Changes for the year Service Cost 139,447 - 139,447 Interest 228,231 - 228,231 Contributions-Employer - 244,626 (244,626) Net Investment Income - (268,069) 268,069 Administrative Expense - (9,761) 9,761 Net Changes $ 367,678 $ (33,204) $ 400,882 Balances at December 31,2015 $ 4,032,080 $ 5,149,186 $ (1,117,106) Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension liability of the City, calculated using the discount rate disclosed on the proceeding page, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in Current 1% Increase in Discount Rate Discount Rate Discount Rate (5%) (6%) (7%) City's proportionate share of the Relief net pension asset $ 1,011,040 $ 1,117,106 $ 1,217,826 86 Page 138 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 12—PENSION PLANS Defined Benefit Pension Plan—Volunteer Fire Fighter's Relief Association (Continued) F. Changes in the Net Pension Liability (Continued) Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position is available in the separately issued relief association financial report. G. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2015, the City recognized pension expense of$ 177,199. At December 31, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Contributions paid subsequent to the measurement date $ 246,910 $ - Net Difference Between Projected and Actual Earnings on Pension Plan Investments 465,219 9,269 Total $ 712,129 $ 9,269 $246,910 reported as deferred outflows of resources related to pensions resulting from State contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending Pension Expense December 31, Amount 2017 $ 113,215 2018 113,215 2019 113,216 2020 116,304 Total $ 455,950 H. Payable to the Pension Plan At December 31, 2016, the City reported a payable of$ 0 for the outstanding amount of contributions to the pension plan required for the year ended December 31, 2016. 87 Page 139 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 13 —POST EMPLOYMENT HEALTH BENEFITS 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 Medica. 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. 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 Medica. The required contributions are based on projected pay-as-you-go financing requirements. For the year 2016, the City contributed $ 53,193 to the plan. As of January 1, 2016, there were six retirees and two disabled officers receiving health benefits from the City's health plan. For the most part, the General Fund and the Employee Benefits Internal Service Fund are typically used to liquidate net other post employment benefit obligations. 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 of the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation to the plan. ARC $ 337,572 Interest on Net OPEB Obligation 49,407 Adjustment to ARC (76,752) Annual OPEB Cost(Expense) 310,227 Contribution Made (53,193) Increase in Net OPEB Obligation 257,034 Net OPEB Obligation-Beginning of Year 1,411,640 Net OPEB Obligation-End of Year $ 1,668,674 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for 2016 was as follows: Percentage of Fiscal Year Annual OPEB Employer Annual OPEB Net OPEB End Cost Contribution Cost Contributed Obligation 12/31/16 $ 310,227 $ 53,193 17% $ 1,668,674 12/31/15 237,322 69,166 29% 1,411,640 12/31/14 231,421 55,738 24% 1,243,484 88 Page 140 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 13 —POST EMPLOYMENT HEALTH BENEFITS PLAN D. Funded Status and Funding Progress As of January 1, 2016, the most recent actuarial valuation date, the City had no assets deposited to fund the plan. The actuarial accrued liability for benefits was $ 2,629,107 and the actuarial value of assets was $ 0, resulting in an unfunded actuarial accrued liability (UAAL) of$ 2,629,107. The covered payroll (annual payroll of active employees covered by the plan)was 12,403,330 and the ratio of the UAAL to the covered payroll was 21.2%. 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 determined 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. E. Actuarial Methods and Assumptions 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. In the January 1, 2016 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 3.5 % discount rate,which is based on the investment yield expected to finance benefits depending on whether the plan is funded in a separate trust(about 7.0% to 8.5%, long- term, similar to a pension plan) or unfunded (3.5% to 5.0%, shorter-term,based on City's general assets). The City currently does not fund this benefit. At the actuarial valuation date, the annual health care cost trend rate was calculated to be 3.2% initially, increased incrementally to an ultimate rate of 5.3% after five years. Both rates included a 2.75% inflation assumption. The UAAL is being amortized as a level percentage of payroll on an open basis. The remaining amortization period at December 31, 2016 was 30 years. NOTE 14—SEGMENT INFORMATION The City maintains three enterprise funds that account for the sewer, storm drainage and refuse utilities. The City considers each of its enterprise funds to be a segment. Since the required segment information is already included in the City's proprietary funds' Balance Sheet and Statement of Revenues, Expenses and Changes in Fund Net Position balances, this information has not been repeated in the Notes to the Financial Statements. 89 Page 141 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 15—FUND BALANCE DETAIL Fund equity balances are classified as follows to reflect the limitations and restrictions of the respective funds. Community Other General Capital Center/Ice Governmental Fund Improvements Arena Funds Total Nonspendable: Prepaid Items $ 22,188 $ - $ - $ - $ 22,188 Restricted: Forfeitures - - - 186,965 186,965 SCDP Grant - - - 4,734 4,734 Revolving Loans - - - 263,787 263,787 Economic Development - - - 1,503,917 1,503,917 Debt Service - - - 3,712,584 3,712,584 Capital Improvements - - 6,547,457 665,801 7,213,258 Total Restricted - - 6,547,457 6,337,788 12,885,245 Assigned: Telecommunications - - - 70,795 70,795 Capital Improvements - 4,744,275 - 2,244,591 6,988,866 Total Assigned - 4,744,275 - 2,315,386 7,059,661 Unassigned: 10,739,178 - - (39,928) 10,699,250 Total Fund Balance $ 10,761,366 $ 4,744,275 $ 6,547,457 $ 8,613,246 $ 30,666,344 NOTE 16—COMMITTMENTS Project Work 12/31/2016 Authorization Completed Commitment 2016 Sanitary Sewer Lateral Pipe Rehabilitation $ 524,980 $ 397,682 $ 127,298 2015 Sanitary Sewer Lateral Pipe Rehabilitation 606,316 534,886 71,430 2016 Street Lighting Project 104,311 - 104,311 4th Avenue Reconstruction 2,119,047 2,002,216 116,831 Community Center Improvements 23,440 17,580 5,860 City Hall 8,556,398 3,368,052 5,188,347 Ice Arena/Community Center Improvements 29,344,881 23,033,939 6,310,943 Quarry Lake Park Phase 1 1,189,635 1,169,851 19,783 Shakopee Ice Arena 93,673 64,759 28,915 90 Page 142 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 17—RISK MANAGEMENT The City purchases commercial insurance coverage through the League of Minnesota Cities Insurance Trust(LMCIT)with other cities in the state which is a public entity risk pool currently operating as a common risk management and insurance program. The City pays an annual premium to the LMCIT for its insurance coverage. The LMCIT is self-sustaining through member premiums and reinsures through commercial companies for excess claims. The City is covered through the pool for any claims incurred but unreported,however, retains risk for the deductible portion of its insurance policies. The amount of these deductibles ranges from $ 500 to $ 50,000 and is considered immaterial to the financial statements. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three years. Through the pool, the City is subject to reassessment but due to reserves and reinsurance contracts, the likelihood is very low. The policy limits through the pool included$ 2,000,000 aggregate for liability, $ 1,500,000 for automobile coverage, $ 1,000,000 faithful performance employee bonding and $ 1,000,000 for universal umbrella coverage. Property coverage is at approximately $ 134,300,000. NOTE 18—CONTINGENCY The City has been named as a defendant in the cleanup of the Burnsville landfill. The case is pending further information and the outcome of liability to the City is unknown at the present time. NOTE 19—TAX ABATEMENT AGREEMENT The City has entered into three Tax Abatement Financing agreements which meet the criteria for disclosure under Governmental Accounting Standards Board Statement No. 77 Tar Abatement Disclosures. The City's authority to enter into these agreements comes from Minnesota Statute 469. The City entered into these agreements for the purpose of economic development. Under each agreement, the City and developer agree on an amount of development costs to be reimbursed to the developer by the City though tax revenues from the additional taxable value of the property generated by the development (tax abatement). The tax abatement agreements are as follows: • Datacard Abatement was established in 2013. Entrust Datacard is the world's largest issuer of protected,personalized ID cards, credentials, and credit cards. The City of Shakopee awarded an eleven-year economic development property tax abatement, ending in 2024,which required the creation of 100 new full time jobs in Shakopee. The first year of disbursement occurred in 2014. The total city abatement awarded was $ 334,869 with an annual maximum award of$ 36,195. The total county abatement awarded was $ 324,324 with an annual maximum award of$ 35,055. During the year ended December 31, 2016, the total disbursed was $ 69,778 with $35,920 from Scott County and$33,858 from the City. 91 Page 143 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 19—TAX ABATEMENT AGREEMENT • Emerson Abatement was established in 2013. Rosemount Emerson Process Management is a leading supplier of process management products and solutions, including control valves, regulators, transmitters, analyzers, and automation systems. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2023,which required the creation of 154 new full time jobs in Shakopee. The first year of disbursement occurred in 2015. The total city abatement awarded was $ 590,496. The total county abatement awarded was $ 570,608 with an annual maximum award of$ 64,401. During the year ended December 31, 2016, the total disbursed was $ 102,349 with $49,981 from Scott County and $52,368 from the City. • Shutterfly Abatement was established in 2014. Shutterfly, Inc. is an Internet-based social expression and personal publishing service that was founded in December of 1999. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2024, which required the creation of 258 new jobs in Shakopee. The first year of disbursement occurred in 2016. The total city abatement awarded was $758,771 with an annual maximum award of$89,431. The total county abatement awarded was $734,898 with an annual maximum award of$86,615. The 2016 disbursement amount was reduced by 11% due to Shutterfly not meeting their job creation goal of 258 new jobs. They created 230 which left them 28 jobs short or 11% short of their goal, therefor the annual award was reduced to reflect the shortage. The abatement was awarded from the City and Scott County. During the year ended December 31, 2016, the total disbursed was $106,202 with $54,339 from Scott County and $51,863 from the City. NOTE 20 TAX INCREMENT FINANCING The City has entered into three Tax Increment Financing agreements which meet the criteria for disclosure under Governmental Accounting Standards Board Statement No. 77 Tar Abatement Disclosures. The City's authority to enter into these agreements comes from Minnesota Statute 469. The City entered into these agreements for the purpose of economic development. Under each agreement, the City and developer agree on an amount of development costs to be reimbursed to the developer by the City though tax revenues from the additional taxable value of the property generated by the development(tax increment). A "pay-as-you-go" is established for this amount, on which the City makes payments for a fixed period of time with available tax increment revenue after deducting for certain administrative costs. During the year ended December 31, 2016, the City generated $464,634 in tax increment revenue and made $422,329 in payments to developers. 92 Page 144 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 20 TAX INCREMENT FINANCING • TIF District No. 10 was established in 1996 for the purpose of establishing multifamily rental housing. River City Centre is 52-units of multifamily rental housing owned and operated by the Scott County Community Development Authority (CDA). Under this agreement, up to $2,750,000 in development costs would be reimbursed over twenty-five years with the final year being 2024. During the year ended December 31, 2016, the City generated$41,585 of tax increment revenue and made payments of$41,585. The available balance at year end was $2,191,642. • TIF District No. 14 was established in 2014 as an economic development TIF. J&J Minneapolis/SanMar is a wholesale apparel and accessories distribution company. This TIF required the creation of 150 new full time jobs in Shakopee. The first year of disbursement occurred in 2015 and the final year will be in 2024. Under this agreement, up to $2,000,000 of development costs will be reimbursed through tax increment over a 9 year period. During the year ended December 31, 2016, the City generated $280,739 of tax increment revenue and made payments on the pay-as-you-go note of$ 252,665. The available balance at year end was $1,494,277. • TIF District No. 15 was established in 2014 for the purpose of establishing a housing unit. Trident/All Saints Senior Living is an 80-unit senior community providing assisted living, memory care, and care suites with 20% of the units being affordable to persons of low and moderate income. Under the agreement, up to $1,000,000 of development costs will be reimbursed through tax increment over a 25 year period. During the year ended December 31, 2016, the City generated$142,310 of tax increment revenue and made payments of$128,079. The available balance at year end was $766,848. NOTE 21 —NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED GASB has issued GASB Statement 74 relating to postemployment benefit plans other than pension plans administered through trusts that meet certain criteria and includes requirements for OPEB plans not administered through trusts. This new statement requires additional note disclosures and additional required supplementary information. This statement is effective for financial statements for fiscal years beginning after June 15, 2016. We are recommending that a review of your actuarial study be completed with your actuarial firm to ensure compliance with the new standard. GASB has issued GASB statement 75 relating to accounting and financial reporting for postemployment benefits other than pensions. The new statement requires governments in all types of OPEB plans to present more extensive note disclosures and required supplementary information (RSI) about OPEB liabilities. This statement is effective for financial statements for fiscal years beginning after June 15, 2017. 93 Page 145 of 334 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2016 NOTE 21 —NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED GASB has issued GASB statement 80 relating to blending requirements for certain component units. The new statement amends the blending requirements for financial statement presentation of component units. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. This statement is effective for financial statements for fiscal years beginning after June 15, 2016. 94 Page 146 of 334 REQUIRED SUPPLEMENTARY INFORMATION 95 Page 147 of 334 CITY OF SHAKOPEE SCHEDULE OF FUNDING PROGRESS-OTHER POST EMPLOYMENT BENEFITS December 31,2016 Actuarial UAAL as a Actuarial Accrued Liability Unfunded Percentage of Actuarial Value of (AAL)- AAL Funded Covered Covered Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) (a/b) (c) ((b-a)/c) 01/01/08 $ - $ 1,887,961 $ 1,887,961 0.0% $ 6,652,669 28.4% 01/01/09 * - 1,887,961 1,887,961 0.0% 6,652,669 28.4% O1/01/10 - 1,483,810 1,483,810 0.0% 7,154,161 20.7% O1/01/11 * - 1,483,810 1,483,810 0.0% 7,154,161 20.7% 01/01/12 * - 1,483,810 1,483,810 0.0% 7,154,161 20.7% 01/01/13 - 1,938,082 1,938,082 0.0% 8,738,120 22.2% 01/01/14 * - 1,938,082 1,938,082 0.0% 8,738,120 22.2% 01/01/15 * - 1,938,082 1,938,082 0.0% 8,738,120 22.2% 01/01/16 - 2,629,107 2,629,107 0.0% 12,403,330 21.2% * Because an actuarial valuation is being performed once every three years,the amounts for the 01/01/08 and 01/01/09, and the 01/01/10, 01/01/11 and 01/01/12,and the 01/01/13, 01/01/14 and 01/01/15 valuation are the same. 96 Page 148 of 334 CITY OF SHAKOPEE SCHEDULE OF CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST 10 YEARS GENERAL EMPLOYEES RETIREMENT FUND City's Proportionate City's Plan State's Share of the Net Proportionate Fiduciary Proportionate Pension Liability Share of the Net Position City's City's Share of the and the State's Net Pension as a Proportion Proportionate Net Pension Proportionate Share City's Liability as a Percentage of the Net Share of the Liability of the Net Pension Covered- Percentage of of the Total For the Fiscal Pension Net Pension Associated Liability Associated Employee its Covered Pension Year Ended Liability Liability with the City with the City Payroll Payroll Liability June 30,2016 0.0933% $ 7,575,497 $ 98,919 $ 7,674,416 $5,790,920 130.82% 68.91% June 30,2015 0.0930% 4,819,743 - 4,819,743 5,373,627 89.69% 78.19% *Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30,2015,or after. 97 Page 149 of 334 CITY OF SHAKOPEE SCHEDULE OF CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST 10 YEARS PUBLIC EMPLOYEES POLICE AND FIRE RETIREMENT FUND City's City's City's Proportionate Plan Fiduciary Proportion Proportionate City's Share of the Net Net Position as a of the Net Share of the Covered- Pension Liability as Percentage of the For the Fiscal Pension Net Pension Employee a Percentage of its Total Pension Year Ended Liability Liability Payroll Covered Payroll Liability June 30,2016 0.4680% $ 18,781,654 $ 4,511,556 416.30% 63.88% June 30,2015 0.4720% 5,363,024 4,199,481 127.71% 86.61% * Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30,2015,or after. 98 Page 150 of 334 CITY OF SHAKOPEE SCHEDULE OF COMPONENT UNIT'S PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST 10 YEARS GENERAL EMPLOYEES RETIREMENT FUND City's Proportionate City's Plan State's Share of the Net Proportionate Fiduciary Proportionate Pension Liability Share of the Net Position City's City's Share of the and the State's Net Pension as a Proportion Proportionate Net Pension Proportionate Share City's Liability as a Percentage of the Net Share of the Liability of the Net Pension Covered- Percentage of of the Total For the Fiscal Pension Net Pension Associated Liability Associated Employee its Covered Pension Year Ended Liability Liability with the City with the City Payroll Payroll Liability June 30,2016 0.0621% $ 5,042,212 $ 65,842 $ 5,108,054 $3,854,427 130.82% 68.91% June 30,2015 0.0608% 3,150,972 - 3,150,972 3,516,627 89.60% 78.19% *Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30,2015,or after. 99 Page 151 of 334 CITY OF SHAKOPEE SCHEDULE OF CITY CONTRIBUTIONS LAST 10 YEARS GENERAL EMPLOYEES RETIREMENT FUND Contributions Contributions Statutorily in Relation to Contribution City's Covered- as a Percentage For the Fiscal Required the Statutorily Deficiency Employee of Covered Year Ended Contribution Required (Excess) Payroll Employee December 31,2016 $ 459,555 $ 459,555 $ - $ 6,127,400 7.50% December 31,2015 416,647 416,647 - 51555,293 7.50% * Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30,2015,or after. 100 Page 152 of 334 CITY OF SHAKOPEE SCHEDULE OF CITY CONTRIBUTIONS LAST 10 YEARS PUBLIC EMPLOYEES POLICE AND FIRE RETIREMENT FUND Contributions Contributions in Relation to as a Percentage Statutorily the Statutorily Contribution City's Covered- of Covered For the Fiscal Required Required Deficiency Employee Employee Year Ended Contribution Contributions (Excess) Payroll Payroll December 31,2016 $ 761,951 $ 761,951 $ - $ 4,703,401 16.20% December 31,2015 720,513 720,513 - 4,447,611 16.20% * Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30,2015,or after. 101 Page 153 of 334 CITY OF SHAKOPEE SCHEDULE OF COMPONENT UNIT CONTRIBUTIONS LAST 10 YEARS GENERAL EMPLOYEES RETIREMENT FUND Contributions Contributions Statutorily in Relation to Contribution City's Covered- as a Percentage For the Fiscal Required the Statutorily Deficiency Employee of Covered Year Ended Contribution Required (Excess) Payroll Employee December 31,2016 $ 299,473 $ 299,473 $ - $ 3,992,973 7.50% December 31,2015 273,227 273,227 - 3,643,027 7.50% * Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30,2015,or after. 102 Page 154 of 334 CITY OF SHAKOPEE SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS -FIRE RELIEF ASSOCIATION 2014 2015 Total Pension Liability(TPL) Service cost $ 135,715 $ 139,447 Interest 224,377 228,231 Differenced between expected and actual experience - - Changes of assumptions - - Changes of benefit terms - - Benefit payments, including refunds or member contributions (599,181) - Net change in total pension liability (239,089) 367,678 Beginning of year $ 3,903,491 $ 3,664,402 End of year $ 3,664,402 $ 4,032,080 Plan Fiduciary Net Pension (FNP) Contributions - employer $ 341,036 $ 244,626 Contributions - employee - - Net investment income 315,532 (268,069) Benefit payments, including refunds of member contributions (599,181) - Administrative expense (10,897) (9,761) Other - Net change in plan fiduciary net position 46,490 (33,204) Beginning of year 5,135,900 5,182,390 End of year $ 5,182,390 $ 5,149,186 Net Pension Liability (NPL) $(1,517,988) $(1,117,106) Plan fiduciary net position as a percentage of the total pension liability 141.4% 127.7% Covered employee payroll n/a n/a Net pension liability as a percentage of covered payroll n/a n/a The City implemented the Provisions of Governmental Accounting Standards Board Statement No. 68 for the year ended December 31, 2015. The schedules within the Required Supplementary Information section required a ten-year presentation, but does not require retroactive reporting. Information prior to 2014 is not available. Additional years will be reported as they become available. 103 Page 155 of 334 CITY OF SHAKOPEE SCHEDULE OF CITY CONTRIBUTIONS AND NON-EMPLOYER CONTRIBUTING ENTITIES-FIRE RELIEF ASSOCIATION Contributions as a Percentage Actuarial Actual Contribution Covered of Covered For the Fiscal Year Determined Contributions Deficiency 2%State Employee Employee Ended Contribution Paid (Excess) Aid Payroll Payroll December 31,2015 $ - $ - $ - $ 244,626 n/a n/a December 31,2014 113,868 113,868 - 227,168 n/a n/a The Association implemented the Provisions of Governmental Accounting Standards Board Statement No.68 for the year ended December 31,2015.The schedules within the Required Supplementary Information section required a ten-year presentation,but does not require retroactive reporting. Information prior to 2014 is not available. Additional years will be reported as they become available. 104 Page 156 of 334 CITY OF SHAKOPEE NOTES TO REQUIRED SUPPLEMENTARY INFORMATION GENERAL EMPLOYEES FUND 2016 Changes Changes in Actuarial Assumptions • The assumed post-retirement benefit increase rate was changed from 1.0%per year through 2035 and 2.5%per year thereafter to 1.0% per year for all future years. • The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%. • Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases,payroll growth, the inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. 2015 Changes Changes in Plan Provisions • On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions were revised. Changes in Actuarial Assumptions • The assumed post-retirement benefit increase rate was changed from 1.0%per year through 2030 and 2.5%per year thereafter to 1.0%per year through 2035 and 2.5%per year thereafter. POLICE AND FIRE FUND 2016 Changes Changes in Actuarial Assumptions • The assumed post-retirement benefit increase rate was changed from 1.0%per year through 2037 and 2.5% thereafter to 1.0%per year for all future years. • The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%. • The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. 2015 Changes Changes in Plan Provisions • The post-retirement benefit increase to be paid after attainment of the 90% funding threshold was changed, from inflation up to 2.5%, to a fixed rate of 2.5%. Changes in Actuarial Assumptions • The assumed post-retirement benefit increase rate was changed from 1.0%per year through 2030 and 2.5%per year thereafter to 1.0%per year through 2037 and 2.5%per year thereafter. 105 Page 157 of 334 (THIS PAGE LEFT BLANK INTENTIONALLY) 106 Page 158 of 334 SUPPLEMENTARY INFORMATION 107 Page 159 of 334 CITY OF SHAKOPEE SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL-GENERAL FUND For the Year Ended December 31,2016 Variance with Budget Actual Final Budget- Original Final Amounts Over(Under) REVENUES Property Taxes General Property Taxes $ 14,955,400 $ 14,955,400 $ 14,814,140 $ (141,260) Fiscal Disparities 1,857,500 1,857,500 1,807,792 (49,708) Lodging Tax 325,000 325,000 388,372 63,372 Aggregate Tax 13,000 13,000 11,900 (1,100) Total Property Taxes 17,150,900 17,150,900 17,022,204 (128,696) Special Assessments 11,500 11,500 15,818 4,318 Licenses and Permits 1,504,100 2,269,100 2,564,729 295,629 Intergovernmental Revenues Federal Grants 18,000 18,000 30,174 12,174 PERA Aid 18,000 18,000 18,170 170 Police Aid 343,000 343,000 390,012 47,012 Fire Aid 224,000 241,600 246,910 5,310 State Grants 504,500 630,300 657,513 27,213 Other Grants and Aids 1,000 1,000 1,500 500 Total Intergovernmental Revenues 1,108,500 1,251,900 1,344,279 92,379 Charges for Services General Government 2,044,825 2,045,500 2,171,067 125,567 Public Safety 594,250 757,250 817,719 60,469 Public Works 522,500 473,900 581,032 107,132 Parks and Recreation 1,064,700 1,091,500 1,180,696 89,196 Total Charges for Services 4,226,275 4,368,150 4,750,514 382,364 Fines and Forfeitures 1,500 1,500 11,213 9,713 Miscellaneous Revenues Investment Income 145,000 125,000 118,764 (6,236) Contributions and Donations 4,800 6,800 7,266 466 Rents 9,500 9,500 9,460 (40) Other 65,948 66,450 83,244 16,794 Total Miscellaneous Revenues 225,248 207,750 218,734 10,984 Total Revenues 24,228,023 25,260,800 25,927,491 666,691 EXPENDITURES General Government Current: Mayor and Council $ 185,260 $ 176,990 $ 171,877 $ (5,113) Administration 1,555,530 1,355,860 1,430,285 74,425 City Clerk 399,170 326,030 327,235 1,205 Finance 1,243,700 1,154,300 1,194,485 40,185 Planning 674,905 501,720 470,494 (31,226) Government Buildings 408,986 363,810 370,741 6,931 Unallocated 218,450 217,580 34,836 (182,744) Total General Government 4,686,001 4,096,290 3,999,953 (96,337) 108 Page 160 of 334 CITY OF SHAKOPEE SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL-GENERAL FUND For the Year Ended December 31,2016 Variance with Budget Actual Final Budget- Original Final Amounts Over(Under) EXPENDITURES(Continued) Public Safety Current: Police 7,625,014 7,690,810 7,758,048 67,238 Fire 2,079,785 2,059,380 2,112,184 52,804 Building Inspection 669,967 606,910 715,667 108,757 Capital Outlay - 60,000 37,423 (22,577) Total Public Safety 10,374,766 10,417,100 10,623,322 206,222 Public Works Current: Engineering 739,178 627,340 607,934 (19,406) Streets 2,225,116 1,934,790 2,004,914 70,124 Shop 429,595 403,310 448,324 45,014 Total Public Works 3,393,889 2,965,440 3,061,172 95,732 Parks and Recreation Current: Park Maintenance 1,643,096 1,570,640 1,601,390 30,750 Natural Resources 198,092 200,410 178,269 (22,141) Recreation 2,529,679 2,462,810 2,452,508 (10,302) Capital Outlay 1,500 - - - Total Parks and Recreation 4,372,367 4,233,860 4,232,167 (1,693) Total Expenditures 22,827,023 21,712,690 21,916,614 203,924 Excess of Revenues Over(Under)Expenditures 1,401,000 3,548,110 4,010,877 462,767 OTHER FINANCING SOURCES(USES) Proceeds from Sale of Capital Asset - 600 9,134 8,534 Transfers In 250,000 250,000 250,000 - Transfers Out (2,100,000) (3,345,000) (3,348,755) (3,755) Total Other Financing Sources(Uses) (1,850,000) (3,094,400) (3,089,621) 4,779 Net Change in Fund Balances $ (449,000) $ 453,710 921,256 $ 467,546 FUND BALANCES Beginning of Year 9,840,110 End of Year $ 10,761,366 109 Page 161 of 334 CITY OF SHAKOPEE COMBINING BALANCE SHEET- NONMAJOR GOVERNMENTAL FUNDS December 31,2016 Special Revenue Forfeitures Telecommunication SCDP Grant ASSETS Cash and Investments $ 189,697 $ 62,082 $ 4,713 Delinquent Taxes Receivable - - - Special Assessments Receivable: Delinquent - - - Deferred - - - Accounts Receivable - 8,424 - Interest Receivable 881 289 21 Due From Other Governments - - - Land Held for Resale - - - Total Assets $ 190,578 $ 70,795 $ 4,734 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts Payable $ 3,613 $ - $ - Contracts Payable - - - Due to Other Funds - - - Due to Other Governments - - - Advance from Other Funds - - - Total Liabilities 3,613 - - Deferred Inflows of Resources Unavailable Revenue-Property Taxes - - Unavailable Revenue-Special Assessments - Total Deferred Inflows of Resources - Fund Balances Restricted for: Special Revenue 186,965 4,734 Debt Service - - Capital Projects - Assigned - 70,795 Unassigned - - - Total Fund Balances 186,965 70,795 4,734 Total Liabilities,Deferred Inflows of Resources and Fund Balances $ 190,578 $ 70,795 $ 4,734 110 Page 162 of 334 Special Revenue Debt Service Economic 2004B 2006A 2007A Development Refunding Improvement Improvement Revolving Loan Authority Total Bonds Bonds Bonds $ 262,567 $ 1,511,913 $ 2,030,972 $ 225,264 $ 381,347 $ 156,950 - 17 17 123 - - - - - - - 29,550 - - - - - 280,438 - - 8,424 - - - 1,220 7,026 9,437 1,047 1,772 730 - 29,811 29,811 - - - - 923,612 923,612 - - - $ 263,787 $ 2,472,379 $ 3,002,273 $ 226,434 $ 383,119 $ 467,668 $ $ 27,051 $ 30,664 $ 255 $ 255 $ 255 - 941,394 941,394 - - - 968,445 972,058 255 255 255 - 17 17 123 - - - - - - - 309,988 - 17 17 123 - 309,988 263,787 1,503,917 1,959,403 - - - - - - 226,056 382,864 157,425 - - 70,795 - - - 263,787 1,503,917 2,030,198 226,056 382,864 157,425 $ 263,787 $ 2,472,379 $ 3,002,273 $ 226,434 $ 383,119 $ 467,668 111 Page 163 of 334 CITY OF SHAKOPEE COMBINING BALANCE SHEET- NONMAJOR GOVERNMENTAL FUNDS (Continued) December 31,2016 Debt Service 2007B 2008A 2010A Improvement Improvement Improvement Bonds Bonds Bonds ASSETS Cash and Investments $ 230,531 $ 282,644 $ 214,156 Delinquent Taxes Receivable - - - Special Assessments Receivable: Delinquent 290 - - Deferred 8,348 101,043 68,079 Accounts Receivable - - - Interest Receivable 699 1,082 809 Due From Other Governments 28 - - Land Held for Resale - - - Total Assets $ 239,896 $ 384,769 $ 283,044 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts Payable $ 255 $ 255 $ 255 Contracts Payable - - - Due to Other Funds - - - Due to Other Governments - - - Advance from Other Funds - - - Total Liabilities 255 255 255 Deferred Inflows of Resources Unavailable Revenue-Property Taxes - - - Unavailable Revenue-Special Assessments 8,638 101,043 68,079 Total Deferred Inflows of Resources 8,638 101,043 68,079 Fund Balances Restricted for: Special Revenue - - - Debt Service 231,003 283,471 214,710 Capital Projects - - - Assigned - - - Unassigned - - - Total Fund Balances 231,003 283,471 214,710 Total Liabilities,Deferred Inflows of Resources and Fund Balances $ 239,896 $ 384,769 $ 283,044 112 Page 164 of 334 Debt Service Capital Projects 2012A Refunding 2016A Tax TIF District No. TIF District No. Bonds Abatement Bond Total Park Reserve 10 14 $ 1,663,219 $ 544,041 $ 3,698,152 $ 744,555 $ - $ 54,225 - - 123 - - - - - 29,840 - - - 1,194,324 - 1,652,232 - - - - - - 2,619 - - 7,727 877 14,743 3,459 (36) 252 1,701 - 1,729 - - - $ 2,866,971 $ 544,918 $ 5,396,819 $ 750,633 $ (36) $ 54,477 $ 255 $ 255 $ 2,040 $ 101,036 $ 764 $ - - - 58,493 - - - - 7,802 - - - 24 - - 255 255 2,040 159,553 8,566 - - - 123 - - - 1,194,324 - 1,682,072 - - - 1,194,324 - 1,682,195 - - - 1,672,392 544,663 3,712,584 - - - - - - 591,080 - 54,477 - - - - (8,602) - 1,672,392 544,663 3,712,584 591,080 (8,602) 54,477 $ 2,866,971 $ 544,918 $ 5,396,819 $ 750,633 $ (36) $ 54,477 113 Page 165 of 334 CITY OF SHAKOPEE COMBINING BALANCE SHEET- NONMAJOR GOVERNMENTAL FUNDS (Continued) December 31,2016 Capital Projects Road TIF District No. Expansion Tree 15 Dedication Replacement ASSETS Cash and Investments $ 20,150 $ 94,153 $ 182,696 Delinquent Taxes Receivable - - - Special Assessments Receivable: Delinquent - - - Deferred - - - Accounts Receivable - - - Interest Receivable 94 438 849 Due From Other Governments - - - Land Held for Resale - - - Total Assets $ 20,244 $ 94,591 $ 183,545 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts Payable $ - $ $ Contracts Payable - Due to Other Funds - - Due to Other Governments - Advance from Other Funds - Total Liabilities - Deferred Inflows of Resources Unavailable Revenue-Property Taxes - - - Unavailable Revenue-Special Assessments - - - Total Deferred Inflows of Resources - - - Fund Balances Restricted for: Special Revenue - - - Debt Service - - - Capital Projects 20,244 - - Assigned - 94,591 183,545 Unassigned - - - Total Fund Balances 20,244 94,591 183,545 Total Liabilities,Deferred Inflows of Resources and Fund Balances $ 20,244 $ 94,591 $ 183,545 114 Page 166 of 334 Capital Projects Property Total Acquisition Governmental Sealcoat Fund City Hall Total Funds $ 72,504 $ 267,432 $ 2,691,142 $ 4,126,857 $ 9,855,981 - - - - 140 - - - - 29,840 - - - - 1,652,232 - - 146,285 148,904 157,328 338 1,242 7,856 14,492 38,672 - - - - 31,540 - 100,000 - 100,000 1,023,612 $ 72,842 $ 368,674 $ 21845,283 $ 4,390,253 $ 12,789,345 $ - - 762,297 $ 864,097 $ 896,801 - - 189,373 247,866 247,866 - - - 7,802 7,802 - - - 24 24 - 400,000 - 400,000 1,341,394 - 400,000 951,670 1,519,789 2,493,887 - - - - 140 - - - - 1,682,072 - - - - 1,682,212 - - - - 1,959,403 - - - - 3,712,584 - - - 665,801 665,801 72,842 - 1,893,613 2,244,591 2,315,386 - (31,326) - (39,928) (39,928) 72,842 (31,326) 1,893,613 2,870,464 8,613,246 $ 72,842 $ 368,674 $ 2,845,283 $ 4,390,253 $ 12,789,345 115 Page 167 of 334 CITY OF SHAKOPEE COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-NON MAJOR GOVERNMENTAL FUNDS For the Year Ended December 31,2016 Special Revenue Revolving Forfeitures Telecommunication SCDP Grant Loan REVENUES Property Taxes $ - $ - $ - $ - Tax Increment - - - - Special Assessments - - - - Licenses and Permits - 32,495 - - Intergovernmental - - - - Charges for Services - - - - Fines and Forfeitures 47,430 - - - Miscellaneous 10,652 - - - Investment Income 2,016 1,131 51 2,922 Total Revenues 60,098 33,626 51 2,922 EXPENDITURES Current General Government - 16,918 - - Public Safety 57,443 - - - Culture and Recreation - - - - Economic Development - - - - Debt Service Principal - - - - Interest and Other Charges - - - - Capital Outlay - 54,540 - - Total Expenditures 57,443 71,458 - - Excess of Revenues Over (Under)Expenditures 2,655 (37,832) 51 2,922 OTHER FINANCING SOURCES(USES) Bonds Issued - - - - Transfers In 3,755 - - - Transfers Out - - - - Total Other Financing Sources(Uses) 3,755 - - - Net Change in Fund Balances 6,410 (37,832) 51 2,922 FUND BALANCES Beginning of Year 180,555 108,627 4,683 260,865 End of Year $ 186,965 $ 70,795 $ 4,734 $ 263,787 116 Page 168 of 334 Special Revenue Debt Service Economic 2004B 2006A 2007A 2007B Development Refunding Improvement Improvement Improvement Authority Total Bonds Bonds Bonds Bonds $ 6 $ 6 $ 238,027 $ 315,390 $ - $ 94,992 - - - 16,699 22,375 9,315 - 32,495 - - - - 1,029,810 1,029,810 - - - - 6,000 6,000 - - - - - 47,430 - - - - 250,312 260,964 - - - - 14,701 20,821 336 1,241 1,599 756 1,300,829 1,397,526 238,363 333,330 23,974 105,063 - 16,918 - - - - - 57,443 - - - - 1,377,742 1,377,742 - - - - - - 220,000 380,000 155,000 150,000 - - 14,330 25,805 9,805 16,005 - 54,540 - - - - 1,377,742 1,506,643 234,330 405,805 164,805 166,005 (76,913) (109,117) 4,033 (72,475) (140,831) (60,942) 905,920 909,675 - - - 80,000 905,920 909,675 - - - 80,000 829,007 800,558 4,033 (72,475) (140,831) 19,058 674,910 1,229,640 222,023 455,339 298,256 211,945 $ 1,503,917 $ 2,030,198 $ 226,056 $ 382,864 $ 157,425 $ 231,003 117 Page 169 of 334 CITY OF SHAKOPEE COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-NON MAJOR GOVERNMENTAL FUNDS (Continued) For the Year Ended December 31,2016 Debt Service 2008A 2010A 2012A 2016A Tax Improvement Improvement Refunding Abatement Bonds Bonds Bonds Bond REVENUES Property Taxes $ - $ 88,500 $ 47,386 $ - Tax Increment - - - - Special Assessments 60,391 31,232 628,630 - Licenses and Permits - - - - Intergovernmental - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous - - - - Investment Income 2,158 906 11,809 427 Total Revenues 62,549 120,638 687,825 427 EXPENDITURES Current General Government - - - - Public Safety - - - - Culture and Recreation - - - - Economic Development - - - - Debt Service Principal 200,000 135,000 445,000 - Interest and Other Charges 30,105 18,016 86,592 576,639 Capital Outlay - - - - Total Expenditures 230,105 153,016 531,592 576,639 Excess of Revenues Over (Under)Expenditures (167,556) (32,378) 156,233 (576,212) OTHER FINANCING SOURCES(USES) Bonds Issued - - - 1,120,875 Transfers In 50,000 40,000 226,680 - Transfers Out - - - - Total Other Financing Sources(Uses) 50,000 40,000 226,680 1,120,875 Net Change in Fund Balances (117,556) 7,622 382,913 544,663 FUND BALANCES Beginning of Year 401,027 207,088 1,289,479 - End of Year $ 283,471 $ 214,710 $ 1,672,392 $ 544,663 118 Page 170 of 334 Debt Service Capital Projects TIF District TIF District No. TIF District No. Emerson Total Park Reserve No. 10 14 15 Abatement $ 784,295 $ - $ - $ - $ - $ 102,349 - - 41,585 280,739 142,310 - 768,642 - - - - - - 549,594 - - - - - 2,730 - - - - 90,000 - - - 19,232 15,674 (12) 555 206 - 1,572,169 657,998 41,573 281,294 142,516 102,349 - - 41,621 253,451 128,847 102,349 1,685,000 - - - - - 777,297 - 764 - - - - 1,427,324 - - - - 2,462,297 1,427,324 42,385 253,451 128,847 102,349 (890,128) (769,326) (812) 27,843 13,669 - 1,120,875 - - - - - 396,680 - - - - - - (20,261) - - - - 1,517,555 (20,261) - - - - 627,427 (789,587) (812) 27,843 13,669 - 3,085,157 1,380,667 (7,790) 26,634 6,575 - $ 3,712,584 $ 591,080 $ (8,602) $ 54,477 $ 20,244 $ - 119 Page 171 of 334 CITY OF SHAKOPEE COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-NON MAJOR GOVERNMENTAL FUNDS (Continued) For the Year Ended December 31,2016 Capital Projects Road Shutterfly Datacard Expansion Abatement Abatement Dedication Lions Park REVENUES Property Taxes $ 106,202 $ 69,778 $ - $ - Tax Increment - - - - Special Assessments - - - - Licenses and Permits - - - - Intergovernmental - - - - Charges for Services - - - - Fines and Forfeitures - - - - Miscellaneous - - - - Investment Income - (111) 1,049 33 Total Revenues 106,202 69,667 1,049 33 EXPENDITURES Current General Government - - - - Public Safety - - - - Culture and Recreation - - - - Economic Development 106,202 81,589 - - Debt Service Principal - - - - Interest and Other Charges - - - - Capital Outlay - - - - Total Expenditures 106,202 81,589 - - Excess of Revenues Over (Under)Expenditures - (11,922) 1,049 33 OTHER FINANCING SOURCES(USES) Bonds Issued - - - - Transfers In - - - - Transfers Out - - - (9,961) Total Other Financing Sources(Uses) - - - (9,961) Net Change in Fund Balances - (11,922) 1,049 (9,928) FUND BALANCES Beginning of Year - 11,922 93,542 9,928 End of Year $ $ - $ 94,591 $ - 120 Page 172 of 334 Capital Projects Property Total Other Tree Acquisition Governmental Replacement Sealcoat Fund City Hall Total Funds $ - $ - $ - $ - $ 278,329 $ 1,062,630 - - - - 464,634 464,634 - - - - - 768,642 - - - - 549,594 582,089 9,589 - 4,158 - 13,747 1,043,557 - - - - 2,730 8,730 - - - - - 47,430 1,313 38,936 - - 130,249 391,213 2,233 346 2,914 2,525 25,412 65,465 13,135 39,282 7,072 2,525 1,464,695 4,434,390 - - - - - 16,918 - - - - - 57,443 37,044 - - - 37,044 37,044 - - 536 - 714,595 2,092,337 - - - - - 1,685,000 - - - - 764 778,061 - - 6,626 3,430,023 4,863,973 4,918,513 37,044 - 7,162 3,430,023 5,616,376 9,585,316 (23,909) 39,282 (90) (3,427,498) (4,151,681) (5,150,926) - - - - - 1,120,875 - - - 4,160,000 4,160,000 5,466,355 - - - - (30,222) (30,222) - - - 4,160,000 4,129,778 6,557,008 (23,909) 39,282 (90) 732,502 (21,903) 1,406,082 207,454 33,560 (31,236) 1,161,111 2,892,367 7,207,164 $ 183,545 $ 72,842 $ (31,326) $ 1,893,613 $ 2,870,464 $ 8,613,246 121 Page 173 of 334 CITY OF SHAKOPEE COMBINING STATEMENT OF FUND NET POSITION- INTERNAL SERVICE FUNDS December 31,2016 Information Employee and Equipment Buildings Park Asset Benefits Technology SelfInsurnace Total ASSETS Current Assets Cash and Investments,Including Cash Equivalents $ 4,510,751 $ 3,865,428 $ 1,813,152 $ 1,042,051 $ 679,861 $ 362,790 $12274,033 Accounts Receivable - - - - - 6,129 6,129 Interest Receivable 20,956 17,958 8,424 4,840 3,159 1,338 56,675 Prepaid Expenses - 183,616 183,616 Total Current Assets 4,531,707 3,883,386 1,821,576 1,046,891 683,020 553,873 12,520,453 Noncurrent Assets Advances to Other Funds,Noncurrent 941,394 400,000 - - - - 1,341,394 Capital Assets: Land - - 221,876 221,876 Construction in Progress - 401,288 401,288 Infrastructure 79,820 3,537,673 3,617,493 Buildings - 31296,794 3296,094 34,592,888 Machinery and Equipment 10,945,650 189,539 3,951,903 237,322 15,324,414 Total Cost 10,945,650 31,566,153 11,408,834 237,322 54,157,959 Less Accumulated Depreciation (4,725,030) (11,877,384) (4276,368) (188,180) (21,066,962) Net Capital Assets 6,220,620 19,688,769 7,132,466 49,142 33,090,997 Total Noncurrent Assets 7,162,014 20,088,769 7,132,466 49,142 34,432,391 Total Assets $11,693,721 $23,972,155 $ 8,954,042 $ 1,046,891 $ 732,162 $ 553,873 $46,952,844 LIABILITIES AND NET POSITION Current Liabififies Accounts Payable $ 143,165 $ $ 43,365 $ - $ 30,933 $ 5,621 $ 223,084 Current Compensated Absences 956,190 956,190 Total Current Liabilities 143,165 43,365 956,190 30,933 5,621 1,179274 Noncurrent Liabififies Compensated Absences - - 1,168,676 1,168,676 Total Noncurrent Liabilities 1,168,676 1,168,676 Total Liabilities 143,165 43,365 2,124,866 30,933 5,621 2,347,950 Net Position Investment in Capital Assets 6220,620 19,688,769 7,132,466 - 49,142 - 33,090,997 Unrestricted 5,329,936 4,283,386 1,778211 (1,077,975) 652,087 548,252 11,513,897 Total Net Position 11,550,556 23,972,155 8,910,677 (1,077,975) 701,229 548,252 44,604,894 Total Liabilities and Net Position $11,693,721 $23,972,155 $ 8,954,042 $ 1,046,891 $ 732,162 $ 553,873 $46,952,844 122 Page 174 of 334 CITY OF SHAKOPEE COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET ASSETS- INTERNAL SERVICE FUNDS For the Year Ended December 31,2016 Information Employee and Self Equipment Buildings Park Asset Benefits Technology Insurance Total OPERATING REVENUES Rental Charges $ 612,868 $ 533,450 $ 385,900 $ $ 365,200 $ 466,950 $ 2,364,368 Other Charges - - - - - - Total Operating Revenues 612,868 533,450 385,900 365,200 466,950 2,364,368 OPERATING EXPENSES Salaries and Benefits - - - 38214 - - 38214 Depreciation 741,766 714,862 373,512 - 17,734 1,847,874 Professional Services - - - 1,358 1,358 Repairs and Maintenance - 6,600 20,869 26,034 5,621 59,124 Materials and Supplies 6,426 80,959 1,557 290,196 - 379,138 Insurance - - - - 134,014 134,014 Total Operating Expenses 748,192 802,421 395,938 38,214 335,322 139,635 2,459,722 Operating Income(Loss) (135,324) (268,971) (10,038) (38214) 29,878 327,315 (95,354) NONOPERATING REVENUES (EXPENSES) Investment Income 51,194 63,764 24,580 8,969 6,894 180 155,581 Donations - - 366,622 - - - 366,622 Insurance Dividends - - 145,757 145,757 Gain(Loss)on Sale of Asset 114,978 (61,942) (12,038) - 40,998 Capital Asset Transfer 15,933 (68,840) (52,907) Total Nonoperating Revenues (Expenses) 182,105 1,822 310,324 8,969 6,894 145,937 656,051 Income(Loss)before Capital Contributions and Transfers 46,781 (267,149) 300286 (29245) 36,772 473,252 560,697 Transfers In - 30222 - - 75,000 105222 Transfers Out (2,386,680) (2,386,680) Change in Net Position 46,781 (2,653,829) 330,508 (29245) 36,772 548,252 (1,720,761) NET POSITION Beginning of Year 11,503,775 26,625,984 8,580,169 (1,048,730) 664,457 - 46,325,655 End ofYear $11,550,556 $23,972,155 $8,910,677 $ (1,077,975) $ 701229 $ 548,252 $44,604,894 123 Page 175 of 334 CITY OF SHAKOPEE COMBINING STATEMENT OF CASH FLOWS- INTERNAL SERVICE FUNDS For the Year Ended December 31,2016 Information Employee and Equipment Buildings Park Asset Benefits Technology SelfInsurance Total CASH FLOWS-OPERATING ACTIVITIES Receipts from Customers and Users $ 612,868 $ 533,450 $ 386,397 $ - $ 365,200 $ 460,821 $ 2,358,736 Receipts from Interfimd Services - 897,344 - 193,830 - - 1,091,174 Payments to Suppliers (17,074) (92,918) (84,934) (313,827) (317,630) (826,383) Net Cash Flows-Operating Activities 595,794 1,337,876 301,463 193,830 51,373 143,191 2,623,527 CASH FLOWS-NONCAPITAL FINANCING ACTIVITIES Payment Received on Interfund Loan - 50,000 - - - - 50,000 Insurance Dividends - - - - - 145,757 145,757 Transfer from Other Funds - - 30,222 - - 75,000 105,222 Transfer to Other Funds (2,386,680) (2,386,680) Net Cash Flows-Noncapital Financing Activities (2,336,680) 30,222 220,757 (2,085,701) CASH FLOWS-CAPITAL AND RELATED FINANCING ACTIVITIES Donations - - 366,622 - - - 366,622 Proceeds(Loss)from Disposal of Capital Assets 409,402 501 - - - - 409,903 Acquisition of Capital Assets (1,446,070) - (991,783) - - - (2,437,853) Net Cash Flows-Capital and Related Financing Activities (1,036,668) 501 (625,161) - - - (1,661,328) CASH FLOWS-INVESTING ACTIVITIES Interest Received 50,798 69,685 24,890 7,655 6,345 (1,158) 158,215 Net Cash Flows-Investing Activities 50,798 69,685 24,890 7,655 6,345 (1,158) 158,215 Net Change in Cash and Cash Equivalents (390,076) (928,618) (268,586) 201,485 57,718 362,790 (965,287) CASH AND CASH EQUIVALENTS Beginning of Year 4,900,827 4,794,046 2,081,738 840,566 622,143 - 13,239,320 End ofYear $ 4,510,751 $3,865,428 $ 1,813,152 $ 1,042,051 $ 679.861 $ 362,790 $ 12,274,033 RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH FLOWS-OPERATING ACTIVITIES Operating Income(Loss) $ (135,324) $ (268,971) $ (10,038) $ (38,214) $ 29,878 $ 327,315 $ (95,354) Adjustments to Reconcile Opemfing Income(Loss)to Net Cash Flows-Operating Activities: Depreciation Expense 741,766 714,862 373,512 - 17,734 - 1,847,874 Changes in: Accounts Receivable - - - - - (6,129) (6,129) Due from Other Funds - 897,344 - - - - 897,344 Due from Other Governments - - 497 - - - 497 Accounts and Contracts Payable (10,648) (5,359) (62,508) - 3,761 5,621 (69,133) Prepaid Expenses - - - - - (183,616) (183,616) Compensated Absences Payable - - - 232,044 - - 232,044 Total Adjustments 731,118 1,606,847 311,501 232,044 21,495 (184,124) 2,718,881 Net Cash Flows-Operating Activities $ 595,794 $ 1,337,876 $ 301,463 $ 193,830 $ 51,373 $ 143,191 $ 2,623,527 NONCASH INVESTING,CAPITAL AND FINANCING ACTIVITIES Contributions of Capital Assets from the Transfer of Capital Assets $ 15,933 $ - $ (68,840) $ - $ - $ - $ (52,907) 124 Page 176 of 334 CITY OF SHAKOPEE COMBINED STATEMENT OF FIDUCIARY NET POSITION December 31, 2016 Southwest Holiday Metro Drug Escrow Lighting Task Force Total Agency Agency Fund Agency Fund Agency Fund Funds ASSETS Current Cash and Investments $ 2,779,900 $ 36 $ 376,128 $ 3,156,064 Due from Other Governments - - 91,644 91,644 Prepaids - - 9,152 9,152 Total Assets $ 2,779,900 $ 36 $ 476,924 $ 3,256,860 LIABILITIES Accounts Payable $ - $ - $ 378,410 $ 378,410 Deposits Payable 2,779,900 36 59,204 2,839,140 Due to Other Governments - - 39,310 39,310 Total Liabilities $ 2,779,900 $ 36 $ 476,924 $ 3,256,860 125 Page 177 of 334 CITY OF SHAKOPEE STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - AGENCY FUNDS December 31,2016 Escrow Agency Fund Balance at Balance at December 31, December 31, 2015 Additions Deductions 2016 ASSETS Current Cash and Investments $ 2,293,485 $ 2,017,295 $ 1,530,880 $ 2,779,900 LIABILITIES Deposits Payable $ 2,293,485 $ 2,017,295 $ 1,530,880 $ 2,779,900 Holiday Lighting Agency Fund Balance at Balance at December 31, December 31, 2015 Additions Deductions 2016 ASSETS Current Cash and Investments $ - $ 3,860 $ 3,824 $ 36 LIABILITIES Deposits Payable $ - $ 3,860 $ 3,824 $ 36 Southwest Metro Drug Task Force Agency Fund Balance at Balance at December 31, December 31, 2015 Additions Deductions 2016 ASSETS Current Cash and Investments $ 555,344 $ 250,056 $ 429,272 $ 376,128 Interest Receivable 2,321 - 21321 - Due from Other Governments 22,000 69,644 91,644 Prepaids - 9,152 - 9,152 Total Assets $ 579,665 $ 328,852 $ 431,593 $ 476,924 LIABILITIES Accounts Payable $ 413,426 $ 256,366 $ 291,382 378,410 Deposits Payable 139,883 59,037 139,716 59,204 Due to Other Governments 26,356 13,449 495 39,310 Total Liabilities $ 579,665 $ 328,852 $ 431,593 $ 476,924 126 Page 178 of 334 CITY OF SHAKOPEE STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - AGENCY FUNDS December 31,2016 Total Agency Funds Balance at Balance at December 31, December 31, 2015 Additions Deductions 2016 ASSETS Current Cash and Investments $ 2,848,829 $ 2,271,211 $ 1,963,976 $ 3,156,064 Interest Receivable 2,321 - 21321 - Due from Other Governments 22,000 69,644 - 91,644 Prepaids - 9,152 - 9,152 Total Assets $ 2,873,150 $ 2,350,007 $ 1,966,297 $ 3,256,860 LIABILITIES Accounts Payable $ 413,426 $ 256,366 $ 291,382 $ 378,410 Deposits Payable 2,433,368 2,080,192 1,674,420 2,839,140 Due to Other Governments 26,356 13,449 495 39,310 Total Liabilities $ 2,873,150 $ 2,350,007 $ 1,966,297 $ 3,256,860 127 Page 179 of 334 (THIS PAGE LEFT BLANK INTENTIONALLY) 128 Page 180 of 334 STATISTICAL SECTION 129 Page 181 of 334 (THIS PAGE LEFT BLANK INTENTIONALLY) 130 Page 182 of 334 CITY OF SHAKOPEE STATISTICAL SECTION December 31,2016 This part of the City's Comprehensive Annual Financial Report(CAFR)presents detailed information for placing in context and understanding what the information shown in the financial statements, note disclosures and required supplementary information reveals about the City's overall financial health. CONTENTS Page Financial Trends 132 These schedules show trend information to help the reader understand how the City's financial performance and well being have changed over time. Revenue Capacity 140 Portrayed is information to help the reader assess the City's most important local revenue source, the property tax. Debt Capacity 144 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 151 Shown are demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information 154 These schedules shown service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the Source: Unless noted otherwise, the information in these schedules is from the CAFR for the relevant year. 131 Page 183 of 334 CITY OF SHAKOPEE NET POSITION BY COMPONENT Years 2007 Through 2016 2007 2008 2009 2010 Governmental Activities: Net Investment in Capital Assets $ 113,534,056 $ 112,909,793 $ 112,097,148 $ 111,905,152 Restricted 13,081,337 21,915,945 16,518,865 1,844,129 Unrestricted 28,316,931 22,086,771 28,832,576 43,910,102 Total Governmental Activities Net Position $ 154,932,324 $ 156,912,509 $ 157,448,589 $ 157,659,383 Business-Type Activities: Net Investment in Capital Assets $ 114,546,218 $ 115,124,238 $ 114,331,216 $ 115,064,968 Restricted 1,026,351 1,756,369 3,574,612 4,889,050 Unrestricted 46,169,289 49,366,581 55,595,594 59,014,070 Total Business-Type Activities Net Position $ 161,741,858 $ 166,247,188 $ 173,501,422 $ 178,968,088 Primary Government: Net Investment in Capital Assets $ 228,080,274 $ 228,034,031 $ 226,428,364 $ 226,970,120 Restricted 14,107,688 23,672,314 20,093,477 6,733,179 Unrestricted 74,486,220 71,453,352 84,428,170 102,924,172 Total Primary Government Net Position $ 316,674,182 $ 323,159,697 $ 330,950,011 $ 336,627,471 From 2007-2010,the SPUC Funds,Water and Electric Enterprise Funds,were reported as a blended component unit of the City. In 2011,SPUC funds have been presented as discretely presented component units as it no longer met the criteria for blending. The City implemented GASB Statemetn No.68 and GASB Statement No.71 in 2015. Years prior to 2015 have not been restated. 132 Page 184 of 334 Table 1 2011 2012 2013 2014 2015 2016 $ 114,981,955 $ 115,191,768 $ 118,166,525 $ 117,980,552 $ 120,831,029 $ 128,559,527 10,914,439 9,912,551 10,454,238 7,103,581 7,547,490 6,637,391 32,771,327 34,823,712 30,642,443 35,302,035 23,939,064 16,719,760 $ 158,667,721 $ 159,928,031 $ 159,263,206 $ 160,386,168 $ 152,317,583 $ 151,916,678 $ 65,080,070 $ 64,124,590 $ 65,181,465 $ 67,831,099 $ 68,986,369 $ 70,099,288 31,927,930 33,354,521 31,183,904 28,485,814 25,981,542 23,281,483 $ 97,008,000 $ 97,479,111 $ 96,365,369 $ 96,316,913 $ 94,967,911 $ 93,380,771 $ 180,062,025 $ 179,316,358 $ 183,347,990 $ 185,811,651 $ 189,817,398 $ 198,658,815 10,914,439 9,912,551 10,454,238 7,103,581 7,547,490 6,637,391 64,699,257 68,178,233 61,826,347 63,787,849 49,920,606 40,001,243 $ 255,675,721 $ 257,407,142 $ 255,628,575 $ 256,703,081 $ 247,285,494 $ 245,297,449 133 Page 185 of 334 CITY OF SHAKOPEE CHANGES IN NET POSITION Years 2007 Through 2016 2007 2008 2009 2010 2011 2012 EXPENSES: Governmental Activities: General Government $ 3,543,980 $ 3,514,573 $ 3,388,268 $ 3,042,918 $ 4,252,887 $ 4,603,027 Public Safety 8,301,075 8,346,104 8,528,413 9,123,316 9,236,767 9,430,785 Public Works 15,264,606 8,099,384 7,860,080 8,397,874 7,094,047 7,083,299 Culture and Recreation 5,323,087 3,637,527 3,859,670 3,765,660 3,866,307 3,817,677 Economic Development 363,805 522,074 316,566 427,169 244,361 152,541 Other 1,042,133 1,033,999 1,040,044 784,824 619,099 587,384 Total Governmental Activities Expenses 33,838,686 25,153,661 24,993,041 25,541,761 25,313,468 25,674,713 Business-Type Activities: Electric 34,710,974 36,186,676 30,140,842 32,700,410 - - Water 3,332,132 3,461,261 3,316,102 3,293,079 - - Sewer 2,938,955 3,308,759 3,398,117 3,685,417 3,807,322 3,926,541 Storm 1,352,078 1,435,376 1,264,261 1,792,749 1,382,391 1,445,633 Refuse Total Business-Type Activities Expenses 42,334,139 44,392,072 38,119,322 41,471,655 5,189,713 5,372,174 Total Primary Government Expenses $ 76,172,825 $ 69,545,733 $ 63,112,363 $ 67,013,416 $ 30,503,181 $ 31,046,887 PROGRAM REVENUES: Governmental Activities: Charges for Services: General Government $ 583,247 $ 606,259 $ 680,681 $ 652,686 $ 721,180 $ 3,356,772 Public Safety 1,650,235 1,506,680 1,677,772 1,716,573 1,503,188 1,524,158 Public Works 2,615,402 2,354,276 1,342,173 941,224 478,788 454,145 Culture and Recreation 1,086,750 1,295,772 1,013,044 1,039,820 1,071,482 2,222,430 Economic Development - - - - 7,100 16,500 Opemting Grants and Contributions 1,943,805 1,660,191 1,485,124 2,943,857 3,606,089 2,106,559 Capital Grants and Contributions 2,463,129 1,825,124 1,241,884 952,450 3,152,881 1,479,343 Total Governmental Activities Program Revenues 10,342,568 9,248,302 7,440,678 8,246,610 10,540,708 11,159,907 Business-Type Activities: Charges for Services: Electric 37,407,565 38,732,701 34,272,099 36,872,008 - - Water 3,525,140 3,390,309 3,605,498 4,417,498 - - Sewer 2,806,371 2,556,299 3,485,882 3,508,947 2,941,753 3,728,189 Storm 1,505,247 1,379,821 1,405,560 1,281,986 1,083,878 1,442,394 Refuse - - - - - - Opemting Grants and Contributions - - - 6,415 - - Capital Grants and Contributions 4,138,977 1,007,519 1,879,530 1,661,001 93,810 348,756 Total Business-Type Activities Program Revenues 49,383,300 47,066,649 44,648,569 47,747,855 4,119,441 5,519,339 Total Primary Government Program Revenues $ 59,725,868 $ 56,314,951 $ 52,089,247 $ 55,994,465 $ 14,660,149 $ 16,679,246 Net(Expense)Revenue: Governmental Activities $ (23,496,118) $ (15,905,359) $ (17,552,363) $ (17,295,151) $ (14,772,760) $ (14,514,806) Business-Type Activities 7,049,161 2,674,577 6,529,247 6,276,200 (1,070,272) 147,165 Total Primary Government Net Expense $ (16,446,957) $ (13,230,782) $ (11,023,116) $ (11,018,951) $ (15,843,032) $ (14,367,641) GENERAL REVENUES AND OTHER CHANGES IN NET POSITION: Governmental Activities: Taxes: Property Taxes $ 12,767,354 $ 14,200,833 $ 14,676,518 $ 14,229,111 $ 14,487,805 $ 15,002,764 Other Taxes 369,240 388,935 151,956 147,561 160,884 113,902 Unrestricted Investment Earnings 2,232,717 1,941,335 1,323,230 1,039,867 1,032,409 546,681 Gain on Disposal of Assets 22,628 56,453 37,162 - - 11,769 Special Item - - - - - - Tmnsfers 1,111,046 1,297,988 1,899,577 2,089,406 100,000 100,000 Total Governmental Activities 16,502,985 17,885,544 18,088,443 17,505,945 15,781,098 15,775,116 Business-Type Activities: Investment Earnings 3,185,863 3,128,741 1,336,979 1,279,872 758,182 423,946 Gain on Disposal of Assets - - - - - - Tmnsfers (1,111,046) (1,297,988) (1,899,577) (2,089,406) (100,000) (100,000) Total Business-Type Activities 2,074,817 1,830,753 (562,598) (809,534) 658,182 323,946 Total Primary Government $ 18,577,802 $ 19,716,297 $ 17,525,845 $ 16,696,411 $ 16,439,280 $ 16,099,062 Change in Net Position: Government Activities $ (6,993,133) $ 1,980,185 $ 536,080 $ 210,794 $ 1,008,338 $ 1,260,310 Business-Type Activities 9,123,978 4,505,330 5,966,649 5,466,666 (412,090) 471,111 Total Primary Government $ 2,130,845 $ 6,485,515 $ 6,502,729 $ 5,677,460 $ 596,248 $ 1,731,421 From 2007-2010,the SPEC funds,Water and Electric Enterprise Funds,were reported as a blended component unit of the City. In 2011,SPUC Funds have been presented as discretely presented component units as it no longer met the criteria for blending. The City implemented GASB Statement No.68 and GASB Statement No.71 in 2015. Years prior to 2015 have not been restated. 134 Page 186 of 334 Table 2 2013 2014 2015 2016 $ 4,704,956 $ 5,514,412 $ 4,237,647 $ 4,205,975 9,868,702 10,543,861 10,582,354 13,281,715 7,578,493 10,667,275 8,552,096 8,593,885 4,020,974 4,250,557 4,355,453 4,653,362 338,907 1,593,968 2,603,741 2,104,584 573,949 453,696 274,960 1,190,824 27,085,981 33,023,769 30,606,251 34,030,345 4,096,504 3,777,866 3,824,026 3,843,232 1,641,438 1,924,853 1,726,149 1,848,768 127,781 127,034 5,737,942 5,702,719 5,677,956 5,819,034 $ 32,823,923 $ 38,726,488 $ 36,284207 $ 39,849,379 $ 3,047,447 $ 3,155,648 $ 2,904,587 $ 2,858,344 1,701,875 1,879,209 2,146,840 2,744,824 688,286 693,647 704,687 746,086 2,012,436 1,827,046 2,140,071 1,760,925 18,000 18,000 24,000 256,312 1,894,436 2,880,493 2,509,986 2,777,982 689,424 6,668,531 1,735,543 2,187,039 10,051,904 17,122,574 12,165,714 13,331,512 3,004,826 2,916,192 2,829,981 3,292,166 1,720,653 1,211,793 1,765,679 1,632,218 - 72,167 103,637 105,309 7,780 496,655 65,844 183,142 4,733,259 4,696,807 4,765,141 5,212,835 $ 14,785,163 $ 21,819,381 $ 16,930,855 $ 18,544,347 $ (17,034,077) $ (15,901,195) $ (18,440,537) $ (20,698,833) (1,004,683) (1,005,912) (912,815) (606,199) $ (18,038,760) $ (16,907,107) $ (19,353,352) $ (21,305,032) $ 15,795,777 $ 16,446,631 $ 16,807,367 $ 18,015,507 113,796 216,441 406,571 464,632 40,589 727,619 452,281 495,804 256,600 52,674 87,819 50,132 - - 496,484 - 162,490 (419,208) (634,070) 1,271,853 16,369,252 17,024,157 17,616,452 20,297,928 53,431 538,248 349,776 289,001 - - 17,438 1,911 (162,490) 419,208 (496,484) (1,271,853) (109,059) 957,456 (129,270) (980,941) $ 16,260,193 $ 17,981,613 $ 17,487,182 $ 19,316,987 $ (664,825) $ 1,122,962 $ (824,085) $ (400,905) (1,113,742) (48,456) (1,042,085) (1,587,140) $ (1,778,567) $ 1,074,506 $ (1,866,170) $ (1,988,045) 135 Page 187 of 334 CITY OF SHAKOPEE FUND BALANCES-GOVERNMENTAL FUNDS Last Ten Fiscal Years 2007 2008 2009 2010 General Fund: Nonspendable: Prepaids $ - $ - $ - $ 149,940 Reserved 1,810,650 1,126,074 799,276 - Restricted for: BATC Litigation - - - 218,032 Committed to: Working Capital - - - 345,820 Unreserved 7,896,883 8,733,528 10,703,004 - Unassigned - - - 8,323,938 Total General Fund $ 9,707,533 $ 9,859,602 $ 11,502,280 $ 9,037,730 All Other Governmental Funds Reserved: Special Revenue Funds $ 2,489,775 $ 2,738,909 $ 2,677,290 $ Debt Service Funds - - - - Capital Projects Funds 3,849,703 4,873,440 4,185,059 - Restricted for: Forfeitures - - - 189,112 Transit - - - 1,158,355 SCDP Grant - - - 55,743 Revolving Loans - - - 143,023 Economic Development - - - 447,319 Debt Service - - - 5,127,697 Capital Improvements - - - 2,203,238 Committed to: Working Capital - - - 345,820 Transit - - - 463,470 Revolving Loans - - - 100,000 Economic Development - - - 20,930 Park Projects - - - 1,785,164 Capital Improvements - - - 3,616,689 2008 Projects - - - 190,431 2009 Projects - - - 14,876 2010 Projects - - - 131,398 Fire Station 2 - - - 2,476,886 Assigned to: Telecomminication - - - 49,192 Capital Improvements - - - - Capital Projects Funds - - - - Unreserved Special Revenue Funds 993,555 1,130,452 - - Debt Service Funds 7,941,439 7,658,289 7,504,770 - Capital Projects Funds 1,673,762 1,994,812 2,453,383 - Unassigned - - - (116,803) Governmental Funds $ 16,948,234 $ 18,395,902 $ 16,820,502 $ 18,402,540 Note: GASB Statement No.54 was implemented in 2010. Only 2010-2016 are reported in compliance with GASB Statement No.54. 2007-2009 are reported as previously stated. 136 Page 188 of 334 Table 3 2011 2012 2013 2014 2015 2016 $ 131,447 $ 19,189 $ 16,440 $ 13,949 $ 21,573 $ 22,188 9,172,747 9,503,652 9,076,549 9,824,097 9,818,537 10,739,178 $ 9,304,194 $ 9,522,841 $ 9,092,989 $ 9,838,046 $ 9,840,110 $ 10,761,366 208,518 195,823 180,696 174,580 180,555 186,965 1,237,762 1,045,340 941,469 635,247 - - 22,462 22,447 4,546 4,627 4,683 4,734 249,147 252,639 253,065 257,601 260,865 263,787 497,775 562,959 685,671 361,569 674,910 1,503,917 4,625,946 9,574,198 8,678,680 7,053,086 3,085,157 3,712,584 958,195 1,815,339 1,882,231 1,634,954 1,425,798 7,213,258 45,681 66,989 54,499 76,342 108,627 70,795 6,964,247 8,681,475 5,753,669 5,630,178 6,130,194 4,744,275 413,228 394,666 176,398 228,059 1,505,595 2,244,591 (484,089) (384,965) (1,716) (7,316) (1,715,102) (39,928) $ 14,738,872 $ 22,226,910 $ 18,609,208 $ 16,048,927 $ 11,661,282 $ 19,904,978 137 Page 189 of 334 CITY OF SHAKOPEE CHANGES IN FUND BALANCES-GOVERNMENTAL FUNDS Last Ten Fiscal Years 2007 2008 2009 2010 REVENUES: Taxes $ 13,084,595 $ 14,437,766 $14,992,051 $ 14,385,788 Special Assessments 2,301,560 1,879,974 1,810,511 1,404,088 Licenses and Permits 1,378,570 1,221,939 1,492,746 1,338,111 Intergovernmental 2,540,584 2,702,993 1,811,668 2,924,161 Charges for Service 2,089,375 2,209,269 1,808,865 2,202,524 Fines and Forfeits 501,228 442,626 428,662 549,543 Miscellaneous 2,322,755 2,028,529 1,503,722 1,255,038 Total Revenues 24,218,667 24,923,096 23,848,225 24,059,253 EXPENDITURES: General Government 3,479,925 3,517,957 3,331,193 2,960,233 Police 8,342,017 8,462,288 8,604,704 9,012,567 Public Works 3,769,491 3,628,954 3,591,049 3,902,622 Culture and Recreation 3,651,539 4,101,175 3,898,844 4,075,919 Economic Development - 522,074 316,566 270,915 Debt Service: Principal 3,110,000 3,280,000 2,660,000 3,800,000 Interest and Other Charges 1,025,868 1,077,711 1,077,325 833,245 Capital Outlay 7,288,033 3,300,942 1,797,299 2,812,488 Total Expenditures 30,666,873 27,891,101 25,276,980 27,667,989 Excess of Revenues Under Expenditures (6,448,206) (2,968,005) (1,428,755) (3,608,736) OTHER FINANCING SOURCES (USES): Bonds Issued 2,815,000 2,170,000 - 1,555,000 Sale of Assets 17,700 - - 6,000 Premium on Bonds Issued 9,956 16,741 - - Transfers In 4,411,281 4,605,693 4,958,133 13,199,807 Transfers Out (2,188,333) (2,224,692) (3,462,100) (12,380,403) Special Items - - - - Total Other Financing Sources (Uses) 5,065,604 4,567,742 1,496,033 2,380,404 Net Change in Fund Balance $ (1,382,602) $ 1,599,737 $ 67,278 $ (1,228,332) Debt Service as a Percentage of Noncapital Expenditures 16% 17% 16% 18% 138 Page 190 of 334 Table 4 2011 2012 2013 2014 2015 2016 $ 14,699,066 $15,141,903 $15,851,560 $ 16,798,542 $ 17,225,535 $ 18,549,468 1,475,324 1,499,810 930,331 2,673,132 1,157,405 1,615,161 1,281,150 2,441,246 2,349,945 2,318,447 2,989,038 3,146,818 3,941,830 2,548,692 1,857,803 4,743,014 3,427,130 3,619,810 3,958,237 4,449,003 4,583,551 4,683,722 4,479,845 4,759,244 411,211 418,474 381,470 429,021 171,856 104,943 705,969 836,868 189,717 675,643 604,816 877,108 26,472,787 27,335,996 26,144,377 32,321,521 30,055,625 32,672,552 4,004,684 4,396,219 4,495,662 5,225,483 3,864,337 4,016,871 9,460,824 9,483,999 9,731,407 10,193,496 10,209,739 10,643,342 2,602,104 2,349,042 2,631,154 2,829,846 3,036,284 3,061,172 3,902,386 3,799,723 3,771,068 3,981,999 3,891,542 4,269,211 247,591 155,692 340,904 1,595,628 2,352,621 2,092,337 2,565,000 1,950,000 2,070,000 3,160,000 5,615,000 1,685,000 658,265 634,063 618,695 504,460 365,898 864,494 6,301,406 2,164,053 6,883,191 7,245,157 5,461,607 32,159,412 29,742,260 24,932,791 30,542,081 34,736,069 34,797,028 58,791,839 (3,269,473) 2,403,205 (4,397,704) (2,414,548) (4,741,403) (26,119,287) - 4,865,000 - - - 29,500,000 - - 150 314 - 9,134 - 73,480 - - - 2,237,727 2,968,919 3,367,400 4,890,809 3,531,038 6,135,344 6,916,355 (2,750,830) (3,002,400) (4,540,809) (2,932,028) (5,145,452) (3,378,977) - - - - (634,070) - 218,089 5,303,480 350,150 599,324 355,822 35,284,239 $ (3,051,384) $ 7,706,685 $ (4,047,554) $ (1,815,224) $ (4,385,581) $ 9,164,952 14% 11% 11% 12% 20% 9% 139 Page 191 of 334 CITY OF SHAKOPEE Table 5 TAX CAPACITY AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Taxable Tax Estimated Capacity as a Commercial Less: Less Net Net Taxable Total Taxable Percentage of Fiscal Residential Industrial Other Tax Increment Fiscal Tax Direct Market Estimated Year Property Property Property Property Disparities Capacity Tax Rate Value Market Value 2007 26,817,616 14,013,644 675,479 378,593 1,963,379 39,164,767 0.31939 3,419,040,600 1.15% 2008 29,942,078 15,426,355 741,679 411,490 1,846,919 43,851,703 0.31925 3,800,795,500 1.15% 2009 29,805,971 16,088,685 1,319,935 156,799 1,862,715 45,195,077 0.32630 3,850,591,200 1.17% 2010 27,805,069 16,459,872 1,279,807 151,914 1,584,552 43,808,282 0.33710 3,710,814,056 1.18% 2011 24,652,932 18,351,835 1,304,688 161,430 1,630,522 42,517,503 0.34731 3,570,069,500 1.19% 2012 23,180,073 17,956,273 852,512 155,002 1,740,447 40,093,409 0.36655 3,347,179,800 1.20% 2013 22,824,263 17,577,547 576,049 107,928 1,707,617 39,162,314 0.41996 3,064,695,700 1.28% 2014 22,782,372 17,580,049 589,717 214,592 1,961,307 38,776,239 0.41437 3,206,518,700 1.21% 2015 26,419,959 18,769,230 625,872 408,172 1,918,874 43,488,015 0.37862 3,629,757,200 1.20% 2016 27,838,939 20,111,657 670,839 384,578 1,857,605 46,379,252 0.37902 3,844,106,800 1.21% Source:Scott County Auditor 140 Page 192 of 334 CITY OF SHAKOPEE Table 6 DIRECT AND OVERLAPPING PROPERTY TAX RATES Last Ten Fiscal Years City Direct Rate General Obligation Shakopee Debt Service Fiscal Operating Debt Service Total Direct School Scott Other Market Value Year Rate Rate Rate District County Jurisdictions Rate 2007 0.29822 0.02117 0.31939 0.27132 0.33140 0.04434 0.00728 2008 0.29874 0.02051 0.31925 0.26103 0.32646 0.04642 0.00537 2009 0.30401 0.02229 0.32630 0.27274 0.32684 0.04960 0.00651 2010 0.32152 0.01558 0.33710 0.29050 0.33240 0.04980 0.00651 2011 0.32996 0.01735 0.34731 0.31182 0.35541 0.05020 0.00342 2012 0.34005 0.02650 0.36655 0.35512 0.38802 0.05610 0.00345 2013 0.41996 - 0.41996 0.39715 0.40674 0.05701 0.00467 2014 0.39305 0.02131 0.41437 0.36963 0.39720 0.05569 0.00524 2015 0.35235 0.02626 0.37862 0.35578 0.36638 0.05169 0.00536 2016 0.34757 0.03145 0.37902 0.53478 0.36175 0.05129 0.00605 Sources: Scott County Auditor and League of Minnesota Cities Reports 141 Page 193 of 334 CITY OF SHAKOPEE Table 7 PRINCIPAL TAXPAYERS Current Year and Nine Years Ago 2016 2007 Percentage Percentage 2015/16 of Total 2006/07 of Total Tax Cap. Tax Cap. Tax Cap. Tax Cap. Taxpayer Type of Business Value Rank Value Value Rank Value Excel Energy Electrical Generation $ 631,975 1 1.45% $ 565,320 1 1.57% J&J Minneapolis LLC Manufacturing 449,000 2 1.03% Rahr Malting Grain Processing 443,141 3 1.02% 411,700 3 1.14% Liberty Properties LP Distribution 432,750 4 1.00% Seagate Manufacturing/Research 419,250 5 0.96% 399,250 4 1.11% Rosemount Inc Manufacturing 399,470 6 0.92% Lothenbach Properties Warehouse/Manufacturing 399,250 7 0.92% Kin LLC Warehouse/Manufacturing 399,250 7 0.92% St.Francis RMC Health Care 374,500 9 0.86% Certainteed Manufacturing 365,250 10 0.84% 344,552 7 0.95% Shakopee Crossing LTD Retail 424,789 2 1.18% Walmart Retail 373,630 5 1.04% Shakopee Valley Market Retail 349,682 6 0.97% Valleyfair Amusement Park 319,819 8 0.89% First Industrial LP Warehouse 305,462 9 0.85% Ryan Companies Property Management 292,170 10 0.81% $ 4,313,836 9.92% $ 3,786,374 10.51% Source: Scott County Auditor 142 Page 194 of 334 CITY OF SHAKOPEE Table 8 PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Ratio of Accumulated Percentage Delinquent Collections Percentage Collections of Total Accumulated Taxes to Year Tax of Current of Levy of Prior Total Collections Delinquent Current Collected Levy Years Taxes Collected Years Taxes Collections To Tax Levy Taxes Years Taxes 2007 $12,745,449 $ 12,418,768 97% $ 91,200 $ 12,509,968 98% $ 331,315 2.60% 2008 14,222,007 13,661,366 96% 208,470 13,869,836 98% 483,317 3.40% 2009 14,983,677 14,457,378 96% 157,920 14,615,298 98% 319,740 2.13% 2010 14,918,665 13,971,356 94% 55,020 14,026,376 94% 310,624 2.08% 2011 14,837,438 14,019,831 94% 278,981 14,298,812 96% 260,248 1.75% 2012 14,837,438 14,553,417 98% 188,750 14,742,167 99% 235,011 1.58% 2013 15,483,223 15,109,599 98% 279,485 15,389,084 99% 293,025 1.89% 2014 16,312,179 16,177,463 99% - 16,177,463 99% 157,555 0.97% 2015 16,773,267 16,351,700 97% - 16,351,700 97% 145,958 0.87% 2016 17,610,195 17,316,074 98% 41,140 17,357,214 99% 76,631 0.44% Source:Scott County Auditor 1. The above data does not include tax increment districts. 2. The State of Minnesota cancelled$243,439 in 2008,$511,956 in 2009,$558,860 in 2010 and$595,572 in 2011 of annual aid payments to the City that were part of the tax levy. 143 Page 195 of 334 CITY OF SHAKOPEE Table 9 RATIO OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Governmental Activities Business-type Special Activities Total Percentage Fiscal G.O. Assessment Revenue Primary of Personal Per Year Bonds Bonds Bonds Government Income Capita 2007 $ 7,560,000 $ 17,165,000 $ 33,895,000 $ 58,620,000 4.5% 1,752 2008 7,165,000 16,450,000 33,225,000 56,840,000 4.1% 1,689 2009 6,755,000 14,200,000 22,235,000 43,190,000 4.1% 1,276 2010 6,340,000 12,370,000 21,470,000 40,180,000 3.4% 1,084 2011 5,905,000 10,240,000 - 16,145,000 1.3% 428 2012 10,325,000 8,735,000 - 19,060,000 1.6% 504 2013 9,865,000 7,125,000 - 16,990,000 1.4% 446 2014 9,390,000 4,440,000 - 13,830,000 1.1% 353 2015 5,100,000 3,115,000 - 8,215,000 0.7% 208 2016 33,935,000 2,095,000 - 36,030,000 2.7% 895 Sources: See Table 14 for income and population data. Note: From 2007-2010,the SPUC Funds,Water and Electric Enterprise Funds,were reported as a blended component unit of the City. In 2011, SPUC Funds have been presented as discretely presented component units as it no longer met the criteria for blending. 144 Page 196 of 334 CITY OF SHAKOPEE Table 10 RATIOS OF GENERAL BONDED OUTSTANDING Last Ten Fiscal Years Percentage of Percentage of Actual Taxable Total Fiscal G.O. Value of Per Personal Year Bonds Property Capita Income 2007 $ 7,560,000 0.22% 226 0.61% 2008 7,165,000 0.19% 213 0.52% 2009 6,755,000 0.18% 199 0.65% 2010 6,340,000 0.17% 171 0.54% 2011 5,905,000 0.17% 157 0.49% 2012 10,325,000 0.31% 273 0.86% 2013 9,865,000 0.32% 259 0.81% 2014 9,390,000 0.29% 240 0.75% 2015 5,100,000 0.14% 129 0.40% 2016 33,935,000 0.88% 843 2.58% Sources: 1. Metropolitan Council estimated for population. 2007-2009 populations are the City's estimate. 2. Scott County Auditor 145 Page 197 of 334 (THIS PAGE LEFT BLANK INTENTIONALLY) 146 Page 198 of 334 CITY OF SHAKOPEE Table 11 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT December 31,2016 Percentage Amount Applicable Applicable G.O. To City of To City of Debt Shakopee (1) Shakopee Direct Debt: City of Shakopee $ 36,030,000 100.0% $ 36,030,000 Overlapping Debt: Independent School District No. 720 210,545,000 85.4% 179,856,678 Independent School District No. 191 207,630,000 2.3% 4,801,655 Scott County 74,730,000 27.3% 20,395,033 Metropolitan Council (2) 189,226,614 1.3% 2,386,869 Total Overlapping Debt: 682,131,614 207,440,235 Total Direct and Overlapping Debt $ 718,161,614 $ 243,470,235 Source: Scott County Taxation Department Metropolitan Council Note: Overlapping governments are those that coincide, at least in part, with geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each government. (1) The percentage of overlapping debt is estimated using net tax capacity. Applicable percentages were estimated by determining the portion of net tax capacity that is within the City's boundaries and dividing it by total net tax capacity for each entity. (2) Excludes general obligation debt supported by wastewater revenues and housing rental payments. Includes certificates of participation. 147 Page 199 of 334 CITY OF SHAKOPEE LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years 2007 2008 2009 2010 Market Value(Taxable) $ 3,419,040,600 $ 3,800,795,500 $ 3,850,591,200 $ 3,710,814,056 Debt Limit-Percent of Market Value(Note A) 68,380,812 114,023,865 115,517,736 107,102,085 Amount of Debt Applicable to Debt Limit: G.O.Bonds 7,560,000 7,165,000 6,755,000 6,340,000 Available in Debt Service Funds (834,155) (847,608) (837,100) (786,306) Total Debt Applicable to Debt Limit 6,725,845 6,317,392 5,917,900 5,553,694 Legal Debt Margin $ 61,654,967 $ 107,706,473 $ 109,599,836 $ 101,548,391 NOTE(A): M.S.A.Section 475.53(Limit on Net Debt) Subdivision 1.Generally,except of otherwise provided in Sections 475.51 to 475.75,no municipality,except a school district or a city of the first class,shall incur or be subject to a net debt in excess of 2% (3%starting 2008)of the market value of taxable property in the municipality." NOTE(B): M.S.A.Section 475.51 Definitions:Subdivision 4. "Net debt"means the amount remaining after deduction from its gross debt the aggregate of the principal of the following: (1) Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefited thereby,including those which are general obligations of the municipality issuing them,if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments. (2) Wan-ants or orders having no definite or fixed maturity. (3) Obligations payable wholly from the income of revenue-producing conveniences. (4) Obligations issued to create or maintain a permanent improvement revolving fund. (5) Obligation issued for the acquisition,and betterment of public waterworks systems,and public lighting, heating or power systems and on any combination thereof or for any other public convenience from which a revenue is or may be derived. (6) Amount of all money and the face value of all securities held as a sinking fund for the extinguishment of obligations other than those deductible under this subdivision. M.S.A.Section 469.178,subdivision 1.(tax increment bonds)"...The bonds are not included for purposes of computing the net debt of any municipality." 148 Page 200 of 334 Table 12 2011 2012 2013 2014 2015 2016 $3,570,069,500 $ 3,347,179,800 $3,064,695,700 $ 3,206,518,700 $3,629,757,200 $ 3,844,106,800 107,102,085 100,415,394 91,940,871 96,195,561 108,892,716 115,323,204 5,905,000 10,325,000 9,865,000 9,390,000 5,100,000 33,935,000 (826,957) (4,974,768) (4,836,597) (4,833,096) (1,511,502) (2,443,111) 5,078,043 5,350,232 5,028,403 4,556,904 3,588,498 31,491,889 $ 102,024,042 $ 95,065,162 $ 86,912,468 $ 91,638,657 $ 105,304,218 $ 83,831,315 149 Page 201 of 334 CITY OF S14AKOPEE Table 13 PLEDGED REVENUE COVERAGE Last Ten Fiscal Years Utility Bonds Utility Less: Net Fiscal Service Operating Available Debt Service Year Charges Expense Revenue Principal Interest Coverage 2007 $ 44,692,049 $ 36,644,414 $ 8,047,635 $ 640,000 $ 1,574,925 3.63 2008 45,499,791 38,689,351 6,810,440 670,000 1,523,198 3.11 2009 42,437,910 33,009,500 9,428,410 710,000 1,012,874 5.47 2010 45,586,795 36,375,440 9,211,355 765,000 939,426 5.40 2011 - - - - - - 2012 - - - - - - 2013 - - - - - - 2014 - - - - - - 2015 - - - - - - 2016 - - - - - - 1. Operating expense excludes depreciation and amortization. Note: From 2007-2010,the SPUC Funds,Water and Electric Enterprise Funds,were reported as a blended component unit of the City. In 2011, SPUC Funds have been presented as discretely presented component units as it no longer met the criteria for blending. 150 Page 202 of 334 CITY OF SHAKOPEE Table 14 DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Calendar Years Fiscal School Unemployment Total Per Capita Personal Year Population(1) Enrollment(2) Rate (3) Employment Income (3) Income (4) 2007 33,460 6,905 4.6% 19,020 $ 39,042 $ 1,306,345,320 2008 33,660 7,163 6.3% 18,967 31,900 1,375,044,660 2009 33,860 7,465 7.4% 18,728 30,900 1,046,274,000 2010 37,076 7,814 6.5% 19,933 31,700 1,175,309,200 2011 37,721 8,115 5.2% 20,449 32,017 1,207,713,257 2012 37,841 8,392 4.6% 20,926 31,628 1,196,835,148 2013 38,120 8,452 3.8% 21,233 31,829 1,213,321,480 2014 39,144 8,698 3.6% 21,439 32,174 1,259,419,056 2015 39,523 8,939 3.0% 21,877 31,965 1,263,352,695 2016 40,254 8,927 3.2% 21,571 32,704 1,316,466,816 Source: 1. 2010 is the official census figure. 2007-2009,2011-2016 are the City's estimate. 2. Shakopee School District, SACS,Bloomington Lutheran 3. Minnesota Department of Employment and Economic Development 4. Per capita income times population 151 Page 203 of 334 (THIS PAGE LEFT BLANK INTENTIONALLY) 152 Page 204 of 334 CITY OF SHAKOPEE Table 15 PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2016 2007 Total Total City City Taxpayer Type of Business Employees Rank Employment Employees Rank Employment Amazon Distribution 2,000 1 9.27% Valley Fair Amusement Park 1,600 2 7.42% 1,600 1 8.78% School District No.720 Education 1,055 3 4.89% 785 5 4.31% Canterbury Park Horse Racing 877 4 4.07% 1,000 3 5.49% St.Francis RMC Health Care 875 5 4.06% 800 4 4.39% Imagine Print Solutions Printing 823 6 3.82% Entrust Datacard Manufacturing 820 7 3.80% Seagate Manufacturing/Research 775 8 3.59% 1,500 2 8.23% Scott County Government 638 9 2.96% 675 6 3.70% Emerson Manufacturing 504 10 2.34% Northstar Auto Auction Auto Auction 313 7 1.72% TORO Manufacturing 280 8 1.54% CertainTeed Manufacturing 275 9 1.51% American Color-SVP Printing 273 10 1.50% 9,967 46.22% 7,501 41.17% Total Employment 21,571 19,020 Source: Minnesota Department of Employment and Economic Development and Shakopee Chamber of Commerce. 153 Page 205 of 334 CITY OF SHAKOPEE FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years 2007 2008 2009 2010 2011 General Government: Administration 5 5 5 5 5 City Clerk 4 4 4 4 4 Finance 3 3 3 3 3 Planning 5 5 5 5 5 Facilities Maintenance 6 7 6 6 6 Information Technology 2 2 2 2 2 Public Safety: Police: Licensed 46 47 47 47 50 Other 7 6 6 6 6 Fire: Full time 1 2 3 3 3 Paid On Call 48 48 44 44 42 Building Inspection 7 6 5 5 5 Public Works: Engineering 7 7 7 7 7 Street 12 13 13 13 13 Shop 3 3 3 3 4 Park and Recreation: Park Maintenance 8 8 8 8 8 Natural Resources - - - - - Recreation 10 7 7 7 7 Economic Development: EDA - - - - - Total 174 173 168 168 170 Source: City departments 154 Page 206 of 334 Table 16 2012 2013 2014 2015 2016 6 7 8 6 8 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5 4 4 4 3 3 2 2 2 4 5 49 47 47 48 48 7 10 10 11 11 3 7 7 7 7 44 44 43 43 43 5 5 5 4 5 7 7 8 8 8 13 13 14 14 14 3 3 4 4 4 8 8 9 9 9 - 1 2 2 1 7 7 7 9 12 - 1 1 1 1 170 178 183 185 191 155 Page 207 of 334 CITY OF SHAKOPEE OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years 2007 2008 2009 2010 General Government Planning Number of Case Files 67 68 35 33 Number of Plats Filed 3 2 2 1 Number of Acres Platted 38 50 34 6 Public Safety Police Arrests 2,199 1,881 1,913 1,962 Citations 6,073 4,058 6,127 5,528 Calls for Service 19,606 19,057 17,909 17,831 Fire Calls for Service 609 538 517 557 Building Inspection Building Permits Issued 1,194 1,019 1,102 1,083 Number of Inspections 8,174 5,946 9,726 8,048 Single Family Homes Permitted 138 94 314 160 Public Works Street Miles of Roadway 154 154 154 154 Park and Recreation Park Maintenance Acres Maintained 930 933 933 933 Recreation Program Participants 10,847 11,410 10,377 13,001 Community Center Members 597 613 823 2,534 Community Center Admissions 100,044 100,397 109,257 117,336 Source: City departments 156 Page 208 of 334 Table 17 2011 2012 2013 2014 2015 2016 24 47 49 45 75 50 2 5 8 7 9 7 68 89 99 68 335 79 1,666 1,798 1,387 1,524 2,121 1,543 5,647 5,636 5,656 4,934 5,510 4,396 17,852 18,349 17,822 17,846 19,357 21,117 600 617 584 730 745 792 1,881 1,413 1,066 1,519 1,054 1,030 8,004 8,191 7,408 7,854 6,835 6,659 118 97 66 61 50 45 154 154 154 156 156 156 933 933 933 1,015 1,402 1,402 13,157 13,104 15,854 18,540 29,446 10,926 3,682 4,009 5,025 2,610 2,028 2,329 120,667 128,929 140,778 124,124 112,000 96,236 157 Page 209 of 334 CITY OF SHAKOPEE CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years 2007 2008 2009 2010 2011 Police: Stations 1 1 1 1 1 Patrol Zones 4 4 4 4 4 Patrol Units 15 15 15 15 15 Fire Stations 2 2 2 2 2 Street: Miles of Roadway 154 154 154 154 154 Traffic Signals 25 26 27 27 27 Parks: Acres 1,015 1,019 1,024 1,024 1,024 Ball Fields 47 49 49 52 54 Playgrounds 22 24 24 24 26 Source: City Departments 158 Page 210 of 334 Table 18 2012 2013 2014 2015 2016 1 1 1 1 1 4 4 4 4 4 15 15 15 15 15 2 2 2 2 2 154 154 156 156 156 29 29 30 30 30 1,048 1,048 1,055 1,055 1,055 56 56 56 56 56 26 26 26 26 26 159 Page 211 of 334 (THIS PAGE LEFT BLANK INTENTIONALLY) 160 Page 212 of 334 City of Shakopee Scott County, Minnesota Reports on Compliance with Government Auditing Standards, and Minnesota Legal Compliance December 31, 2016 berganKov CPAS I ADVISORS Page 213 of 334 City of Shakopee Table of Contents Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 Report on Legal Compliance 3 Page 214 of 334 berganKDV Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditor's Report Honorable Mayor and Members of the City Council City of Shakopee Shakopee,Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Shakopee,Minnesota as of and for the year ended December 31, 2016,and the related notes to financial statements,which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 18, 2017. Internal Control over Financial Reporting In planning and performing our audit of the financial statements,we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. BerganKDV, Ltd. bergankdv.com 1 Page 215 of 334 (: berganKov Internal Control over Financial Reporting (Continued) Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses, or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However,material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement,we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However,providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. t"l, �bv, W. St. Cloud, Minnesota May 18, 2017 2 Page 216 of 334 (: berganKDV Report on Legal Compliance Independent Auditor's Report Honorable Mayor and Members of the City Council City of Shakopee Shakopee,Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Shakopee, Minnesota, as of and for the year ended December 31, 2016, and the related notes to financial statements,which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 18, 2017. The Minnesota Legal Compliance Audit Guide for Cities,promulgated by the State Auditor pursuant to Minnesota Statutes § 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 Shakopee failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Cities. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. ov, W. St. Cloud, Minnesota BerganKDV, Ltd. May 18, 2017 bergankdv.com 3 Page 217 of 334 City of Shakopee Communications Letter December 31, 2016 Ad c: berganKDV CPAS 1 ADV150R5 Page 218 of 334 City of Shakopee Table of Contents Report on Matters Identified as a Result of the Audit of the Financial Statements 1 Required Communication 3 Financial Analysis 7 Emerging Issues 16 Page 219 of 334 berganKDV 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 Shakopee Shakopee, Minnesota In planning and performing our audit of the financial statements of the governmental activities,business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Shakopee, Minnesota, as of and for the year ended December 31, 2016, 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 audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly,we do not express an opinion on the effectiveness of the City's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore,material weaknesses or significant deficiencies may exist that were not identified. In addition,because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error, or fraud may occur and not be detected by such controls. However, as discussed below,we identified a certain deficiency in internal control that we consider to be a significant deficiency. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the 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 a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. BerganKDV, Ltd. bergankdv.com 1 Page 220 of 334 (: berganKov 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 18, 2017, on such statements. This communication is intended solely for the information and use of the City Council, management, 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. f)",, w Co St. Cloud,Minnesota May 18, 2017 2 Page 221 of 334 City of Shakopee Required Communication We have audited the financial statements of the governmental activities, business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of and for the year ended December 31, 2016. 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 AND GOVERNMENT AUDITING STANDARDS As stated in our engagement letter, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. As part of our audit, we considered the internal control of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement,we performed tests of the City's compliance with certain provisions of laws,regulations, contracts, and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Generally accepted accounting principles provide for certain required supplementary information (RSI) to supplement the basic financial statements. Our responsibility with respect to the RSI,which supplement(s) the basic audit financial statements, is to apply certain limited procedures in accordance with generally accepted auditing standards. However, the RSI was not audited and,because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance, we do not express an opinion or provide any assurance on the RSI. 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 as a whole. PLANNED SCOPE AND TINHNG 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. 3 Page 222 of 334 City of Shakopee Required Communication 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 the notes to financial statements.No new accounting policies were adopted and the application of existing policies was not changed during the year ended December 31, 2016. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: Depreciation—The City is currently depreciating its capital assets over their estimated useful lives, as determined by management,using the straight-line method. Expense/Expenditure Allocation—The City is currently allocating certain costs among the programs and supporting services benefited. The costs are allocated based on management's estimates. 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. Net Pension Liability, Deferred Outflows of Resources Relating to Pension Activity, and Deferred Inflows of Resources relating to Pension Activity—These balances are based on an allocation by the pension plans using estimates based on contributions. We evaluated the key factors and assumptions used to develop the accounting estimates in determining that they are reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. DIFFICULTIES ENCOUNTERED IN PERFORNIING THE AUDIT We encountered no significant difficulties in dealing with management in performing and completing our audit. CORRECTED AND UNCORRECTED NHSSTATEMENTS Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. We identified the following uncorrected misstatement(s) of the financial statements. Management has determined its effect is immaterial,both individually and in the aggregate, to the financial statements taken as a whole: • Government-Wide State Aid for PEPFF Contribution 4 Page 223 of 334 City of Shakopee Required Communication CORRECTED AND UNCORRECTED MISSTATEMENTS (CONTINUED) 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 ACCOUNTANTS In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. OTHER AUDIT FINDINGS OR ISSUES We generally discuss a variety of matters, including the application of accounting principles and auditing standards,with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. OTHER MATTERS We applied certain limited procedures to the RSI that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. 5 Page 224 of 334 City of Shakopee Required Communication OTHER MATTERS (CONTINUED) With respect to the supplementary information accompanying the financial statements,we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. 6 Page 225 of 334 City of Shakopee Financial Analysis 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. GENERAL FUND OPERATIONS OF THE CITY For the year ended December 31, 2016,revenues and transfers in exceeded expenditures and transfers out. Total fund balance in the General Fund increased$921,256, or 9.4%, in 2016 to $10,761,366. General Fund $29,000,000 $25,000,000 $21,000,000 FP $17,000,000 $13,000,000 $9,000,000 $5,000,000 $1,000,000 2012 2013 2014 2015 2016 ■Revenues $21,770,348 $22,869,399 $23,794,189 $24,331,286 $25,927,491 ■Expenditures 18,694,101 19,539,401 20,506,749 21,063,756 21,916,614 ■Fund Balance 9,522,841 9,092,989 9,838,046 9,840,110 10,761,366 General Fund Revenues/Expenditures Per Capita $700 „ii 0 0 O $600 $500 $400 $300 $200 $100 $- 2012 2013 2014 2015 2016 MR-- ■E.,-di.- 7 Page 226 of 334 City of Shakopee Financial Analysis GENERAL FUND OPERATIONS OF THE CITY (CONTINUED) Unassigned Fund Balance as a Percent of Expenditures 70% 60% 50% 40% 30% 20% 10% 0% 2012 2013 2014 2015 2016 The City's target General Fund balance is an unassigned level between 40% (minimum) and 45% of expenditures. This level is to provide working capital for cash flow, expected decline in revenues and unforeseen expenditures such as natural disasters. Replenishing the Fund balance when it falls below the target level shall be accomplished by interfund transfers or budgeting for expenditures and other uses to be less than revenues or other sources over a period not to exceed three years. For the year ended December 31,2016, the City maintained an unassigned fund balance of 49% of current year expenditures. The City also evaluates the unassigned fund balance as a percentage of the next years budgeted expenditures. Based on the 2017 budget the City has an unassigned fund balance of 44.3%. 8 Page 227 of 334 City of Shakopee Financial Analysis GENERAL FUND REVENUES The City's revenue in the General Fund has increased each of the last five years. During 2016, revenue in the General Fund exceeded the prior year revenue by $1,596,205, increasing from $24,331,286 to $25,927,491. Property taxes increased due to an increase in the General Fund levy of approximately $688,000, as well as increased delinquency collections, and a number of tax petitions in 2015 which had reduced revenue. Licenses and permits increased $541,000 due to increased development within the City. Charges for services increased $298,000 with increased police contracted services and new arena advertising and increased memberships. All other revenues were consistent with the prior year. During 2016, property taxes represented 66% of the total General Fund revenues. Charges for services represented the second largest component at 18%. General Fund Revenues $28,000,000 $25,000,000 $22,000,000 $19,000,000 $16,000,000 $13,000,000 $10,000,000 $7,000,000 $4,000,000 IL $1,000,000 ML- 2012 2013 2014 2015 2016 ■Miscellaneous $359,323 $132,202 $333,177 $319,491 $218,734 ■Charges for Services 4,035,921 4,304,786 4,294,637 4,452,415 4,750,514 ■Fines and Forfeitures 368,167 348,262 391,500 7,093 11,213 ■Licenses and Pen-nits 1,229,184 1,443,885 1,534,165 2,023,436 2,564,729 ■Intergovernmental 991,445 1,042,127 1,191,127 1,356,733 1,344,279 ■Taxes and Assessments 14,786,308 15,598,137 16,049,583 16,172,118 17,038,022 9 Page 228 of 334 City of Shakopee Financial Analysis GENERAL FUND EXPENDITURES In 2016, total General Fund expenditures increased$852,858, or 4.0%, from $21,063,756 in 2015 to $21,916,614 in 2016. Public safety increased$396,031 as a result of salary and benefit increases, and additional employees. Recreation increased$315,098 due to changes in staffing levels,pay increases, and increased electric costs with the new arena. General government and public works were consistent with prior year amounts. 2016 General Fund Expenditures Parks and Recreation 19.31% General Government 18.25% Public Works 13.97% Public Safety 48.47% 2015 General Fund Expenditures Parks and Recreation General Government 18.46% 18.44% Public Works 14.55% Public Safety 48.55% 10 Page 229 of 334 City of Shakopee Financial Analysis GENERAL FUND OPERATIONS OF THE CITY For the 2016 operating year, the City Council provided a revised budget that would increase the General Fund balance by $453,710. Revenues and expenditures exceeded expectations, resulting in both being over budget. At year-end, revenues and transfers in exceeded expenditures and transfers out by $921,256. Budget Actual Variance Revenues Taxes and assessments $ 17,162,400 $ 17,038,022 $ (124,378) Licenses and permits 2,269,100 2,564,729 295,629 Intergovernmental 1,251,900 1,344,279 92,379 Charges for services 4,368,150 4,750,514 382,364 Fines and forfeitures 1,500 11,213 9,713 Miscellaneous revenues 207,750 218,734 10,984 Total revenues $ 25,260,800 $ 25,927,491 $ 666,691 Expenditures General government $ 4,096,290 $ 3,999,953 $ (96,337) Public safety 10,417,100 10,623,322 206,222 Public works 2,965,440 3,061,172 95,732 Parks and recreation 4,233,860 4,232,167 (1,693) Total expenditures $ 21,712,690 $ 21,916,614 $ 203,924 Proceeds from sale of capital asset $ 600 $ 9,134 $ 8,534 Transfers in 250,000 250,000 - Transfers out 3,345,000) 3,348,755 3,755 Total other financing Sources(uses) (3,094,400) (3,089,621) 4,779 Change in fund balance $ 453,710 $ 921,256 $ 467,546 During 2016,revenue in the General Fund exceeded the budget by $666,691, or 2.6%. Significant revenue budget variances are a result of conservative budgeting for revenues that can fluctuate during the year, such as licenses,permits and engineering fees. Charges for services were over the revised budget due to increased contracts for police services and engineering fees for developments that exceeded the amounts anticipated at the time the budget was revised. Expenditures exceeded budgeted amounts by $203,924, or 0.9%. Public safety was over budget due to increased compensated absences that were not included in the budget, as well as the purchase of new software for building inspections that was not budgeted. All other functions were consistent with budgeted amounts. 11 Page 230 of 334 City of Shakopee Financial Analysis ENTERPRISE FUNDS The City has three enterprise funds. The following charts compare the segment information and net position of the Sewer and Storm Drainage enterprise funds for the last five years. Sewer Fund $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $(1,000,000) $(2,000,000) 2012 2013 2014 2015 2016 ■Operating Revenues $3,730,226 $2,973,474 $2,872,662 $2,845,439 $3,100,021 ■Operating Expenses 31953269 41122,406 3,734,691 3,846,338 3,938,720 ■Operating Loss (223,043) (1,148,932) (862,029) (11000,899) (838,699) ■Change in Net Position (14,003) (1,162,542) (201,729) (1,425,120) (979,595) Storm Drainage Fund $2,000,000 $1,500,000 $1,000,000 $500,000 $- $(500,000) $(1,000,000) 2012 2013 2014 2015 2016 ■Service Charges $1,037,427 $1,047,160 $1,066,118 $1,102,728 $1202,253 ■Operating Expenses 1,472,361 1,604,937 1,935,464 1,748,461 1,888,839 ■Operating Loss (434,934) (557,777) (869,346) (645,733) (686,586) ■Change in Net Position 431,658 (3,004) 101,746 363,481 (720275) During 2016, the Sewer and Storm Drainage Funds both had operating losses. The Funds have reported an operating loss for the past five years. This is primarily due to the depreciation expense in both Funds. 12 Page 231 of 334 City of Shakopee Financial Analysis TAX LEVY, CAPACITY,AND RATES The 2014 through 2016 levies include the General Fund and debt service levies. The tax levy is then reduced by fiscal disparity credit that is received in the form of state aid. Disparity aid is reported as tax revenue and reduces the amount of property tax revenue levied upon the City. Taxable Tax Capacity and Certified Levy $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ 2012 2013 2014 2015 2016 ■Taxable Tax Capacity $35,402,744 $32,445,035 $34,210,957 $38,705,002 $40,933,710 ■Certified Levy 14,717,435 15,333,211 16,137,178 16,573,266 17,372,168 * Tax capacity values and levy obtained from the League of Minnesota Cities. 13 Page 232 of 334 City of Shakopee Financial Analysis TAX LEVY, CAPACITY,AND RATES (CONTINUED) Tax Capacity Rate 55 50 45 f 40 I 35 'I 30 25 20 15 10 5 0 2012 2013 2014 2015 2016 —*--City Rate (State Average (Metro City Average * Tax rates obtained from the League of Minnesota Cities. 14 Page 233 of 334 City of Shakopee Financial Analysis DEBT SERVICE The following charts illustrate debt service requirements, including principal and interest through 2036 and bonded debt for the last five years. Debt Service Schedule $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ I � —A - 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Bonded General Obligation Debt $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 1: $5,000,000 2012 2013 2014 2015 2016 ■G—Bonded Debt ■Debt Service Fund Balance MNet Bonded Debt 15 Page 234 of 334 City of Shakopee Emerging Issues 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 Standard Update–Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions –Governmental Accounting Standards Board (GASB)has issued GASB statement 75 relating to accounting and financial reporting for postemployment benefits other than pensions. The new statement requires governments in all types of OPEB plans to present more extensive note disclosures and required supplementary information (RSI) about their OPEB liabilities. 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 City. ACCOUNTING STANDARD UPDATE– GASB STATEMENT NO. 75-ACCOUNTING AND FINANCIAL REPORTING FOR POSTEMPL 0 YMENT BENEFITS OTHER THAN PENSIONS The primary objective of this statement is to improve accounting and financial reporting by state and local governments for postemployment benefits other than pensions (other postemployment benefits or OPEB). It also improves information provided by state and local governmental employers about financial support for OPEB that is provided by other entities. This statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all postemployment benefits (pensions and OPEB)with regard to providing decision-useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. This statement replaces the requirements of Statements No. 45,Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, as amended, and No. 57, OPER Measurements by Agent Employers and Agent Multiple-Employer Plans, for OPEB. Statement No. 74,Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, establishes new accounting and financial reporting requirements for OPEB plans. GASB Statement 75 requires governments to report a liability on the face of the financial statements for the OPEB that they provide: • Governments that are responsible only for OPEB liabilities related to their own employees and that provide OPEB through a defined benefit OPEB plan administered through a trust that meets specified criteria will report a net OPER liability—the difference between the total OPEB liability and assets accumulated in the trust and restricted to making benefit payments. 16 Page 235 of 334 City of Shakopee Emerging Issues ACCOUNTING STANDARD UPDATE— GASB STATEMENT NO. 75 -ACCOUNTING AND FINANCIAL REPORTING FOR POSTEMPLOYMENT BENEFITS OTHER THANPENSIONS (CONTINUED) • Governments that participate in a cost-sharing OPEB plan that is administered through a trust that meets the specified criteria will report a liability equal to their proportionate share of the collective OPER liability for all entities participating in the cost-sharing plan. • Governments that do not provide OPEB through a trust that meets specified criteria will report the total OPER liability related to their employees. GASB Statement 75 carries forward from Statement 45 the option to use a specified alternative measurement method in place of an actuarial valuation for purposes of determining the total OPEB liability for benefits provided through OPEB plans in which there are fewer than 100 plan members (active and inactive). This option was retained in order to reduce costs for smaller governments. GASB Statement 75 requires governments in all types of OPEB plans to present more extensive note disclosures and required supplementary information (RSI) about their OPEB liabilities. Among the new note disclosures is a description of the effect on the reported OPEB liability of using a discount rate and a healthcare cost trend rate that are one percentage point higher and one percentage point lower than assumed by the government. The new RSI includes a schedule showing the causes of increases and decreases in the OPEB liability and a schedule comparing a government's actual OPEB contributions to its contribution requirements. Information provided above was obtained from www.gasb.org. 17 Page 236 of 334 7.C.1. SH+ KOPEE Shakopee City Council July 5, 2017 FROM: Michael Kerski, Director of Planning and Development TO: Mayor and Council Subject• Text Amendment to allow residential in the Major Recreation Zones as part of a PUD. Policy/Action Requested: Approve Ordinance No. 966 to allow residential in the Major Recreation Zone as part of a PUD. Recommendation: Approve Ordinance No. 966 to allow residential in the Major Recreation Zone as part of a PUD. Discussion• There are three Major Recreation Zones in the City including Canterbury Park, Valley Fair and The Landing (Three Rivers). Canterbury Park is working on a PUD Amendment to make the 300 plus acres into a mixed use community.. This would allow residential uses in the Major Recreation Zone (MR) through a PUD Amendment process. Since the two likely locations, Canterbury and Valley Fair both have large structures, it would be appropriate to allow larger, higher density developments. Canterbury Park is currently contemplating a development that would require structured parking. Planning Commission held a Public Hearing and then voted 6-0 to approve the change. Budget Impact• N/A ATTACHMENTS: D Ordinance Page 237 of 334 ORDINANCE NO. 966 AN ORDINANCE OF THE CITY OF SHAKOPEE AMENDING TITLE XV OF THE CITY CODE BY ADDING RESIDENTIAL USES AND DESIGN STANDARDS IN MAJOR RECREATION ZONES AS PART OF A PUD. THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, ORDAINS: 151.044 Major Recreation Zone (MR)of the City Code is amended to add the following (A) Purpose. The purpose of the Major Recreation Zone is to create a high quality environment for large amusement and recreation attractions with a regional draw, with a high degree of land use compatibility and street efficiency. It is further the intent of the Zone to protect existing landscape features, to preserve open space, to sensitively integrate development with the natural landscape, and to require the planning of entire land ownerships as a unit rather than permit piecemeal or scattered small developments. (B) Permitted uses. Within the Major Recreation Zone, no structure or land shall be used except for one or more of the following uses: (1) Public recreation; (2) Restaurants, Class I; except those having an outdoor patio or congregation area that customers are allowed to use after 10:00 p.m. and where the nearest point of the property on which the restaurant is located is less than 100 feet from the nearest point of the property where a residential use is located; (3) Restaurants, Class 11, except those having an outdoor patio or congregation area that customers are allowed to use after 10:00 p.m. and where the nearest point of the property on which the restaurant is located is less than 100 feet from the nearest point of the property where a residential use is located. (4) Public buildings; (5) Utility services; (6) Utility service structures, subject to the following requirements: (a) Shall not be a water tower or electrical substation or a building constructed to house sanitary lift station controls; (b) Shall be 20 feet or less in height; (c) May be used only to provide weather protection for utility equipment; (d) Shall be designed, placed, and landscaped as necessary to assure that it blends with the neighboring uses, and is unobtrusive; (e) Shall comply with all applicable design standards; and Page 238 of 334 (f) Single- and mixed-use developments which comply with § 151.048, and have received approval from the City Council; (7) Uses having a drive-up or drive-through window, subject to the following requirements: (a) Shall be screened to a height of 6 feet from any adjacent residential zone; (b) Shall not have a public address system which is audible from any residential property; (c) Shall provide stacking for at least 6 vehicles per aisle. The required stacking shall not interfere with internal circulation patterns or with designated parking facilities, and shall not be located in any public right-of-way, private access easement, or within the required parking setback; (d) Trash receptacles, including, but not limited to, dumpsters, shall be stored in any enclosed areas, including the top. The enclosed areas shall be constructed of similar and/or complementary materials to the principal structure and meet the standards of this code of ordinances. (8) Relocated structures, subject to the following requirements (a) Shall obtain a moving permit from the city under § 111.07; (b) Prior to moving, the applicant shall have given cash, a cashier's check, or letter of credit as a financial guarantee to the city to ensure completion of all work. The financial guarantee shall be in an amount equal to the Building Official's estimate of the cost to bring the structure into compliance with the Building Code; (c) The structure shall meet all requirements of the Building Code within 6 months after moving; (d) If the structure is not in full compliance with the Building Code after 6 months of moving, the city, in its sole discretion, may draw on the financial guarantee and take whatever steps it deems necessary to bring the relocated structure into compliance with the Building Code. In the event the city draws on the financial guarantee, 10% of the total guarantee shall be paid to the city as its administrative fee; (e) The applicant shall provide the Building Department with all plan review comments and inspection records from Building Codes and STDS Division and from the city of origin where constructed; (f) An approved county highway moving permit will be required for the moving of the structure; (g) The structure shall be required to meet all setbacks, design, and performance standards specified in this code of ordinances, unless otherwise approved; and (h) Repair of any damage to city streets as a result of relocating the structure shall be paid for by the applicant. (9) Brewpubs. Page 239 of 334 (10) Taverns, except those having an outdoor patio or congregation area that customers are allowed to use after 10:00 p.m. and where the nearest point of the property on which the tavern is located is less than 100 feet from the nearest point of the property where a residential use is located. (C) Conditional or planned unit development uses. Within the Major Recreation Zone, no structure or land shall be used for the following uses except by conditional use permit or planned unit development: (1) Restaurants, Class I or Class II, that have an outdoor patio or congregation area that customers are allowed to use after 10:00 p.m. and where the nearest point of the property on which the restaurant is located is less than 100 feet from the nearest point of the property where a residential use is located. Additional standards for such uses are contained in § 151.013; (2) Commercial recreation, major or minor: (3) Hotels, motels, and conference centers; (4) Horse care uses including boarding, training, showing, grooming, and veterinary clinic facilities; (5) Retail uses and entertainment facilities; (6) Administrative, executive, and professional offices; (7) Health and athletic facilities; (8) Private lodges and clubs; (9) Day care facilities; (10) Adult day care centers as conditional use, subject to the following conditions: The adult day care centers shall: (a) Serve 13 or more persons; (b) Provide proof of an adequate water and sewer system if not served by municipal utilities; (c) Have outdoor leisure/recreation areas located and designed to minimize visual and noise impacts on adjacent areas; (d) 1. The total indoor space available for use by participants must equal at least 40 square feet for each day care participant and each day care staff member present at the center. When a center is located in a multi-functional organization, the center may share a common space with the multi-functional organization if the required space available for use by participants is maintained while the center is operating. 2. In determining the square footage of usable indoor space available, a center must not count: a. Hallways, stairways, closets, offices, restrooms, and utility and storage areas; Page 240 of 334 b. More than 25% of the space occupied by the furniture or equipment used by participants or staff, or c. In a multi-functional organization, any space occupied by persons associated with the multi-functional organization while participants are using common space. (e) Provide proof of state, federal, and other governmental licensing agency approval; and (f) Comply with all other state licensing requirements. (11) Structures over the height allowed based on their setback; (12) Developments containing more than one principal structure per lot; (13) Farm wineries producing less than 50,000 gallons of wine per calendar year; (14) Micro-distilleries; (15) Small breweries with taprooms; (16) Utility structures which do not meet the standard conditions under the permitted uses; (17) Power generation facilities; (18) Churches and other places of worship; (19) Taverns having an outdoor patio or congregation area that customers are allowed to use after 10:00 p.m. and where the nearest point of the property on which the tavern is located is less than 100 feet from the nearest point of the property where a residential use is located. Additional standards for such uses are contained in § 151.013; or (20) Other uses similar to those permitted by this division (C), upon a determination by the Board of Adjustment and Appeals, may be allowed upon the issuance of a conditional use permit. (21) Residential uses where it is an incidental use of no more than twenly percent of the total land area and is part of a Planned Unit Development. (D) Permitted accessory uses. Within the Major Recreation Zone, the following uses shall be permitted accessory uses: (1) Parking and loading spaces; (2) Temporary construction buildings; (3) Decorative landscape features; (4) Communication service apparatus/device(s) as permitted accessory uses, subject to the following conditions: (a) Shall be co-located on an existing tower or an existing structure; (b) Must not exceed 175 feet in total height(including the extension of any communication service device(s) apparatus); Page 241 of 334 (c) Lights and/or flashing equipment shall not be permitted unless required by state or federal agencies; (d) Signage shall not be allowed on the communication service device(s)/apparatus other than danger or warning type signs; (e) Must provide proof from a professional engineer that the equipment will not interfere with existing communications for public safety purposes; (f) Shall be located and have an exterior finish that minimizes visibility off-site to the maximum extent possible; (g) Applicable provisions of this code of ordinances, including the provisions of the State Building Code therein adopted, shall be complied with; (h) All obsolete or unused towers and accompanying accessory facilities shall be removed within 12 months of the cessation of operations at the site unless a time extension is approved by the city. After the facilities are removed, the site shall be restored to its original or an approved state. The user of the tower and/or accompanying accessory facilities shall be responsible for the removal of facilities and restoration of the site; (i) The applicant shall submit a plan illustrating all anticipated future location sites for communication towers and/or communication devices(s)/apparatus; 0) Wireless telecommunication towers and antennas will only be considered for city parks when the following conditions exist and if those areas are recommended by the Parks and Recreation Advisory Board and approved by the City Council: 1. City parks of sufficient size and character that are adjacent to an existing commercial or industrial use; and 2. Commercial recreation areas and major play fields used primarily by adults. (k) All revenue generated through the lease of a city park for wireless telecommunication towers and antennas should be transferred to the Park Reserve Fund. (5) Towers for commercial wireless telecommunications services shall only be allowed subject to the following conditions: (a) Shall also operate as a public utility structure; (b) Shall be located within the public rights-of-way; (c) Shall be limited to 75 feet in height; (d) Shall limit the height of antennas and communication service devices to 10 feet beyond the height of the structure; (e) No setback shall be required when located in the public rights-of-way; (f) Turf or other materials shall be established in the right-of-way consistent with the materials in the right-of-way at the time of installation; Page 242 of 334 (g) Lights and/or flashing equipment shall not be permitted unless required by state or federal agencies; (h) Shall be protected with corrosive resistant material; (i) Signage shall not be allowed on the tower other than danger or warning type signs; 0) Must provide proof from a professional engineer that the equipment is not able to be collocated on any existing or approved towers and prove that the planned tower will not interfere with existing communications for public safety purposes; (k) Must be built to accommodate antennas being placed at varying heights on the tower; (1) Existing vegetation on the site shall be preserved to the maximum extent possible; (m) Shall be surrounded by a security fence 6 feet in height with a lockable gate; (n) Shall have an exterior finish that minimizes visibility off-site to the greatest extent possible; (o) Applicable provisions of this code of ordinances, including the provisions of the State Building Code therein adopted, shall be complied with; (p) No tower shall be permitted unless the equipment planned for the proposed tower cannot be accommodated on an existing or approved tower or building within the one-half mile search radius of the proposed tower for any of the following reasons: 1. The necessary equipment would exceed the structural capacity of the existing or approved tower or building and the existing or approved tower cannot be reinforced, modified, or replaced to accommodate planned or equivalent equipment at a reasonable cost, as certified by a qualified, licensed professional engineer; 2. The necessary equipment would cause interference as to significantly impact the usability of other existing or planned equipment at the tower, structure, or building and the interference cannot be prevented at a reasonable cost, as certified by a qualified, licensed structural engineer; 3. Existing or approved towers and buildings within the one-half mile search radius cannot or will not accommodate the planned equipment at a height necessary to function reasonably, as certified by a qualified, licensed professional engineer; or 4. The applicant, after a good faith effort, is unable to lease space on an existing or approved tower or building. (q) All obsolete or unused towers and accompanying accessory facilities shall be removed within 12 months of the cessation of operations at the site unless a time extension is approved by the city. After the facilities are removed, the site shall be restored to its original or an improved state. The user of the tower and/or accompanying accessory facilities shall be responsible for the removal of facilities and restoration of the site; and (r) The applicant shall submit a plan illustrating anticipated sites for future location for communication towers and/or communication device (s)/apparatus. Page 243 of 334 (6) Other accessory uses customarily appurtenant to a permitted use, as determined by the Zoning Administrator. (E) Design standards. Within the Major Recreation Zone, no land shall be used, and no structure shall be constructed or used, except in conformance with the following minimum requirements: (1) Density: minimum lot area: 10 acres; 40 dwelling units per acre (2) Maximum impervious surface percentage: 80%; (3) Lot specifications. (a) Minimum lot width: 300 feet; (b) Minimum front yard setback: 1/2 of that structure's height or 50 feet, whichever is greater; residential setback can be from zero to 30 feet. Zero setback is allowed in areas where there is an urban character that includes pedestrian connections and wider than required sidewalks with boulevard street trees. (c) Minimum side yard setback: 1/2 One-half of that structure's height or 25 feet, whichever is greater; residential is 20 feet. (d) Minimum rear yard setback: 1/2 of that structure's height or 30 feet, whichever is greater; and residential is 20 feet. (e) Minimum rear yard setback from residential zones: 1/2 of that structure's height or 50 feet, whichever is greater and residential use to residential zone is 20 feet. (4) Minimum access spacing. (a) County Roads 83 and 16: no access is allowed other than to public and private streets with a minimum spacing of 600 feet; and (b) Shenandoah Drive and any continuation thereof to and including Secretariat Drive; and Fourth Avenue. Street and driveway access points must be separated by a minimum of 300 feet. Section 4. Effective Date. This ordinance shall be in effect from and after the date of its passage and publication Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of , 2017 Mayor of the City of Shakopee ATTEST: City Clerk Page 244 of 334 7.C.2. SH+ KOPEE Shakopee City Council July 5, 2017 FROM: Michael Kerski, Director of Planning and Development TO: Mayor and Council Members Subject• Orderly Annexation Agreement with Jackson Township Policy/Action Requested: Approve Orderly Annexation Agreement with Jackson Township Recommendation: Approve Joint Resolution for Orderly Annexation Between the Town of Jackson and the City of Shakopee Discussion• The City of Shakopee and the Jackson Township entered into an Orderly Annexation Agreement on July 22, 2002, pursuant to Minn. Stat 414.0325, designating certain real property for annexation. Orderly annexation allows for both parties to provide for long term planning for their respective communities and allows the City of Shakopee to specifically plan for certain capital improvements that may be necessary to serve areas to be annexed. The City of Shakopee and Jackson Township formed a steering committee in 2016 to revisit the original agreement to ensure that it served the long term plans for both and in preparation of the 2040 Comprehensive Plan, there was adequate discussion on what areas may be annexed. The Township hired its own consultant to develop a map that identified a phasing plan for the Township. The City used that map to provide preliminary concepts for how the areas could be served by sewer and SPUC reviewed the plans to see how water service could also be provided. Through the process, there were lengthy discussions on how the Township could preserve the Page 245 of 334 character of its existing subdivisions. Those subdivisions are now in an Exhibit and the City will not annex those areas until 2050 unless requested by the Township and approved by the City. Properties in the Township that have current working wells and septic systems will not be required to hook up to City services until their systems fail, however, they will pay whatever the current rate and charges are at that time for city services. This applies largely to properties where new City infrastructure may pass by a property that may serve a new nearby subdivision or commercial development. Also, over time with the loss of commercial property through annexation into the City, the Township would lose significant tax revenues from commercially zoned property. Currently the City pays the Township two years of Township tax revenues for any property annexed into the City. To put those amounts into focus, the D.R. Horton parcel payments was just over $3,000. Two recent annexations, a single family house and another house with commercial property, the payment to the Township was just over $1,000. After several months of discussion the City and the Township has agreed to a new formula for payments to the Township for property that is annexed into the City. The taxable value for the Township properties will be fixed at the January 1, 2017 values and the City will pay seven times the Township's taxes for any property annexed into the City. The January 1, 2017 values would increase 3% annually, not compounded. All parties agreed that this was a fair way to compensate the Township for lost revenue. If property values were not to increase over time in the Township to match the three percent factor and the Township substantially increased its levy, the City could choose not to annex property into the City and/or also renegotiate the OAA with the Township. This is the circuit breaker that protects both parties from increasing levy's from the Township. One of the Township's largest expenses is for fire protection that is contracted to the City. The current rate structure actually lowered the fees to the Township, and theoretically, as more value is created in the City by property value growth and annexation and development in the Township, that cost should not substantially increase given the current formula. As part of the new agreement, the Township agrees to reduce the adjacency requirement for annexation from 50% to 25% and to allow areas to be annexed if certain percentages of other areas have been annexed. Because of roads and parcel shapes, without this change, it would have been difficult to annex much of the Township. Annexations will largely occur based on market demand. The City has received funding from the CDA as part of the 2040 Comprehensive Plan to develop a specific plan for the Page 246 of 334 commercial corridor in the Township, currently guided in the County as reserve. This is a future commercial growth area for the City for business and industry. This agreement will allow that specific area to annex into the City in an orderly fashion and allow the City to deliver services to the area. Budget Impact• ATTACHMENTS: a Joint Resolution for Orderly Annexation a Annexation Phasing Map a Jackson Township Values 2017 Page 247 of 334 Draft 6/22/2017 JOINT RESOLUTION FOR ORDERLY ANNEXATION BETWEEN THE TOWN OF JACKSON & THE CITY OF SHAKOPEE WHEREAS, the City of Shakopee (hereinafter referred to as the "City") and the Township of Jackson (hereinafter referred to as the "Township"), both located entirely within Scott County in the State of Minnesota, desire to accommodate growth in the most orderly fashion, and have agreed that there is a clear need for cooperative future planning for the land governed by the two jurisdictions; and WHEREAS, the City and the Township entered into a Joint Resolution for Orderly Annexation in 2002 ("2002 Joint Resolution"); and WHEREAS, the City and the Township have established a committee to develop a new joint orderly annexation agreement which has extensively discussed, studied, and evaluated, pertinent issues regarding annexation and planning; and WHEREAS, the Township Board and City Council have expressed their desire to encourage future development of land near the City so as to promote the development of municipal services and urban growth as much as is practical, while encouraging the preservation of the character of the Township; and WHEREAS, the City and the Township are independent local governing authorities that represent the interests of the geographic areas and their constituents; and WHEREAS, it is desired and expressly understood that decisions of said governing authorities, irrespective of an agreement on a process for orderly annexation, will continue to be made by each respective authority; and WHEREAS, a new joint orderly annexation agreement is beneficial to both parties from the standpoint of orderly planning and orderly transition of government within the area proposed to be annexed, and provides the guidelines under which such annexation shall take place. NOW, THEREFORE, BE IT RESOLVED, in consideration of the mutual terms and conditions that follow, the City and the Township enter into this Joint Resolution for Orderly Annexation ("Joint Resolution" or "Agreement") and that the property herein described may be annexed in the future by the City, and at the time annexation is proposed, it shall occur, or may be applied for, subject to the following terms and conditions: Section 1-Administration 1. Municipal Boundary Adjustment Unit of the Minnesota Office of Administrative Hearings. Upon approval by the Township Board and the City Council, this Joint Resolution shall confer jurisdiction upon the Municipal Boundary Adjustment 492867v10 SH155-377 Page 248 of 334 Draft 6/6/2017 Unit, or its designated successor ("MBAU") so as to accomplish said orderly annexations in accordance with the terms of this Joint Resolution. 2. Review and Comment by the MBAU. The Township and City mutually agree and state that this Joint Resolution and Agreement sets forth all the conditions for annexation and that no consideration by the MBAU is necessary for individual annexations which occur in accordance with this Agreement. MBAU may review and comment, but shall, within thirty (30) days, order the annexation in accordance with the terms of this Joint Resolution. 3. No Alteration of Boundaries. The Township and City mutually agree and state that no alterations by the MBAU of the stated boundaries of the area designated for orderly annexation is appropriate. 4. Authorization. The applicable legislative bodies of the Township and City, as well as the MBAU, are hereby authorized to carry the terms of this Joint Resolution into effect. 5. Severability and Repealer. A determination that a provision of this Joint Resolution is unlawful or unenforceable shall not affect the validity or enforceability of the other provisions herein. This Joint Resolution and Agreement supersedes and replaces the 2002 Joint Resolution in its entirety. 6. Geographic Limitation for Annexation. All of the land in the Township is subject to orderly annexation in accordance with this Agreement under and pursuant to State Statute, subject to the provisions contained herein. 7. State Statute. The terms and conditions of this Agreement are created as an addition or complement to the requirements for annexation required by law. The language contained herein shall in no way be deemed to circumvent or reduce requirements established by law. If changes to State Statute are enacted during the duration of this Agreement that are more restrictive or otherwise negate the provisions herein, the State Statute shall rule. Nothing in this Agreement, however, is intended to confer, or expand upon, any power or authority that the MBAU does not have pursuant to State Statute. 8. Effective Date/Applicability. This Joint Resolution shall be effective upon adoption by the legislative bodies of the Township and the City and acceptance by the MBAU. This Agreement shall be applicable for any annexation petition filed or initiated while the Agreement is in effect. Should this Agreement be terminated following the filing of a petition for annexation, but prior to final action on that annexation by the City, the provisions of this Agreement shall be binding unless otherwise modified by a joint resolution of both the Township and the City. 2 Page 249 of 334 Draft 6/6/2017 9. Annexation by Ordinance. Annexation by Ordinance shall be accomplished according to Minn. Stat. § 414.033, subd 2. 10. Duration of Agreement. This Agreement shall be in force and binding from the date that it is accepted by the MBAU and shall continue to remain in effect until the Township and City replace or renew this Agreement with an amended joint agreement and resolution for orderly annexation. 11. Mediation/Arbitration. If a dispute of the terms or conditions of this Agreement arises, the Town and City hereby agree to enter into mediation to attempt to resolve this dispute. Mediation services shall be provided by a state agency or other third party representative agreed to by both the Township and the City. If mediation is unsuccessful, the Township and City hereby agree to enter into binding arbitration to resolve disputes under this Agreement. Mediation and arbitration shall be conducted in accordance with state statutes. 12. Amendment and Termination. Both parties reserve the right to initiate an amendment or revision to this Agreement at any time. However, once in effect, any amendment or revision to this Agreement shall require a joint resolution approved by both the Township and the City, as well as acceptance by the MBAU. Both parties reserve the right to request the termination of this Agreement. However, termination of this Agreement shall require a joint resolution approved by both the Township and the City. This Agreement shall terminate immediately upon approval of both legislative bodies and acceptance by the MBAU. 13. Planning and Land Use Control Authority. Scott County shall continue to exercise all planning, land use control, and zoning authority over all property in the orderly annexation area until such time as the City annexes the property. The City shall exercise all planning, land use control, and zoning authority over property after it is annexed into the City. 14. City Development Standards. The Township and City mutually agree and state that there is an inherent financial benefit to utilize City development standards within orderly annexation areas that will readily allow for the future extension of public utilities. Furthermore, the Township and the City agree to work with Scott County government to create, support, and develop standards that minimize the amount of infrastructure, and potential assessment costs, associated with annexation. 15. Joint Notification. Upon receiving or initiating a Petition for annexation, the City shall send to the Town Clerk a copy of the petition, resolution, proposed plans, and other relevant information to the Township not less than thirty (30) days prior to adoption. This provision shall be considered in concert with, and not necessarily in addition to, any required or existing notification procedure maintained by the City or required by State Statute. 3 Page 250 of 334 Draft 6/6/2017 16. Joint Meetings. The Township and City mutually agree to conduct a minimum of two (2) joint meetings each calendar year to discuss matters relating to this Agreement and to facilitate communication between the City and the Township with respect to annexation matters, such as topics relating to: A. Potential amendments to this Agreement; B. Specific development proposals on property within the annexation area; C. Specific annexation petitions; or D. Discussion of contemplated or ongoing planning studies or capital improvement projects by the City that potentially impact or affect the annexation area. Unless otherwise mutually agreed to by the parties, the joint meetings will be held on the (second Wednesday?) in (February and August?). The location and time for each meeting shall be determined jointly by the Township and City. At a minimum, one elected official of each legislative body shall be required to attend the meeting. Section Il-Initiation of Annexation, Petition 1. Requirements of Section. All petitions for annexation, or initiation of annexation, shall occur in accordance with the provisions identified by this section. Where state statute allows for a petition to be filed or initiated not in conformance with this section of the Agreement, the legislative body of the City hereby agrees that favorable action will not occur on said petition without the prior or concurrent amendment of this Agreement in accordance with the provisions identified herein. 2. Property Owner Initiated Adjacency Requirements. The following standards shall be used to determine adjacency when a property owner, or combination of multiple property owners with contiguous property, initiates annexation of property: A property, or combination of contiguous properties, shall be considered adjacent to the City when fifty (50) linear feet or more of the subject annexation area boundary abuts the municipal boundary of the City. 3. City Initiated Annexation Adjacency Requirements. The following standards shall be used to determine adjacency when the City initiates annexation of property: (a) Undeveloped property — Twenty five (25) percent contiguous shall be defined as at least twenty five (25) percent of the boundary of the subject property, or combination of contiguous properties, which abuts the City's municipal boundary. 4 Page 251 of 334 Draft 6/6/2017 (b) Developed property - Completely surrounded shall be defined as one hundred (100) percent of the boundary of the subject property, or combination of contiguous properties, which abuts the City's municipal boundary. (c) Township Limit - For the purposes of this document, the Township limit shall be defined as those portions of the outer boundary of the Township, not adjacent to the City, adjacent to other Townships, or jurisdictional boundaries. 4. Property Owner Petition. Any landowner, or combination of multiple landowners, with property adjacent to the municipal boundary of the City, may petition the City to annex their property in accordance with this Agreement. 5. Subdivision Definition. For the purposes of this Agreement, a subdivision is defined as one or more lots platted through the provisions identified within the Scott County Subdivision Control Ordinance, as from time to time amended. For those lots that predate the Subdivision Control Ordinance, a subdivision shall be considered one or more parcels of land established by lot and block number descriptions rather than a metes and bounds property description. 6. Existing Subdivision Petition. A simple majority of land owners within a subdivision based on the total number of lots, when the subdivision boundary is contiguous to the municipal boundary of the City, may petition the City to annex the entire subdivision in accordance with this Agreement. In addition, residential developments platted under the Urban Expansion Reserve provisions of the County Zoning Ordinance may be petitioned in their entirety by the owner, or owners, of a simple majority of the total property of the subdivision, including the outlot(s) reserved for future development. A petition to annex a residential subdivision which developed under the Urban Expansion Reserve Zoning provisions of the County Zoning Ordinance may not be considered valid unless it includes all the gross property of the subdivision, including developed/platted lots, outlot(s), and any public or commonly owned property as applicable. Any existing subdivision petitioning for annexation in accordance with this provision shall be considered a petition of all the representative property owners for the purpose of this Agreement. The separate provisions identified when the City initiates annexation shall not apply. 7. Initiation of Annexation by City for Undeveloped Property. The City may in accordance with the staging schedule contained in Section 11.9 and without a petition of the property owners, annex undeveloped property, or multiple undeveloped properties, within the Township if at least twenty five (25) percent of the boundary of the subject property, or combination of contiguous properties, abuts the City's municipal boundary. For the purposes of this Agreement, whether or not a property is developed shall be determined at the time of initiation of the annexation, based on existing conditions or approved 5 Page 252 of 334 Draft 6/6/2017 and recorded plans, whichever is more restrictive. Undeveloped property means all property that does not meet one of the following criteria: (a) Residential subdivisions/lots with a gross density greater than one (1) dwelling unit for every five (5) acres of land based on either the number of dwelling units or lots, whichever is greater. Residential developments platted under the Urban Expansion Reserve Zoning provisions of the County Zoning Ordinance shall include the outlot(s) reserved for future development as part of the calculation of gross density, where applicable. (b) Non-residential development with 1,000 square feet of principal and/or accessory building coverage per acre or greater. For the purposes of this Agreement, a dwelling unit shall be defined as a residential building or portion thereof intended for occupancy by one (1) or more persons with facilities for living, sleeping, cooking, eating, and restrooms. Motels, hotels, rooming houses, nursing homes, manufactured home parks, campgrounds, and similar facilities shall be considered commercial and not residential. Tents, seasonal cabins, motor homes, travel trailers, and other similar temporary or moveable facilities shall not be considered a dwelling unit. Land which is tax exempt, publicly owned, utilized for utility or transportation purposes, or other similar property shall be considered undeveloped. 8. Initiation of Annexation by City for Developed Property. The City may at any time, without a petition of the property owners, annex developed property or multiple adjacent properties within the Township completely surrounded by the municipal boundary of the City, subject to the following additional conditions: (a) Certified Notice of Intent to Annex- The City shall provide a minimum of six months' notice by certified mail to each property owner within a developed area prior to initiating annexation. This certified notice shall also be sent to the Township. This notice shall be considered additional to any requirements established by state statute. The notice shall include the following information: 1. Improvements — all proposed improvements with an estimated installation date and approximate assessment cost (if applicable). 2. Benefits — the major proposed services/benefits that are planned to occur simultaneously with annexation. Benefits suitable for notification shall be at the discretion of the City, but are intended to include, but not be limited to, police and fire services, street maintenance, and park system benefits. 6 Page 253 of 334 Draft 6/6/2017 3. Tax Rates — the existing City tax rate compared to the existing Township tax rate. The notice shall also include the estimated date when the new tax rate would take effect and first be payable to the City. Although an individual analysis of each property is not required, at least one representative example shall be provided that illustrates a typical before and after effect between City and Township taxes identified in dollars per year. The purpose of this provision is to provide general information to property owners within a proposed annexation area. 4. Timeline for Annexation — the anticipated schedule for future notice, public hearing dates, and the ultimate effective date of annexation. Although individual dates and times need not be identified, the purpose of this provision is to make residents aware of the general chronology of annexation in accordance with statute and the provisions of this Agreement. (b) Public Meeting Required—The City shall conduct a public informational meeting on the proposed annexation plans within ninety (90) days of the certified notice. The date, time, location, and purpose of this meeting shall be identified as part of the certified notice of annexation. The purpose of this meeting is to provide general information to the public and solicit public input on required infrastructure improvements. (c) Effective Date of Annexation — City approval of the Resolution for annexation shall not be submitted to the MBAU earlier than one (1) year from the date of approval of the Resolution. The effective date of annexation shall be the date of MBAU approval. (d) Assessment Period - The payback time on assessments for improvements associated with annexation shall be for a period not to exceed ten (10) years. Individual property owners may request the City to consider increasing the payback time on assessments to a maximum period of twenty (20) years, however, the consideration shall be guided as follows: 1. Property Owner Initiated Annexation —Approval of any requested extension is solely in the discretion of the City. 2. City Initiated Annexation — Although the City has the right to review and approve assessment payback times, the burden shall be on the City to identify valid reasons why an assessment should not be extended at the request of an individual property owner. To be considered valid, assessment extension requests shall be made prior to or as part of the hearing process required for annexation. 7 Page 254 of 334 Draft 6/6/2017 Any dispute to this provision shall be governed by the Mediation/Arbitration provision of this Agreement. (e) Public Water and Sewer Service - To reduce pre-mature assessment costs to developed property, public water and sanitary sewer need only be provided to developed areas where there is either an existing or eminent health concern identified by the City, or where the extension of services is part of the implementation of the City's long range utility plans. At any time, property owners may also petition the City for the extension of services. At that time, the City shall prepare a plan/concept outlining how, when, and at what cost services might be provided. The City shall allow for input on the prepared plan/concept prior to proceeding with implementing the request and assessing the cost to individual property owners. The intent of this provision is to allow property owners to evaluate the cost/benefit of services where other health concerns or the implementation of long range plans does not exist. (f) Township Requested Improvements - The Township, on behalf of the proposed annexation area, may request that specific improvements be installed to address a specific problem and/or deficiency. To be considered by the City, the Township shall notify the City of any requested improvements prior to or as part of the first public hearing, as required by state statute. Any request made after that time shall not have standing and may be considered solely at the discretion of the City. If no agreement can be reached regarding the need for the requested improvements within the annexation area, the annexation may not proceed until the disputed installation of improvements is resolved in accordance with the Mediation/Arbitration portion of this Agreement. 9. Annexation Eligibility. Attached to this Agreement as Exhibit A is an Annexation Staging Area Map. If all of the other requirements for annexation contained in this Agreement are met, property within the Annexation Staging Area is eligible for City-initiated annexation in accordance with the following schedule: (a) Property located in Area A is eligible for annexation any time after both the City and the Township approve this Joint Resolution. (b) Property located in Area B is eligible for annexation any time after December 31, 2017. (c) Property located in Areas C and D is eligible for annexation any time after December 31, 2017, provided, however that no property in Area C can be annexed until at least 25% of the property located in Areas A & B combined has been annexed into the City. 8 Page 255 of 334 Draft 6/6/2017 (d) Property located in Areas E and F are eligible for annexation any time after January 1, 2050. The City is not obligated to initiate annexation of all of the property in any particular area before initiating annexation of property in another area. Section 111— Municipal Reimbursement 1. Municipal Reimbursement. It is generally recognized that the fiscal planning for any government entity occurs in the calendar year prior to the actual expenditures. Whereas, the annexation of property could pose a hardship on the Township having planned for a certain income that is no longer available upon annexation. To address this potential hardship, the Township and City mutually agree and state that, pursuant to state statute, a reimbursement from the City to the Township shall occur for the taxes collected on land annexed into the City. Reimbursement shall occur as identified herein. Any and all of the applicable property taxes collected in the area designated for Orderly Annexation shall remain the property of the Township. Excepting required reimbursement, upon annexation, any and all property taxes collected from the annexed properties shall be the property of the City. Reimbursement from the City to the Township shall occur as follows: (a) Rate/Amount — The City shall reimburse the Township by a cash payment, based on the Township's tax rate and the taxable market value of each annexed parcel as of January 2 of the year in which the parcel is annexed multiplied by a 7-year period of time. The year the property is annexed shall be determined by the date of MBAU approval. For purposes of calculating the amount of the City's reimbursement, the taxable market value of any parcel annexed into the City will be determined by using the taxable market value of the parcel as of January 2, 2017 increased by 3% annual simple interest until January 2nd of the year in which the parcel is annexed. The following examples illustrate how that calculation will be made: Example 1. Parcel A has a taxable market value of 100 as of January 2, 2017. Parcel A is annexed into the City on July 1, 2018. For purposes of calculating the City's required reimbursement to the Township, the taxable marketable value of Parcel A as of January 2, 2018 is $103. Example 2. Parcel B has a taxable market value of 100 as of January 2, 2017. Parcel B is annexed into the City on July 1, 2020. For purposes of calculating the City's required reimbursement to the Township, the taxable market value of Parcel A as of January 2, 2020 is $109. 9 Page 256 of 334 Draft 6/6/2017 Attached to this Agreement as Exhibit B is a list of all of the parcels of land currently located in Areas A, B, C, and D of the Annexation Staging Area Map and the taxable market values of those parcels as of January 2, 2017. The taxable market value for each parcel listed on Exhibit B will be used as the starting point for making the 3% annual adjustment required by this provision. (b) Reimbursement Payment—The City shall reimburse the Township with the amount of funds as determined herein by a single payment to the Township within sixty (60) after the parcel is annexed into the City. Reimbursement Payment Example: Parcel A is annexed into the City on July 1, 2018 and the taxable market value of the parcel as of January 2, 2018 as determined in paragraph (a) above is $100,000. If the Township's tax rate as of January 2, 2018 as applied to that taxable market value for Parcel A would result in $700 of property taxes being paid to the Township, the City is required to pay $4,900 to the Township. The payment is due by August 31, 2018. 2. Tax Exempt Property. Where a property is annexed that is publicly owned or is currently exempt from local property taxes, the exemption shall be maintained and no reimbursement shall be required from the City to the Township. 3. Bonded Improvements. The Township may bond for capital expenditures in accordance with applicable state statutes. However, the Township shall be solely responsible for bearing the costs associated with paying back the bond unless a previous agreement is reached between the Township and the City. Section IV— Miscellaneous Conditions. 1. Annual Area Limits. Within any given calendar year, the City shall be limited to a maximum area it may annex without property owner petitions. The City shall be limited to a maximum City-initiated annexation area of two hundred and fifty (250) acres per calendar year of developed and undeveloped property combined. For the purposes of this Agreement, publicly owned property, or property currently exempt from local property taxes, shall not apply or count toward the maximum area limitation. 2. Township Requested Annexation. Over time, it is likely that pockets or islands of the Township will be created due to annexation. At which time, the Township may determine that it is either a financial burden or undesirable to provide service to specific properties. To alleviate the effects of continual annexation and the creation of pockets and islands, the Township may at any time require 10 Page 257 of 334 Draft 6/6/2017 the City to annex properties that are completely surrounded by the City, as defined within this Agreement. Annexation requested by the Township is subject to the following: (a) The Township shall notify the City of this request by certified mail identifying all properties requested to be annexed. (b) The City shall have a period of one (1) year from the date of notification to initiate the annexation of the properties associated with the request. (c) No reimbursement shall be required from the City to the Township for Township requested annexation of property. (d) There shall be no size or area limitation placed on Township requested annexation. 3. Existing Platted Additions — Sewer Hook-Up and Related Charges. The twenty (20) existing neighborhoods set forth in Exhibit C_("Qualifying Subdivisions") as established platted subdivisions within the Township shall be subject to the following special provisions: (a) Notwithstanding any other provision in the City Code to the contrary, no parcel of land in in a Qualifying Subdivision where lateral sanitary sewer service is available will be required to hook up to the City sanitary sewer system after annexation if the parcel has an operating septic system that complies with all County standards, until the parcel is sold or until the septic system becomes defective, whichever occurs first. A septic system becomes defective when: (1) substantial repair, such as replacement of drain field lines, is needed; (2) replacement of a well is needed; or (3) the system no longer fully complies with all County standards. (b) At the time of connection to the City trunk sanitary sewer, the property owner will be required to pay all connection fees and lateral/trunk sewer charges at the applicable rates in effect at the time of connection. 4. Exemption for Court Ordered Extension of Services. The Township and City recognize that a situation may come to exist that a judicial decision may be made that requires the City to extend water, sewer, or other municipal service to a portion of the Township. If a legally binding court order exists with no possibility of further disruption on appeal, and the contract for the extension of services has been completed, the annexation of that property may be initiated by the City in accordance with the Township requested annexation provisions of this Agreement in the preceding section, rather than the more stringent City initiated provisions. In cases where the order is relative to only a portion of a residential subdivision, the annexation may include the entire subdivision to facilitate the extension of services, at the discretion of the City. 11 Page 258 of 334 Draft 6/6/2017 5. Road Maintenance. If land is annexed into the City whereby ownership extends to the centerline of a Township road, the City shall assume maintenance of said road. JACKSON TOWNSHIP Approved this day of 20 By: Attested to: Thomas Weckman, Chair Rose Menke, Clerk Jackson Township Dated: Dated: CITY OF SHAKOPEE Approved this day of 20 By: Attested to: William P. Mars, Mayor Lori Henson, City Clerk City of Shakopee Dated: Dated: By: William H. Reynolds, City Administrator City of Shakopee Dated: 12 Page 259 of 334 Draft 6/6/2017 EXHIBIT C QUALIFYING SUBDIVISIONS Fox Meadows Estates Glen Ellyn Park Glen Ellyn Park 2nd Addition Glen Ellyn Park 3rd Addition Glen Ellyn Park 4t" Addition Glen Ellyn Park 5t" Addition Jackson Hills Preserve South (Jackson portion) Pribble Pond Southview Heights 1 st Addition Theis Addition Theis 2nd Addition Wild Rose Estates Preserve at Stonebrook Clearview Acres (Jackson portion) Kubes 1 st Addition Pondview Park Estates Pondview Park Estates 2nd Addition RLS 205 RLS 211 13 Page 260 of 334 SHAKOPEE ' 'MITTIT t : a City Boundary yE Parcels I jr ry 'i r aee r y �.rf�' iOA��e ase sear ® ttrt e,e a e,aep,o.�yeR�4e�e n. ee-,a uw e�ioCa9iaae 3 _ ✓�,�Ci�a.i5eeH51V y}9t kF 161 ,� <� � /Ac`u'/ �!j ��z.+� 9i iPd iFi iE191 Y•i 11 b'k�� .•' ��- 1/1�®��9��F� 't'�+�a ��ie,py'i f6�a e76 9a a� r 1 i 1 � A Be it �, I� ! ,p e e re; ¢ III{!G ® _ t 1 a ,✓,v ry a y� i x A lpg � 34ap ie o ^ ��4i✓ �,,— e,a ee ..I'„� ....�.r aL a� L.' n. er bba Baal® n .�fK�haea ,�a �^yr✓+e' �,e:QO,�,t "n� -_�#41'9 a ax'° �� ,w.,s^�ts y>ra�l1`1ayv�P o4 �y ! I bn'fA�\°�r�j gnee,7 bei II a 1�v°°a4 ®a gay I as J (�f�1 b � e� ♦4!!n!a°�A `�ra9fff9ll� '�][l, a E ' mnY'1►Va¢m e a:fu r as e ak�a:::�art t gd _ SII �Q C � � - � ��E �tea►' •w _ 'I. _ �r City Initiated Staging of Jackson Township Annexation May 31,2017 Pa City of Shakopee Jackson Township EMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PID# UNIQUE TAXING AUTHORITY CLASS INFO EMV 60000010 0801/JKSN TWP/ISD 720 455 PP SA Gas Trans Pipeline 4,800 60000020 0802/JKSN TWP/ISD 720/LOW MN 459 PP SA Gas Distrib Utility 418,900 60000030 0801/JKSN TWP/ISD 720 459 PP SA Gas Distrib Utility 44,700 60000040 0801/JKSN TWP/ISD 720 459 PP SA Gas Distrib Utility 3,041,900 60000060 0802/JKSN TWP/ISD 720/LOW MN 443 PP SA Elec Trans>= 69KV 3,502,300 60000070 0801/JKSN TWP/ISD 720 431 PP Tools & Mach 10,200 60000080 0801/JKSN TWP/ISD 720 453 PP Leased L/B 30,000 60000100 0801/JKSN TWP/ISD 720 453 PP Leased L/B 60,000 60000110 0801/JKSN TWP/ISD 720 453 PP Leased L/B 150,000 60000120 0802/JKSN TWP/ISD 720/LOW MN 443 PP SA Elec Trans>= 69KV 699,400 60005000 0802/JKSN TWP/ISD 720/LOW MN 360 Pub Util RR 493,700 60010010 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 700 60010020 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 700 60010030 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 100 60010040 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 800 60010050 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 800 60010060 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 700 60010070 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 100 60010080 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 700 60030010 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 700 60030020 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 700 60030030 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 700 60030040 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 700 60030050 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 700 60030060 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 700 60030070 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 700 60030080 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 700 60030090 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 700 60030100 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 600 60030110 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 600 60030120 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 700 60030130 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 100 60030140 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 100 60030150 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 100 60030160 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 100 60050010 0801/JKSN TWP/ISD 720 100 Res 1 unit 258,600 60050020 0801/JKSN TWP/ISD 720 100 Res 1 unit 267,200 60050030 0801/JKSN TWP/ISD 720 100 Res 1 unit 291,300 60050040 0801/JKSN TWP/ISD 720 100 Res 1 unit 293,300 60050050 0801/JKSN TWP/ISD 720 100 Res 1 unit 227,400 60050060 0801/JKSN TWP/ISD 720 100 Res 1 unit 276,100 60050070 0801/JKSN TWP/ISD 720 100 Res 1 unit 240,000 Pae1of13 Page 26 of 334 City of Shakopee Jackson Township EMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PID# UNIQUE TAXING AUTHORITY CLASS INFO EMV 60050080 0801/JKSN TWP/ISD 720 100 Res 1 unit 233,500 60050090 0801/JKSN TWP/ISD 720 100 Res 1 unit 246,800 60050100 0801/JKSN TWP/ISD 720 140 Res V Land 88,800 60050110 0801/JKSN TWP/ISD 720 100 Res 1 unit 233,700 60050120 0801/JKSN TWP/ISD 720 100 Res 1 unit 272,300 60050130 0801/JKSN TWP/ISD 720 100 Res 1 unit 14,100 60050140 0801/JKSN TWP/ISD 720 100 Res 1 unit 274,400 60050150 0801/JKSN TWP/ISD 720 100 Res 1 unit 229,800 60050160 0801/JKSN TWP/ISD 720 100 Res 1 unit 260,200 60050170 0801/JKSN TWP/ISD 720 100 Res 1 unit 264,200 60050180 0801/JKSN TWP/ISD 720 100 Res 1 unit 262,600 60050190 0801/JKSN TWP/ISD 720 100 Res 1 unit 14,100 60050200 0801/JKSN TWP/ISD 720 100 Res 1 unit 306,500 60050210 0801/JKSN TWP/ISD 720 100 Res 1 unit 269,600 60050220 0801/JKSN TWP/ISD 720 100 Res 1 unit 282,800 60050230 0801/JKSN TWP/ISD 720 100 Res 1 unit 7,100 60050231 0801/JKSN TWP/ISD 720 100 Res 1 unit 7,100 60050240 0801/JKSN TWP/ISD 720 100 Res 1 unit 264,500 60050250 0801/JKSN TWP/ISD 720 100 Res 1 unit 287,100 60050260 0801/JKSN TWP/ISD 720 958 Muni Srvc Other 240,000 60060010 0801/JKSN TWP/ISD 720 100 Res 1 unit 313,500 60060020 0801/JKSN TWP/ISD 720 140 Res V Land 44,600 60060030 0801/JKSN TWP/ISD 720 100 Res 1 unit 254,500 60060040 0801/JKSN TWP/ISD 720 100 Res 1 unit 281,200 60060050 0801/JKSN TWP/ISD 720 100 Res 1 unit 267,300 60060060 0801/JKSN TWP/ISD 720 100 Res 1 unit 271,500 60060070 0801/JKSN TWP/ISD 720 100 Res 1 unit 262,700 60060080 0801/JKSN TWP/ISD 720 100 Res 1 unit 344,800 60060100 0801/JKSN TWP/ISD 720 100 Res 1 unit 311,600 60060110 0801/JKSN TWP/ISD 720 100 Res 1 unit 353,400 60060120 0801/JKSN TWP/ISD 720 100 Res 1 unit 292,800 60060130 0801/JKSN TWP/ISD 720 100 Res 1 unit 281,000 60060140 0801/JKSN TWP/ISD 720 100 Res 1 unit 264,000 60060150 0801/JKSN TWP/ISD 720 100 Res 1 unit 263,200 60070010 0801/JKSN TWP/ISD 720 100 Res 1 unit 253,400 60070020 0801/JKSN TWP/ISD 720 100 Res 1 unit 267,900 60070030 0801/JKSN TWP/ISD 720 100 Res 1 unit 289,400 60070031 0801/JKSN TWP/ISD 720 100 Res 1 unit 1,400 60070050 0801/JKSN TWP/ISD 720 100 Res 1 unit 276,400 60070051 0801/JKSN TWP/ISD 720 100 Res 1 unit 7,100 60070060 0801/JKSN TWP/ISD 720 100 Res 1 unit 260,500 60070070 0801/JKSN TWP/ISD 720 100 Res 1 unit 270,000 Pae2of13 Page 26 of 334 City of Shakopee Jackson Township EMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PID# UNIQUE TAXING AUTHORITY CLASS INFO EMV 60070080 0801/JKSN TWP/ISD 720 100 Res 1 unit 21,200 60070091 0801/JKSN TWP/ISD 720 100 Res 1 unit 14,100 60070110 0801/JKSN TWP/ISD 720 100 Res 1 unit 234,700 60070130 0801/JKSN TWP/ISD 720 100 Res 1 unit 7,100 60070140 0801/JKSN TWP/ISD 720 100 Res 1 unit 257,300 60070150 0801/JKSN TWP/ISD 720 140 Res V Land 28,200 60070160 0801/JKSN TWP/ISD 720 100 Res 1 unit 269,500 60070170 0801/JKSN TWP/ISD 720 100 Res 1 unit 216,900 60070180 0801/JKSN TWP/ISD 720 100 Res 1 unit 302,400 60070190 0801/JKSN TWP/ISD 720 100 Res 1 unit 7,100 60070191 0801/JKSN TWP/ISD 720 100 Res 1 unit 238,300 60070210 0801/JKSN TWP/ISD 720 100 Res 1 unit 287,700 60070220 0801/JKSN TWP/ISD 720 100 Res 1 unit 339,400 60080010 0801/JKSN TWP/ISD 720 983 Co Admin-TaxForf 14,100 60080020 0801/JKSN TWP/ISD 720 100 Res 1 unit 506,100 60080030 0801/JKSN TWP/ISD 720 100 Res 1 unit 511,200 60080040 0801/JKSN TWP/ISD 720 140 Res V Land 140,000 60080050 0801/JKSN TWP/ISD 720 100 Res 1 unit 506,300 60080070 0801/JKSN TWP/ISD 720 100 Res 1 unit 323,900 60080080 0801/JKSN TWP/ISD 720 100 Res 1 unit 457,300 60080090 0801/JKSN TWP/ISD 720 100 Res 1 unit 295,700 60080100 0801/JKSN TWP/ISD 720 100 Res 1 unit 463,400 60080110 0801/JKSN TWP/ISD 720 140 Res V Land 133,200 60080120 0801/JKSN TWP/ISD 720 140 Res V Land 133,200 60080130 0801/JKSN TWP/ISD 720 140 Res V Land 14,100 60080140 0801/JKSN TWP/ISD 720 100 Res 1 unit 322,900 60080150 0801/JKSN TWP/ISD 720 100 Res 1 unit 28,200 60080160 0801/JKSN TWP/ISD 720 100 Res 1 unit 293,700 60080170 0801/JKSN TWP/ISD 720 100 Res 1 unit 38,500 60080180 0801/JKSN TWP/ISD 720 100 Res 1 unit 335,800 60080190 0801/JKSN TWP/ISD 720 100 Res 1 unit 7,100 60080200 0801/JKSN TWP/ISD 720 100 Res 1 unit 256,100 60080220 0801/JKSN TWP/ISD 720 100 Res 1 unit 277,000 60080230 0801/JKSN TWP/ISD 720 100 Res 1 unit 7,100 60080232 0801/JKSN TWP/ISD 720 100 Res 1 unit 251,800 60080240 0801/JKSN TWP/ISD 720 100 Res 1 unit 7,100 60080250 0801/JKSN TWP/ISD 720 100 Res 1 unit 21,200 60080260 0801/JKSN TWP/ISD 720 140 Res V Land 21,200 60080270 0801/JKSN TWP/ISD 720 140 Res V Land 21,200 60090010 0801/JKSN TWP/ISD 720 100 Res 1 unit 319,100 60090020 0801/JKSN TWP/ISD 720 100 Res 1 unit 390,200 60090030 0801/JKSN TWP/ISD 720 100 Res 1 unit 542,200 PNe 3of13 Page of 334 City of Shakopee Jackson Township EMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PID# UNIQUE TAXING AUTHORITY CLASS INFO EMV 60090040 0801/JKSN TWP/ISD 720 100 Res 1 unit 402,000 60090050 0801/JKSN TWP/ISD 720 100 Res 1 unit 379,800 60090060 0801/JKSN TWP/ISD 720 100 Res 1 unit 497,600 60090070 0801/JKSN TWP/ISD 720 100 Res 1 unit 477,300 60090080 0801/JKSN TWP/ISD 720 100 Res 1 unit 498,900 60090090 0801/JKSN TWP/ISD 720 100 Res 1 unit 169,200 60090100 0801/JKSN TWP/ISD 720 100 Res 1 unit 407,900 60100010 0801/JKSN TWP/ISD 720 100 Res 1 unit 21,200 60100020 0801/JKSN TWP/ISD 720 100 Res 1 unit 243,200 60100030 0801/JKSN TWP/ISD 720 100 Res 1 unit 304,800 60100040 0801/JKSN TWP/ISD 720 100 Res 1 unit 285,900 60100050 0801/JKSN TWP/ISD 720 100 Res 1 unit 284,200 60110010 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 420,000 60120010 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 5,000 60120020 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 14,900 60140010 0801/JKSN TWP/ISD 720 100 Res 1 unit 395,600 60140020 0801/JKSN TWP/ISD 720 100 Res 1 unit 303,200 60140030 0801/JKSN TWP/ISD 720 100 Res 1 unit 389,100 60150010 0801/JKSN TWP/ISD 720 100 Res 1 unit 280,600 60150020 0801/JKSN TWP/ISD 720 100 Res 1 unit 278,000 60150030 0801/JKSN TWP/ISD 720 100 Res 1 unit 319,900 60150040 0801/JKSN TWP/ISD 720 100 Res 1 unit 336,200 60150050 0801/JKSN TWP/ISD 720 140 Res V Land 120,600 60150060 0801/JKSN TWP/ISD 720 100 Res 1 unit 372,700 60150070 0801/JKSN TWP/ISD 720 100 Res 1 unit 372,800 60150080 0801/JKSN TWP/ISD 720 100 Res 1 unit 8,900 60150090 0801/JKSN TWP/ISD 720 952 State Property 2,700 60170010 0801/JKSN TWP/ISD 720 300 Commercial 1,000,000 60170020 0801/JKSN TWP/ISD 720 300 Commercial 320,000 60170030 0801/JKSN TWP/ISD 720 300 Commercial 742,300 60170040 0801/JKSN TWP/ISD 720 300 Commercial 946,600 60170050 0801/JKSN TWP/ISD 720 300 Commercial 970,000 60170060 0801/JKSN TWP/ISD 720 300 Commercial 78,400 60170060 0801/JKSN TWP/ISD 720 200 Agricultural 261,400 60180010 0801/JKSN TWP/ISD 720 100 Res 1 unit 517,400 60180020 0801/JKSN TWP/ISD 720 100 Res 1 unit 513,400 60180030 0801/JKSN TWP/ISD 720 100 Res 1 unit 563,000 60180040 0801/JKSN TWP/ISD 720 200 Agricultural 413,700 60180040 0801/JKSN TWP/ISD 720 200 Agricultural 128,700 60180040 0801/JKSN TWP/ISD 720 211 Rural Vacant Land 11,700 60190010 0801/JKSN TWP/ISD 720 100 Res 1 unit 264,600 60190020 0801/JKSN TWP/ISD 720 100 Res 1 unit 219,100 Pae4of13 Page 26 of 334 City of Shakopee Jackson Township EMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PID# UNIQUE TAXING AUTHORITY CLASS INFO EMV 60200010 0801/JKSN TWP/ISD 720 100 Res 1 unit 350,600 60200020 0801/JKSN TWP/ISD 720 100 Res 1 unit 271,400 60200030 0801/JKSN TWP/ISD 720 100 Res 1 unit 433,200 60200040 0801/JKSN TWP/ISD 720 100 Res 1 unit 456,500 60200050 0801/JKSN TWP/ISD 720 100 Res 1 unit 426,100 60200060 0801/JKSN TWP/ISD 720 100 Res 1 unit 494,300 60200070 0801/JKSN TWP/ISD 720 100 Res 1 unit 359,000 60200080 0801/JKSN TWP/ISD 720 100 Res 1 unit 421,000 60200090 0801/JKSN TWP/ISD 720 100 Res 1 unit 385,900 60200100 0801/JKSN TWP/ISD 720 100 Res 1 unit 418,600 60200110 0801/JKSN TWP/ISD 720 100 Res 1 unit 354,800 60200120 0801/JKSN TWP/ISD 720 100 Res 1 unit 455,800 60200130 0801/JKSN TWP/ISD 720 100 Res 1 unit 465,800 60200140 0801/JKSN TWP/ISD 720 100 Res 1 unit 516,600 60200150 0801/JKSN TWP/ISD 720 100 Res 1 unit 459,600 60200160 0801/JKSN TWP/ISD 720 100 Res 1 unit 440,100 60200170 0801/JKSN TWP/ISD 720 140 Res V Land 7,100 60210010 0801/JKSN TWP/ISD 720 100 Res 1 unit 402,800 60210020 0801/JKSN TWP/ISD 720 100 Res 1 unit 320,500 60210030 0801/JKSN TWP/ISD 720 100 Res 1 unit 307,600 60210040 0801/JKSN TWP/ISD 720 100 Res 1 unit 385,900 60210050 0801/JKSN TWP/ISD 720 100 Res 1 unit 386,700 60210060 0801/JKSN TWP/ISD 720 100 Res 1 unit 367,100 60210070 0801/JKSN TWP/ISD 720 100 Res 1 unit 398,500 60210080 0801/JKSN TWP/ISD 720 100 Res 1 unit 371,300 60210090 0801/JKSN TWP/ISD 720 100 Res 1 unit 397,200 60210100 0801/JKSN TWP/ISD 720 100 Res 1 unit 463,500 60210110 0801/JKSN TWP/ISD 720 100 Res 1 unit 705,200 60210120 0801/JKSN TWP/ISD 720 140 Res V Land 148,100 60210130 0801/JKSN TWP/ISD 720 140 Res V Land 140,600 60210140 0801/JKSN TWP/ISD 720 958 Muni Srvc Other 130,000 60220010 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 320,200 60230010 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 1,640,000 60240010 0801/JKSN TWP/ISD 720 300 Commercial 1,143,300 60250010 0801/JKSN TWP/ISD 720 100 Res 1 unit 512,700 60250020 0801/JKSN TWP/ISD 720 100 Res 1 unit 437,900 60250030 0801/JKSN TWP/ISD 720 100 Res 1 unit 198,800 60250040 0801/JKSN TWP/ISD 720 100 Res 1 unit 504,000 60250050 0801/JKSN TWP/ISD 720 100 Res 1 unit 444,000 60250060 0801/JKSN TWP/ISD 720 100 Res 1 unit 643,500 60250070 0801/JKSN TWP/ISD 720 100 Res 1 unit 474,800 60250080 0801/JKSN TWP/ISD 720 100 Res 1 unit 441,100 Pae5of13 Page 26 of 334 City of Shakopee Jackson Township EMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PID# UNIQUE TAXING AUTHORITY CLASS INFO EMV 60250090 0801/JKSN TWP/ISD 720 100 Res 1 unit 544,900 60250100 0801/JKSN TWP/ISD 720 100 Res 1 unit 553,000 60250110 0801/JKSN TWP/ISD 720 100 Res 1 unit 666,800 60250120 0801/JKSN TWP/ISD 720 100 Res 1 unit 468,000 60250130 0801/JKSN TWP/ISD 720 140 Res V Land 2,100 60250140 0801/JKSN TWP/ISD 720 140 Res V Land 2,100 60250150 0801/JKSN TWP/ISD 720 956 Muni Srvc Ent 100,000 60260010 0801/JKSN TWP/ISD 720 140 Res V Land 300 60260020 0801/JKSN TWP/ISD 720 100 Res 1 unit 7,100 60270010 0801/JKSN TWP/ISD 720 100 Res 1 unit 351,700 60280010 0801/JKSN TWP/ISD 720 100 Res 1 unit 383,800 60300010 0801/JKSN TWP/ISD 720 915 Church 4,497,000 60320010 0801/JKSN TWP/ISD 720 305 Industrial 1,675,000 60330010 0801/JKSN TWP/ISD 720 100 Res 1 unit 446,800 60330020 0801/JKSN TWP/ISD 720 100 Res 1 unit 580,300 60330030 0801/JKSN TWP/ISD 720 140 Res V Land 193,900 60330050 0801/JKSN TWP/ISD 720 100 Res 1 unit 942,800 60330060 0801/JKSN TWP/ISD 720 140 Res V Land 186,100 60330070 0801/JKSN TWP/ISD 720 100 Res 1 unit 643,800 60330080 0801/JKSN TWP/ISD 720 100 Res 1 unit 582,700 60330090 0801/JKSN TWP/ISD 720 100 Res 1 unit 812,700 60330100 0801/JKSN TWP/ISD 720 100 Res 1 unit 665,400 60330110 0801/JKSN TWP/ISD 720 100 Res 1 unit 557,700 60330120 0801/JKSN TWP/ISD 720 100 Res 1 unit 807,900 60330130 0801/JKSN TWP/ISD 720 100 Res 1 unit 586,200 60340010 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 1,050,000 60340020 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 50,000 60340030 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 80,000 60340040 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 200 60350010 0802/JKSN TWP/ISD 720/LOW MN 140 Res V Land 7,000 60350020 0802/JKSN TWP/ISD 720/LOW MN 140 Res V Land 4,300 60360010 0801/JKSN TWP/ISD 720 305 Industrial 675,000 60360020 0801/JKSN TWP/ISD 720 200 Agricultural 348,400 60360030 0801/JKSN TWP/ISD 720 200 Agricultural 476,500 60360040 0801/JKSN TWP/ISD 720 200 Agricultural 225,200 60370010 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 1,350,000 60370010 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 300,000 60370030 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 880,000 60370030 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 60,000 60380010 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 280,000 60390012 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 653,000 60400010 0802/JKSN TWP/ISD 720/LOW MN 105 Res 2-3 units 289,600 Pae6of13 Page 26 of 334 City of Shakopee Jackson Township EMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PID# UNIQUE TAXING AUTHORITY CLASS INFO EMV 60410010 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 85,500 60410020 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 64,100 60410030 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 103,300 60410040 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 85,500 60410050 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 103,300 60410060 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 68,400 60410070 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 103,300 60410080 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 102,600 60410090 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 103,300 60410100 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 99,200 60410110 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 98,300 60410120 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 65,500 60410130 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 71,800 60410140 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 103,300 60410150 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 68,400 60410160 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 103,300 60410170 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 102,600 60410180 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 103,300 60410190 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 85,500 60410200 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 103,300 60410210 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 64,100 60410220 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 85,500 60410230 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 70,600 60410240 0802/JKSN TWP/ISD 720/LOW MN 962 T E Misc Co D 3 - 60410250 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 85,500 60410260 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 85,500 60410270 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 82,600 60410280 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 68,400 60410290 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 92,600 60410300 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 85,500 60410310 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 103,300 60410320 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 92,600 60410330 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 82,600 60410340 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 85,500 60410350 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 78,400 60410360 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 78,400 60410370 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 85,500 60410380 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 124,000 60410390 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 92,600 60410400 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 103,300 60410410 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 85,500 60410420 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 92,600 Pae7of13 Page 26 of 334 City of Shakopee Jackson Township EMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PID# UNIQUE TAXING AUTHORITY CLASS INFO EMV 60410430 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 102,600 60410440 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 124,000 60410450 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 85,500 60410460 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 85,500 60420010 0801/JKSN TWP/ISD 720 140 Res V Land 201,600 60420020 0801/JKSN TWP/ISD 720 140 Res V Land 201,600 69020010 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 3,500 69020020 0802/JKSN TWP/ISD 720/LOW MN 200 Agricultural 245,000 69020020 0802/JKSN TWP/ISD 720/LOW MN 211 Rural Vacant Land 33,100 69020030 0802/JKSN TWP/ISD 720/LOW MN 981 State Acquired 2,600 69030010 0802/JKSN TWP/ISD 720/LOW MN 981 State Acquired 74,000 69030020 0802/JKSN TWP/ISD 720/LOW MN 981 State Acquired 20,600 69030030 0802/JKSN TWP/ISD 720/LOW MN 200 Agricultural 112,000 69030031 0802/JKSN TWP/ISD 720/LOW MN 981 State Acquired 47,200 69090010 0802/JKSN TWP/ISD 720/LOW MN 981 State Acquired 275,700 69090020 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 201,800 69090030 0802/JKSN TWP/ISD 720/LOW MN 981 State Acquired 14,700 69100010 0802/JKSN TWP/ISD 720/LOW MN 981 State Acquired 48,600 69100020 0802/JKSN TWP/ISD 720/LOW MN 200 Agricultural 17,500 69100020 0802/JKSN TWP/ISD 720/LOW MN 211 Rural Vacant Land 19,700 69100021 0802/JKSN TWP/ISD 720/LOW MN 981 State Acquired 20,700 69100030 0802/JKSN TWP/ISD 720/LOW MN 981 State Acquired 17,600 69100040 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 783,000 69100050 0802/JKSN TWP/ISD 720/LOW MN 981 State Acquired 15,200 69100060 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 1,600,000 69100070 0802/JKSN TWP/ISD 720/LOW MN 981 State Acquired 69,800 69100090 0802/JKSN TWP/ISD 720/LOW MN 200 Agricultural 331,100 69100100 0802/JKSN TWP/ISD 720/LOW MN 981 State Acquired 31,000 69100110 0802/JKSN TWP/ISD 720/LOW MN 200 Agricultural 330,700 69100120 0802/JKSN TWP/ISD 720/LOW MN 958 Muni Srvc Other 100 69100130 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 21,600 69100140 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 400 69100141 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 400 69100150 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 800 69100160 0802/JKSN TWP/ISD 720/LOW MN 350 MH Park 1,379,300 69100170 0802/JKSN TWP/ISD 720/LOW MN 350 MH Park 778,400 69100171 0802/JKSN TWP/ISD 720/LOW MN 350 MH Park 328,400 69100180 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 174,400 69100180 0802/JKSN TWP/ISD 720/LOW MN 350 MH Park 1,029,800 69100190 0802/JKSN TWP/ISD 720/LOW MN 350 MH Park 573,500 69100200 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 6,200 69100210 0802/JKSN TWP/ISD 720/LOW MN 200 Agricultural 772,500 PNe 8of13 Page of 334 City of Shakopee Jackson Township EMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PID# UNIQUE TAXING AUTHORITY CLASS INFO EMV 69100210 0802/JKSN TWP/ISD 720/LOW MN 200 Agricultural 153,700 69100210 0802/JKSN TWP/ISD 720/LOW MN 211 Rural Vacant Land 51,300 69100220 0802/JKSN TWP/ISD 720/LOW MN 958 Muni Srvc Other 100 69110030 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 36,600 69110030 0802/JKSN TWP/ISD 720/LOW MN 365 Pub Util Mach 12,800 69110050 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 233,800 69110060 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 242,600 69110070 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 215,100 69110080 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 100 69110090 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 1,200 69110100 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 226,700 69110110 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 240,100 69110120 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 5,900 69110131 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 351,900 69110140 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 1,357,000 69110141 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 2,105,000 69110142 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 150,000 69110150 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 31,400 69110171 0802/JKSN TWP/ISD 720/LOW MN 952 State Property 11,200 69110180 0802/JKSN TWP/ISD 720/LOW MN 981 State Acquired 5,600 69130031 0801/JKSN TWP/ISD 720 100 Res 1 unit 371,300 69130033 0801/JKSN TWP/ISD 720 100 Res 1 unit 800 69130040 0801/JKSN TWP/ISD 720 915 Church 1,070,100 69130041 0801/JKSN TWP/ISD 720 100 Res 1 unit 295,400 69130042 0801/JKSN TWP/ISD 720 100 Res 1 unit 587,100 69130061 0801/JKSN TWP/ISD 720 140 Res V Land 7,100 69130070 0801/JKSN TWP/ISD 720 100 Res 1 unit 276,000 69130090 0801/JKSN TWP/ISD 720 100 Res 1 unit 14,100 69130100 0801/JKSN TWP/ISD 720 100 Res 1 unit 541,600 69130101 0801/JKSN TWP/ISD 720 100 Res 1 unit 431,900 69130102 0801/JKSN TWP/ISD 720 200 Agricultural 149,900 69130102 0801/JKSN TWP/ISD 720 200 Agricultural 227,200 69130102 0801/JKSN TWP/ISD 720 211 Rural Vacant Land 27,000 69130103 0801/JKSN TWP/ISD 720 200 Agricultural 253,800 69130104 0801/JKSN TWP/ISD 720 140 Res V Land 600 69130110 0801/JKSN TWP/ISD 720 300 Commercial 240,900 69130120 0801/JKSN TWP/ISD 720 952 State Property 95,400 69130140 0801/JKSN TWP/ISD 720 100 Res 1 unit 438,700 69130141 0801/JKSN TWP/ISD 720 100 Res 1 unit 423,600 69130142 0801/JKSN TWP/ISD 720 100 Res 1 unit 640,900 69130143 0801/JKSN TWP/ISD 720 100 Res 1 unit 321,000 69130144 0801/JKSN TWP/ISD 720 200 Agricultural 287,000 Pa e9of13 Page 2 of 334 City of Shakopee Jackson Township EMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PID# UNIQUE TAXING AUTHORITY CLASS INFO EMV 69130144 0801/JKSN TWP/ISD 720 200 Agricultural 178,900 69130145 0801/JKSN TWP/ISD 720 100 Res 1 unit 569,100 69130146 0801/JKSN TWP/ISD 720 100 Res 1 unit 387,400 69130147 0801/JKSN TWP/ISD 720 100 Res 1 unit 498,000 69130148 0801/JKSN TWP/ISD 720 100 Res 1 unit 444,800 69130150 0801/JKSN TWP/ISD 720 100 Res 1 unit 365,400 69140042 0801/JKSN TWP/ISD 720 100 Res 1 unit 313,600 69140050 0801/JKSN TWP/ISD 720 952 State Property 600 69140060 0801/JKSN TWP/ISD 720 100 Res 1 unit 206,000 69140070 0801/JKSN TWP/ISD 720 952 State Property 2,800 69140080 0801/JKSN TWP/ISD 720 100 Res 1 unit 212,400 69140100 0801/JKSN TWP/ISD 720 200 Agricultural 1,439,600 69140120 0801/JKSN TWP/ISD 720 200 Agricultural 540,000 69140130 0801/JKSN TWP/ISD 720 100 Res 1 unit 439,800 69140140 0801/JKSN TWP/ISD 720 958 Muni Srvc Other 600 69140150 0801/JKSN TWP/ISD 720 200 Agricultural 1,695,100 69140150 0801/JKSN TWP/ISD 720 200 Agricultural 159,000 69140150 0801/JKSN TWP/ISD 720 211 Rural Vacant Land 204,800 69140151 0801/JKSN TWP/ISD 720 300 Commercial 430,000 69140160 0801/JKSN TWP/ISD 720 100 Res 1 unit 266,100 69140170 0801/JKSN TWP/ISD 720 100 Res 1 unit 282,800 69150010 0802/JKSN TWP/ISD 720/LOW MN 200 Agricultural 870,700 69150010 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 118,200 69150010 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 586,600 69150010 0802/JKSN TWP/ISD 720/LOW MN 211 Rural Vacant Land 568,200 69150011 0801/JKSN TWP/ISD 720 200 Agricultural 42,800 69150020 0802/JKSN TWP/ISD 720/LOW MN 211 Rural Vacant Land 210,000 69150020 0802/JKSN TWP/ISD 720/LOW MN 305 Industrial 67,500 69150030 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 435,000 69150031 0801/JKSN TWP/ISD 720 200 Agricultural 1,632,100 69150040 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 1,141,300 69150040 0802/JKSN TWP/ISD 720/LOW MN 365 Pub Util Mach 12,763,400 69150040 0802/JKSN TWP/ISD 720/LOW MN 355 Pub Util L& S 772,100 69150050 0801/JKSN TWP/ISD 720 350 MH Park 110,000 69150060 0801/JKSN TWP/ISD 720 100 Res 1 unit 290,000 69150060 0801/JKSN TWP/ISD 720 350 MH Park 676,700 69150070 0801/JKSN TWP/ISD 720 350 MH Park 222,800 69150080 0801/JKSN TWP/ISD 720 300 Commercial 7,800 69150091 0802/JKSN TWP/ISD 720/LOW MN 350 MH Park 154,000 69150110 0802/JKSN TWP/ISD 720/LOW MN 350 MH Park 408,200 69150120 0801/JKSN TWP/ISD 720 140 Res V Land 303,500 69150130 0801/JKSN TWP/ISD 720 200 Agricultural 246,000 PaRe 10 of 13 Page 2T1 of 334 City of Shakopee Jackson Township EMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PID# UNIQUE TAXING AUTHORITY CLASS INFO EMV 69150130 0801/JKSN TWP/ISD 720 200 Agricultural 368,500 69150140 0801/JKSN TWP/ISD 720 100 Res 1 unit 315,700 69150150 0801/JKSN TWP/ISD 720 100 Res 1 unit 694,800 69150151 0801/JKSN TWP/ISD 720 100 Res 1 unit 597,100 69150152 0801/JKSN TWP/ISD 720 100 Res 1 unit 169,600 69150153 0801/JKSN TWP/ISD 720 100 Res 1 unit 312,300 69150154 0801/JKSN TWP/ISD 720 100 Res 1 unit 553,200 69150160 0801/JKSN TWP/ISD 720 952 State Property 800 69150170 0801/JKSN TWP/ISD 720 952 State Property 500 69150180 0801/JKSN TWP/ISD 720 952 State Property 800 69150190 0801/JKSN TWP/ISD 720 952 State Property 700 69150200 0801/JKSN TWP/ISD 720 100 Res 1 unit 282,500 69150210 0801/JKSN TWP/ISD 720 100 Res 1 unit 253,900 69150220 0801/JKSN TWP/ISD 720 100 Res 1 unit 236,100 69150230 0801/JKSN TWP/ISD 720 952 State Property 800 69150240 0801/JKSN TWP/ISD 720 952 State Property 1,200 69150250 0801/JKSN TWP/ISD 720 952 State Property 75,000 69150260 0801/JKSN TWP/ISD 720 100 Res 1 unit 354,100 69150270 0801/JKSN TWP/ISD 720 200 Agricultural 1,036,000 69150270 0801/JKSN TWP/ISD 720 200 Agricultural 178,900 69150280 0801/JKSN TWP/ISD 720 100 Res 1 unit 339,100 69150290 0801/JKSN TWP/ISD 720 952 State Property 600 69150300 0801/JKSN TWP/ISD 720 100 Res 1 unit 237,900 69150310 0801/JKSN TWP/ISD 720 100 Res 1 unit 215,000 69150340 0801/JKSN TWP/ISD 720 200 Agricultural 482,000 69150341 0801/JKSN TWP/ISD 720 953 Co Srvc Ent 1,178,100 69150342 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 420,000 69150344 0801/JKSN TWP/ISD 720 300 Commercial 261,400 69150360 0801/JKSN TWP/ISD 720 300 Commercial 313,700 69150390 0801/JKSN TWP/ISD 720 958 Muni Srvc Other 142,400 69150400 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 910,000 69150410 0802/JKSN TWP/ISD 720/LOW MN 100 Res 1 unit 35,000 69150410 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 355,000 69150420 0802/JKSN TWP/ISD 720/LOW MN 300 Commercial 12,400 69150441 0801/JKSN TWP/ISD 720 300 Commercial 883,500 69150444 0801/JKSN TWP/ISD 720 300 Commercial 584,600 69230011 0801/JKSN TWP/ISD 720 200 Agricultural 669,600 69230012 0801/JKSN TWP/ISD 720 200 Agricultural 734,100 69230012 0801/JKSN TWP/ISD 720 200 Agricultural 167,300 69230020 0801/JKSN TWP/ISD 720 200 Agricultural 355,900 69230020 0801/JKSN TWP/ISD 720 200 Agricultural 312,700 69230030 0801/JKSN TWP/ISD 720 200 Agricultural 935,400 Pa-Re11of13 Page 2of 334 City of Shakopee Jackson Township EMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PID# UNIQUE TAXING AUTHORITY CLASS INFO EMV 69230031 0801/JKSN TWP/ISD 720 200 Agricultural 288,000 69230040 0801/JKSN TWP/ISD 720 100 Res 1 unit 358,200 69230050 0801/JKSN TWP/ISD 720 200 Agricultural 327,000 69230060 0801/JKSN TWP/ISD 720 200 Agricultural 253,500 69230070 0801/JKSN TWP/ISD 720 958 Muni Srvc Other 1,622,100 69230080 0801/JKSN TWP/ISD 720 200 Agricultural 1,026,000 69230090 0801/JKSN TWP/ISD 720 200 Agricultural 1,229,700 69230090 0801/JKSN TWP/ISD 720 200 Agricultural 131,200 69230100 0801/JKSN TWP/ISD 720 100 Res 1 unit 457,800 69230110 0801/JKSN TWP/ISD 720 200 Agricultural 1,120,800 69230111 0801/JKSN TWP/ISD 720 100 Res 1 unit 179,500 69230112 0801/JKSN TWP/ISD 720 955 Co Srvc Other 155,000 69230120 0801/JKSN TWP/ISD 720 200 Agricultural 1,412,000 69230120 0801/JKSN TWP/ISD 720 100 Res 1 unit 124,100 69230130 0801/JKSN TWP/ISD 720 100 Res 1 unit 446,100 69230131 0801/JKSN TWP/ISD 720 100 Res 1 unit 349,300 69230132 0801/JKSN TWP/ISD 720 958 Muni Srvc Other 3,000 69230133 0801/JKSN TWP/ISD 720 100 Res 1 unit 430,700 69230140 0801/JKSN TWP/ISD 720 100 Res 1 unit 553,400 69240020 0801/JKSN TWP/ISD 720 901 Schools-Public 148,800 69240030 0801/JKSN TWP/ISD 720 901 Schools-Public 168,300 69240040 0801/JKSN TWP/ISD 720 901 Schools-Public 510,000 69240050 0801/JKSN TWP/ISD 720 200 Agricultural 493,100 69240050 0801/JKSN TWP/ISD 720 200 Agricultural 209,700 69240050 0801/JKSN TWP/ISD 720 211 Rural Vacant Land 93,100 69240060 0801/JKSN TWP/ISD 720 200 Agricultural 182,400 69240060 0801/JKSN TWP/ISD 720 200 Agricultural 138,600 69240070 0801/JKSN TWP/ISD 720 200 Agricultural 142,400 69240070 0801/JKSN TWP/ISD 720 211 Rural Vacant Land 93,000 69240080 0801/JKSN TWP/ISD 720 901 Schools-Public 279,900 69240090 0801/JKSN TWP/ISD 720 901 Schools-Public 539,400 69240091 0801/JKSN TWP/ISD 720 901 Schools-Public 301,700 69240092 0801/JKSN TWP/ISD 720 100 Res 1 unit 440,800 69240100 0801/JKSN TWP/ISD 720 100 Res 1 unit 325,700 69240110 0801/JKSN TWP/ISD 720 200 Agricultural 206,100 69240110 0801/JKSN TWP/ISD 720 200 Agricultural 308,500 69240111 0801/JKSN TWP/ISD 720 100 Res 1 unit 387,100 69240111 0801/JKSN TWP/ISD 720 211 Rural Vacant Land 183,100 69240112 0801/JKSN TWP/ISD 720 200 Agricultural 232,700 69240112 0801/JKSN TWP/ISD 720 200 Agricultural 258,300 69240113 0801/JKSN TWP/ISD 720 100 Res 1 unit 211,500 69240115 0801/JKSN TWP/ISD 720 100 Res 1 unit 578,400 Pa-Re12of13 Page 2of 334 City of Shakopee Jackson Township EMV as of 1/1/17 for Taxes Payable 2018 6/29/2017 PID# UNIQUE TAXING AUTHORITY CLASS INFO EMV 69240120 0801/JKSN TWP/ISD 720 100 Res 1 unit 570,200 69240120 0801/JKSN TWP/ISD 720 300 Commercial 339,600 69240121 0801/JKSN TWP/ISD 720 100 Res 1 unit 415,800 69240122 0801/JKSN TWP/ISD 720 100 Res 1 unit 345,300 69240123 0801/JKSN TWP/ISD 720 100 Res 1 unit 501,100 69240130 0801/JKSN TWP/ISD 720 100 Res 1 unit 629,800 69240140 0801/JKSN TWP/ISD 720 100 Res 1 unit 588,000 69240150 0801/JKSN TWP/ISD 720 320 Q Golf Course 45,000 69240160 0801/JKSN TWP/ISD 720 981 State Acquired 1,800 69240170 0801/JKSN TWP/ISD 720 100 Res 1 unit 363,700 69240180 0801/JKSN TWP/ISD 720 100 Res 1 unit 544,100 69240190 0801/JKSN TWP/ISD 720 320 Q Golf Course 145,000 69240190 0801/JKSN TWP/ISD 720 300 Commercial 80,000 69240193 0801/JKSN TWP/ISD 720 320 Q Golf Course 115,000 69240194 0801/JKSN TWP/ISD 720 320 Q Golf Course 115,000 69240195 0801/JKSN TWP/ISD 720 320 Q Golf Course 45,000 69240200 0801/JKSN TWP/ISD 720 100 Res 1 unit 290,700 69240210 0801/JKSN TWP/ISD 720 100 Res 1 unit 76,000 69240220 0801/JKSN TWP/ISD 720 100 Res 1 unit 334,700 69240240 0801/JKSN TWP/ISD 720 958 Muni Srvc Other 3,500 69240250 0801/JKSN TWP/ISD 720 981 State Acquired 9,400 69240281 0801/JKSN TWP/ISD 720 100 Res 1 unit 426,200 $ 178,699,100 Pa e13of13 Page 2T4 of 334 7.C.3. SH+ K PEE Shakopee City Council July 5, 2017 FROM: Michael Kerski, Director of Planning and Development TO: Mayor and Council Members Subject: Setting a Public Hearing for a Tax Increment Financing Plan for Tax Increment Financing District No. 18 and Redevelopment Plan for the Canterbury Park Redevelopment Project No. 1 Policy/Action Requested: Approve Resolution 7909 calling for a public hearing on a tax increment financing district and modifications to the redevelopment plan for Canterbury Park setting a joint meeting between the City Council of Shakopee and the Economic Development Authority for September 5, 2017 at 7:00 PM. Recommendation: Approve policy action as requested. Discussion: The City previously established a Canterbury Park Redevelopment Project No. 1. Since that time, the City completed a required update redevelopment survey of the property and the City and its consultants believe that the study shows that the area meets the current requirements for a Redevelopment Tax Increment Finance District. Canterbury has completed an initial development concept plan that shows the need for substantial new public infrastructure that could be financed through a TIF Districts. Currently, an EAW has been sent to the various agencies for review of the impact of the proposed development. Current plans are for residential uses along with hospitality, retail and entertainment uses. The redevelopment and TIF plans will be submitted for the public hearing. Budget Impact• ATTACEMENTS: Page 275 of 334 a Resolution Page 276 of 334 CITY OF SHAKOPEE Resolution No. 7909 RESOLUTION CALLING FOR A PUBLIC HEARING ON A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 18 AND THE REDEVELOPMENT PLAN FOR THE CANTERBURY PARK REDEVELOPMENT PROJECT NO. 1 WHEREAS, the City of Shakopee ("City") has previously established its Canterbury Park Redevelopment Project No. 1 (the "Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047, as amended("HRA Act"); and WHEREAS, the Project is now administered by the Economic Development Authority for the City of Shakopee (the"Authority"); and WHEREAS, the City and Authority wishes to provide certain financial assistance in order to make feasible a development of new market rate housing, office, retail, and commercial spaces to be constructed within the Project; and WHEREAS, the City is evaluating tax increment financing("TIF") as a form of assistance to developers within the Project, and to that end the City and Authority have determined to consider a modification to the redevelopment plan("Project Plan")for the Project and the adoption of a TIF plan ("TIF Plan")for the proposed TIF District No. 18,and to hold a public hearing regarding those actions in accordance with the HRA Act and Minnesota Statutes, Sections 469.174 through 469.179, as amended (the"TIF Act"). NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Shakopee,that: 1. The Authority, and its staff and consultants, are hereby authorized and directed to cause to be prepared a modification to the Project Plan and a TIF Plan for TIF District No. 18, and to file a copy of such documents in City Hall. 2. The City Clerk is authorized and directed to prepare a notice for publication in the City's official newspaper setting a joint public hearing before the City Council and the Authority's Board of Commissioners on September 5, 2017, at 7:00 p.m. in the council chambers on the modification to the Project Plan and a TIF Plan. The notice shall be in substantially the form attached hereto as Exhibit B, shall be published in the newspaper at least 10 but not more than 30 days prior to the public hearing, and shall include a map of the Project area and the proposed TIF District No. 18. 3. The Authority, its staff, and consultants are authorized and directed to send notice to the County Commissioners who represents the area to be included in TIF District No. 18 of the proposed TIF district at least 30 days before the date of publication of the notice of public hearing. 4. The Authority,its staff, and consultants are authorized and directed to transmit a copy Page 277 of 334 of the modified Project Plan and the TIF Plan to the County Board and School Board at least 30 days before the date of the public hearing. 5. The Authority,its staff, and consultants are directed to take all other actions necessary to bring the modified Project Plan and the TIF Plan before the City Council at the time of the public hearing. Approved by the City Council of the City of Shakopee this 5th day of July, 2017. Mayor ATTEST: City Clerk 2 5023141 SH235-21 Page 278 of 334 Exhibit A NOTICE OF PUBLIC HEARING NOTICE is hereby given that the Board of Commissioners of the Economic Development Authority of the City of Shakopee and the City Council of the City of Shakopee will hold a joint meeting in the City Hall, 129 Holmes Street South, Shakopee, Minnesota at 7:00 p.m. on Tuesday, September 5, 2017, to conduct a public hearing on: (1) the modification of the redevelopment plan (the "Project Plan") for the Canterbury Park Redevelopment Project No. 1 (the "Project") and (2) a Tax Increment Financing Plan ("TIF Plan")for a proposed redevelopment district within the Project ("TIF District No 18"). The proposed boundaries of the Proj ect and the proposed TIF District No 18 are shown in the maps below. The purpose of the proposed action is to facilitate development of new market rate housing, office, retail, and commercial spaces to be constructed within TIF District No. 18. Details on the proposal are contained in the Project Plan and the TIF Plan, a draft copy of which will be available for public inspection at the Shakopee City Hall during regular business hours. Any person wishing to express an opinion on the matters to be considered at the public hearing will be heard orally or in writing. BY ORDER OF THE CITY COUNCIL. Dated: August 24, 2017 /s/William H. Reynolds City Administrator City of Shakopee, Minnesota A-I 5023141 SH235-21 Page 279 of 334 7.C.4. SH+ KOPEE Shakopee City Council July 5, 2017 FROM: Michael Kerski, Director of Planning and Development TO: Mayor and Council Members Subject: Shaw-Lundquist Associates, Inc. has requested an exception to Ordinance 130.45 concerning construction hours. Policy/Action Requested: Allow the contractor to work early morning hours to construct the Shakopee High School. Recommendation: Make a motion to deny the request. Discussion: Various departments received complaints about early morning heavy truck traffic and construction for this project and the contractor was notified they were in violation of City Ordinances. This site is located adjacent to residential neighborhoods and extended early morning work hours or evenings would impact the quality of life of these residents. Staff believes that this Ordinance needs to be revised to allow early morning hour or evening construction only under extraordinary circumstances like emergencies or if a development is located away from residential neighborhoods. Staff also believes that residents in those areas should be notified that the city is considering extended construction hours. A revised Ordinance will be brought back to Council for consideration. Budget Impact• N/A ATTACHMENT S: D Request Letter Page 280 of 334 JL SHAW - LUNDQUIST ASSOCIATES INC Request for Exception to Ordinance DATE: June 8, 2017 TO: Michael Kerski— Shakopee Director of Planning & Development David Kriesel—Shakopee Building Official FROM: Eric Munt— Shaw Lundquist Associates, Inc. RE: Shakopee High School Additions Working Hours Dear Mr. Kerski, We are requesting an exception to Shakopee Ordinance 130.45(C)(4) Construction Activities, specifically weekday working hours 7:00 am to 10:00 pm. Our request is to extend the construction activities hours from 6:00 am to 10:00 pm through summer break, at which time we would re-evaluate and submit a new request should it be necessary. Our request is due to the short timeline we have to maximize the completion of certain construction activities while students are away. A great deal of this work is performed outdoors, in the summer heat. These workers prefer to start earlier to finish ahead of the late afternoon sun. Should you deem it necessary, I am available to meet to discuss and/or provide further information. If you need any further information, please let me know. I can be contacted at emunt@shawlundquist.com or 651.202.0722. Sincerely, Eric Munt Project Manager Shaw Lundquist Cc: Dave LaPree— Shaw Lundquist Ted Ung— Shaw Lundquist Brian Jacobson— Shaw Lundquist Steve Fritz— Shaw Lundquist Page 281 of 334 7.C.5. SH+ KOPEE Shakopee City Council July 5, 2017 FROM: Michael Kerski, Director of Planning and Development TO: Mayor and Council Members Subject: Update on city-owned property located at 69/169 Policy/Action Requested: Direct staff to move forward with platting, zoning and road design and to bring to council contracts for sale of city-owned property at 69/169 Recommendation: Provide direction to staff to begin platting process and to complete necessary work to prepare property for sale including installation of road and utilities. Discussion: This property was acquired by the City from the Minnesota Department of Transportation. There were a number of title issues that have now been cleared by the courts. Staff from Engineering, Finance and Planning & Development are working on a new road design that will reduce the amount of right of way and also allow the road to be approved as a State Aid Route. WSB would complete a final design including providing utilities and to submit to the State for final approval of State funding. Staff has worked with a number of potential purchasers and will bring contracts forward. The site will need to be platted with a final master plan. A new Phase 1 and additional Phase 2 work will need to be completed. The former truck stop location still had VOC identified in 2014 that will need to be rechecked and possibly remediated. The current Phase 1 Environmental for the site will need to be updated. Proposed uses include Doggie Doos Spa and Retreat, Northstar Regional Rehab, a potential apartment development and business park parcels. The site is currently zoned Highway Business and guided for commercial. Page 282 of 334 Budget Impact• State Aid Funding of approximately $1.1 million may be available for construction of the road. Page 283 of 334 7.C.6. SH+ KOPEE Shakopee City Council July 5, 2017 FROM: Michael Kerski, Director of Planning and Development TO: Mayor and Council Subject: Proposal from WSB to design Vierling Drive Connection from Taylor Street to County Road 69 Policy/Action Requested: Authorize contract with WSB for $129,828 for design work. Recommendation: Approve to extend contract with WSB in the amount of$129,828 and authorize design services for Vierling Drive from Taylor Street to County Road 69. Discussion: The City acquired approximately 30 acres from MNDOT for economic development purposes. It has taken several years to get title issues resolved. The property currently has a temporary road through it. The property has no utility services and currently can not be developed. This contract will design a road that meets State Aid requirements and allow the road to potentially be funded by State Aid. The City has State Aid funds available but they need to be designated for this road and the State must approve the final design. These improvements are necessary for the City to sell its land. WSB has proposed an aggressive design and construction schedule that will allow the property to be platted and placed under contract for sale to various parties. Because access to the road can be closed during construction, WSB feels that construction can be accelerated. Budget Impact• Project is in the CIP and funding will be from State Aid. ATTACHMENTS: Page 284 of 334 a WSB proposal Page 285 of 334 ■ MW 701 Xenia Avenue South I Suite 300 Minneapolis, MN 55416 (763)541-4800 June 29, 2017 Mr. Bruce Loney, PE Public Works Director/City Engineer City of Shakopee 129 Holmes Street South Shakopee, MN 55379-1376 Re: Extension Agreement for Professional Services Estimate of Cost to Provide Engineering Services Vierling Drive Connection from Taylor Street to County Road 69 Dear Mr. Loney: Introduction: According to our Agreement for Professional Services within the City of Shakopee and Section I-C-2 (Major Projects), this extension agreement is written to provide you with an estimate of cost for engineering services for the above-referenced project. We are proposing to complete the work as detailed in the attached Scope of Design Services, Exhibit A and Scope of Construction Administration/Survey Services, Exhibit B. WSB & Associates, Inc. (WSB) is very familiar with the project with our work on the MnDOT Municipal Agreement Application we prepared for this roadway segment back in 2012. Background: One of the important factors for the construction of this final segment of Vierling Drive to the west is this Vierling Drive connection will provide a local reliever and parallel route to TH 169 from CR 69 to Eagle Creek Boulevard. Currently, if an accident were to occur on TH 169, which causes lane restriction or roadway closure, there isn't a reasonable nearby alternative to TH 169 through the City of Shakopee. Completing the Vierling Drive connection also provides a route for area residents to utilize local streets providing greater accessibility to their homes. Long term, the connection will provide for additional collector route access to the Shakopee Town Square shopping center. The Vierling Drive connection is from Taylor Street West to County Road 69. The approximate 1,000 foot connection will provide a local roadway paralleling TH 169 from County Road 69 to Eagle Creek Boulevard. The Vierling Drive connection is understood to be four lanes to match the current roadway section. Turn lanes will also be provided at CR 69 and at the access into the Shakopee Town Square shopping center. Pedestrian / bicycle facilities will also be provided to match the existing roadway section with sidewalk on the north side of the roadway and trail on the south side of the roadway. Building a legacy—your legacy. Equal Opportunity Employer I wsbeng.com Page 286 of 334 Mr. Bruce Loney, PE City of Shakopee June 29, 2017 Page 2 of 3 Scope of Services: The attached scope of design services describes the approach and tasks proposed to be completed by WSB for street and utility design for this project. The work plan includes engineering design services for roadway, storm sewer, sanitary sewer and water main, signing and striping, traffic control, trails, removals, erosion control, street lighting and conduit crossing plans. The work scope also includes project coordination and topographic surveying. We understand that no feasibility report will be required for this project and no fee estimate was provided for this work in our proposal. We are proposing to complete the final design portion of this work as described in the attached Scope of Design Services, Exhibit A, on a cost- reimbursable basis in accordance with our current fee schedule. It is proposed that all work under the final design portion of the contract would be considered complete after the preconstruction conference. We will review our progress monthly and will not exceed these amounts without your prior approval. WSB is available to provide construction services if the City desires assistance. These would be part of a separate contract with the City. WSB typically provides construction survey and would be available for inspection as well. Engineering Design Services Fees: ITEM COST FINAL DESIGN SERVICES $128,078 EXPENSES (PERMITS, SURVEY, LATH, ETC.) $1,750 TOTAL $129,828 Please see the attached Work Plan and Estimate of Cost for a detail breakdown of the estimated hours for this project. We are available to begin work as soon as authorized by the City, and we anticipate we will complete the project according to the following schedule, assuming that we receive the notice to proceed on July 19, 2017. G:\Group Data\Tran sportation\Marketing\Proposals\Vierling Drive to CR 69 Proposal\l.LTR b Loney-Vierling Dr.to CR 69 20170629.dor Page 287 of 334 Mr. Bruce Loney, PE City of Shakopee June 29, 2017 Page 3 of 3 We propose to complete the project according to the following tentative schedule: Council Approves Extension Agreement and Authorizes Design ...........................July 18, 2017 Commence Final Design Work ...............................................................................July 19, 2017 Submit Plans to MnDOT, City and SPUC for review .........................................August 18, 2017 Ready to Approve Plans and Authorize Bids.....................................................August 15, 2017 OpenBids ........................................................................................................ September, 2017 Award Contract ..................................................................................................... October, 2017 Begin Construction............................................................................................. October 9, 2017 Substantially Complete Construction ................................................................ November, 2017 Final Wearing Course / Complete Construction.......................................................... May, 2018 This letter represents our entire understanding of the project scope. If you are in agreement, please sign on the space provided and return one original signed copy to us for our records. We will start immediately upon receipt of the signed agreement. If you have any questions concerning the work plan or fee as discussed herein, please feel free to contact me at 763-287-7189. We look forward to working with you and greatly appreciate the opportunity to assist you and your staff in the completion of this project. Sincerely, WSB &Associates, Inc. ak4k�& Donald W. Sterna, PE Vice President Enclosure City Administrator Mayor Date G:\Group Data\Tran sportation\Marketing\Proposals\Vierling Drive to CR 69 Proposal\l.LTR b Loney-Vierling Dr.to CR 69 20170629.dor Page 288 of 334 Exhibit A Scope of Design Services Vierling Drive Connection from Taylor Street to County Road 69 City of Shakopee WORK PLAN 1. Project Management This task includes planning and coordination of all work tasks, establishment and monitoring of budgets,meetings and correspondence with the City of Shakopee,MnDOT, Scott County, SPUC and if necessary, the Watershed District on a periodic basis. The project manager will provide technical direction on all aspects of the project review, all work products and prepare monthly progress reports. The project manager will serve a primary role in the many design considerations. Donald Sterna, PE, is proposed to manage the project for WSB & Associates, Inc. (WSB). 2. MnDOT and County Agency Coordination WSB will prepare and submit the funding application to MnDOT for the Local Road Improvement Program. WSB will also coordinate with Scott County regarding the intersection design at CR 69 including permit coordination with the County. Coordination with both agencies will be required throughout the design process for agency approvals. 3. Geotechnical Evaluation WSB team proposes to drill 3 soil borings to a depth 5 foot depth below the lowest City utility elevation. The field investigation will include an estimated R-Value that will be used to establish the pavement design. Additional soil boring information required for infiltration testing required for design will be considered additional work which is not included in this proposal. A brief geotechnical report will be prepared summarizing the geotechnical findings. 4. Utility Coordination WSB will call in a Gopher State One design locate and from that, identify all utilities in the area. We will make contact with those utilities to obtain facility mapping along with establishing our contact to discuss future utility plans. Based on the preliminary layout, utility conflicts will be identified and design measures will be considered to accommodate these conflicts. The cost for these utility conflicts, if any,will be identified and included as part of the overall cost estimate. 5. Preliminary Layout and Cost Estimate WSB will collect topographic and utility information along the project corridor that will be utilized in the final design. WSB will collect record plans from the City of Shakopee, Scott County, SPUC and private utility companies as necessary, to prepare the construction documents. WSB will prepare the base mapping of the existing conditions that will be used for the design. A preliminary layout of the project and 30% cost estimate will be prepared along with a hydraulic evaluation to determine pond, rate control and infiltration requirements that the project. Also the proposed sanitary sewer and water main systems will be laid out and shown on the 30% layout. WSB will work with the City to finalize the preliminary layout before the final design will begin. Exhibit A Page 289 of 334 t Exhibit A 6. Roundabout Justification Report(RJR) WSB will prepare a Roundabout Justification Report(RJR) for submission to the City and MnDOT State Aid for approval. The following subtasks will be completed in the preparation of the RJR: 6.1—Data Collection: Available data will be collected from Scott County, the City of Shakopee, MnDOT and other impacted agencies. This data will include but is not limited to: • Historic traffic and pedestrian data • As built roadway plans • Intersection and corridor crash data This task will include collecting new traffic volume data at the intersection of Vierling Drive and the Shakopee Town Square access with a video camera and counting tubes. 48 hours of data will be collected at the intersection. The information that will be determined from the data will include; AM, PM and midday peak hour traffic volumes, average daily traffic volumes,vehicle classification, pedestrian/bike volumes and speed data. In addition, WSB will review the camera data and note any safety and/or operational issues at the intersection. 6.2—Roundabout Justification Reports (RJR): WSB will prepare a Roundabout Justification Report (RJR) for a potential new roundabout at Vierling Drive and the Shakopee Town Square access driveway for submission to the County and MnDOT State Aid for approval. This will include: • Documentation of the existing traffic conditions • Project future traffic volumes for the adjacent sites • Documentation of crash data for the intersection • Conduct operational analyses of existing and projected traffic conditions using the Synchro/SimTraffic and Rodel computer software for the roundabout configuration • Justification analysis The RJR analysis together with the data collected in Task 6.1 will be assembled in the RJR format required for submission to MnDOT State Aid. 7. Roundabout Design WSB will complete the roundabout design based on the results of Task 6,regarding lane configuration and following the design guidelines as indicated in Chapter 12 of the MnDOT Road Design Manual and NCHRP 672. The roundabout will be designed to accommodate the design vehicle and all necessary performance checks, such as fast path and phi angle, will be completed during the preliminary design of the roundabout. It is assumed up to three iterations of the roundabout configuration will be developed. Once a final configuration is agreed upon, WSB will design the vertical component of the roundabout. This includes the profiles leading to the roundabout and the longitudinal slope around the roundabout. The roundabout will be modeled to tie into the existing topography, and construction limits will represent those tie in points. Exhibit A Page 290 of 334 2 Exhibit A WSB will develop a lighting configuration near and within the roundabout to State Aid guidelines. A photometrics layout will be generated to ensure proper lighting of the intersection. 8. Final Design and Plan Preparation The construction plan phase involves the majority of our design effort. The plans will be developed meeting City and State Aid standards. WSB will prepare a set of detailed construction plans for the grading, sanitary sewer,water main, surface drainage, paving, signing/striping and erosion control in accordance with City standards. We will coordinate our work closely with the City of Shakopee, SPUC and Scott County during the design process to ensure that the City's expectations are satisfied. Design meetings will be held, as appropriate, to discuss design elements and comments during the design process. A final set of plans will be submitted to the MnDOT, City, SPUC and Scott County for their review and approval. The final construction plans will include the following: • Title Sheet and Index Map • General Layout • Estimated Quantities • Typical Sections • Miscellaneous Details • Construction Staging/Traffic Control Plan • Alignment Plans and Tabulation • Removals • Construction Plan and Profile • Roundabout Plans and Details • Drainage Plan, Details and Quantities • Water Main/Sanitary Sewer Plans • Turf Establishment/Erosion Control Plans • Roundabout Lighting • Signing and Striping Plans • Cross-Sections 9. Drainage Analysis From the previous plans, the roads within the site will be an urban design with storm sewer. With partial installation of the facilities already complete, an analysis of the roadway drainage area will be conducted to determine its existing condition and if additional special stormwater management or ponding needs are required. This analysis would verify the flow rates and determine what water quality and/or rate control will need to be designed for the roadway portions of the project. This analysis would include catch basin spacing,per City requirements, infiltration, pond designs, pipe and sizing of all storm sewers under the roadway. Exhibit A Page 291 of 334 3 Exhibit A 10. Permits Permits will be acquired as part of the construction plan preparation. WSB will prepare and apply for the necessary construction permits. The cost of the permits would be paid by the City of Shakopee. The permits we anticipate that will be necessary for this project are: • MPCA—NPDES Construction Stormwater General Permit • MPCA— Sanitary Sewer Extension Permit • MDH—Water Main Extension Permit • Lower Minnesota Watershed District Permit Coordination 11. Project Bidding Upon approval of the bidding documents by the City,WSB will sell and distribute the necessary number of plan and specification sets to the contractors for bidding. The City will be responsible for the expenses of the plan and specification printing. The bid tabulation will be done by the City. Exhibit A Page 292 of 334 4 AEstimate of Cost WSB VI ERLING DRIVE Connection from Taylor Street to CR 69 IMPROVEMENTS h- SHAKOPEE,MINNESOTA SCOTT COUNTY 629/2017 Estimated Hours PRELIMINARY,DETAIL DESIGN and RMI Senior Design Grad Eng Registered Survey I Project Project Engineer/ Engineering Engineering Land Crew Total Manager Engineer Senior Tech Tech Tech Surveyor 2-Person Clerical Hours Cost Task Description 1 PROJECT MANAGEMENT/MEETINGS 1.1)Administration 32 6 4 4 46 $7,118.00 12)Quality Assurance/Quality Control 2 8 12 22 $3,112.00 2 MnDOT and COUNTY COORDINATION 2.111 Coordination 8 6 4 4 22 $2,926.00 22)Scott County Coordination 4 6 1 11 $1,628.00 3 GEOTECHNICAL EVAWATION(WSB Engineering) 3.1)Soil Borings(3 Total at 20 foot depth) (WSB Engineering) $2,250.00 32 LaboratoryTesting (WSB Engineering) $850.00 3.3)Engineering Analysis and Reports (WSB Engineering) $1,750.00 4 UTILITY COORDINATION 4.1)Utility Coordination(2 meetings) 1 6 1 8 $1,118.00 5 PRELIMINARY LAYOUT 4.11 Prepare MnDOT Preliminary Layout&Drainage Design 2 2 16 20 40 $4,862.00 42 Preliminary Cost Estimate 1 2 12 15 $2,060.00 4.3)Field Survey 1 6 1 18 26 $4,211.00 4.4)Base Mapping Preparation 2 6 8 $836.00 6 Roundabout Justification Rport(RJR) 6.11 Data Collection 1 4 20 25 $2,602.00 62)Roundabout Analysis and Justification 2 16 40 6 64 $6,664.00 7 Roundabout Design 7.11 Roundabout Geometries and Profile Design 248 16 6 72 $10,154.00 72)Roundabout Lighting 1 16 8 6 31 $4,216.00 8 FINAL DESIGN AND PLAN PREPARATION 8.11 Final Plans,Specifications,and Estimates A.Title Sheet 2 1 3 $371.00 B.General Layout 3 1 4 $504.00 C.State mentof Estimated Quantities 2 4 4 10 1,292.00 D.Soils and Construction Notes 4 2 6 $742.00 E.Earthwork Summaryand Standard Plates 1 1 2 1 4 7 $856.00 F.Typical Sections 1 6 8 15 $1,808.00 G.Quantity Tabulations 4 6 4 14 $1,542.00 H.Utility Tabulations 1 2 4 2 9 $1,046.00 I.Miscellaneous Details 4 4 8 $952.00 J.Standard Plan Sheets 2 2 4 $476.00 K.Traffic Control Plans 1 4 6 11 $1,332.00 L.Alignment Plans and Tabulations 6 4 10 $1,218.00 M.In-Place Topography and Utilities 4 6 6 16 $2,016.00 N.Removal Plans and Tabulations 6 6 4 16 $1,808.00 O.Construction Plan Sheets 4 2 40 16 6 1 1 68 $8,544.00 P.Roadway Profile Sheets 1 4 18 20 6 49 $5,822.06 Q.Drainage Plans and Profiles 4 24 6 34 $4,350.00 R.In-Place Drainage Tabulation 4 4 8 $912.00 S.Proposed Drainage Tabulation 6 4 10 $1,178.00 T.Temporary Erosion/Sediment Control Plans 6 4 2 12 $1,408.00 U.Turf Establishment and Permanent Erosion Plans 6 4 2 12 $1,408.00 V.Lighting Design 6 4 10 $1,218.00 W.Signing and Striping Plan 6 4 10 $1,218.00 X.Detailed Cross-Sections 24 24 $3,192.00 82)Plan Submittals 2 12 6 20 $2,506.00 8.3)Develop Cost Estimates 1 16 17 $2,298.00 8.4)Specifications 2 24 4 30 $4,132.00 9 DRAINAGE DESIGN 9.11 Catch Basin Spacing 1 4 12 1 18 $2,420.00 92)Storm Sewer Design 1 6 32 39 $5,308.00 9.3)Water Quality/Pond Design 1 1 2 1 12 15 $2,060.00 9.4)Hydraulic Report Preparation 1 2 1 6 8 $1,092.00 10 PERMITS 10.11 PermitApplicatim(NPDES) 4 6 10 $1,386.00 10.2)Wetland Evaluation 6 6 $798.00 10.3)MCES Sanitary Sewer Permit 2 2 4 $560.00 10.4)MPCA and Dept.of Health 2 2 4 $560.00 11 PROJECT BIDDING 6 1 8 4 10 28 $3,388.00 Total Hours 1 82 1 168 I 401 1 146 1 112 1 1 1 18 1 31 959 $128,078 -age Hourly Billing Rates i 170.001 147.00 1 133.00 1 105.00 95.00 147.00 172.00 66.00 Detailed Design Labor Costs $13,940 $24,696 $53,333 $15,330 $10,640 $147 $3,096 $2,046 I $128,078 Direct Expenses M iscellaneous Expenses includes permit fees. MPCA Sewer Extension.Deptarment of Health.Scott Courtyard NPDES $1,750 Subtotal Expenses $1,750 Subtotal Labor and Expenses $129,828 Kev Personnel by Category: Project Manager-Don Sterna Project Engineer-Marcus Vanderburg Design Engineer/Senior Techs-Ted Witkowski,Chuck Kochm ann Page 293 of 334 8.A. SH+ K PEE Shakopee City Council July 5, 2017 FROM: Lori J. Hensen, City Clerk TO: Mayor and Council Members Subject• Liaison and Administrator Reports Policy/Action Requested: Recommendation: Discussion• Budget Impact• Page 294 of 334 8.13. SH+ KOPEE Shakopee City Council July 5, 2017 FROM: Darin Nelson, Finance Director TO: Mayor and Council Members Subject: City Bill List Policy/Action Requested: None Recommendation: Informational Only Discussion: Attached is the most recent monthly Financial Report for the General fund. These reports reflect the expenditures as recorded for 2017 activity. The following transactions are notable for this reporting cycle: • Midway Ford has requested payment for a Ford F550 4X2 Pickup truck for the Parks Department. $33,071.00. • RJM Construction has requested payment number 17 for work on the Shakopee Community Center Renovation & Ice Arena Construction. $731,299.51. • Pearson Bros Inc has completed the seal coating project and requests payment of $296,782.65. Included in the check list are various refunds, returns, and pass through. Budget Impact• Operating and capital expenditures within the 2017 budget. ATTACHMENTS: a Monthly Financial Report Page 295 of 334 a Council Check Summary a Council Check Register ❑ Bill List Transfers Page 296 of 334 CITY OF SHAKOPEE Monthly Financial Report YTD June YTD Budget June YTD 2017 2017 2017 Balance Percent 2016 Budget Actual Actual Remaining Used Actual 01000-GENERAL FUND EXPENDITURES: 11 -MAYOR&COUNCIL (197,900) (2,585) (91,136) (106,764) 46%-7 (96,786) 12-ADMINISTRATION (1,707,000) (104,477) (743,830) (963,170) 44%-D (599,793) 13-CITY CLERK (318,000) (22,690) (148,703) (169,298) 47% (135,001) 15-FINANCE (1,207,900) (61,910) (685,378) (522,522) 57% (662,722) 17-COMMUNITY DEVELOPMENT (586,800) (34,721) (267,984) (318,816) 46% ? (198,155) 18-FACILITIES (384,800) (20,448) (157,023) (227,777) 41% 7 (163,712) 31 -POLICE DEPARTMENT (7,980,000) (511,716) (3,629,557) (4,350,443) 45% ? (3,624,141) 32-FIRE (2,160,400) (105,043) (880,384) (1,280,016) 41% (896,306) 33-INSPECTION-BLDG-PLMBG-HTG (796,200) (62,965) (395,355) (400,845) 50%➢ (317,440) 41 -ENGINEERING (786,200) (99,166) (300,459) (485,741) 38% T (310,099) 42-STREET MAINTENANCE (2,151,100) (517,320) (1,214,858) (936,242) 56% (803,327) 44-FLEET (435,000) (26,500) (199,780) (235,220) 46% ? (195,078) 46-PARK MAINTENANCE (1,936,300) (103,185) (733,625) (1,202,675) 38% + (636,182) 66-NATURAL RESOURCES (198,000) (5,334) (95,428) (102,572) 48%-D (85,067) 67-RECREATION (3,190,000) (258,616) (1,295,779) (1,894,221) 41%-7 (1,066,502) 91 -UNALLOCATED (217,600) (644) (3,313) (214,287) 2% + (2,075) TOTAL EXPENDITURES (24,253,200) (1,937,320) (10,842,592) (13,410,608) 45%3 (9,792,385) Key + Varies more than 10%than budget positively J+ Varies more than 10%than budget negatively 3 Within 10%of budget Page 297 of 334 LP M 66 r O N O p M �p co a N W O LU d E N Q U) (O = U U) N I N O — o } U N F � N 0 U o U � 0 U N N N (6 (6 a O a O to N o0 O to I— O O r N O r r to O 0 r (O r N 0 Cl) N � (O o0 � V to V N N O V M O I- (O r V 0 d) O d) (O V 0 d) d) p NO_ N O O V M to N M m V (O M N m N w N N (O Qto to N to d) N O N O N (O N w m r N V M N N o0 V O O V (O r- oc to r M d) to N (O o0 (O N M M O O N N MM M V O O to 00 to I- N (O O M (p M I- N to to M N M to s (0 N I- N N N (6 (6 a O N a E Mn m O Q ~ z z LU Q Q W W Z U r a z Q a O :z v z W Q U z O Z LU 2 a z 0- LU < z W W W W nON z z z z ~ O T w j o W z w 2 Q M LL E (� O E Q � W O � J Q W to Q W W � W Q Q U) 10 D w Q W d V to Q r O Q (o Q J z � H — Q Z) z 0 m Q H w z O H H W w U W W w w O W cn cn cn U Z, = U) cn cn M Q LU w O LL ��uu a N E z O a � H W Q Q w 5 O U w cn W O U Q a w w w Q 0 w w w � O w cn LL w d U H H H Q U U w H H H fn fn w z fn W z N N Q O O O O � I- O N M V I- M O O O O O (O to O O Z C O N O O O O O O O O O O O V O OM w w O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 �a�'�98�f'34o 0 0 O N H H 00 Q M H 2 w H 2 H U H z F- 2 z Z m J O < W (9 2 W O Q ¢ U) lL J a m O O O °° W w0 m < J O Q Q Q Q � Q Q Q O Q O O m m m a U) a a a a U )a cn a a o z m U FLFL p z z J 7 z U) U) U) U) U) W W W W W Z w cz_7 of of of of a w U)i a w w w a C7 c7 p LU U) H H H H U J Z U) J J J U) Z Z Q w wo z z LU z z a Z a a a Q Q Q Q Q ° w C7 Q of Q of of of Q O O a Z H H H H H U U o z z w w w w w c7 z w c�7 z z z 2 W W z Q z Q Q Q z m m OU w z_ a_ a_ a_ a_ p a_ p p W O O (� J J W W W J lL l ¢ W L Q z O O O O m O D m m m D z z a w w w w w m O w m 0 0 0 m > a U O z O N N O O O O O N O O N N N O N N C In N V V V V M O V M O O O M N M M N N N N N N N N N N N N N N m O (O (O (O (O (O (O (O (O (O (O (O (O (O (O (O (O (O J E U N Cl) 00 In N N w In w O N 00 I� Cl) N N N N N N V (O I- r N N W C7 ¢ (O V (O (O (O VO O (O (O (O (O (O (O co Cl) W O O O O O O r O O O O O O O O a a O Y w 2 a° U) W w LL U N O N } r Y O F U Z M 0 0 0 0 0 0 0 In In (p 0) N I- (O N N N N N N N U U S o o 00 O (0 Cl) w w w w w w w LO M z z z z z z z O U N O O (O O O O (O D 0) 0) (� C N 00 N N N M M M M M M M O 00 In 0) Cl) Cl) (O N V 00 00 00 00 00 00 00 0) O U O In 12 In 00 In 00 O r r r r r r r N Cl) N N N N N N N N N N N N N N Z 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) O O O O O O O O O O O O O O O O O O O r r r � r r r r r r r r r r � r r C U U) U J F U Z ik w U Z W w a ? w y w z a0 w U U) y w Y w w a ¢ y z o 0 °i z z o = w W Z m0 w U 0 w U w W F O a J a s Z F- F w Z 05 m O a O J O w U) OW Q a. y ¢ m 0 z a U) z LU 8 O O 00 Cl) Cl) 04 O r J W' (O Cl) Cl) M N � o _ O Cl) 00 O X 2 O_ O O O O W W (n Z Z In to N N (O (O 00 00 O O NC O_ N (O 0) 0) (O 0) O 0) 0) (O I- I� r r r O O O) O) O O (O I- 00 O) O) 00 In O) 00 O) O) M O M 0N N (O (O I� r (O (O r r M 0) N (O 0) Cl) (O N Cl) 00 V I� (O M O 00 00 (O (O r r 00 00 r 0) I� r to M 00 M N E V V In N N N N M V ¢ N N O O_ O O N N N N N N N N J 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 m Y N co U) w f- 00 a) Y N O M r r Cl) M r r r Page 299 of 334 U) z LU H X LU N N (n H U) M Z 00 F- W Q Q W F- 0z oN w z 2 U ° w z O z z w z z a a a z co a w 0 O Q LU w w x a = U w w J Y .N Q W' CI CI M WW J H U U U W' W' W W m U) d U W W U)i Q U 0 lai LLi LLi U)i d LLL 0 d LLL z z z z z z J J J Z O a O O O a O U) (9 9 2 U W z z z z z z U W Q Q z_ D z_ 0 0 0 0 0 0 Z z U) U) H Z J J Z (n (n (n (n (n (n Z W W W W WQ Q U C7 O L d W Z Z Z d Z Z LU � p p 0 0 0 0 0 0 0 j LL 0 0 (7 Z) H H U) J w� � Q O w z z z O Q Q Q D a j z z z z z z a w m w w w w (9 m O m > a U O z N O r- N N N OC N N N N N N N N N N N N N V (0 V � L2 (0 O Cl) N Cl) Cl) Cl) Cl) N N N M M N M N N N N N N m O (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 J E U 00 In V r o0 Cl) O In 00 d) d) 00 N N r- M M Cl) Cl) r N N N N V N N V Lu C7 Q c (o O It It 00 It (0 It It Cl) It (0 It It (0 It LU o o c o o m o 0 0 0 0 0 0 0 0 0 0 a a O Y w 2 a° U) W w LL U N } r Y O F U C) Z C\l Cl) n O O O O O O O O O N Cl) Cl) Cl) In 00 N N N N N N N N N U U O N 0) O M M M M O O W W W W W W W W W _ — O O O Z Z Z Z Z Z Z Z Z I� M (O O N N V (0 H N O O O N N Cl) 0 N O N d) r r 00 Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) U OM (O (O (O V V N N N N N N N N N N N N N N N N N N N N N . 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Q a z U)) U)) U a CY w z V) U } w Z p Z w J Y Z Z W 0 m Cv1 LL to ° w 7 a rn C7 m z z Z J Z a W J U' W Y ^2 W W W J w lL p W W LL C7 U' U' LL O 2 2 2 � (O wf� U) r p 00 I) a) 00 U) N O In N 00 00 Z f� 00 00 .Q M r O Cl) O O r Z) O r Q N O O O C14LL O O C W U) W Cl) (0 I- Cl) O O Cl) Cl) 00 00 Cl) Cl) Cl) 0) In to V O V O O O C I� (O (O M V V 00 00 O) O) (O (O (O 00 O O 00 In M O O O LO V O C\l C\l In to to to Cl) Cl) Cl) O (0 (0 M O O0 VV In NN NNN OO 0 00 r N N Q M V V V O O_ U O N N N N N N N N N N J N N N N N N N N N N N (O (O (O (O (O (O (O (O (O (O m Y In w f- 00 a) O N M V # 00 00 00 00 00 0, U � � � � � � � � In a) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) N O M v v r Cl) v Cl) v v v m � � Page 302 of 334 O N (9 Ln U) U Z 2 F- 66 W Q W W m W U' J H J (7 (7 J 0 F- O J W m O J W J m m m Z W N O 9 z U Oa a W W p a, m LL m p FL a a Z Z U co a J cn cn cn Q J cn cn U) rn } J W W W m Z J W W } W_ Q p Q Z (O wQ H H H = w (� Q H H H W W O U U J Q = .mN Oa J UJJJ LO OLL LL � 0 Lu Lu Lu 0 (O< L L U JJ J a s v (7 U) o H H H H H H H H H H H H H H a w w w U) U Z Z Z Z Z Z Z Z Z Z Z Z Z Z O Z) J J J Q Q Q Q Q Q Q Q Q Q Q Q Q Q U U) a a a Z (7 (7 (7 (7 (7 (7 (7 (7 (7 (7 (7 (7 (7 (7 Z LU U) U) U) w z_ Z_ z_ z_ z_ z_ z_ z_ z_ z_ z_ z_ z_ z_ Q w w w > ° p p p p p p p p p p p p p p O O J J U J J J J J J J J J J J J J J LL W m m Q > > > > > > > > > > > > > > z a a a a a Q Q m m m m m m m m m m m m m m Z) O O O O J J a U O z N N N N N N N N N N N N N N N N O O O O N N C r O (O N N Cl) M M M M M M M M M M M M M N N N N N I- M M (4 O (O (O (O (O (O (O (O (O (O (O (O (O (O (O (O (O (O (O (O (O (O (O J E 0 N N M w M m O M w M M w N m N0) V 0) V 0) I� 00 00 N N M I� r 00 N 00 N I� r r r N W O Q (0M M V (0 (0 (0 M M V (0 (0 M (0 (0 00 Cl) Cl) W O O O O O O O O O O O O O O O O O O O (0 O O a a O ° Y w 2 a° U) W w LL Y a) _ LOOI� r r r r r r r co co co O L Y LO LOO LO U U z O O O O O O O O O � 0(°0 0(°0 (0 _ 0) N N N N N N N N N I� r r r r N 00 U U L V W W W W W W W W V V V V 'It Cl) 0) V V V O U — O N N N N N O Cl) (p (p (p I� Cl) (0 Z Z Z Z Z Z Z Z C '0 00 00 00 00 mw V V Z Z Z (0 (0 M M M M M V V — — — M N N ° O N Cl) V LO LO 00 (0 I- O O M F N N Z 0) d) d) d) d) d) d) d) d) d) d) d) d) d) 0) 0) 0) 0) 0) 0) j O) O) ° } o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 a J � F a J w U) vi z -j J O O � F a a J Z wO a a rn rn Q U U U) w F 0 LLLL z U z 0 O to J U U w w w a v1 = > > U O N m W 7 N aW Z Z U) Q Q w O 7 x 2 2 2 Z Z F WF- J W w Cl) a r N N a) O LO N N M 00 O LO r r CL O N O O N N O � r r r r r r U O O O O O (0 O O N O O O N O O O N r O O O O C O O O O O O N O N N O O O O O r O O O N M M O O O O 0I- O O d) W d) N d) M M M W d) d) d) d) O O N N V M M O O O O ° V N N r 0) r r 0) N V (0 Cl) Cl) o0 N N O O E N N V I- Cl) O_ N N LO LO Q N N Ln Ln N N O O_ U) r r r r r r r O O N N N N N N N J m N N N N N N N p N N N N N N N N (O (O (O (O (O (O (O Y qt m m m m m m o Y a) a) a) a) a O N O M r r r r r r Page 303 of 334 O (O N M J 66 J Z } z Z o a U a C7 U5 w U co a j 0 Luz (n O C7LU z O U J > rn W U) m U 0 U) U W z U w U U U W J U) N JZ_ m U U) J Q Z_ Z (n Z 0 m d d LL d LL d J z d d LL W LL z LL z d d W W W W W W W W W W W W y J LL LL LL LL LL LL LL LL LL LL LL LL Q 7 Q CI J J J J J J J J J J J J C z Z J Q Q Q Q Q Q Q Q Q Q Q Q z OLU T- D D D D D D D D D D D D LU Q o a z z z z z z z z z z z z wU 0 z z z z z z z z z z z z }} JQ Q Q Q Q Q Q Q Q Q Q Q Z F 0 W W W W W W W W W W W W J Q H QQ ZQ ZQ ZQ ZQ ZQ ZQ ZQ ZQ ZQZQ ZQ = Q o Y 0 F F F F F F F F F F F F z Y U m m LL W LL LL LL LL LL LL LL LL LL LL LL LL m Q Qz a 0 0 0 0 0 0 0 0 0 0 0 0 Q aQ O cn cn cn cn cn cn cn cn cn cn cn cn c7 aQ a U O z N 00 N NO O O O_ O O O_ O O O O O N 00 CLO Cl) r- N ON V V V V V V V V V V V V m O (O V (O (O (O (O (O (O (O (O (O (O (O (O (O (O N V J E U N 00 M M (O N N r N N l0 N Cl)M r l0 l0 M l0 O r W U Q M (O Cl) (O M M V M o0 0) (O W O O O O O O O O O O O O O O O r O O a a 0 Y w 2 a° U) Cl) LL Y N O U O 0 } r Y O F_ U t) Z N O U U L (0 O O O O O O O O O O O W r O U — M (O r 00 M M M M M M M M M M M MO W O — 0) 0) r N (O (O (O (O (O (O (O (O (O (O (O (O J Z 0) O 'U (0 00 0) (0 Cl) Cl) Cl) Cl) Cl) Cl) M M M M M M 00 () C N 0) 00 V V V V V V V V V V V V V LL 0) 0 O LO V (O (O (O (O (O (O (O (O (O (O (O (O (O r M O U) N N N N N N N N N N N N N N N N Z UO w O O O O O O O O O O O O O O O O O O 0 F r r r r r r r r r r r r r r r r r r W Z J 0 J U) # Z W a Z F- z a U) ¢ ¢ w Ww W 0 z J Z U O LL Z Z 7 = Z U_ LL a Z z w w z (� z LL O O D j m 0 ¢� - O U)0 0 j w w w m O m F m J to w y m O U' x x 0 Y (� E E E J J U Q W O � C7 LL Z 0 w w w w a w z) Z x J J O J Z J J O 0) 0) 0) to 2 no a w } E w w w U } \ M N N Q (r0 Or0 2 U_ Q Q Q Q 0 r N (�O r 00 Z M U) O O U J (4 (4 (4 U Q 0) 00 Z 'Q I- Z) a) fn C O y fn 'U 'U 'U 0) O E M I- Z O Q O LL O Q O G >. 0) 0) 0) LL O LU 0 a O Q NLU cnUcn cn CL U) 0 o O O M M O O O O O 0 0 0 0 0 0 0 0 Un Un C O O d) d) O) O) (O (O O O O O O N N N O O O O O N N d) d) 00 O r r O_ O O V N M V O V (O r r O O O o0 00 0) 0) N N O V V m 00 r r N O V m O O O 00 00 E UO UO N_ N_ N M I- r N N r (O O 0) UO UO Q N r M M N _ N N N O O_ U O N N N N N N N N J NN N N N N N N N N N N N N N N N (O (O (O (O (O (O (O (O m Y O N Cl) U) w I- U O O O O O O O O N Y N OM v v - M v v v � Page 304 R 334 O I- N z M Z 66 Q 75; F- U_ W W W ~ Z OwN J 0 a w H r H z Q:5 aco z z co a w w w a Q O z C7 O x cn O O LU z U) w H 0 0 0 O H H Q W 0 0 0 W U W w a Lu w w ~ w w 0) LL Y W 0- W W 0- J Lu O Q O 0 O Q Q w w m LL 0 0 0 a a U) Z- W LL U) z U lL m m U) w w w w W J J J J J U W d U) d a a s z J W D U) Q d fn fn U z a w w O H H J H H H J J LU Qo z w z z m z z z a s wU w w w w Q Q Q Q Q Q z > w w w w 2 w cn 2 Q U) U) O O O O z O Z Z O Z Z z z z LL LL LL LL w a U w w z w w w (7 z z 05 05 05 05 m Q z Q Q O 0 0 0 0 d W d d d d d p mm Q z z z z O -j 000- 00 O Z) a s lL lL lL lL w O w W W O W W w m O O a U O z O N O O N O O (O O N N O N N N N t N (0 V V O V V Cl) O O �' 00 00 00 00 N M Cl) N N N N N Cl) N N N (4 O V V V V (O (O (O (O (O (O (O (O (O (O (O (O J E 0 O to r (O M O o0 N N M N V M M LO I� r W U Q (O Cl) V M V V I- M V Cl) (0 (0 W N N N N O O O O O O r O O O O O a a O o Y w _ O W U) z LL U N Z }U N r O O I- r r r F U Z M M O N V N (00 O O O O L ] M w O M N O O N N N N 0 V o0 U U O LO O N r (h LO LO W W W W VLO 00 co 0o N _ Z Z Z Z 0 0 0 0 r 000 O O O Cl) V Ur r r r r r I- N M M M M N O r O O O N M V N 00 LO V V V V V O U O N N N N N N N N N N 00 In (O 00 00 Z d) d) mm d) d) d) d) d) d) d) d) d) d) d) d) 0 O O O O O O O O O O O O O O O O 0 — — — r r r r r r r r r r r r r 0 # W J 7 0- F- U U U F U Z D F Z OF Q 0 w ¢ w w z z U a z Q LL j z z a o m vi p v~i z m U w a y w x x z z z O a W 0 (O (O r- (O a) r 1n Cl) w � O o wM M O M � w N r M � N m w N N r w (O f� 0 G O O O O O O O O O O U N LU U) �: m O V O 0 N N O O (O (O O w V 0 M V O O O O O C N V O M O) V V O O O) O) M N to to N V O O M M O O O 0 (O O O r- N N Cl) Cl) d) N N to V w N N O O V 0) M E l0 Cl) N N In In N N (h O V Cl) (It LO LOO N N V V N Q O O_ U O N N N N N N N N J N N N N N N N N N (O (O (O (O (O (O (O (O Yr 00 a) O N Cl) U Y o 0 0 0 0 0 0 0 N O M v Cl) Clv v v v Page 3b5 of 334 O 00 N M (n 00 W W ~ z U o U O U) o a w Q L z a a LL L U co a Q Q < U') cn cn U')z z z Q W w w w w w W W U m } W J O Q Q Q Q U J J J J J Q Y J O 'wm U UU wO U a LL LL LL LL a a U) U) LU w a s U w w w w w Q 'a a s cn Z J J J J J a > > U z a a a a a U) LU C) > .CL o a Z Z w w z H H r r H U U Q Q U) J Q Z Z Z Z Z Q W W rn U) LL d 2 Q Q Q Q Q d U) LL O z z O j z 0 p z w w a U) Q W 0 0 0 0 0 W Q LL Q M U) W z z z z z O = xs Q a > > LU x LL � j o 0 0 0 0 w O O H W LL Q O > > > > > Q W z O W W O m O w m m m m m o LL a U O z _ N 00 r- r_ O to (O O O O O O O N O V V N (0M M M M M O In N N N N M M N N M N N N N N 00 N 00 (4 O (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 V (0 V J E 0M Cl) Cl) V 00 In N m 00 M M N In N N I- r r Cl) r N Cl) r N N N W Q (O W O O O O O O r O O O O O O O O O a a O Y w 2 a° U) W � (0 LO LL Y 0) 0 O0 N p U z M (0 Z c p rn U U L M V V O OO (O N O O O_ N_ O LO ON C U — N N N V 0) V (0 (0 (0 (0 (0 (0 } — 0) (0 (0 0) V M O (0 I- r r r r O d) Q p .0 In O O 00 0) M V V t V V V V O (� O In O O O 00 Cl) Cl) M M M Cl) N 0 Cl) N V O In to N N Cl) V In (O 00 M r U O I- r r N r M Cl) o0 (O (O (O (O (O to o0 to N N N N N N N . 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V J J J z F- ~ O J J W U) F w J < < Q W O p F- vi z 0 = a z Q U U O O m H w w w O W w O W J w a m W w m W W LL L 0 Q r p Qotf w LL > W > O w W O O LL O 2 O U x (7 m w a w w Z Z 0 0 0 Q to W W Q W W N — fn 0 f0 O O F- a d O w � H z z } Cl) 0 M N m r` a v U 00 O LL O O Q 0000 z o LO Q N N O LL N U) U) Q Q LL Cl) LO LL — � LO I� r N O to I` 00 00 00 O (0 (0 W (0 O (0 00 00 00 C O) O) N to N O d) O) O O O O O r r M r M 01 O O N N (0 In V N In to O O w It V M V V m O O o0 00 0 O O M t (0 0) N N 00 00 N I- r V I- (O N O O (O E V V N N O N V V N In 0) 0) In Q V —7 In N N In � N O O_ O O N N N N N N N N N J N N 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 Y1n w f- 00 a) O N Cl) U Y o 0 0 0 0 0 0 0 0 LO LO O M r r Cl) r r r r r Page 306 of 334 m Q x LU m O 0) w Ln J O 66 M F W Z Q W LL C7 w w w w w LL 2 o5 Z 0 Q O (o a 'E w w w w w z Z w Z) D LL LL LL LL LL W W U) Z U fn 0 w 0 0 0 0 0 2 w Q w M w w LL LL LL LL LL LL w Z fn W J J O m U O O z O O w w 0 m LL W W U w Q w Z Z Z z J J U) U) Z Z Z Z O O a U U U) U) w Z Z U)(7 U_ U_(7 w c _ _ J > o LU L a w w w Q U LL LL LL LL LL � C7 C7 U) w cn cn 0 Z z z Z (9 w LL LL 0 0 0 0 0 0 Z LL LL LL LL LL LL Z wO O � W Z Z Z) w w LU W W U) w w � xs xs xs xs xs xs w w w O a z z w w U w w Q Z Z Z Z Z Z LU FL m m LL iL iL iL iL iL w w w O O O O O V a o O � o O Z O N N LO V N O I- r- O N N N N N N V Cl) (O 0N NC) M M M M M o0 M Cl) V Cl) N N M M m O V V V V V V (O (O (O (O (O (O (O (O J E 0 O O 0 ) d) N V V W CI E Q r - - - - - 000 V 000 M (O (NO M (O Cl) W N N N N N N r O (O O O O O O O w a O Y w 2 a° U) LL Y 0 U O w H L Y O (O V N (O (O r Q (n O Z M w (O 0M0 M O J Cl) O_ 0) W = V (O Cl) C I� N O r N w 0 0) LL H V V O C U - O N r- # N N r- O N 00 M V N - O O O O O O Z Cl) Cl) r- 00 M V V I� (O r (O (O r O Cl) M O O r- r- (� N > Cl) Cl) N m V Cl) N N N 0 1- LO (O 00 0) O (O 0) O V N N O (O N U M V V V V N 00 M V o0 00 O (O r 00 O N N N N N N W N N N N O N N N Z m m m m m m � 0) 01 01 0) 0) 01 01 0) 0) 0 O O O O O O V1 O O O O O O V O O O O r r r r r r r r r r r r r r r w W R U F- Z O y LL LL W J F Z_ a LL O D a Z J O } W r F U 2 III Z Z w 7 Fn U w' Z w' w' V) w W O O W w j � a }U} F F w D w J2 F O O U) -jO W W O Z 0 U U w Z O w U U w w Z a 2 0 Z w LL w Z F ~ m z d Y F M Y Y w QU U 7 m w W w' J U 0 W 2 2 2 2 0 l! m - Y m W V1 Z V1 V1 V1 V1 V1 w M V (0 V0 (O (O I- V > a V 00 a) V W N o0 00C\l N Cl) Cl)O O Ln 0 r N O 1 C\l ww a)w LO w Q N O O O O O O O O 0 O O O O Q ) I� m I� m m I� Y 2 00 O W O M M O M I- r O O 00 01 01 (O O O (O C (O V O) O 00 (O O 00 O O N (O O O O O O O M 00 O N M O O N O m r r r (O M O O O O N N N (O O N 0 (O V m w V (O N o0 00 r 0) N N Cl) M M V V N E N N0 N N V 0) N N Q Ln 1- N N N N O O_ O O N N N N N N N N J 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 m Y Cl) V Ln w f- 00 a) O U O O O O O O O O N Y LO O M r r M r r r r 34 Page 307 of 3 O O N U) M Z Q 66 Q F 2 C7 z F z 0 Z cM\o a j z C7 0 N W J W J o W J z ~ J J Q Y Y Y 0 Y a 0 w m F O O .Nm Lu W U LU MW Q Q Q Q Q O Q w J Q Q m d d d d d W d LL U) LL d lL d w w w w w U) J J J J J ' W a a a a a W d U U a z z z z zo a = U of z O 0 < < < < < O LL < LUU U d c7 L w w w w w Z LU z W W o z 0 a_ a_ a_ a_ a_ Q Q Q p Q O 0 0 2 J 2 LL 2 W LL fn fn Q Q z 0 0 0 0 0 a z 00 0 m w w w w w 0 0 a s a U O z _ I� O N O O O O O In N N N N N Cl) O V V V V V M O M M Cl) N 00 N N N N N N V N N Cl) Cl) m O (0 (0 V (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 J E 0 In 00 In N In (O N Cl) 0) N N W Q (O (NO (O M (NO V M (O V Cl) Cl) Cl) W O O O O O O O M r O r O O O O O a a 0 Y w 2 a° W U) a LLY N O w O } r Y O m N F_ U z M 000 O O O O O In N U U L C _ r N N N N N N Cl) 0) O U -CE) r Cl) O LO r r r r r O (O N N In VLO LO LO LO LO Cl) O N w w w w w N � (O Cl) d) ( C\l LO LO � � O N (n — N N N N N 0 (0 In r N N N N N I- I- V o0 V U 000 N In 00 N N N N N I- O w 00 N N N N N N N N N N N Z d) d) d) 0) m m m m m 0) 0) 0) 01 01 0 O O O O O O O O O O O O O O O 0 w a w a O F U Q F 2 w v1 p H a U o w cn a J z -jo W r Z = 0 to FJ 7 a (n z N a y w w J w 0 y 0w-j O N 0 2 Q 0 ° � co O W w U z OF x LU U C7 O v1 Q LL Q a z a F 2 F- w O O z a lixl y Q y y <0 U)V) F F F 7 7 \ N M 04 M (00 00 O N 0 N Oro z N 0 N O N Cl) O' N m o N LL O O O O O W r r W r r r r r r U) a m O O 0) 0) O O O O 00 00 00 00 I- 0) Cl) Cl) O O O O O 00 00 C O O M M O O In N N N N N N OR In N O O N N 00 N O O O (0 (0 O O O O O O O N 00 00 0) 0) 0) 0) d) 0 N N Cl) Cl) O O V V M M M M M In (O (O N� NIt O O N M Q O O_ U) r r r r r r r r r 0 O N N N N N N N N N J N N 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 Y N Cl) 1n (Cfl) 00Cl) a) Cl) Cl)U334 # O O O O O O O O O N Y N O M v v r M r r r r m � � Page 308 of O In U) U) M 00 LU O O ~ U) Z Z Z LU 0 O o z (7 z U r C7 (7 (7 (7 (7 (7 (7 (7 (7 (7 M Up '-E O Z O Q Q Z Z Z Z Z Z Z Z Z Z co aF U w w w w w w w w w w 0 0 w � z U) Z w w w w w w w w w w w w LU w Q w Q Z) - D w w w w w w w w w w F F � W J Z_ W , 2 Z_2 Z_ Z_ Z_ Z_ Z_ Z_ Z_ Z_ Z_ Z_ J J .N U W O U U U W W W W W W W W W W W W LU J � O Z w Q O o O z z z z z z z z z z Q Q � g � � � � � � � � � w m U U) a w M a U Q U w w w w w w w w w w LL LL LL LL LL LL LL LL LL LL LL LL LL LL v U) U) U) U) U) U) U) w U) w w w w w w w LU U_ U_ U_ U_ U_ U_ U_ c U) U) U) U) U) U) U) U) U) U) o a w w w w w w w w w w w w w w w w w U U U U U U U U U U w U) w w w w w w w Q Q Q Q Q Q Q Q Q Q O 0 0 0 0 0 0 0 w w w w w w w w w w w w w w w w z z m z z z z z z z z m z z z z z z z w w w w w w w w w w a a a a a a a O O � O O O O O O O O � O O O O O O � � � � � � � � o Q x x x x x x x x x x x x x x x x 0 m w w w w w w w a a a a a a a a a a a a a a a a a a a a a a a a a a Qd J J J J J J J J J J J J J J J J O 0 0 0 0 0 0 OLULUOWWWWW www 0 0 0 0 0 0 0 0 N a U O z N O N N N N N N N - r r r r r r V V . 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M M M M M M M M M M M M M M M M M M M M M M M M M M N M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M (4 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 (O (O (O (O (O (O (O (O (O (O J E U 0) r N M r V r In r r r r r r r r r r r r I- M N r r w N r N N 00 00 N N N N N N N N N N N N Q (0 V (0 V (0 (0 (0 V V V V V V V V V V M M M M M M M M M M M M LU 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 O O O O O O O O O a a O Y w 2 a° U) w w LL Y N O L Y O N N N N N N N N N N N N N N N N N N N N N N N N N N U Z M M M M M M M M M M M M M M M M M M M M M M M M M M d) d) d) d) d) d) d) N N N N N N N N N N N N N N N N N N N N N N N N N N U U L V V V V V V V 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 O O U — Un r r r r r r r r r r r r r r r r r r r r r r r r r w w w w w w w w — N (0 (0 (0 (0 (0 (0 (0 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 (� C N N N N N N N N d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) 0 0) O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N N N N U O 00 In In In In In In In N N N N N N N N N N N N N N N N N N N N N N N N N N Z d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) d) 0 O O O O O r r r r r O O O O O O O O O O O r r r r r r U O Z a - y J Q U) z Z U) U) W w F Q J w w w O w a U 0 } w Z 0 w N m O > LO x > > 4 c W (4 fnfn O U O O O O O O O O w w m O O O O O O O N m H H m m m m m m m m N O O 0 E fn C C C C C C C C J J fn fn fn fn fn fn fn fn Q o 0 0 E E U) Q U c w w w w w w w w c LL LL Li Li Li Li c c c c c c c c O_ O_ O O O O O O O O I- r O d) d) d) N M o0 r O O O r r C O O N O N O O O Cl? 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O O O O O O O O 00 O (0 O (0 N V N V d) N d) V V d) (0 M N N d) N N N N N N N N O V V N m M m V (0 m r N N V M M M N M V (0 V Cl) M M N N V m M M M M M M M M E N N V (0 N (0_ N Q N N O O_ U) r r r O O N N N J N N N N_ N_ N_ N m Y O N LO Y N M Cl) Page 309 of 334 0 O O O O O M J O O O O OW W << w w 00 x x x x x c� OFF O Q H H H H H w' m J J o a z z z z z 0 0 z z w z LL LL M m 'E W z z z z z 0 0 0 0 0 w w co a Z) z 0 0 0 0 0 - - - - - 0 O z 0 z z 0 w p U U U U U < < w w U W U U w w z w w w w w N w w w w w w w w w w a a a a a 0 0 0 0 0 V O U O w U 2 2 a a Z J J J J w cn cn cn cn cn w w w w w Q a w O w O w w O O w w J 0 0 0 0 0 m LL LL LL LL LL LL LL LL LL FL a z z z z z z z z z z z z m a m a H w U U U V a a a a a a v v 0 c 0 0 0 0 U) U) U) U) o c cn cn cn cn cn cn cn cn °- � U U U U U U U U U a a a a w w a w a a w w w w w w w w w w w w a w w w w w w w w w w w w w w w w z z m z m m z z z z z z z z z z z z z z z z z z z z z z z z z z z z LU LU LU LU O O O � � O O O O O O O O O O O O �LU O O O O O O O O O O O O O O O O x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x o a a a a a a a aa a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a 0 0 0 0 0 LU LU J J 0 J 0 0 LU LU LU LU LU LU LU LU LU LU wJ J J J J J J J J J JJ 0 J J J J J J J J J J J J J J J J Q O O O O w w O w O O w w w w w w w w w w w w O w w w w w w w w w w w w w w w w U U U U H H U H U U H H H H H H H H H H H H U H H H H H H H H H H H H H H H H a m O z rn rn rn rn c c rn c rn rn c c c c c c c c c c c c rn c c c c c c c c c c c c c c c c 0 M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M m O (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 J E U M (0 (0 (0 (0 (0 d) N N (O d) 00 00 M M W Q M M M M M M M M M M M M M M M (O (O (O (O (O (O (O (O (O (O (O (O M M M M M W 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 O O O O O O O O O O O O O O a a O m Y w 2 a° m U) w w LL Y N O } L Y O FN N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N U Z Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) M Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) M M M M M M M M Cl) Cl) Cl) N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N U U L > 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 O O O O O O O O O O O O O O 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 (0 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0 In N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N U ON N N N N N N N N N N N N N N N N N N N N N N N N . N N N N N N N N N N N N N Z d) d) d) d) d) d) . . . . . . . . d) d) d) d) d) d) d) d) d) d) d) d) . . . . . . . . d) d) d) d) d) 0 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 O O O O O O O O O O O O O O O r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r O a rn w w J W d' O Z O W � .0 .0 x > p m m > W w w w w w N U U N LL LL N > O O O O O O QO' QO' O 00 N 8 m m m m m m a m '� U U s= a m w 0 0 0 0 U) U) O r t h O o 2 m xs 05 O Q o > > > m m m m > > Q Q Q Q Q c ° Y o Y o E E Q Q .� $ .� (7 (7 (7 C7 O C7 w w w w w m Im m O m o ° 0 0 0 0 m > U) c c c Li Li Li c c c x !z !z � z c a a a a 0 m U U o a U S ao m ao C O O O O M M O M O O M V M M M M M M M M M M O O V M M O O M I- M O o0 00 M M M r 0In N N N N N N O N N O r- N N w O M M M M In to Cl) to Cl) Cl) (O Cl) to to to to (O (O (O (O to to Cl) Cl) Cl) (O to N N to M to M I- to (O to M E Q O O_ U r O m N J m N N_ N f0 m Y N LO U o Y LO N M Page 310 of 334 O M N r M r O N O p M N '= w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w o U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J 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 O O O O O O O O O O O O O O m a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a v v 0 c cn cn cn cn cn o c U) U) U) U) U) O U U U U U U a`) w a w a a w w w w w w w w w w w w w w w w w w w w w w w w w w w w w a w a w w z m z m z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z m z z 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x o a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a Q J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J LU O w O O w w w w w w w w w w w w w w w w w w w w w w w w w w w w w O w O w w H U H U U H H H H H H H H H H H H H H H H H H H H H H H H H H H H H U H U H H a 0 O z c . c . . c c c c c c c c c c c c c c c c c c c c c c c c c c c c c . c . c c M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M (4 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 (O (O (O (O (O (O (O (O (O (O (O (O (O (O (O E W Q M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M W 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 O O O O O O O O O O O O O O a a O o Y w 2 a° o U) w w LL Y N } L Y U O LO r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r F N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N Z Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) Cl) M M M M M M M M Cl) Cl) Cl) Cl) Cl) N N N N N N N N N N N N N N N N N N N N N N N N N N . 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