2. Organizational Items.1
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MEMORANDUM
CITY OF a
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Mayor and City Council
FROM: Don Ashworth, City Manager
DATE: January 9, 1995
SUBJ: Organizational Items:
a. Rules of Procedure
b. Official Newspaper
c. Official Depository
d. City Attorney
e. Bond Consultant
f. Acting Mayor
g. Weed Inspector
k
h. Fire Chief°
i. Health Officer Al
j. City Auditors
k. Adopt Financial Policies
mo w:
a. Rules of Procedure: Attached please find a copy o the Council's Rules of
Procedure. w
Also attach" s a . opy of the ameeting schedule for 95. No deviation from the
second aid fourth Mmuday.�schedule is je ed. No z�egular meeting dates are on a
holiday wi� e exception of Columbus Day obei 9� which fi of unrecognized
city holiday. Doesttus date conflict for any council members:
o b Official Newspaper: Attached pleas ind etter from the Chanhassen Villager
requesting designation as the official newspaper for the City.
O C Official Depository: Attached please find a letter from Kevin McShane, President of
the Chanhassen Bank requesting that the Chanhassen Bank be designated as the city's
official depository.
Mayor and City Council
January 9, 1995
Page 2
In mid- December I received a call from Randy Schultz asking if they could present a
proposal to be considered as the official depository for the City of Chanhassen. To
the best of my knowledge, this is the first time in the history of the city that two
banks potentially being qualified have sought the city's designation as official
depository. As can be seen, Mr. Schultz's proposal was received on December 30 and
I have not had a chance to review it until literally today (Wednesday, January 4).
Both proposals appear to be offering pass�ook rates if each of their respective banks
were chosen. [Note: This is a highly unusual offer which would typically not be
made available to commercial entities.]
As this is the first year that Americana Bank has sought designation, we have not, nor
do we currently, know the overall financial strength of Americana Bank, its capital
position, etc. Mr. Schultz is additionally requesting that the city be allowed the use of
a bond in lieu of typical collateralization policies as required under state law. It
simply was not feasible to have the city attorney's office review that proposal prior to
Monday evening's meeting. The Americana Bank proposal appears to establish
charges which would be deducted from passbook earning rates. A sample is included,
but it is not clear if you can use that to interpret what the costs back to the city would
be, i.e. would the charge for check processing be 100 as shown in the example?
The designation of the city's official depository is a decision which should not be
taken lightly. If the city has $1 million in the bank and for some reason the bank
closes, is the city assured that it can obtain its money? Can it be obtained in a quick
manner? Unfortunately I cannot answer these questions for the city council before
Monday evening. Twenty years ago I prepared an RFP form for the various banks
who served the Maplewood area. However, that RFP is totally outdated and does not
consider changes in banking such as wire transfers, encoding, etc. I might typically
ask the city council to table this type of decision for 30 to 60 days to allow staff to
prepare an RFP and then have each bank complete such. However, major work
functions need to be completed within the finance department .during a time frame
where one of the positions is very new to her job (Pam) and where another employee
(Jean) is retiring. We cannot have the same fiasco occur as occurred this past year in
regards to the audit process, which by the way, has already started. I am sure that Mr.
Schultz is going to be disappointed by the following comment in that I honestly do not
see our staff or the auditor's office being in a position of developing an RFP prior to
mid - year —a point in time that the council has already established for interviewing
auditors for the 1995 -1997 audit years. If Deloitte is not selected in that process, I
question whether they would devote the time and energy necessary to help in
developing that RFP.
In conclusion, staff would recommend that the city council table action on this item
and to generally instruct staff to attempt to complete the development of an RFP at or
7
' Mayor and City Council
January 9, 1995
' Page 3
around mid -year. As with all other city designations, the current designee remains in
' effect until such time as a new designation is made.
d. City Attorney: It is the recommendation of this office that the firm of Campbell,
Knutson, Scott and Fuchs be reappointed as City Attorney.
e. Bond Consultant: This office would recommend reappointing Springsted as the Bond
' Consultant for the City.
E Acting Mayor: Rules of Procedure (Section 1.04) requires the City Council to name
' an Acting Mayor during the disability or absence of the Mayor. There are no state or
local laws governing the designation, i.e. nomination may occur by any member of the
Council or by the Mayor. A 3 /5ths majority vote is required. This is solely a Council
decision.
g.
Weed Inspector: Under state law, the Mayor is officially the Weed Inspector for the
'
city. I would recommend that Public Safety Officer Bob Zydowsky continue to be
appointed the Deputy Weed Inspector.
' h.
Fire Chief: The Fire Chief's position is a two year term. In December 1993, Jim
McMahon was re- elected to a new two year term by the Fire Department. Therefore,
'
Jim will serve the second year of his term in 1995 and no action is necessary.
i.
Health Officer: Dr. McCollum has expressed his willingness to serve as the City's
'
Health Officer again in 1995. He has held this voluntary position since 1981.
j.
City Auditors: Audit year 1994 is the last year of the three -year contract entered into
between the city and Deloitte- Touche. In fact, it is the end of the second three -year
contract. During 1994 the council authorized staff to prepare specifications /seek
proposals for this service. This is an extensive process typically requiring a '6 month
'
time frame from start to finish with a minimum of 50 -100 hours of staff time required.
The council has typically interviewed the three finalist (2 -3 hour time commitment).
In light of the above comments, no action is necessary.
o k
Financial Policies: The city auditors recommended that the city adopt financial
policies as a part of presenting the 1993 audit report at mid -1994. Approximately 10
'
to 15 groups of financial policies were obtained from virtually every part of the United
States. I have had an opportunity to review the proposed policies with the city
Jo a
auditor, our financial advisor, and two brokerage firms. All comments have been
t
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positive. Approval of the polices, as attached, is recommended.
a, I I
City of Chanhassen
Carver and Hennepin, Counties, Minnesota
DATE: RESOLUTION NO:
MOTION BY: SECONDED BY:
A RESOLUTION ESTABLISHING RULES OF PROCEDURE FOR THE CONDUCT
OF CITY COUNCIL BUSINESS
The following rules of procedure shall govern tho conduct of City Council business:
SECTION 1. MEETINGS.
1.01. Regular Meetings The City Council shall hold regular meetings on the second
and fourth Mondays of each month at 7:30 p.m., provided that when the day fixed for any
regular meeting falls on a day designated by law as a legal holiday, such meeting shall be
held at the same hour on the next succeeding Monday not a holiday. However, in December
the Council will have only one meeting which will be on the second Monday, December 11.
1.02. Special Meetings Special meetings of the Council may be called by the Mayor
or by any two members of the Council in writing filed with the City Manager. At least one
day before the meeting, the Manager shall notify each member of the time, place and the
purpose of the meeting by causing written notice thereof to be delivered to them personally if
he /she can be found, or, if he /she cannot be found, by leaving a copy at the home of the
member with some person of suitable age and discretion. Special meetings may be held
without prior written notice when all Council members are present at the meeting or consent
thereto in writing. Such consent shall be filed with the City Manager prior to the beginning
of the meeting. Any special meeting attended by all the Council members shall be a valid
meeting for the transaction of any business that may come before the meeting.
1.03. Place All meetings shall be held in the Council Chambers of Chanhassen City
Hall unless there is a published or posted notice designating another location.
1.04. Presiding Officers The Mayor shall preside at all meetings of the Council. In
the absence of the Mayor, the Acting Mayor shall preside. In the absence of both, the
Council members shall elect one of their number as temporary chairman to so preside.
1.05. Ouorum Three members of the Council shall constitute a quorum for the
transaction of business of the Council, but a smaller number may adjourn from time to time.
1.06. Order of Business At the hour appointed for meeting, the members shall be
called to order by the Mayor, or in his absence by the Acting Mayor, or in the absence of
both by the City Manager. In the absence of the City Manager, the Mayor shall appoint a
Secretary pro tem, as the case may be, shall call the roll, note the absentees and announce
L
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' whether a quorum is present. If a quorum is present, the Council shall proceed to business
which shall be conducted in the following order:
' 1. Call to Order (Pledge of Allegiance)
2. Roll Call
' 3. Approval of Agenda
4. Consent Agenda
5. Visitor Presentations
6. Public Hearings
7. Award of Bids
8. Unfinished Business
' 9. New Business
10. Council Presentations
' 11. Administrative Presentations
12. Adjournment
' 1.07. Consent Agenda . Items of routine, or primarily administrative in nature, shall
be presented by the City Manager as a part of the consent agenda. All items so submitted
shall have one clearly understandable recommended action so that all items may be voted
upon as a group without discussion. The Mayor shall ask if there is anyone present, written
correspondence received, or any Council member wishing to discuss any item prior to calling
for a vote approving the consent agenda. Any items requiring discussion shall be removed
from the consent agenda and shall become the last item on the agenda unless a Council
member requests that it be heard earlier, i.e. if the question is short or persons are in
attendance who are affected by the decision. If the action proposed to be taken involves a
' citizen(s) not in attendance, action shall be tabled to allow notification of the Council's intent
to discuss the proposed action.
1.08. Curfew No additional agenda items shall be discussed after 11:30 p.m. No
meetings shall continue past 12:00 midnight. Meetings adjourned under this policy shall be
continued to a time specified by the Council. The continued meeting will start at the point on
' the agenda where the adjournment occurred.
1.09. First Reeular At the first regular Council meeting in January of each' year, the
' Council shall (1) designate the depository of City funds, (2) designate the official newspaper,
(3) choose an Acting Mayor from the membership of the Council who shall perform the
duties of the Mayor during the disability or absence of the Mayor, and (4) review the Rules
' of Procedure of the City Council and make any necessary changes.
SECTION 2. AGENDA FOR REGULAR MEETING
' 2.01. Filing Deadline All matters to be submitted to the Council shall be filed with
' the City Manager's office not later than 10:00 a.m. on the Thursday ten days prior to the
Council meeting at which consideration is desired. In unusual circumstances and when the
matter does not require investigation, an item may be accepted after said deadline upon the
approval of the City Manager or Mayor.
2.02. Maintenance of Agenda No item of business shall be considered for action by '
the Council which does not appear on the agenda for the meeting, except that an item of
urgent business which requires immediate action and is so determined by a majority of the
Council may be considered by the Council whether or not there is a full membership present.
The Council will hear all responsible citizen petitions, requests and statements; however, such
items which do not specifically appear on the agenda shall be deferred to a future meeting for '
more careful consideration and study if Council action, other than filing, is required or
requested.
The Mayor and each Council member shall be provided with a copy of the agenda, ,
minutes of the previous meeting, and any other reports and information pertinent to the
agenda at least ninety -six hours prior to each regular Council meeting. Exceptions may occur '
during holiday weeks.
No matter may be submitted for Council action by any administrative official, '
department head or employee unless it has first been presented to the City Manager or Mayor
for inclusion on the agenda. The City Manager and Mayor shall establish the agenda for each
regular and special meeting. '
SECTION 3. MINUTES 1
3.01. Record of Council Meetings The City Manager or the Manager's designee or
secretary pro tem, shall keep a record of all Council meetings. ,
3.02. Reading of Minutes Unless a reading of the minutes of a Council meeting is
requested by a member of the Council, such minutes may be approved without reading on the
consent agenda if each member has previously been provided with a copy.
3.03. Amendment of Minutes The Council may, by motion carried by majority vote '
of all its members, amend the minutes. Such amending motion shall become a part_ of the
minutes of the meeting at which the amendment was made.
SECTION 4. DUTIES OF THE PRESIDING OFFICER
The presiding officer shall preserve strict order and decorum at all meetings of the ,
Council. He /she shall state every question coming before the Council, announce the decision
of the Council on all subjects and decide all questions of order, subject to an appeal to the
Council, in which event a majority vote of the Council shall govern and conclusively
determine such questions of order. He /she may vote on all questions, and on a roll call vote
determine the order in which votes are cast.
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'
The
presiding officer shall normally use the following procedure on all agenda items
which such
pertains:
'
1.
State the question coming before the Council.
'
2.
Request a summation of the Manager's report (where such has been presented
in writing to the Council).
'
3.
Request a report from advisory boards and commissions when said item has
been referred to such.
4.
Recognize citizens desiring to speak on said item.
5.
Recognize Council members desiring to speak, maintain order and decorum on
items of discussion, and generally provide leadership for the Council to ensure
timely and efficient decisions on each item.
'
6.
Announce the Council decision.
SECTION 5. RULES OF DEBATE
5.01. Particivation by Presiding Officer The Mayor or other presiding officer may
' move, second and debate from the chair, subject only to such limitations of debate as are by
the rules imposed on all members and shall not be deprived of any of the rights and
privileges of a Council member by reason of his acting as the presiding officer.
' 5.02. Recognition by the Chair Every member desiring to speak shall address the
chair and upon recognition by the presiding officer, shall confine himself/herself to the
' question under debate avoiding all personalities and indecorous language.
5.03. Sneaking Privileges A member, once recognized, shall not be interrupted when
' speaking unless it be to call him/her to order or to vote on a motion to close a debate, or as
herein otherwise provided. If a member, while speaking, be called to order, he /she .shall
cease speaking until the question of order is determined and if in order he /she shall be
' permitted to proceed.
5.04. Reconsideration A motion to reconsider any action taken by the Council may
' be made at any time following original action. A motion to reconsider must be made by a
member of the Council who voted with the prevailing side. Should a motion to reconsider
' fail, an additional request for reconsideration cannot occur for a period of six months
following the date of the first motion for reconsideration. If a motion to reconsider is passed,
then parties entitled to notice shall be notified and action shall be taken at the next regular
' meeting following passage of the motion to reconsider. Should the City Council determine
that other parties are not likely to be affected by an item presented for reconsideration, the
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City Council may, at its discretion, act on the original action the same evening as the Council 1
votes on reconsideration.
5.05. Statements for the Record A Council member may request, through the '
Y � g
presiding officer, the privilege of having an abstract of his/her statement on any subject under
consideration by the Council, of the reason for his/her dissent from or support of any action '
of the Council, entered in the minutes. Such a request may be made at the time of said
action or consideration or at the time of the adoption of said minutes. Unless the council, by
motion, objects, such statements shall be entered in the minutes. '
SECTION 6. ADDRESSING THE COUNCIL
'
6.01. Permission Any person desiring to address the Council shall first secure the
permission of the presiding officer.
'
6.02. Procedure Each person addressing the Council shall, if requested by the
presiding officer, give his/her name and address in an audible tone for the records, and unless
further time is granted by the presiding officer, shall limit his/her address to five minutes,
'
except at a public hearing when the limit shall be ten minutes. All remarks should be
addressed to the Council as a body and not to any member. No person other than the Council
and the person having the floor, shall be permitted to enter into any discussion, either directly
'
or through a member of the Council, without the permission of the presiding officer. No
question shall be asked a Council member or any member of the administrative staff except
through the presiding officer.
'
SECTION 7. GENERAL RULES OF ORDER I
Robert's Rules of Order Revised and Robert's Parliamentary Law shall be accepted as
an authority on parliamentary practice on matters not specifically covered and in case of a I
conflict these rules shall govern.
SECTION 8. VOTING I
Unless a member of the Council states that he is not voting, his silence shall be
recorded as an affirmative vote. In determining whether the motion has passed by the '
required number of affirmative votes, a Council member who orally elects not to vote shall be
considered as having voted against the motion in the tallying of the votes, and his election not
to vote shall be duly noted in the minutes as an abstention. I
SECTION 9. DECORUM AND ITS ENFORCEMENT
The Council members, while the Council is in session, must preserve order and ,
decorum, and a member shall neither by conversation or otherwise, delay or interrupt the
proceedings or the peace of the Council, nor disturb any member while speaking or refuse to
obey the orders of the Council or its presiding officer, except as otherwise herein provided.
SECTION 10. ORDINANCES, RESOLUTIONS, MOTIONS AND REPORTS
10.01. Introduction of Matters for Action Ordinances, resolutions and other matters
or subjects requiring action by the Council shall be introduced and sponsored by a member of
the Council, except that the City Manager or City Attorney may present ordinances,
resolutions and other matters or subjects to the Council.
10.02. Passage of Ordinances, Resolutions and Motions Upon the vote on
ordinances, resolutions and motions, the ayes and nays shall be recorded unless the vote is
declared unanimous. Upon the request of any member of the Council, the vote shall be by
roll call of all members of the Council as provided under the section "Duties of the Presiding
Officer" in this resolution. A majority vote of all members of the Council shall be required
for the passage of all ordinances, motions and resolutions except as otherwise provided by
state law or city ordinance.
10.03. Readings of Ordinances Every ordinance other than emergency ordinances
' shall have two public readings as provided in Subsection 10.02 of this section, and at least
seven days shall elapse between the first reading or waiver thereof and the second reading or
waiver thereof.
' 10.04. Emergency Ordinances An emergency ordinance is an ordinance necessary
for the immediate preservation of the public peace, health, morals, safety or welfare in which
' the emergency is defined and declared, passed by a vote of at least four members of the
Council, as recorded by ayes and nays.
10.05. Contents of Minutes All ordinances and resolutions shall be filed with the
Manager and made a part of the minutes. Reports, petitions and correspondence shall be filed
with the Manager and made a part of the minutes by reference.
10.06. Ordinances, Resolutions and Motions
1. An ordinance shall be required for: all legislation regulating or governing
people or property and which provides a penalty for its violation; all permanent
rules of the organization and operation of the Council; all actions required by
statute to be in ordinance form. The City Attorney shall be consulted should
there be a question as to whether the action posed by the Council requires an
ordinance format.
2. Resolutions: Resolutions shall normally be adopted for actions of a temporary,
routine or administrative nature.
2
3. Motions: Motions shall be adopted on issues of parliamentary procedure or to '
introduce items of business, i.e. ordinances, resolutions, etc.
SECTION 11. CONDUCT OF CITY EMPLOYEES ,
11.01. City Manager The City Manager may take part in the discussion of the City '
Council and may recommend to the Council such measures as he /she may deem necessary for
the welfare of the people and efficient administration of the affairs of the City. He /she shall
have all the rights, powers and duties prescribed by city ordinance in regard thereto, however, '
it is recognized that the City Council is the policy making body for the city and the City
Manager shall confine his/her discussions at the Council meetings to statements of fact,
recommendations based on his/her knowledge and experience and explanations of the reasons ,
for the same and any matters pertaining to administration.
11.02. City Attorney . The City Attorney may not take part in the discussions of the '
City Council except to answer questions directed to him/her, comment on matters involving
legal issues or procedures of the City, and to present factual material to the Council.
11.03. Other City Em to ees No city employee other than the City Manager or City '
Attorney shall enter into discussions of the City Council except to answer questions directed
to such employee, or to present factual information. The above regulations of city employees '
shall not be construed to limit the appearance before the City Council of any city employee
when such appearance is made as a taxpayer or member of the public, for or against some
particular issue under discussion by the Council when such employee has an interest in the '
outcome thereof.
SECTION 12. WAIVER '
By 4 /5ths vote of all Council members, these rules may be waived. '
SECTION 13. ADJOURNMENT
A motion to adjourn shall always be in order and decided without debate. ,
SECTION 14. MISCELLANEOUS I
Section, subsection and paragraph headings used herein are not part of this resolution
and shall not be used or considered in determining the proper meaning, purpose or intention I
hereof.
I
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SECTION 15. SEVERABILITY
' If any court of competent jurisdiction shall adjudge any provision of this resolution to
be invalid, such judgement shall not affect any other provisions of this ordinance not
specifically included in said judgement.
' SECTION 16. EFFECTIVE DATE
' The "City Council Rules of Procedure" shall be adopted by the City Council each
year. Such rules shall act as the format and control activities for the ensuing year. As such,
the following are hereby incorporated as a part of this resolution:
1. The 'Rules of Procedure" as adopted each year shall be maintained by the City
Council in such a manner as to accurately reflect the procedures in effect for
each year; and
2. The effective date for each years 'Rules of Procedure" shall be in full force
' and effect from and after its passage. Publication shall not be required so long
as such rules are available for inspection and the general public is notified as
so such availability; and
' Passed and adopted by the Chanhassen City Council this 9th day of January, 1995.
' ATTEST:
Don Ashworth, City Clerk/Manager
YES
NO
D
Donald J. Chmiel, Mayor
ABSENT
January 1995
S M T W T F S
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22 24 25 26 27 28
29 31
May 1995
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14 16 17 18 1920
21 23 24 25 26 27
28 9 30 31
1995 CALENDAR
February 1995
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12 919 14 15 16 17 18
21 22 23 24 25
26 28
June 1995
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ill 13 14 15 16 17
18�4 20 21 22 23 24
25 a& 27 28 29 30
March 1995
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26 28 29 30 31
July 1995
S M T W T F S
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30 1
April 1995
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2 5 26 27 28 29
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1995
S M T W T F S
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September 1995 October 1995
S M T W T F S S M T W T F S
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3 4 5 6 7 8 9 8 9 0 11 12 13 14
10 1 1213 14 15 16 15 17 18 19 20 21
17 19 20 21 2223 22 4 25 26 27 28
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November 1995 December 1995
S M T W T F S S M T W T F S
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5 7 8 91011 3 5 6 7 8 9
12 4 1516 1718 10 1213 14 15 16
19 2122232425 17���888192021 2223
26 7 28 29 30 24 25 26 27 28 29 30
31
The Chanhassen Villager
' 80 West 78th Street • Suite 170• Chanhassen, Minnesota • 55317
December 28, 1994
Don Chmiel
Mayor
City of Chanhassen
Chanhassen City Hall
690 Coulter Drive
' Chanhassen, MN 55317
Dear Mr. Chmiel,
Please consider our request for appointment of the Chanhassen Villager as the official newspaper
for the City of Chanhassen in 1995.
Legal notices published in the Chanhassen Villager during this time period will be billed at the rate
of $7.30 per column inch forthe first insertion and $5.25 percolumn inch persubsequent insertions.
' A complete guide outlining our procedures and rate structure, as well as a copy of our certification
from the Secretary of State's office which enables us to publish legal notices, is also enclosed.
' In accordance with Minnesota Statute 331A.02, the Chanhassen Villager has met certain
qualifications in order to become a legal newspaper in order to better sere the community. Some
of the qualifications we must meet to become a legal newspaper include: distribution of the paper
' at least once a week for 50 weeks out of the year; be circulated in the local public corporation which
it purports to sere, and either have at least 500 copies regularly delivered to paying subscribers,
or have at least 500 copies regularly distributed without charge to local residents; have its known
' office of issue established either in the county in which it lies in whole or in part, the local public
corporation which the newspaper purports to sere, or in an adjoining county; file a copy of each
issue immediately with the state historical society; etc. These are just a few of the stringent
guidelines a newspaper must fulfill in order to become a certified legal newspaper. It is our goal
' to sere you as your legal newspaper for the coming year.
Thank you for the opportunity to be of service to you in the past. We hope that relationship can
' be continued in the coming year.
Res tfully,
ark Weber
' Publisher
BEB:bb
' enclosure
The Chanhassi
City Manager Don Ashwc
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
Dec. 30,1994
Dear Don,
er �
You've asked me to supply some background information regarding the delivery of the Chanhassen
Villager newspaper.
Though our mailing list fluctuates somewhat, we are currently delivering to 3,718 households in the
Chanhassen Post Office delivery area, and to another 335 or so Chan households that are in the
Chaska or Excelsior post office delivery areas.
In addition, we are selling nearly 100 papers from newsstands in five different Chanhassen locations.
Our policy is to deliver the paper to every home that desires one. To keep up with residential growth,
we employ a Welcome Neighbor service that encourages new homeowners to subscribe to the
newspaper. We also consult with the post office (as recently as last July). In addition, we maintain a
healthy supply of newsstands — a practice that raises our exposure and gets non - readers acquainted
with our product.
We recognize that in a city as large as Chanhassen, it's possible some people do not know about us.
:For that reason, we truly appreciate and readily accept your offer to publish a city newsletter item
reminding residents that they simply need to call us to get on the Villager mailing list. It was kind of
you to suggest that.
Finally, our experience in several suburban communities tells us that some people are at a point in
their lives where they're either not interested in the newspaper or don't have time to spend reading it.
We know because they tell us so. That's OK. We invite those folks to get on board our mailing list
whenever they're ready, and we hope that they do. For we recognize that publishing and mailing the
newspaper is only half the battle; we also want Chanhassen residents to thoroughly read it.
Thanks for the opportunity to explain the operation of one of Chanhassen's businesses.
Sin erely, ,
Mark A. Weber
Publisher
Chanhassen Villager
P.O. Box 99
F
Chanhassen, MN 55317 612 934 -5045 '
State of Minnesota
SECRETARY OF STATE
APPLICATIONFOR LEGAL NEWSPAPER STATUS
PLEASE READ INSTRUCTIONS ON REVERSE SIDE BEFORE COMPLETING THIS DOCUMENT
THIS APPLICATION SHOULD BE FILED AFTER SEPTEMBER 1, AND ON OR BEFORE DECEMBER 31, EACH YEAR TO
PPLY FOR LEGAL NEWSPAPER STATUS FOR AN ENTIRE CALENDAR YEAR. APPLICATIONS R ECEIVE D TN O TR OFFICE
AFTER JANUARY 1 ARE EFFECTIVE FROM THE DATE WHEN THEY ARE FILM AND PROCE BY TTR4T4 OFFT('�
1 NAME AND MAILING ADDRESS OF NEWSPAPER:
' CA F%V ER 10 010194
CPANHASSEN VILLASER
>7� 9c 5� N STR
C SSE; MN 55317
I ADDRESS OF KNOWN OFFICE OF ISSUE street address or rural route and rural route box number):
80 West 78th St., Suite 170, Chanhassen, M 55317
r.119)D) axXy
i COUNTY: Carver
I NAME AND TELEPHONE NUMBER OF A CONTACT PERSON:
B eth Bock (612)445-3333
Signature Kf Authorized Person
CITY
STATE ZIP CODE
srAYE w . MINNES=
DEPARTMENT Of, STA1't
FILED
O DEC l lF 1994
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�xretaty. bf &�ti
� i Joan Anderson Growe, Secretary of State do hereby certify that the above listed publication has met the filing requirement for a legal
ewspaper as set forth in Minnesota Statutes Section 331A.02 subd I (i).
This authorization is effective January 1, or the date stamped below, whichever is later.
•mil �/
Joan Anderson Growe
Secretary of State
order to process this application for legal newspaper status you must return the completed application along with:
A. 'Me S25.00 filing fee made payable to the Secretary of State; and
B. A published copy showing the date of publication, of either 1) the U.S. Post Office 2nd Class Statement of Ownership and
on; or 2) Statement of Ownership and Circulation verified by a recognized independent circulation auditing agency.
Rev. 10/93
065965
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INFORMATION FOR GOVERNMENTAL BODIES AND
INDIVIDUALS USING THE LEGAL NOTICES '
SECTION OF THE CHANHASSEN VILLAGER
Deadlines I
Notices to be published must be received in the office of the Chanhassen Villager by noon on Friday
preceding each publication date. This deadline must be observed to ensure accurate and timely publication
of important notices.
Affidavits ,
One sworn affidavit of publication will be provided, upon request, without charge for each legal notice.
Additional affidavits are available at $3.50 each. Additional clippings are available for $1.00 each.
Late Fee
Ur
gent.legal notices which do not arrive at the Chanhassen Villager office before the specified deadline
maybe accepted, at the publisher's discretion, but will have a late fee or surcharge of 25 percent added for ,
special handling.
Publication Requirements f
Most specifications for legal notice publication, including the number of times a notice is to run, are set forth
by statute. Interpretation of the statutes is the responsibility of the customer and its legal counsel, not the
publisher. Guidelines for governmental bodies, prepared by the Minnesota Newspaper Association, are
available upon request.
Kill Fee
Publication of scheduled notices may be stopped, depending on how far the printing process has advanced.
If a legal notice is killed before the initial publication date, the customer may still be liable for a special
typesetting fee, not to exceed 30 percent of the cost of the published notice. The customer must pay on a
pro data basis, for that part of a series of publications that have been completed before interruption by the
customer.
Errors
Publisher assumes no responsibility for errors in typesetting or scheduling of legal notices. In all cases,
publisher's liability shall be limited to a "make good" of a defective notice if it can be demdn strated that the
error was made by the publisher and that as a result of the error the legal notice was rendered invalid.
Rates
Effective January 1, 1985, the Minnesota State Legislature authorized legal newspapers to charge for legal
notices in the same manner in which they charge their best commercial display classified customers. That
means that legal notices are billed by the column inch, not by the "legal line." The law also restricts rate
increases exceeding 10 percent per annum.
CHANHASSEN VILLAGER RATE INFORMATION
Lowest classified rate paid by commercial users ........................... ..........................$8.80 per column inch
Legal advertising, first insertion ....... ............................... $7.30 per column inch
Legal advertising, subsequent insertions .......... ............................... ..........................$5.25 per column inch
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'T'VIHE
CHANHASSEN
BANK
January 4, 1995
The Honorable Donald Chmiel, Mayor
and Members of the City Council
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
Dear Mayor and Council Members:
The State Bank of Chanhassen was approved by the City Council to function as the Official
Depository for the City of Chanhassen for 1994.
Our Bank has the ongoing goal of providing the best products and services to our clients at
competitive prices. We have enjoyed a very good working relationship with the City staff and I
am again pleased to compliment them for their continued cooperation when working with us and
for the professional manner in which they conduct business.
I am pleased to submit to you our proposal to provide the following products and services for the
City of Chanhassen for 1995, including functioning as the Official Depository of City funds.
The primary service that State Bank of Chanhassen would provide is the Commercial Checking
Account. The Bank would pay interest on the account based on an earnings credit calculation
tied to the previous three month auction average for 90 -day Treasury bill rates less service
charges. A schedule of service charges for the account has been provided to City staff by
separate correspondence.
As in the past, the Bank will pledge U.S. Government securities on balances in excess of FDIC
insurance coverage levels. Collateral coverage will be calculated at 110% of the balances
requiring pledged securities. The Bank provides a monthly report to the City staff summarizing
the account balances, FDIC insurance coverage and a detailed list of the securities pledged against
the deposits.
The State Bank of Chanhassen would also continue to provide processing for incoming and
outgoing wire transfers on the account. Monthly statements are returned with the checks sorted
in sequential order to aid in staff reconciliation of the account.
600 West 78th Street � Chanhassen, MN 55317 - (612) 937 -BANK
Page 2
The Bank also processes, at the City's request, securities purchased for the City's account. A
safe deposit box is also maintained by the City at our Bank.
Finally, the Bank processes payroll deposits for City employees requesting electronic deposit of
funds to their personal accounts.
A schedule of fees for these special services has been provided to City staff under separate cover.
The Bank also provides miscellaneous services to the City as requested.
Thank you in advance for your consideration of this proposal. I will attend the January council
meeting when our request is reviewed and answer any questions that may arise.
I have included a Statement of Condition for our Bank dated December 31, 1993 for your review
From all of us at State Bank of Chanhassen, we wish you all the very best in 1995.
Sincerely,
G
Kevin P. McShane
President & CEO
KPM/daz
enc.
� CT BANK
January 4, 1995
' Don Ashworth
City Manager
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
' Dear Don:
I have submitted our proposal to provide financial products and services for the City for 1995 to
the Mayor and Council members. In that proposal, I indicated that I would provide a schedule of
of service charges for the commercial checking account and other various special services to City
staff.
' Please find attached the schedule of charges for 1995. In addition lease note in the proposal
g ,P P P
' that the Bank will pay interest on the account at a rate based on the previous three month auction
average for 90 -day Treasury bill rates less service charges.
' Don, thank you for your previous business and if you have any questions, please feel free to
contact me.
' Sincerely,
' Kevin P. McShane
President & CEO
' KPM/daz
enclosures
1 600 West 78th Street x Chanhassen, MN 55317 r- (612) 937 -BANK
STATE BANK OF CHANHASSEN
SCHEDULE OF SERVICE CHARGES AND EARNINGS CREDIT
FOR THE CITY OF CHANHASSEN FOR 1995.
Commericial C hecking Account
Monthly Maintenance Fee i $7.00
Debits .15
Credits .15
Items Deposited
Transit Items (not on us) .03
On Us Items .03
Monthly Check Sorting Fee 5.00
Earnings Credit
(Based on the previous three month auction average for 90 -day Treasury bills)
Calculation for Service Charge
Average Ledger Balance For Month
(Minus)
Uncollected Funds
(Minus)
10% Reserve Requirement
Equals
Net Available Funds
Times
Earnings Rate /365
Equals
Daily Earnings Credit
Times
Number of Days in Statement Period **
Equals
Earnings to apply against Service Charges
(Minus)
Service Charges
Equals
*Net Service Charge
* If charges exceed earnings credit, a net charge will be assessed on the last day"of your
statement cycle. If earnings credit exceed charges, net credit will be posted to the
account.
* * Number days in the statement period may vary from month to month depending on when
the last day of the month occurs.
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Schedule of Service Charges
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Wire Tranfers
Incoming $10.00
Outgoing $10.00
Special Handling $15.00
Securities Purchase $40.00 each
Signature Guarantee No Charge
Safe Deposit Box $40.00
Payroll Processing
Payroll Transmission $5.00
Electronic Credits:
On Us .03
9th Federal Reserve District .05
Non -9th Federal Reserve District .06
Additons or Changes 8.00 /each
Monthly Report on Verification No Charge
of Collaterization of Deposits
Any other services would be provided at the banks prevailing rates and terms.
Aamericana
community bank
December 30, 1994
City of Chanhassen
Attn: M(s) Jean Meuwissen
690 Coulter Drive
Chanhassen MN 55317
Dear Jean:
Thank you for the information on the City of Chanhassen's
checking account. We appreciate your assistance in obtaining and
providing us with this information.
Jean, here at Americana Community Bank, we have an account
especially designed for governmental units like the City of Chanhassen.
We call it "Proprietors, Investors, and Organization checking ". This
account has lower fees for account activity than our commercial
checking and, unlike the commercial checking, will pay interest on the
account equal to an Earnings Credit earned less any service charges.
Based on the information you provided us, the City of Chanhassen, if its
account had been with Americana Community Bank, would have earned
interest of $1,332.01 in September and $1,742.28 in October with no
charges against its account. These interest amounts are based.-on our
present Earnings Credit rate of 4.5% and assumes the "Avg. Avail.
Balance" amounts were what the account averaged after transaction
float. We adjust our Earnings Credit rate as interest rates in general
change, so the above amounts will be more in higher rate times and less
in lower rate times.
Monthly, we will provide the City with an account analysis. I have
included with this letter a sample of that analysis.
Jean, as collateral for the City's deposits, we would propose to
provide the City with a Bank Deposit Guaranty Bond in lieu of pledged
600 west 79th street • chanhassen, mn 55317.612- 937 -9596
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securities. This Bond is issued by Kansas Bankers Surety Company. I
am including with this letter a brochure about this type of Bond and a
copy of a legal opinion regarding the acceptability of this Bond as
collateral for public funds.
Jean, please contact me with any questions you have. We do not
have Safe Deposit Boxes in our Chanhassen office so we will be unable to
provide the City with that service. I can assure you will always find our
staff here friendly, helpful, and professional.
Sincerely,
Randall P. Schultz
President
AMERICANA COMMUNITY BANK
600 WEST 79TH STREET
CHANHASSEN MN 55317
PHONE:612-937-9596
30-2
ACCOUNT: 4
FOR THE
MONTH OF NOVEMBER,
1994
PAGE: 1
ACTIVITY SUMMARY
--------------------
NUMBER
TOTAL
AVAILABLE BALANCE
- - - -- A CTIVITY DESCRIPTION - - - --
OF UNITS
COST
REQUIRED TO SUPPORT
CHECKS
. 36
3.60
973.34
DEPOSITS
4
.40
108.15
DEPOSITED ITEMS-REGULAR
CLEARING ITEMS
15
.45
121.67
TRANSIT ITEMS
4
.12
.32.44
TOTAL OF ACTIVITY-CHARGES AND CREDITS:
4.57
-------- - - - - --
.1,235.60
BALANCE
AVERAGE LEDGER BALANCE: 115,639.16
AVERAGE FLOAT: 88.65
AVERAGE AVAILABLE BALANCE: 115,550.51
-----------------------
EARNINGS CREDIT SUMMARY
---------------------------------------------------
AVERAGE POSITIVE AVAILABLE BALANCE: 115,550.51
RESERVES AT .0000%:. .00
INVESTABLE BALANCE: 115,550.51
EARNINGS CREDIT FOR INVESTABLE BALANCE AT.4.5000%: 427.33
-------------------------
ANALYSIS SUMMARY
NET EARNINGS CREDIT: 427.38
LESS NET ACTIVITY CHARGES: 4.57
AMOUNT CREDITED TO
CHECKING ACCOUNT <_ 422.81
02 03 �D;
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UNB
SLOAN, LISTROM, EISENBARTH, SLOAN & GLASSMAN
LAWYERS
79 CAPITOL FEDERAL. BUILDING
700 KANSAS AVEWE
TOPEKA. KANSAS 66603 -3881
P14ONR:913- 357-6311 FAX:913.3SMIS2
August 26, 1993
' Donald M. Towle, President
Kansas Bankers Surety Company
611 Kansas Avenue
' P. 0. Box 1654
Topeka, Kansas 66601
JAMES RICHARD BILES
MARCIA L. MONTGOMERY !
R. SCOTT SEIFERT
OF COUNSEL
ELDON SLOAN
MYRON L. LISTRO14 t
ERLE W, FRANCIS
WARD D. MARTIN
CHARLES W. SMILEY =
f ADMITTED W KANSAS AND NEBRASKA
9 AONW170 IN KANSAS AND M1M. Ott
ALL OTMERS ADMJTTSD IN KANSAS
ALSO OFFICES AT:
12 CORFORATG WOODS, SUITE :a
LJ415 BENSON DRIVE
OVERLAND PARR. KANSAS 66211-2120
913- 661-0050 PAX: 913. 661-0008
' RE: BANK DEPOSIT GUARANTY BOND
Dear Don:
This letter will summarize my research on Minnesota law as to the acceptability of KBS'
Bank Deposit Guaranty Bond as satisfactory collateral or security for the deposit of public funds.
' - I am pleased to report that Minnesota law clearly authorizes the pledging of KBS' bond as
security for the deposit of all types of public . funds.
' Like the other states I have looked at, Minnesota has one statute which governs the
deposit of funds by the State, and another which governs the deposit of funds by other political
units. The statute which governs the deposit of State is Mian. Stat. Annot. §9.031,. which
provides in relevant part:
Subd. 2. Bond. Except as provided in subdivision 3,'a depository shall
' furnish and file with the state treasurer a corporate surety bond to secure state
funds deposited with it. The executive council shall approve the bond.
The executive council shall not approve any depository bond until fully
satisfied that the bond is in proper form, the securities sufficient, the depository
prosperous and financially sound, and the capital stock claimed by it fully paid up
' and not impaired. Each depository bond shall provide that during the time the
band is in force the depository will pay all the state funds deposited with it to the
' state treasurer, free of exchange, at any place in the state designated by the state
treasurer. If the deposit is a time deposit it shall be paid, together with interest,
only when due. At any time the executive council or the state treasurer may
I require a new or additional bond from any depository.
LOLIS F 1nSSV6AATx
JAVES W SLOAN
ARTHUR A. OLASSMAY
GARY E. LAUGHLIN t
'
TIJOMAS A. WLLNTINE t
THOMAS L. TMELS
JAMES R. MCENTIRS
DEANNE WATTS HAY
RUTH t ORAHAM
ALAN V. JOHNSON
'
GRE=Y J. 1110
STANLEY R. PARKER t
M1cxAEL E. FRANCIS
JEFFREY W. JONES
MARTHA A. PETERSON
yvlD W. WHITE
DEREN04 L MITCHELL
2EBEM S. YOCIIM t
TNOMAS1. WILDER
iiO3ERi w. KfiTTfiA
SLOAN, LISTROM, EISENBARTH, SLOAN & GLASSMAN
LAWYERS
79 CAPITOL FEDERAL. BUILDING
700 KANSAS AVEWE
TOPEKA. KANSAS 66603 -3881
P14ONR:913- 357-6311 FAX:913.3SMIS2
August 26, 1993
' Donald M. Towle, President
Kansas Bankers Surety Company
611 Kansas Avenue
' P. 0. Box 1654
Topeka, Kansas 66601
JAMES RICHARD BILES
MARCIA L. MONTGOMERY !
R. SCOTT SEIFERT
OF COUNSEL
ELDON SLOAN
MYRON L. LISTRO14 t
ERLE W, FRANCIS
WARD D. MARTIN
CHARLES W. SMILEY =
f ADMITTED W KANSAS AND NEBRASKA
9 AONW170 IN KANSAS AND M1M. Ott
ALL OTMERS ADMJTTSD IN KANSAS
ALSO OFFICES AT:
12 CORFORATG WOODS, SUITE :a
LJ415 BENSON DRIVE
OVERLAND PARR. KANSAS 66211-2120
913- 661-0050 PAX: 913. 661-0008
' RE: BANK DEPOSIT GUARANTY BOND
Dear Don:
This letter will summarize my research on Minnesota law as to the acceptability of KBS'
Bank Deposit Guaranty Bond as satisfactory collateral or security for the deposit of public funds.
' - I am pleased to report that Minnesota law clearly authorizes the pledging of KBS' bond as
security for the deposit of all types of public . funds.
' Like the other states I have looked at, Minnesota has one statute which governs the
deposit of funds by the State, and another which governs the deposit of funds by other political
units. The statute which governs the deposit of State is Mian. Stat. Annot. §9.031,. which
provides in relevant part:
Subd. 2. Bond. Except as provided in subdivision 3,'a depository shall
' furnish and file with the state treasurer a corporate surety bond to secure state
funds deposited with it. The executive council shall approve the bond.
The executive council shall not approve any depository bond until fully
satisfied that the bond is in proper form, the securities sufficient, the depository
prosperous and financially sound, and the capital stock claimed by it fully paid up
' and not impaired. Each depository bond shall provide that during the time the
band is in force the depository will pay all the state funds deposited with it to the
' state treasurer, free of exchange, at any place in the state designated by the state
treasurer. If the deposit is a time deposit it shall be paid, together with interest,
only when due. At any time the executive council or the state treasurer may
I require a new or additional bond from any depository.
Donald M. Towle, President
Kansas Bankers Surety Company
August 26, 1993
Page 2
(Copy enclosed.) As you can see, all bonds must be approved by the Minnesota Executive
Council and must contain certain minimal conditions.
The statute which governs the deposit of funds by other political units is Minn.Stat.Annot.
1 118.005, which states in relevant part:
Subd. 2. In the event the bank �r insured thrift institution selected as a
depository is a member of the federal deposit insurance corporation or the federal
savings and Ioan insurance corporation, or is insured by the national credit union
administration, the custodian of the funds may deposit an amount not to exceed
the maximum amount of insurance on the deposits. In the event it is desired to
deposit a greater amount in any bank or thrift institution prior to the deposit the
governing body or officer shall require the bank or thrift institution to furnish a
bond, executed by corporate surety company authorized to do business in the state
in a sum at least equal to the estimated sum to be deposited in excess of the
maximum amount of insurance. In lieu of the bond, the depository shall assign
to the custodian of the funds collateral security in accordance with section 118.01.
(Copy enclosed.)
Section 118.005 applies to every "municipality ", which is a broad term defined in
§118.01 (copy enclosed) to include virtually every type of political subdivision other than the
State. There are other Minnesota statutes which address the deposit of funds by particular
political subdivisions, but they are effectively superseded by §118.005. As I read 1118.005, it
does not require that the bonds securing the deposit of 'municipal" funds must contain the
particular conditions which must be contained in the bonds securing the deposit of State funds,
as set forth in §9.031.
If you have any questions about Minnesota law on this subject, please give me a call.
we will provide our research on the remaining states -South Dakota, Arkansas, and Colorado--to
you tomorrow.
Sincerely,
FYN ,M_ - 0
Alan V. Johnson
AVJ:cr1
Enclosure
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Checks/
Avg. Avail.
Debits
Balance
458
$460,195
520
$549,139
CITY OF CHANHASSEN
1995 Needs for Financial Services:
'
Commerical Checking Account:
Historical Activity:
Deposits/
On Us
Transit
'
Credits
Items
Items
September 28
238
1867
'
October 28
307
1138
'
Wire Transfers: In & Out
Avg. 5 /mo.
Checks/
Avg. Avail.
Debits
Balance
458
$460,195
520
$549,139
Treasury Investments: Avg. /mo.
Payroll Processing: 26 times/year items/time
Monthly Report on Verification of Collateralization of Deposits
' Statements: Sorted in Sequential Order
' Safe Deposit Box
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CITY OF '
CHANHASSEN,� MINNESOTA
FINANCIAL MANAGEMENT POLICIES
Completed December 1994 ,
L PURPOSE '
The City of Chanhassen is accountable to its citizbns to carefully account for public funds, to
manage municipal finances wisely, and to plan the adequate funding of services desired by '
the public, including the provision and maintenance of public facilities. The city is also
accountable for providing both short-term and long -term financial stability. The city must '
ensure that it is capable of adequately funding and providing local government services
needed by the community.
Further, these financial policies provide the framework for the overall fiscal management of '
the city. Operating independently of changing circumstances and conditions, these policies
assist the decision making processes of the City Council and Administration. '
Most of the policies represent long standing principles, traditions and practices for city
governments. These financial policies will be reviewed periodically to determine if changes '
are necessary.
II. OBJECTIVES '
In order to achieve this purpose, this plan has the following objectives for the city's fiscal
performance: '
1. Provide sufficient financial stability to prevent financial difficulties which may
encumber the city council's ability to make important decisions. I
2. Provide sound principles to guide the important decisions, which have significant fiscal
effects, of the city council and management. ,
3. Provide adequate and accurate information to facilitate the council's decision making.
° h ill ensure that the city o perates efficient) '
4. Establish principles whit w y p Y and effectively.
5. Minimize investment and financial risk. ,
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6. Promote sound management of the city's government by providing accurate and timely
information.
7. Employ policies which promote sustainable revenue sources.
8. Employ fair user charges where the direct benefit is identifiable and the cost is
measurable.
9. Provide and maintain public facilities and infrastructure.
10. Protect and enhance the city's credit rating.
11. Ensure the legal use and protection of all city funds through a sound system of
financial and internal controls.
12. Maintain a risk management program that will minimize the impact of legal liabilities,
natural disasters or other emergencies.
III. FINANCIAL MANAGEMENT POLICIES
Capital Improvement Budget Policies
1. The city has adopted five year capital budgets associated with most capital and
operating funds included in the annual budget, i.e. vehicle and equipment replacement,
municipal facilities, streets /sewer /water, etc. During 1995, these budgets will be
assimilated into one separate five year capital improvement and expenditure plan.
2. The city will coordinate development of the capital improvement budget with the
development of the operating budget. Future operating costs associated with new
capital improvements will be projected and included in operating budget forecasts.
3. The city will project its equipment replacement and maintenance needs for the next
five years and will update this projection each year. From this projection, a
maintenance and replacement schedule will be developed and included in the operating
budget. In addition, the city will maintain all its assets at a level adequate to protect
the city's capital investment and to minimize future maintenance and replacement
costs.
4. The city staff will identify the estimated costs and potential funding sources, including
the consideration of joint ventures with other cities, for each capital project proposal
before it is submitted to the city council for approval.
5. The city will determine the least costly financing method considering the life of the
' asset.
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Revenue Policies
1. The city will estimate its annual revenue by a conservative and analytical process.
2. The city will project revenues for the next five years and will update this projection
annually. Each existing revenue source will be reexamined annually.
3. The city will maintain sound property appraisal procedures. Property value will be
reassessed at least every four years at the legally mandated market value for each class
of property.
4. Whenever user charges and fees are determined to be appropriate and the direct
benefits are identifiable, the city will establish and revise annually, all user charges
and fees at a level related to the cost of providing the service (operating, direct,
indirect and capital).
5. The city will set fees and user charges for each Enterprise Fund, such as Water and
Sewer, and recreational funds in total, at a level which fully supports the total direct
and indirect costs of the activity. Indirect costs include the cost of annual depreciation
of capital assets.
6. The city will recover the prior year's net property tax delinquencies and abatements in
setting the annual property tax levy.
Debt Policies
1. The city will confine long -term borrowing to capital improvements or projects which
cannot be financed from current revenues. In addition, the city will not incur debt to
support current operations.
2. When the city finances capital projects by issuing bonds, it will pay back the bonds
within a period not to exceed the expected useful life of the project.
3. In all bond issues, at least 50% of the principal shall be retired within ten years.
4. The city will attempt to keep the maturity of General Obligation Bonds and General
Obligation Guaranteed Bonds at or below 15 years.
5. Total debt service for General Obligation Ad Valorem debt will not exceed ten percent
(10 %) of total annual locally generated operating revenue in the General Fund and
Special Revenue Fund.
6. Total General Obligation debt will not exceed two percent (2 %) of the market
valuation of taxable property.
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Where possible, the city will use special assessment, revenue or other self - supporting
bonds instead of General Obligation Ad Valorem Bonds.
8. The city will maintain open communications with bond rating agencies regarding its
financial condition. The city will follow a policy of full disclosure in every financial
report and bond prospectus.
9. The Housing & Redevelopment Authority (HRA) and Economic Development Agency
will develop a set of written policies concerning the use of Tax Increment Financing
(TIF) as a development incentive.
Reserve Policies
Enterprise Fund Reserve Policy
1. Over a three year period, each enterprise fund shall set rates and charges /user fees
such that there is no cumulative reduction in net fund equity, including depreciation
and transfer of funds. Recreation type funds shall be considered on a combined basis
for compliance with this policy.
2. Equity transfer of funds from an enterprise fund to the General Fund should only be
done on a one -time exception basis, to fund any unusual, unanticipated expenses. In
no event shall equity transfers be made in consecutive years.
General Fund Reserve Policy
1. The city shall not use tax anticipation borrowings to cover operating expenses.
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2. The year end fund balance shall be adequate to cover 50% of the percentage of which
property taxes and HACA comprise total General Fund revenue sources for the
following year.
3. The city will continue to reduce fund balances for the portion above the formula
amount for capital improvement projects such as building expansion/refurbishing.
Investment Policies
1. The city will make cash flow analyses of all funds on a regular basis. Disbursement,
collection and deposit of all funds will be scheduled to ensure maximum cash
availability for investment.
2. When permitted by law, the city will pool cash from all funds for investment
purposes.
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3. The city will have at least 97% of its cash funds earning interest.
4. Investment maturities should be matched to operating cash needs and debt service
requirements. No more than 50% of cash and investments shall have average
maturities exceeding 5 years.
5. The preservation of principal shall be the paramount objective of the investment
program. Management of the portfolio will consider safety, liquidity and yield, in that
order, to ensure the preservation of principal.
6. It is the intent of this policy to substantia4y reduce the interest rate risk and duration
of the current investment portfolio. As current investments mature or are liquidated,
reinvestment of these funds will only be in accordance with these adopted financial
management policies.
7. Compliance with these policies shall be through the finance director. The finance
director shall report at least quarterly the condition of the city's investment portfolio,
including stated value, current market value, current yield and conformance to city
policies. In addition, city administration shall establish a check and balance system
with each broker handling city investments whereby a control number must be
received and confirmed by them before any investment is purchased, sold, or traded
per an ordered issue by the finance director.
Each broker shall sign an affidavit stating that they have read the city's financial
policies and that the investment being requested to be made by the finance director
and their firm conforms to the adopted financial policies.
8. The city shall have no investments in Risk Category Three as defined by
Governmental Standard Board Station No. 3.
Accounting, Auditing and Financial Reporting Policies
1. The city will maintain the GFOA Certificate of Excellence in Financial Reporting.
2. Accounting policies will reflect the principle of charging current taxpayers and/or
users for the full cost of providing current services.
3. Regular monthly reports will present a summary of financial activity by major types of
funds as compared to budget.
4. An independent public accounting firm will perform an annual audit and will publicly
issue an opinion concerning the city's finances.
Risk Management Policies
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The city will maintain a Risk Management Program that will minimize the impact of
legal liabilities, natural disasters or other emergencies through the following activities:
a. Loss Prevention. Prevent negative occurrences.
b. Loss Control. Reduce or mitigate expenses of a negative occurrence.
C. Loss Financing. Provide a means to finance losses.
d. Loss Information Management. Collect and analyze relevant data to make
prudent loss prevention, loss control and loss financing decisions.
2. The city's Risk Management Program will:
a. Analyze all of the city's risks.
b. Avoid risks whenever cost effective.
C. Reduce risks whenever cost effective.
3. The city will maintain an active Safety Program.
4. The city will periodically conduct educational safety and risk avoidance programs,
through our various departments and with the participation of Berkley Administrator
(city insurer).
5. The city will maintain the highest deductible amount, considering the relationship
between cost and the city's ability to sustain the loss.
Operating Budget Policies
1 1. The city will adopt a balanced budget in accordance with state statute.
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2. The city will match all current expenditures with current revenues. The city will avoid
budgetary procedures that balance current expenditures at the expense of meeting
future years' revenues.
3. The city shall ensure that the Capital Projects Administration Fund has a balance, at
year end, of at least 5% of the total operating budget, including General, Special
Revenue and Capital Funds —such to act as a contingency fund to provide a resource
for unanticipated expenditures of a non - recurring nature.
4. The city manager, when submitting the proposed budget to the city council, will
submit a balanced budget in which appropriations will not exceed the total of the
estimated General Fund Revenue and the fund balance available after applying the
General Fund Reserve Policy.
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5. Prior to adopting the General Fund annual budget, the city council shall confirm that
the Capital Projects Fund has a sufficient projected balance to meet the City's Reserve
Policy.
6. In the event there is an unanticipated shortfall of revenues in a current year budget,
the city manager may recommend the use of a portion of the General Fund balance,
not to exceed the amount available after deducting amounts reserved for items not
readily convertible to cash or reserved for working capital or already appropriated to
the General Fund current budget, as shown on the most recent General Fund Reserve '
Policy as established by the city council.
7. The budget will provide for adequate maintenance of the capital plant and equipment, '
and for their orderly replacement.
8. The budget will provide for adequate funding of all retirement systems. '
9. The city administration will prepare regular monthly reports comparing actual revenues '
and expenditures to the budgeted amount.
10. The Operating Budget will describe the major goals to be achieved and the services I
and programs to be delivered for the level of funding provided.
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