2g. Resolution Delcaring Certain Rents Due the HRA as uncollectable ' 4,IO C a wf .► O^'�fI'�f
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
/liifP7
DATE: RESOLUTION NO:
MOTION BY: SECONDED BY:
' A RESOLUTION DECLARING CERTAIN RENTS DUE THE
HOUSING AND REDEVELOPMENT AUTHORITY AS UNCOLLECTABLE
WHEREAS, the City of Chanhassen maintains the accounting
� Y g
records for the Chanhassen Housing and Redevelopment Authority
1 and additionally, completes an annual audit of HRA
activities/financial transactions; and
1 WHEREAS, the Housing and Redevelopment Authority has offi-
cially determined that certain rents due the HRA through rental
of the old Instant Web building are uncollectable.
1 NOW, THEREFORE, the City Council hereby authorizes the removal
of these uncollectable sums for the years 1983 through 1986
( $12,431. 00) as uncollectable.
1 Passed and adopted by the Chanhassen City Council this
day of , 1988 .
ATTEST:
Don Ashworth, City Manager Thomas L. Hamilton, Mayor
1 YES NO ABSENT
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LAW OFFICES
GRANNIS, GRANNIS, FARRELL& KNUTSON
DAVID L.GRANNIS- 1874-1961 PROFESSIONAL ASSOCIATION TELECOPIER.
DAVID L. GRANNIS,JR.- 1910-1980 POST OFFICE BOX 57 (612) 455-2359
VANCE B. GRANNIS 403 NOR WEST BANK BUILDING DAVID L.HARMEYER
VANCE.B. GRANNIS,JR. 161 NORTH CONCORD EXCHANGE M. CECILIA RAY
PATRICK A. FARRELL ELLIOTT B.KNETSCH
DAVID L. GRANNIS,III SOUTH ST PAUL,MINNESOTA 55075 MICHAEL J MAYER
ROGER N KNUTSON TELEPHONE:(612)455-1661 '
December 17 , 1987
Mr. Don Ashworth
City of Chanhassen
690 Coulter Drive, Box 147
Chanhassen, Minnesota 55317 '
RE: Delinquent Rent - Instant Web Building
Dear Don: 1
This is to confirm that we have exhausted all reasonable
methods of collecting the delinquent rents in the old Instant
Web Building. Further enforcement would not be cost effective.
The tenants are either broke, vanished, or both.
ly yours, 1
GRANNI GRANNI ` ARRELL
KNUTSON,
P .ger/N. . utson
RNK: srn
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DEC 181987
CITY OF CHANHASSEN I
CITYOF
1
C ANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900
1
MEMORANDUM
TO: Roger Knutson, City Attorney
FROM: Don Ashworth, City Manager
1 DATE: December 4, 1987
SUBJ: Miscellaneous
Uncollectible Amounts Due from the HRA: I am cleaning up
1 miscellaneous items included in the City' s financial audit report.
I am including a copy of page 45 which shows the summary sheet of
actions that the auditors would propose to be taken by City
1 staff . Item No. 2 refers to uncollectible amounts due the HRA
(page 9-10 also attached) .
I know that I had your office research our ability to collect
1 rents in the old Instant Web building, i .e. Harter, Mr. Coffee,
etc. I am confident that your position back to me was that the
parties involved represented individuals in bankruptcy, jail, or
1 both. [Note: Only a small percentage of total rents fell into
the uncollectible status, but recognizing that numerous tenants
were involved over a multi-year period, it is logical that 3 to 4
1 would remain on the books. ] I also recall discussing the poten-
tial of involving a collection agency to collect a percent of
these bad debts . The end conclusion was that the debts were so
bad that a collection agency would not even touch them.
1 Would you research your records to see if you can recall any of
the above. In either case, I would like something back from you
1 recommending that the rents previously due to the HRA are
uncollectible and that your office would recommend that the City
take official action to write off the uncollected balances . Any
1 correspondence from the older file may be helpful in showing that
the City did attempt to collect them at the time that they were
due.
1 Phone Calls to City Attorney: One of the last billings from your
office was questioned by the Council as it related to calls made
from private parties directly to your office. I assured the
1 Council that each of the calls referred to had been cleared
by a staff member prior to being made, but the detailed nature of
the question (development contract debate with Rick Murray
1
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Mr. Roger Knutson
1
November 30, 1987
Page 2
regarding letter of credit provisions) , could better be handled '
directly between the individual involved and the City Attorney.
This is solely a reminder so that you continue to keep me an
honest man. '
1
City of Chanhassen, Minnesota
• '''Management Report, Page 45
II
Summary
IIDuring 1987, we recommend that the City:
t../j-• Monitor effects of changes in State legislation affecting property taxes and
II State aids. (Pages 1 to 4)
/' • Take official action to write off uncollectible amounts due from the HRA.
1 1-=% (Page 9)
• Monitor the collection rates for assessments and continue to provide supplemen-
Cil tal financing when collections are not adequate to meet bonded debt payments.
1 (Page 12)
.) • Monitor the effects of specially deferred assessments on the various debt ser- f
1
`1 �� L, vice funds and periodically review assessments which have been deferred by prior
City Council actions. (Page 13)
b'cxV• &.„. V�(1 frV - Nv'r ya,. tee.�cf
VV ;,consider establishing a fixed asset inventory/replacement system, as well as an
- y Infrastructure Replacement Reserve Fund. (Page 15)
VRevit. ' ? '
ew current federal legislation pertaining to the CATV Fund. (Page 20) I
1 i\ • Designate the Revenue Sharing transfer for a specific expenditure
r'• P p nditure of the General
Fund. (Page 21 )
1 ✓• Continue updating the projections for the Tax Increment Financing Plan.
WO (Page 26)
11111'.q
• Monitor the balance of the Tax Increment District #1 Fund to assure timely
1
1��'� availability of scheduled amounts and periodically update the financial projec-
NP_ tions of this fund. (Page 27)
1 • Formally amend the long-term budget to reflect current intended use
k '= of funds
from District #2. (Page 28)
1 • Reflect MSA road maintenance costs in the Municipal State Aid Fund rather than
the General Fund. (Page
r • Monitor the balance in the Old St. Hubert's Church Fund. (Page
• Close the Lake Ann Boat Access Fund in 1987. (Page
Iti,,., • Monitor actual results of various Special Assessment Debt Service Funds as com-
1/87 pared to the projections of special report. (Page
r
G �)w`�,` ,
Review the system of verifying deferred charges outstanding to assure that all
�,s
1 properties pay on a consistent basis. (Page
II
S�V'�' S
-lks • Plan for the conversion of the 1987 Annual Financial Report to the new special
j assessment reporting standards. (Page
IIP d1// f) 0fri
(- 7/°
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City of Chanhassen, Minnesota
,r •
Management Report, Page 9
II
Interest earned on investments totaled $486, 300 for 1986 and $437, 100 for 1985.
Interest earned on investments were as follows for the past six years: II
Interest Earnings
II
Dedicated
Special Construction/
General and Assessment Acquisition All Other
II
Year Total Special Revenue Debt Type Funds Funds
1981 $556,000 $ 60,000 $ 299,000 $ 136,000 $ 61,000
1982 497,000 40,000 232, 000 160,000 65,000 II 1983 361, 000 42,000 172,000 148,000 (1 , 000)
1984 391,000 65,000 215,000 84,000 27,000
1985 437,000 67,000 208,000 , 161,000 1,000
1986 486,000 58,000 203,000 211 ,000 1 4,000
II
The ability of a city to generate investment earnings is an indication of sound
II
fiscal management. Interest earnings are required for the city to meet bonded debt
payments in those funds which have received assessment prepayments. Assessment pre- ,
payments reduce future interest generated from the assessment rolls and therefore must
be replaced through investment earnings. Dedicated -construction type funds include
Capital Project and Special Assessment Construction Funds. These monies are restricted
through bond resolution and/or City Council policy. Interest earned in these funds
increases the restricted assets which is intended to be expended at a future date. The II
interest earnings of the General and Special Revenue type funds indicate that the City
is maintaining operating reserves in these funds. Operating reserves are mandatory to
compensate for cash flow timing differences in the receipt of major revenue sources and
for various other purposes as discussed later in this report (see "General Fund" ).
Accounts and Refunds Receivable
December 31 , II Governmental Type Funds: 1986 1985
Diseased Tree (Certified) $ 742 t
$ 1 ,284 E
Rent 12, 431 11 , 478 '
Cable TV reimbursement 3,655
Miscellaneous 1 , 655 8,089
Enterprise:
Utility Receivable:
Unbilled 47, 355 43,086 III
100, 135 89,615
Certified to County 27, 603 25,871 t
Trust and Agency: e{
Amounts due from developers 2, 245 '
Total $ 189,921 $ 185,323 f
t
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�- City of Chanhassen, Minnesota
Management Report, Page 10
The unbilled utility receivable represents service provided in the fourth quarter of
1986 (and billed in 1987) . The increase in this amount primarily reflects an increase
1
in the number of customers. The rents receivable consist of building rentals of the HRA
(tax increment) building. Certain amounts have been delinquent and the City has deter-
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mined that collection is suspect and may not be cost effective to pursue. We recommend
that the City take official action be taken to write off uncollected balances.
Taxes Receivable
Delinquent property taxes were as follows for 1982 through 1986:
6 Delinquent Taxes Receivable - January 1 $ 198,830 E 1978,140 $ 1983 1984798 $ 73,814 E 49,783
Current Levy 1,553,470 1,385,650 1,344,660 865,550 745, 150
!I Sub-total 1,645,300 1,463,790 1,442,458 939,364 794,933
Collections 1,581,535 1,379,247 1,384,409 841,566 700,113
State reduced levy aids -0- -0- -0- -0- 21,006
Adjustments 1,84T 7,287 20.091 -0-
-0-
II Delinquent Taxes Receivable - December 31
S 65,606 $ 91,830 E 78,140 E 97,798 E 73,814
Total Collections as a Percent
!! _____ _____ ---- ----
of Current Levy 102% 99,5E 97% 97% 94%/97%
The City has experienced a solid tax collection rate over the past five years. The
"adjustments" presented for 1984, 1985 and 1986 represent amounts provided by Carver
County for abatements and other adjustments to the delinquent balances. The 1982 "State
reduced levy aids" represent homestead credit adjustments which lowered the effective
I! collection rate for the City.
Special Assessments Receivable
_ _.Special assessments receivable consisted of the following amounts at December 31 ,
1986 and 1985:
December 31 , Increase
Description 1986 1985 (Decrease)
Delinquent $ 184, 113 $ 356, 133 $ (172,020)
Due from county 147, 796 62,306 85, 490
)1 Deferred 3, 720, 941 4, 763, 510 (1, 042, 569)
HRA 289,81 7 226, 164
63, 653
Special deferred 103, 794 297,055 (193, 261 )
Total $ 4,446, 461 $ 5, 705, 168 $(1 , 258, 707)
III
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a 690
�l ..;* COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900
IMEMORANDUM
ITO: Don Ashworth, City Manager
FROM: Larry Brown, Asst. City Engineer,
IDATE: October 15 , 1987
SUBJ: A Resolution Authorizing the Commissioner of Transportation
1 ., To Conduct A Speed Study On Lake Lucy Road.
I The Lake Lucy Road Improvement Project is virtually complete.
Minnesota State Statutes indicates that the Commissioner of
Transportation has jurisdiction of the road.
I The road was initially designed for a 45 mph design speed in
anticipation of the road being a major collector street. All
portions of the road with the exception of the intersection of
I Lake Lucy Road and Yosemite Avenue meet that criteria. As you
may recall, the elevation of the original road to the east of the
subject intersection was lowered approximately 4Z feet. The
constraints of existing homes and the location of the intersec-
t tion restrained the maximum allowable site distance for the
intersection. The available site distance at present corresponds
to a 30 mph design speed as per the Minnesota Department of
ITransportation design standards .
Regardless of the design, the Minnesota State Statute 169 .14
requires that the municipality petition a speed study from the
I Commissioner of Transportation to establish a speed limit on Lake
Lucy Road.
I It is therefore recommended that the city authorize, by the
attached resolution, a speed study be conducted by the
Commissioner of Transportation.
1 Attachment: Resolution form
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