Correspondence SectionAdministrative Section
Memo to Mayor and City Council dated September 21, 1999, "1999 Policy Adoption
Conference."
Memo to Mayor and City Council dated September 21, 1999, "GASB Reporting
Changes."
Letter from Lockridge Grindal Nauen dated September 9, 1999.
Chanhassen Fire Department Calls dated September 6 - 12, 1999.
Letter regarding Canada Goose Program dated August 30, 1999.
Memo to Mayor and City CoUncil dated September 17, 1999.
City Center Park/Chanhassen Elementary School Playground Ribbon Cutting flyer.
Bandimere Community Park Ribbon Cutting flyer.
Happy Fall!
CITYOF
690 City Center Drive, PO Box 147
Chanhassen, Minnesota 55317
Phone 612.937.1900
General Fax 612.937.5739
Engineering lax 612.937.9152
Public Safeff Fax 612.934.2524
Web www. ci. chanhassen, mn. us
MEMORANDUM
TO: Mayor
City Council
Scott A. Botcher, City Manager ~
September 21, 1999
1999 Policy Adoption Conference
FROM:
DATE:
SUB J:
Please find attached a request for registration materials for the 1999 Policy
Adoption Conference to be held on November 19, 1999, at the Radisson Hotel
South in Bloomington. If council members wish to attend this conference, they
should fax this back to the number indicated on the bottom of the form, or return
it to my office if you wish us to process this for you. I have already registered for
myself.
g:\userXscottb\policy adoption conf. doc
The Gt3, of Chanhassen. A grou,in~ community with clean lakes, auality schools, a charmin~ downtown, thrivin¢ businesses, and beautihd oarks. A creat dace to live. work, a,d via
Policy Adoption Conference
NOVEMBER 19, 1999
RADISSON HOTEL SOUTH, BLOOMINGTON
Hear, learn, discuss, take home, and vote on important policies
that will set the course for the cities' legislative efforts.
Join your city colleagues, League staff, legislators and other policy-makers
for an important discussion of key legislative concerns for cities
during the upcoming legislative session.
Some of the topics to be addressed include:
· Telecommunications Regulation Restructuring
· Electric Utility Industry Deregulation
· The Future of Property Tax Reform
· Issues & Iml~acts of the 2000 Legislative Session
2000 Census Redistricting
~ Proposed Unicameral Legislature
PLEASE
l~S! SEND ME REGISTRATION INFORMATION FOR THE 1999 POUCy/I~OPTIO~ CONFERENCE
Name Title
Address
City State Zip
Telephone Fax
Send this coupon to:
League of Minnesota Cities, Cathy Dovidio, 14S University Avenue West, St. Paul., MN 55103. Or fax to (6S1) 281-1296.
CITYOF
690 Off Center Drive, PO Box' 147
Chanhassen, Minnesota 55317
Phone 612.937.1900
General Fax 612. 937, 5739
Engineering Fax 612.937,9152
Public Safe{y Fax 612.934.2524
tl~b www. ci. chan/mssen, mn. us
MEMORANDUM
TO: Mayor
City Council
FROM: Scott A. Botcher, City Manager~~'~
DATE: September 21, 1999
SUBJ: GASB Reporting Changes
Please find attached a copy of an article from the September 1999 Minnesota
Cities magazine as referenced at the September 20, 1999 work session. This
article explains in a fairly concise manner GASB Statement No. 34 released this
June.
This information may be useful to you in years ahead as we respond to these
requirements. Thank you.
g:\user\scottb\gasb.doc
The Gty of Chanhassen. A growin~ community with clean lakes, aua/ity schools, a champing downtown, thrivin~ businesses, and beauti£ul varks. ,4 vreat o/ace to live. work.
CITY FINANCES
Financial Reporting Changes
Described as the "most significant" change in governmental accounting history, the Governmental
Accounting Standards Board (GASB) recently approved new and controversial standards that
significantly impact how governments report their finances.
By Mark Gibbs and Dave DuBord
"This June, CAS]~ issued
Statement t~o. 34, Basic
Financial Statements--and
A~anagement's Discussion and
Analysis--for State and local
Covernments. The statement is
the most comprehensive
governmental accountingrule
ever developed. The new
standard wiIIsignificantiy
change the way state and local
governments report their
financial activity to the public."
The most significant changes
Although the new GASB requirements are
numerous, the major changes include:
· Reporting on the major individual funds as
opposed to the aggregation of fund groups;
· Comparison of actual financial results to both
the original and amended budgets;
· Requiting infrastructure reporting and
additional "government-wide" financial
statements on a totally different basis of a'ccount-
ing. This means the "checkbook" basis of
accounting at the fund level would remain
alongside the new and different entity-wide
statements, which would include long-term
assets and liabilities. Major points of conten-
tion during the comment phase of the GASB
project were this "dual reporting" require-
ment and the reporting of infrastructure.
(Although GASB states the revision will help
financial statement readers have a "clearer
picture of the costs of government activities,"
the potential for confusion with dual report-
ing is obvious.); and,
· P,.equiring a narrative analysis of the govern-
ment's financial activities.
Three phases of implementation dates
The implementation dates are effective in three
phases based on a government's annual revenues
in the first fiscal year ending after June 15,
1999, as follows:
Phase 1. Governments with total annual
revenues (excluding extraordinary items) of
$100 million or more should apply this state-
ment for periods beginning after June 15, 2001.
Phase 2. Governments with total annual
revenues of at least $10 million, but less than
$100 million, should apply this statement for
periods beginning after June 15, 2002.
Phase $. Governments with less than $10
million in revenues should apply this statement
for periods beginning after June 15, 2003.
Independent from government, the Gov-
ernmental Accounting Standards Board
(GASB) was formed in 1984 to develop
and improve governmental financial
reporting rules. It works closely with an
advisory council that includes academics,
insurers, bond associates, auditors, and
government officials. GASB derives its
clout from the fact that auditors' opinions on
whether a government's financial statements
conform with generally accepted accounting
principles are those defined by GASB standards.
This June, GASB issued Statement No. 34,
Basic Finandal Statements--and Management's
Discussion and Analysis--for State and Local
Governments. The statement is the most compre-
hensive governmental accounting rule ever
developed. The new standard will significantly
change the way state and local governments
report their financial activity to the public. In
general, the new standards make government
financial reporting more like the private sector.
To understand the impact of the new statement,
it is helpful to highlight the current differences
between private sector and government finan-
cial reporting:
· Governmental reporting focuses on groupings
of various funds that segregate resources for
specific activities. In the private sector, even
the most complex business is presented as a
single reporting entity;
· The private sector's financial reporting focuses
on earnings and changes in total business
resources, including long-term assets and
liabilities. This contrasts to govemment's more
short-term focus on current resources available
for appropriation and spending; and,
· The budget functions more as a financial plan
in the private sector; whereas in government,
the budget is more important in demonstrat-
ing compliance by comparing actual financial
results to the budget.
EPTEMBER. 1999 MINNESOTA CITIES 7
Implementation dates
Assuming your government has a Dec. 31
(calendar) year end, implementation dates are
as follows:
Phase 1. For governments with annual
revenues of $100 million and over as of Dec.
31, 1999, the required implementation date is
Dec. 31, 2002.
Phase 2. For governments with annual
revenues orS10 million to $100 million as of
Dec. 31, 1999, the required implementation
date is Dec. 31, 2003.
Phase 3. For governments with annual
revenues under $10 million as of Dec. 31,
1999, the required implementation date is
Dec. 31, 2004.
Earlier application is encouraged. Prospec-
tive reporting of general infrastructure assets is
required at the effective date of this statement.
l~etroactive reporting of all major goverment-
al infrastructure assets is encouraged at that
date. For Phase 1 and Phase 2 govermnents,
retroactive reporting is required four years
after the effective date on the basic provisions
for all major general infrastructure assets that
were acquired or significantly reconstructed in
fiscal years ending after June 30, 1980. Phase 3
governments are encouraged to report infra-
structure retroactively, but may elect to report
general infrastructure prospectively only.
Impact on I~innesota governments
The most controversial aspect of the new
standard is undoubtedly the requirement to
provide information and record capital use
charges (essentially, depreciation) for infra-
structure assets--roads, bridges, curbs, gutters,
streets, sidewalks, drainage systems, and
lighting systems. Govermnents were not
required to provide detailed records of these
assets in the past. The GASB believes that
since no information about this category of
as'sets currently exists in annual financial
reports, readers have an incomplete picture
of government.
Local governments' primary concerns with
the reporting changes revolve around:
· The increased cost to comply with the
changes in tight budgetary times;
· The perceived confusion anticipate& with
dual reporting; and,
· The prospect of having to exhaust resources
to dig up infrastructure asset records of the
prior 20 years when this information
provides no value to the government. Does
it matter how much it cost to construct a
street in 19817 What matters to managing a
government is how much it will cost to
build the next street in 2001.
"The most controversial
aspect of the new standard is
undoubtedly the requirement
to provide information and
record capital use charges
(essentially, depreciation) for
infrastructure assets--roads,
bridges, curbs, gutters,
streets, sidewalks, drainage
systems, and lighting
systems."
"City finance persennelshould
begin working with city auditors
to become informed of the
potential impact of CRSB on
their city, and to assess the
possible resource implications
such as staffing, training,
software modifications,and
audit costs."
Inherent in fund accounting is the segrega-
tion of resources for specific purposes. Legal
segregation of such resources is sought by those
with a priority financial interest in specific re-
sources. Primary examples include grantors and
bond holders. Fund segregation legally separates
dedicated resources, and allows those interested
third parties the convenience of looking to a
limited amount of financial data to judge the
status of their financial interest.
The scattered financial reporting inherent
with fund accounting, along with the impacts
of the modified accrued basis of accounting
(modified accrual emphasizes the accumulation
and use of current financial resources), renders
local government financial reporting difficult
to compare to the private sector. This lack of
comparability is an obstacle in several areas:
· Discussion of the merits ofprivatization of
certain services are hindered because the total
cost of delivery of the service may not be
reported under the current reporting model.
· The division of various activities across funds
and fund types does not readily allow for a
concise presentation of net activity expenses.
· Direct program revenues are not always
reported to match the direct expenditures
of that activity.
The bottom line
Local governments should get ready for the
change, and start to evaluate city systems
and other resources to comply with reporting
standards. Dual reporting might eventually fade
away. The surviving method, however, may
be the accrual basis, entity-wide perspective.
In addition, city finance personnel should
begin to:
· Work with city auditors to become informed
of the potential impacts of GASB 34 on their
city;
· Watch for upcoming training sessions; and,
· Assess the possible resource implications, such
as staffing, training, software modifications,
and audit costs.
Mark Gibbs is a principal with HLB Tautges
Redpath, Ltd., 4810 White Bear Parkway, White
Bear Lake, MN 55110. Telephone: (651) 426-
7000. Dave DuBord is director of finance with the
League of Mim~esota Cities.
~s .......... ~',-r~ ~t ~EPTEMBEP- l
LOCKRIDGE GRINDAL NAUeN
P.L.L.P.
ATTORNEYS AT LAW
SUITE '~ :~ O0
I00 WASHINGTON AVENUE SOUTH
MINNEAPOLIS, MINNESOTA 5540 I-;::' I 79
TELEPHONE (612) 339-6900
FACSIHILE (612) 339-098 I
WWW.LOCKLAW.COM
SUITE 900t SOUTH BUILDING
601 PENNSYLVANIA AVENUE, N.W.
WASHINGTON, D.C. 20004-261P'
TELEPHONE (202) 434-8163
FACSIHILE 1202) 639-8238
September 9, 1999
ROBERT J. $CHMIT
RICHARD A. LOCKRIDGE
CHARLES N. NAUEN
H. THEODORE GRINDAL
W. JOSEPH BRUCKNER
BRADLEY W. ANDERSON
PATRICIA A. BLOODGOOD
CHRISTOPHER K. SANDBERG
HARRY E. GALLAHER
WlLLIANI A. GENGLER
ERIC C. TOSTRUD
HENRI O. MINETTE
EARLE Fo KYLE, IV
KAREN M. HANSON
SARA L. MADSEN
GR£GG M. FISHBEIN
SUSAN E. ELLINGSTAD
JEAN K. JANES
KAREN E. REILLY
CHRISTIAN H. SANDE
JEFFREY T. NODLAND
HEIDI DREWEB-SILTO N
GREGORY J. MYERS
OF COUNSEL
DANIEL A, FARBER*
NILDA K. HEDSLOM
ELIZABETH A. SNELSON
KATHLEEN F. YOUNG
'ADMITTED IN WASHINGTON, D.C. ONLY
1999
CF'JANHASSEN
TO:
Clerk/Administrator
Re:
b~ the Matter of the Request of Jaffray Communications, L.L.C., for a Certificate
ora uthority to Enable it to Provide Local and Interexchange Facilities-Based
and Resold Telecommunications Services b~ the State of Mitmesota
Docket No.
Dear Sir/Madam:
This is to provide you notice that JaftYay Communications, L.L.C. has filed an
Application with the Minnesota Public Utilities Commission today requesting authority to provide
competitive local exchange service in all exchanges in Minnesota presently served by USWEST,
GTE, Frontier, and Sprint/United as well as long-distance service to all points in the state. A
copy of Jaffray Communications, L.LC.'s filing may be obtained by contacting the undersigned.
Sincerely,
CKS/sm
Enclosure
LOCKRIDGE GRINDAL NAUEN P.L.L.P.
CHANHASSEN FIRE DEPARTMENT
FIRE/RESCUE
WEEK OF SEPTEMBER 6, - SEPTEMBER 12, 1999
mon
Tues
Tues
Weds
Thurs
Thurs
Thurs
Fri
Fri
Fri
Fri
Sat
Sat
Sat
.Sun
Sull
Sun
Sept 6
!Sept'.7
-Sept'7
Sept 8
'Sept 9
:Sept 9
Sept9
Sept I 0
Sept I 0
Sept 10
Sept 10
Sept II
Sept 11
Sept 11
Sept il 2
Sept ii 2
Sept 12
7:12 PM
6:28 AM
6:52 PM
8:53 AM
7:59 AM
1:42 PM
11:30 PM
4:24 AM
7:02 PM
9:40 PM
9:48 PM
1~:~6 PM
2:00 PM
6:25 PM
1:29 PM
1:38 PM
3::54 PM
Meadowlark Lane
Lake Drive West
Hazeltine Boulevard
Western Drive
West 78`h Street
Santa Vera Drive
Pond Promenade
Audubon Road
Mission Hills Wax, East
West 78't' Street
Lake Lucy Road
Butte Court
Hallgren Court
Pontiac 12ane
Highway 5 & High~vay 41
Hidden Court
Lakeview Road Enst
Medical - person feeling ill
Medical - person passed out
Medical - trouble breathing
Medical - trouble breathing
Medical - cut hand
Medical- hip injury
Fire alarm - false alarm, no fire
Fire alarm - false alarm, no fire
Deck fire
Medical - person down, unknown problem
Medical - trouble breathing
Medical - allergic reaction
Medical - unresponsive person
Medical - person choking
Car accident with injuries
Unresponsive person
Medical - unknown problem
CANADA GOOSE PROGRAM
2195 DUDLEY AVE.
ST. PAUL, MN 55108
Monday, August 30, 1999
RECE!vF
SEP 1_ 3 1999
CITY OF L;IdA~I-IASSEN
Mr. Todd Hoffman
Park and Recreation Coordinator
City Of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
Dear Todd:
The 1999 Twin Cities Metropolitan Area Canada goose capture and
removal program was completed in late July. The results show a
significant decline in the geese trapped in a year of excellent
production and the highest number of trapping locations.
We trapped at 126 sites compared 121 in 1998, and capturing 1,925
adult geese in contrast to 2,395 last year, and 4,250 gosling
compared to 5,183 in 1998 (attached Table 1 & Figure 1). The 19%
decrease in the number of birds trapped occurred in spite of a 4%
increase in the number of trapping locations (Figure 2). In addition,
gosling production was only slightly below that of 1998 and 1997--
1997 was the highest year in past 18 years (Figure 3). Moreover,
the number of new trapping sites which increased in 1999 (23%) of
the total sites was even higher in 1999 (25%).
The 1999 capture crews trapped 98.6% of all flightless geese they
attempted to capture, a 0.1% increase over last year (Figure 4).
While the summer was warmer that 1997 and 1998, the number of
geese dying during trapping was very low (Table 1). Only one adult
goose died during trapping, and no birds were captured with pre-
existing injuries so serious that they had to be humanly killed.
So with more new sites, more sites overall, great
production, and a high trapping rate, the 1999 goose
removal declined by 1,403 birds. Why? When I reviewed the
number of geese at sites in many of the cities where we have
trapped for a number of years, the 1999 goose numbers clearly
show a decline in geese present at these locations. After 18 years of
removal with more than 59,900 geese (more than all of the resident
geese in the Mississippi Flyway when I started my research on geese
in 1:968) the impact of the program is becoming clear. The Twin
Cities goose population is no longer growing in many cities and in
some the bird numbers have declining.
You may recall that in November 1998 a Judge rejected a lawsuit
filed in Federal Court by the Humane Society of Minnesota, the
Humane Society of the U.S., and Friends of Animals and Their
Enxtironment (FATE). These folks claimed that U.S. Fish and Wildlife
Service had ignored technical aspects of the Migratory Bird Treaty
Act (MBTA). The plaintiffs appealed and the case was argued in
June 1999. A ruling is expected in September. I will notify you if
there 'will any changes in the goose program as a result of the
Appeals Court ruling.
Our WEB site has been active for a year now and more than 600
visitors have used the site. The site contains information on the
Canada goose, goose damage management techniques, research
papers, and links to other sites include those of organizations that
oppose the current goose management program. The address of the
site is www.fw.um.edu; the goose information is located under
extension. I hope you find this site helpful and feel free to refer
others to the site.
We trapped and removed the following number of geese from
Chanhassen sites in 1999:
Site Date Young Adults Total
Lake Minnewashta 6 / 17 / 9 9 2 5 8 3 3
Lake Minnewashta 6 / 17 / 9 9 1 5 6 2 1
Lotus 6/17/99 19 9 28
Lotus Lake 6 / 17 / 9 9 6 4 1 0
Pond on Near Mountain 6/21/99 21 7 28
Pond at Hunter Drive 6/23/99 48 19 67
Total 134 2 3 1 87
Because no state has been willing to take adult geese since 1995, the
1,925 adults geese captured in 1999 were processed at a Wisconsin
Department of Agriculture inspected plant. This yielded nearly
19,000 pounds of whole frozen goose for the Twin Cities food
shelves. All of the young geese trapped were released at Minnesota
and Iowa sites. The demand for goslings appears to be declining.
Minnesota wildlife managers surveys show that there are only a few
spots left within the state where Canada goose populations not
healthy. Similarly, Iowa, which has been releasing young geese in
the southern part of the state, has indicated that they too have
limited areas lacking geese. We expect to relocate young next year
but may not be able to find spots for all of them in 2001.
In summary, we had an excellent trapping program in 1999, but for
the 6th consecutive year we were subjected to a time consuming legal
challenge. I'm looking forward to a similar effort in 2000, hopefully
without any additional court actions. If you have questions, please
feel free to contact me at 612-624-1223 or 651-644-6206.
Sincerely yours,
Dr. James A. Cooper
Attachments
Table 1. Adult and immature Canada geese removed from the Twin Cities
of Minnesota, and mortality during trapping and transport, 1982-1999.
Year I A Total Mortality
I A Total Percent
1982 195 261 456 2 0 2 0.44
1983 0 0 0 0 0 0 0.00
1984 361 492 853 0 0 0 0.00
1985 507 396 903 1 1 2 0.22
1986 636 379 1,015 2 0 2 0.30
1987 740 375 1,115 1 0 1 0.09
1988 1,714 864 2,578 1 1 2 0.08
1989 1,680 1,294 2,974 2 1 3 0.10
1990 1,766 1,054 2,820 1 0 1 0.03
1991 1,685 1,196 2,881 3 1 4 0.14
1992 3,005 1,248 4,253 2 1 3 0.07
1993 2,224 1,083 3,307 2 1 3 0.09
1994 2,834 1,352 4,186. 1 1 2 0.05
1995 4,747 2,189 6,936 6 2 8 0.12
1996 3,982 2,256 6,239 1 1 2 0.03
1997 3,978 1,676 5,642 1 0 1 0.03
1998 5,183 2,395 7,578 2 1 3 0.04
1999 4,250 1,925 6,175 0 1 1 0.02
Totals 39,487 20,475 59,922 28 12 40 0.067a
a Percent mortality is less than 1 goose per 1,000 trapped and
transported. Of the 40 'geese that died, 31 were euthanized due to pre-
existing injuries.
80007
o
6000'
4000'
2000'
Total Geese
Removed =
59,922
0
82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99
Year
Figure 1. Canada geese captured and removed from the Metropolitan
Twin Cities Area, 1982-99.
59%
16%
[] New
[] Last Year
[] Repeat
25%
Figure 2. Number of new, 1998, and pre-1998 Metropolitan Twin Cities
Area Canada goose removal locations where removal was conducted in
1 999.
Young/Adult
Young/Brood Patch Female
1
82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99
Year
Figure 3. Number of young Canada geese captured per brood patch
female and per adult goose in Metropolitan Twin Cities Area 1982-99.
100
99-
98-
97-
96-
[] Percent Trapped
Year
Figure 4. Percentage of Canada geese present at the time of trapping that
were captured in Metropolitan Twin Cities Area, 1982-99.
Attachment 2
Published Monday, November
Star Tribune
30, 1998
in the Minneapolis
Animal rights groups appeal goose roundup ruling
ST. PAUL (AP) -- The annual roundup of Canada geese in the Twin Cities
area may be in jeopardy.
Animal rights groups have asked a federal appeals court to reinstate their
lawsuit against the practice.
The Minnesota Humane Society, Friends of Animals and Their
Environment, and the Humane Society of the United States filed the
appeal with the 8th U.S. Circuit Court of Appeals in St. Paul.
The groups say federal Judge James Rosenbaum erred when he dismissed
their lawsuit. Rosenbaum has ruled against the groups twice this year,
most recently early this month.
Roundup opponents have been trying to block a federal permit that
allows the Minnesota Department of Natural Resources to round
up 6, 800 geese each summer. Most of the birds get relocated, but up to
2, 500 are killed, processed and sent to food shelves.
State and federal officials say the roundups are needed to control the
metro area' s goose population.
Friday, September 03, 1999
Canada Goose Removal Services
Mr. Todd Hoffman
City Of Chanhassen
690 Coulter Drive ff ~ ~ //,
Chanhassen, MN 55317
1999 Canada Goose Removal
Four sites at $700.per site . $2,800 ~,//
23 adult geese at $15 per bird processing cost 345 ~/~/
Total $3,145
Please make check payable to the Canada Goose Project and mail to:
The Canada Goose Project
2195 Dudley Ave.
St. Paul, MN 55108
Thank you.
SEP 1 3 1999
CII'¥ Ol'- (.;rta~ttASSEN
CITYOF
CHANHASSEN
City Center Drive, PO Box I47
hanhassen, Minnesota 55317
Phone 612.937.1900
General Fax' 612.937.5739
~gineering tax 612.937.9152
hlic Safety Fax' 612.934.2524
/eb www. ci. cha,hassen, mn. us
MEMORANDUM
TO: Mayor
City Council
FROM: Scott A. Botcher, City Manager
DATE: September 17, 1999
SUB J: 1999 TIF Rate Compression Analysis
For your records, I am enclosing a copy of the 1998 TIF Rate Compression
Analysis performed by Springsted dated September 15, 1999. This study purports
to show the impact of property classification rate compression on five City Tax
Increment Financing Districts in Payable 1998.
As always, please contact me if you have any questions. Thank you.
g:\userXscottb\tif rate compression.doc
Ci~, of Chanhassen. A ~O'ou,ing cornmumh, with clean lakes, aualit~, schooh, a cha,nin~ downtown, thrivin~ businesses, and beautiful,arks. A ~reat dace to live. work. and
85 E. SEVENTH PLACE SUITE 100
SAINT PALIL, MN 55101-2887
651-223-3000 FAX: 6S1-223-3002
September 15, 1999
SPRINGSTED
Public _Finance Advisors
Mr. Scott Botcher, City Manager
Mr. Todd Gerhardt, Assistant City Manager
Mr. Bruce DeJong, Finance Director
Mr. Don Ashworth, Economic Development Director
City of Chanhassen
P.O. Box 147
Chanhassen, MN 55317-0147
1999
Re: 1998 TIF Rate Compression Analysis
Dear Sirs:
Springsted Incorporated has completed its analysis of the impact of property classification rate
compression on five City Tax Increment Financing (TIF) districts in Payable 1998. Our study
indicates that rate compression caused these five districts to lose a total of $825,309 of
captured net tax capacity and $1,202,112 of gross tax increment in Payable 1998.
We have attached individual analyses for each TIF district studied (#1, 2-1, 2-2, 3 and 4), as
well as a summary page that shows the relationship of this report to the Property Net Tax
Capacity Report the City has filed with the Minnesota Department of Revenue. For economic
development TIF districts #2-1, 2-2, and 3, the state report required hypothetical base year net
tax capacities to be adjusted by the certified inflation factor for the TIF district. This adjustment
increased base year net tax capacities by a total of $1,904. In addition, Springsted adjusted the
base net tax capacity for TIF District #1 by $8,497 to reflect the increased original market value
reported by the Carver County Auditor for Payable 1998.
As the summary page demonstrates, class rate compression reduced total captured net tax
capacity from the hypothetical total of $6,303,084 to the actual total of $5,477,775, a decrease
of $825,309. Multiplying this amount by the Payable 1998 tax capacity rate of 145.656% yields
a total of $1,202,122 in lost gross tax increment in Payable 1998.
Please call Bruce Kimmel or me at (651) 223-3000 with any questions about this analysis.
Respectfully,
MacGillivray
Principal
CC:
Mr. Ron Batty, Kennedy & Graven
Mr. Rob Tautges, HLB Tautges Redpath
SAINTPAUL, MN - MINNEAPOLIS, MN · BROOKFIELD, W1 . APPLETON,WI . OVERLAND PARK, KS ' WASHINGTON, DC ~ DESMOINES, IA
City of Chanhassen, Minnesota
TIF #1 Chanhassen HRA (Pre-79)
Estimate of Payable Year 1998
Without Rate Compression
Current Market Value
Original Market Value
Historical
1997 1998
116,779,400 126,336,300
5,023,716 5,289,562
Captured Market Value
Current Tax Capacity
Base Tax Capacity
Captured Tax Capacity
Cap TC / Cap MV
Tax Capacity Rate
Gross Tax Increment
111,755,684 121,046,738
4,453,968 4,146,634
160,570 154,950
4,293,398 3,991,684
Compression
% Change
1997-98
8.18%
5.29%
8.31%
-6.9O%
-3.50%
-7.03%
3.84% 3.30% -14.16%
147.611% 145.656%
6,337,528 5,814,127
-1.32%
-8.26%
Without
Compression
1998
126,336,300
5,289,562
121,046,738
4,818,468
169,067
4,649,401
3.84%
145.656%
6,772,132
IRate Compression:
958,005I
Source: Carver County Auditor's Office
Prepared by Springsted Incorporated (9/16/99) Chantif2.xlsTIF1
City of Chanhassen, Minnesota
TIF #2-1 McGlynn (Econ Dev)
Estimate of Payable Year 1998
Without Rate Compression
Current Market Value
Original Market Value
Historical
1997 1998
15,537,300 18,486,300
236,600 236,600
15,300,700 18,249,700
Captured Market Value
Current Tax Capacity
Base Tax Capacity
Captured Tax Capacity
Cap TC / Cap MV
Tax Capacity Rate
Gross Tax Increment
Compression
% Change
1997-98
18.98%
0.00%
19.27%
695,839 726,786 4.45%
17,992 17,620 -2.07%
677,847 709,166 4.62%
4.43% 3.89% -12.29%
147.611% 145.656%
1,000,577 1,032,943
Inflation Factor: 8.289%
Source: Carver County Auditor's Office
-1.32%
3.23%
Without
Compression
1998
18,486,300
236,600
18,249,700
827,910
19,483
808,427
4.43%
145.656%
1,177,522
[Rate Compression:
144,579J
Prepared by Springsted Incorporated (9/16/99) Chantif2.xlsTIF2-1
City of Chanhassen, Minnesota
TIF #2-2 National Weather Service (Econ Dev)
Estimate of Payable Year 1998
'Without Rate Compression
~:Current Market Value
'Original Market Value
Historical
1997 1998
6,317,300 8,694,400
1,011,504 1,011,504
5,305,796 7,682,896
Captured Market Value
Current Tax Capacity
,Base Tax Capacity
Captured Tax Capacity
:Cap TC / Cap MV
Tax Capacity Rate
Gross Tax Increment
Compression
% Change
1997-98
37.63%
0.00%
44.80%
209,254 284,574 35.99%
32,136 24,612 -23.41%
177,118 259,962 46.77%
3.34% 3.38% 1.36%
147.611% 145.656%
-1.32%
261,446 378,650 44.83%
Inflation Factor: 0.000%
Source: Carver County Auditor's Office
Without
Compression
1998
8,694,400
1,011,504
7,682,896
287,993
32,136
255,857
3.33%
145.656%
372,671
IRate Compression:
(5,979)I
Prepared by Springsted Incorporated (9/16/99) Chantif2.xlsTIF2-2
City of Chanhassen, Minnesota
TIF #3 Hennepin County (Econ Dev)
Estimate of Payable Year 1998
Without Rate Compression
Current Market Value
Oricjinal Market Value
Historical
1997 1998
12,970,000 20,929,700
10,058,500 10,058,500
Captured Market Value
Current Tax Capacity
Base Tax Capacity
Captured Tax Capacity
Cap TC / Cap MV
Tax Capacity Rate
Gross Tax Increment
Compression
% Change
1997-98
61.37%
0.00%
273.39%
2,911,500 10,871,200
592,252 830,298 40.19%
458,502 396,036 -13.62%
133,750 434,262 224.68%
4.59% 3.99% -13.04%
147.611% 145.656% -1.32%
197,430 632,529 220.38%
Inflation Factor: 0.090%
Source: Hennepin County Taxpayer Services
Without
Compression
1998
20,929,700
10,058,500
10,871,200
955,718
458,915
496,803
4.57%
145.656%
723,623
IRate Compression: 91,095
Prepared by Springsted Incorporated (9/16/99) Chantif2.xlsTIF3
City of Chanhassen, Minnesota
TIF #4 Entertainment Center (Redev)
Estimate of Payable Year 1998
Without Rate Compression
Current Market Value
Original Market Value
Historical
1997 1998
4,985,300 5,557,600
3,482,700 3,482,700
Captured Market Value
Current Tax Capacity
Base Tax Capacity
Captured Tax Capacity
-Cap TC / Cap MV
Tax Capacity Rate
GrosSTax Increment
Compression
% Change
1997-98
11.48%
0.00%
38.09%
1,502,600 2,074,900
204,492 194,300 -4.98%
135,371 111,599 -17.56%
69,121 82,701 19.65%
4.60% 3.99% -13.35%
147.611% 145.656% -1.32%
102,030 120,459 18.06%
Without
Compression
1998
5,557,600
3,482,700
2,074,900
227,967
135,371
92,596
4.46%
145.656%
134,872
IRate Compression:
14,413I
Source: Carver County Auditor's Office
Prepared by Springsted Incorporated (9/16/99) Chantif2.xlsTIF4
CiO~ Center Park/Chanhassen Elementary School Playground
Ribbon Cutting
Thursday, September 9, 1999
2:30p. m.
Opening Welcome attd Thank yous
Nancy Mancino, Mayor of Chanhassen
School Board Message
Kelly Von De Bu~; Chair,
ISD #112 School Board
Dedication of a New Playground
Helen Merchant, Principal,
Chanhassen Elementary School
Songs of Celebration
Sung by the Chanhassen Singers,
Directed by Brenda Petersnteyer
Closing Thank yous
Todd Hoffntan, Park attd Recreation Director
,Ribbon Cutting
All Volunteers, City attd School Officials
g:~park~h¥ibboncuttingsehedule.doc
Today's ribbon Cutting Celebrations are dedicated to the hundreds of community
volunteers who made these projects happen. Their unselfish commitment to completing
the tasks'associated with a referendum campaign ensured its success.
Even though your numbers are too great to name all of you individually, our admiration
and respect for you is beyond words. However, we would like to acknowledge by name
the volunteers who served on the Citizen/Referendum Task Force. These individuals
dedicated up to two years to the job of managing the referendum:
Alison Blackowiak
Mike Lynch
Nancy Mancino
Anne Graupmann ·
Ken Potts
Richard Wing
Steve Berquist
Jim Manders
Frank 'Scott
Jay Kronick
Jim Andrews
Jane Quilling
Thank you to the youth groups, neighborhood associations, Get-Out-the-Vote Committee,
iphone bank volunteers, appointed commissions, contractors and consultants who
contributed so much to the effort.
All of you shared in the burden of making these community dreams a reality. We are so
very proud of you.
Sincerely,
The elected and appointed staff and officials of the City of Chanhassen..
Bandimere Community Park
Ribbon Cutting
Thursday, September 9, 1999
7:00p. m.
Openfitg Welcome attd Thank yous
Nancy Manchto, Mayor of Chanhassen
Park & Recreation Contntission Message
Jan Lash, Chairperson, Park & Recreation
Commission
Recognition of Volunteers
/ilison Blackowiak, Chairperson-Volunteer
Referendum Task Force
Mayor's Special Thanks
Presented to Alison Blackowiak, Chah'person-
Volunteer Park Task Force
Mike Lynch, Co-chairperson Volunteer
Referendum Task Force
Mike Mullins, Chaff'person Community "Get
Out to Vote" Cantpaign
Closing Thank yous
Todd Hoffinan, Park attd Recreation Director
Ribbon Cutting ·
~III Volunteers attd City Officials
Post Event Celebration
Soccer Scrbnmage featuring teams front Chan/Chaska attd Tonka United Soccer Clubs
attd
Celebration Cake, Cookies, Coffee, attd Pop
Courtesy of lngrant Excavating, General Contractor
g:\park\th\bandimereribboncutting.doc
Today's ribbon Cutting Celebrations are dedicated to the hundreds of community
volunteers who made these projects happen. Their unselfish commitment to completing
the tasks associated with a referendum campaign ensured its success.
Even though your numbers are too great to name all of you individually, our admiration
and respect for you is beyond words. However, we would like to acknowledge by name
the volunteers who served on the Citizen/Referendum Task Force. These individuals
dedicated up to two years to the job of managing the referendum:
Alison Blackowiak -
Mike Lynch
Nancy Mancino
Anne Graupmann
Ken Potts
Richard Wing
Steve Berquist
Jim Manders
Frank Scott
Jay Kronick
Jim Andrews
Jane Quilling
Thank you to the youth groups, neighborhood associations, Get-Out-the-Vote Co~mnittee,
phone bank volunteers, appointed commissions, contractors and consultants who
contributed so much to the effort.
All o£you shared in the burden of making these community dreams a reality. We are so
very proud of you.
Sincerely,
The elected and appointed staff and officials of the City of Chanhassen..