HomeMy WebLinkAbout2018_05_22 CC PKTCity Council
City of Brookings
Meeting Agenda
Brookings City Council
Brookings City & County
Government Center
520 3rd St., Suite 230
Brookings, SD 57006
Phone: (605) 692-6281
Fax: (605) 692-6907
"We are an inclusive, diverse, connected community that fuels the creative class, embraces sustainability
and pursues a complete lifestyle. We are committed to building a bright future through dedication,
generosity and authenticity. Bring your dreams!"
Council Chambers6:00 PMTuesday, May 22, 2018
The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse
economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal
management.
6:00 PM REGULAR MEETING
1. Call to Order / Pledge of Allegiance.
2. Record of Council Attendance.
3. Consent Agenda:
Action: Motion to Approve, Request Public Comment, Roll Call
Matters appearing on the Consent Agenda are expected to be non-controversial and will
be acted upon by the Council at one time, without discussion, unless a member of the
Council or City Manager requests an opportunity to address any given item. Items
removed from the Consent Agenda will be discussed at the beginning of the formal
items. Approval by the Council of the Consent Agenda items means that the
recommendation of the City Manager is approved along with the terms and conditions
described in the agenda supporting documentation.
3.A. Action to approve the agenda.
3.B.ID 2018-0254 Action to approve the May 8 and May 14, 2018 City Council Minutes.
5/8/2018 Minutes
5/14/2018 Minutes
Attachments:
3.C.ID 2018-0248 Action on Annual Malt Beverage Alcohol License Renewals.
Malt License RenewalsAttachments:
Page 1 City of Brookings
May 22, 2018City Council Meeting Agenda
4. Items removed from Consent Agenda.
Action: Motion to Approve, Request Public Comment, Roll Call
5. Open Forum/Presentations/Reports:
5.A. Open Forum.
At this time, any member of the public may request time on the agenda for an item not
listed. Items are typically scheduled for the end of the meeting; however, very brief
announcements or invitations will be allowed at this time.
5.B. SDSU Student Association Report.
5.C.ID 2018-0213 Presentation of City of Brookings 2017 Annual Financial Report.
Council Audit Presentation
2017 Comprehensive Annual Financial Report (CAFR)
Communication Letter
Attachments:
5.D.ID 2018-0257 Informational Presentation on the Bob Shelden Athletic Complex
Renovation - Park Site Planning and Pre-engineering Services.
PresentationAttachments:
6. Contracts/Change Orders:
6.A.RES 18-039 Action to approve Resolution 18-039, a Resolution Awarding Bids on
2018-01SWR, Concrete Maintenance Project REBID.
ResolutionAttachments:
Action: Motion to Approve, Request Public Comment, Roll Call
7. Ordinance First Readings:
No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read
and the date for the public hearing is announced.
7.A.ORD 18-009 Introduction and First Reading on Ordinance 18-009, an Ordinance
rezoning the West 199’ of the East 451’, excluding the South 33’ of Lot 1,
Block 1, Christie Springs Addition from Residence R-1D Single-Family to
Residence R-3 Apartment District (Fox Run Addition). Public Hearing:
June 12, 2018.
Page 2 City of Brookings
May 22, 2018City Council Meeting Agenda
Ordinance
Hearing Notice
Planning Commission Minutes 5/1/2018
Rezoning Map
Current Zoning Map
Additional Zoning Map
R-1D and R-3 Districts
Attachments:
7.B.ORD 18-010 Introduction and First Reading on Ordinance 18-010, an Ordinance
rezoning the South 245’ of the West 246’ of the East 495’ of the SE ¼ of
the SW ¼ Section 3-T109N-R50W within the Joint Jurisdiction Area (1002
West 32nd Street South). Public Hearing: June 12, 2018.
Ordinance
JJ Planning Commission Minutes 5/1/2018
Hearing Notice
Exhibit Map
Rezoning Map
Joint Jurisdiction Zoning Map
County Staff Report
Attachments:
8. Public Hearings and Second Readings:
8.A.RES 18-038 Public Hearing and Action on Resolution 18-038, a Resolution of Intent to
Lease Real Property.
Resolution
Notice of Public Hearing
RTI Lease Agreement
Attachments:
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
8.B.ID 2018-0247 Public Hearing and Action on new On-Off Sale Malt Beverage Alcohol
Licenses.
Hearing NoticeAttachments:
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
8.C.RES 18-042 Public Hearing and Action on Resolution 18-042, a Resolution Determining
the Necessity of Proposed Sanitary Sewer Assessment Project,
2018-12SSA, located on Western Avenue between Martin Boulevard and
20th Street South.
Resolution
Property Owner List
Map
Attachments:
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
Page 3 City of Brookings
May 22, 2018City Council Meeting Agenda
9. Other Business:
10. City Council member introduction of topics for future discussion.
Any Council Member may request discussion of any issue at a future meeting only.
Items cannot be added for action at this meeting. A motion and second is required
stating the issue, requested outcome, and time. A majority vote is required.
11. Adjourn.
Brookings City Council: Keith Corbett, Mayor, Mary Kidwiler, Deputy Mayor & Council Member
Council Members Patty Bacon, Dan Hansen, Ope Niemeyer, Holly Tilton Byrne, and Nick Wendell
Council Staff:
Jeffrey W. Weldon, City Manager Steven Britzman, City Attorney Shari Thornes, City Clerk
View the City Council Meeting Live on the City Government Access Channel 9.
Rebroadcast Schedule: Wednesday 1:00pm/Thursday 7:00pm/Friday 9:00pm/Saturday 1:00pm
The complete City Council agenda packet is available on the city website: www.cityofbrookings.org
Assisted Listening Systems (ALS) are available upon request. Please contact Shari Thornes, Brookings City
Clerk, at (605)692-6281 or sthornes@cityofbrookings.org. If you require additional assistance, alternative formats,
and/or accessible locations consistent with the Americans with Disabilities Act, please contact Shari Thornes, City
ADA Coordinator, at (605)692-6281 at least three working days prior to the meeting.
Page 4 City of Brookings
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 2018-0254,Version:1
Action to approve the May 8 and May 14, 2018 City Council Minutes.
Attachments:
5/8/2018 Minutes
5/14/2018 Minutes
City of Brookings Printed on 5/16/2018Page 1 of 1
powered by Legistar™
Brookings City Council
May 8, 2018 (unapproved)
The Brookings City Council held a meeting on Tuesday, May 8, 2018 at 6:00 p.m., at
City Hall with the following City Council members present: Mayor Keith Corbett, Council
Members Mary Kidwiler, Dan Hansen, Holly Tilton Byrne, Nick Wendell, Patty Bacon,
and Ope Niemeyer. City Manager Jeff Weldon, City Attorney Steve Britzman, and City
Clerk Shari Thornes were also present.
Certificate of Election and Oath of Office. Mayor Keith Corbett (term expires
5/1/2021), Council Members Nick Wendell and Patty Bacon (terms expire 5/1/2021),
and Council Member Holly Tilton Byrne (term expires 5/1/2019) took their Oath of Office
and were presented with Certificates of Election.
6:00 PM Regular Meeting
Consent Agenda. A motion was made by Council Member Hansen, seconded by
Council Member Kidwiler, to approve the Consent Agenda. The motion carried by the
following vote: Yes: 7 - Corbett, Niemeyer, Hansen, Kidwiler, Bacon, Wendell, and
Tilton Byrne.
4.A. Action to approve the agenda.
4.B. Action to approve the April 24, 2018 City Council Minutes.
4.C. Action on Resolution 18-040, a Resolution to remove uncollectible Accounts
Receivable from Records.
Resolution 18-040 - Uncollectible Accounts Receivable
Removed From Records
Whereas, the Brookings Regional Landfill experienced a total of $11,660.11 in
uncollectible accounts receivable in 2017 as an uncollectable amount from Allen
Construction; and
Whereas, efforts to collect and recover the full amount from the customer was
unsuccessful;
Now, Therefore, Be It Resolved the amount of $11,660.11 in the Landfill accounts
receivable be determined as uncollectible and removed from the records.
4.D. Action on Ex-Officio and other Council Member Appointments:Brookings
County & City Joint Jurisdictional Committee: Ope Niemeyer and Mary Kidwiler;
Brookings Health Systems Board of Trustees: Dan Hansen and Mary Kidwiler;
Brookings Municipal Utilities: Ope Niemeyer and Holly Tilton Byrne; Brookings
Economic Development Corporation Board: Dan Hansen; Brookings Economic
Development Corporation Investment Committee: Mary Kidwiler, Ope Niemeyer, and
Dan Hansen; East Central Communications Council (E-911): Patty Bacon; Joint Powers
Board: Nick Wendell and Mary Kidwiler; Retail Grant Committee: Nick Wendell.
4.E. Action on Resolution 18-036, a Resolution authorizing the City Manager to
sign a Wine Operating Agreement 5-year renewal for The Children’s Museum of
South Dakota, 521 4th Street, legal description: Lot 101, Block 1 to include
adjacent N 1/2 vacated 4th Street, First Addition.
Resolution 18-036 - The Children’s Museum of South Dakota
Wine Operating Agreement Renewal
Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby
approves a Lease Renewal Agreement for the Wine Operating Management Agreement
between the City of Brookings and The Children’s Museum of South Dakota, Kate
Treiber, Executive Director, for the purpose of a liquor manager to operate the On-Sale
Establishment or business for and on behalf of the City of Brookings at 521 4th Street.
Be It Further Resolved that the City Manager be authorized to execute the Agreement
on behalf of the City, which shall be for the remaining 5-years of the 10-year agreement.
4.F. Action on Resolution 18-037, a Resolution authorizing the City Manager to
sign a Wine Operating Agreement 5-year renewal for Krave, Marty Syrstad, owner,
1040 22nd Ave. So., legal description: Track E of Lot 3, Southbrook Addition.
Resolution 18-037 - Krave, Inc.
Wine Operating Agreement Renewal
Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby
approves a Lease Renewal Agreement for the Wine Operating Management Agreement
between the City of Brookings and Krave, Inc., Marty Syrstad, owner, for the purpose of
a liquor manager to operate the On-Sale Establishment or business for and on behalf of
the City of Brookings at 1040 22nd Ave. So.
Be It Further Resolved that the City Manager be authorized to execute the Agreement
on behalf of the City, which shall be for the remaining 5-years of the 10-year agreement.
4.G. Action on Resolution 18-041, a Resolution declaring surplus property:
1999 GMC Suburban (Engineering Department).
Resolution 18-041 - Resolution Declaring Surplus Property – 1999 GMC Suburban
(Engineering Department)
Whereas, the City of Brookings is the owner of a 1999 GMC Suburban K1500; and
Whereas, in the best financial interest, it is the desire of the City of Brookings to sell
same as surplus property; and
Whereas, the City Manager is hereby authorized to sell said surplus property.
Now, Therefore, Be It Resolved by the governing body of the City of Brookings, SD, that
this property be declared surplus property according to SDCL Chapter 6-13.
Ordinance 18-008.A second reading was held on Ordinance 18-008, an Ordinance
Amending Article III of Chapter 42 of the Code of Ordinances of the City of Brookings,
South Dakota and pertaining to the Brookings Health System. A motion was made by
Council Member Tilton Byrne, seconded by Council Member Kidwiler, that Ordinance
18-008 be approved. The motion carried by the following vote: Yes: 7 - Niemeyer,
Hansen, Kidwiler, Wendell, Bacon, Tilton Byrne, and Corbett.
Ordinance 18-006. A public hearing was held on Ordinance 18-006, an Ordinance
rezoning the S 105’ of Lot 2, Block 7, Morehouse Addition (907 8th Street); S 105’ of Lot
3, Block 7, Morehouse Addition (911 8th Street); S 105’ of Lot 4, Block 7, Morehouse
Addition (915 8th Street) from Residence R-2 Two-Family District to Business B-2A
Office District. A motion was made by Council Member Niemeyer, seconded by Council
Member Hansen, that Ordinance 18-006 be approved. The motion carried by the
following vote: Yes: 7 - Niemeyer, Hansen, Kidwiler, Wendell, Bacon, Tilton Byrne, and
Corbett.
Ordinance 18-007. A public hearing was held on Ordinance 18-007, an Ordinance
rezoning Bluegill Third Addition from A, Agricultural District and Residence R-1C Single-
Family District to Residence R-1D Single-Family District. A motion was made by Council
Member Hansen, seconded by Council Member Wendell, that Ordinance 18-007 be
approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Hansen,
Kidwiler, Wendell, Bacon, Tilton Byrne, and Corbett.
Preliminary Plat. A motion was made by Council Member Hansen, seconded by
Council Member Wendell, that the Preliminary Plat for Lots 1-10, Block 1, Bluegill Third
Addition be approved. The motion carried by the following vote: Yes: 7 - Niemeyer,
Hansen, Kidwiler, Wendell, Bacon, Tilton Byrne, and Corbett.
On-Off Malt License. A public hearing was held on a request for an On-Off Sale Malt
License for Jokers Casino, Randy Clifford, owner, 517 6th St., legal description: W 50’
of Lot 16 and W 50’ of the S ½ of Lot 15, Block 4, Petersons Second Addition. A motion
was made by Council Member Hansen, seconded by Council Member Kidwiler, that the
On-Off Sale Malt License be approved. The motion carried by the following vote: Yes: 6
- Hansen, Kidwiler, Wendell, Bacon, Tilton Byrne, and Corbett; No: 1 – Niemeyer.
On-Off Sale Malt License.A public hearing was held on the transfer of an On-Off-Sale
Malt License for Commonwealth Gaming & Holding Co., dba Deuces Casino, Bryant
Soberg and Kirby Muilenburg, owners, to Commonwealth Gaming & Holdings Co., dba
Deuces Casino (Suite 105A), Bryant Soberg and Kirby Muilenburg, owners, 223 6th St.,
Brookings, South Dakota, legal description: S 114’ of the W 69.3’ of Lot 20 and the S
114’ of Lot 21, Block 3, Henry’s Addition. A motion was made by Council Member
Kidwiler, seconded by Council Member Hansen, that the On-Off Sale Malt License be
approved. The motion carried by the following vote: Yes: 6 - Niemeyer, Hansen,
Kidwiler, Wendell, Tilton Byrne, and Corbett; No: 1 – Bacon.
Resolution 18-030. A public hearing was held on Resolution 18-030, a Resolution
authorizing the transfer of an On-Off Sale Wine License for Commonwealth Gaming &
Holdings Co., dba Deuces Casino, Bryant Soberg and Kirby Muilenburg, owners, to
Commonwealth Gaming & Holdings Co., dba Deuces Casino (Suite 105A), Bryant
Soberg and Kirby Muilenburg, owners, 223 6th St., Brookings, South Dakota, legal
description: S 114’ of the W 69.3’ of Lot 20 and the S 114’ of Lot 21, Block 3, Henry’s
Addition. A motion was made by Council Member Hansen, seconded by Council
Member Wendell, that the On-Off Sale Wine License be approved. The motion carried
by the following vote: Yes: 6 - Niemeyer, Hansen, Kidwiler, Wendell, Tilton Byrne, and
Corbett; No: 1 – Bacon.
Resolution 18-030 - Commonwealth Gaming & Holding, Co.,
dba Deuces Casino (Suite 105A) – Wine Operating Agreement
Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby
approves a Lease Agreement for the Operating Liquor Management Agreement for
Wine between the City of Brookings and Bryant Soberg and Kirby Muilenburg, owners,
Commonwealth Gaming & Holdings Co., dba Deuces Casino, for the purpose of a liquor
manager to operate the On-Sale Establishment or business for and on behalf of the City
of Brookings at 223 6th Street, Suite 105A.
Be It Further Resolved that the City Manager be authorized to execute the Agreement
on behalf of the City, which shall be for a period of five (5) years, with a renewal for
another five (5) years.
On-Off Sale Malt License. A public hearing was held on a request for an On-Off Sale
Malt License for Commonwealth Gaming & Holdings Co., dba Deuces Casino (Suite
105B), Bryant Soberg and Kirby Muilenburg, owners, 223 6th St., legal description: E
120’ of Lots 13-14, Block 14, Second Addition. A motion was made by Council Member
Hansen, seconded by Council Member Kidwiler, that the On-Off Sale Malt License be
approved. The motion carried by the following vote: Yes: 6 - Niemeyer, Hansen,
Kidwiler, Wendell, Tilton Byrne, and Corbett; No: 1 – Bacon.
Resolution 18-029. A public hearing was held on Resolution 18-029, a Resolution
authorizing the City Manager to sign an On-Off Sale Wine Operating Agreement for
Commonwealth Gaming & Holdings Co., dba Deuces Casino (Suite 105B), Bryant
Soberg and Kirby Muilenburg, owners, 223 6th Street, Brookings, South Dakota, legal
description: South 114’ of the West 69.3’ of Lot 20, and the South 114’ of Lot 21, Block
21, Block 3, Henry’s Addition. A motion was made by Council Member Hansen,
seconded by Council Member Wendell, that the On-Off Sale Wine License be approved.
The motion carried by the following vote: Yes: 6 - Niemeyer, Hansen, Kidwiler, Wendell,
Tilton Byrne, and Corbett; No: 1 – Bacon.
Resolution 18-029 - Commonwealth Gaming & Holdings Co.,
dba Deuces Casino (Suite 105B) – Wine Operating Agreement
Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby
approves a Lease Agreement for the Operating Liquor Management Agreement for
Wine between the City of Brookings and Bryant Soberg and Kirby Muilenburg, owners,
Commonwealth Gaming & Holdings Co., dba Deuces Casino, for the purpose of a liquor
manager to operate the On-Sale Establishment or business for and on behalf of the City
of Brookings at 223 6th Street, Suite 105B.
Be It Further Resolved that the City Manager be authorized to execute the Agreement
on behalf of the City, which shall be for a period of five (5) years, with a renewal for
another five (5) years.
Adjourn. A motion was made by Council Member Hansen, seconded by Council
Member Wendell, to adjourn the meeting at 6:29 p.m. The motion carried by a
unanimous vote.
CITY OF BROOKINGS
Keith W. Corbett, Mayor
ATTEST:
Shari Thornes, City Clerk
Brookings City Council
May 14, 2018 (unapproved)
The Brookings City Council held a special meeting on Monday, May 14, 2018 at 5:30
p.m., at City Hall with the following City Council members present: Mayor Keith Corbett,
Council Members Mary Kidwiler, Dan Hansen, Holly Tilton Byrne, Nick Wendell, Patty
Bacon, and Ope Niemeyer. City Manager Jeff Weldon, City Attorney Steve Britzman,
and City Clerk Shari Thornes were also present.
5:30 PM Special Meeting.
Executive Session. A motion was made by Council Member Niemeyer, seconded by
Council Member Hansen, to enter into Executive Session for purposes of discussing the
qualifications, competence, performance, character or fitness of any public officer or
employee or prospective public officer or employee with the City Manager, City Council
and City Attorney present. The motion carried by a unanimous vote. A motion was
made by Council Member Wendell, seconded by Council Member Kidwiler, to exit
Executive Session at 6:30 p.m. The motion carried by a unanimous vote.
Council Member Hansen left at 6:00 p.m.
Adjourn. A motion was made by Council Member Bacon, seconded by Council
Member Niemeyer, to adjourn the meeting at 6:30 p.m. The motion carried by a
unanimous vote.
CITY OF BROOKINGS
Keith W. Corbett, Mayor
ATTEST:
Shari Thornes, City Clerk
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 2018-0248,Version:1
Action on Annual Malt Beverage Alcohol License Renewals.
Summary:
Enclosed for Council review and action are the On-Off Sale Malt Alcohol License renewals for fiscal
year 2018 (7/1/2018 to 6/30/2019). After Council action, applications will be forwarded to the State
Department of Revenue for final action and issuance of licenses.
Recommendation:
Staff recommends approval.
Attachments:
License Renewals
City of Brookings Printed on 5/16/2018Page 1 of 1
powered by Legistar™
Malt License Renewals
On-Off Sale Malt (retail):
Aramark/McCrory Gardens Visitors Center, 16th St. & 22nd Ave.
Brookings Softball Assoc. (Southbrook Softball Diamonds), 2800 22nd Ave. So.
Carpy’s Pub, 700 22nd Ave. So.
Casino 2000, 622 25th Ave.
The Children’s Museum of South Dakota, 521 4th St.
The Clothes Line Lounge, 727 Wilson Ave.
Cubby’s Sports Bar & Grill, 307 Main Ave.
Danny’s, 703 Main Ave. So.
The Depot, 919 20th St. So.
Deuces Casino, 615 Main Ave., Suite 105A
EdgeBrook Golf Course, 1415 22nd Ave. So.
Eponymous Brewing Co., 126 Main Ave. So.
Flavor International Restaurant & Grocery, 501 Main Ave.
Gas ‘N Mor, 600 6th St.
George’s Pizza & Steakhouse, 311 Main Ave.
Guadalajara, Village Square Mall #1
Hy-Vee Food Store, 790 22nd Ave. S.
KRAVE, Inc., 1040 22nd Ave. S.
Main Street Pub, 408 Main Ave.
Mama Mia, 1300 Main Ave. So.
New Sake, Inc., 724 22nd Ave. So.
Old Sanctuary, 928 4th St.
1000 Degrees Pizza, 770 22nd Ave. So.
Pizza Hut #2769, 418 6th St.
PNP Pub, 318 2nd St. So.
Ray’s Corner, 401 Main Ave.
Schoon’s PNP Pub South, 1203 Main Ave. So.
Skinner’s Pub, 300 Main Ave.
South Main Diner, 615 Main Ave. S.
Swiftel Center, 824 32nd Ave.
Wooden Legs Brewing Co., 309 5th St., Suite 100
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 2018-0213,Version:1
Presentation of City of Brookings 2017 Annual Financial Report.
Summary:
Chris Lindner, CPA, CGMA, Partner BKD, LLP will be present to discuss the 2017 Financial Audit and
the City of Brookings Comprehensive Annual Financial Report.
Attachments:
Council Audit Presentation
2017 Comprehensive Annual Financial Report (CAFR)
Communication Letter
City of Brookings Printed on 5/16/2018Page 1 of 1
powered by Legistar™
experience responsiveness //
CPAs & ADVISORS
City of Brookings, South Dakota
2017 Audit Presentation
Chris Lindner, CPA, CGFM
TESTING APPROACH & TIMELINE
Audit Interim/Planning/Internal Control Walkthroughs
Coordination with Other Auditors
Final Audit Fieldwork
Audit Wrap-up / Concurring Review
Audit Results and Communication
2 // experience responsiveness
SUMMARY OF AUDIT RESULTS
Independent Auditor’s Report –Financial Statements
Unmodified (clean) opinion
Report in accordance with Government Auditing Standards
No Significant Deficiencies or Material Weaknesses
Independent Auditor’s Report –Major Federal Programs
1 major program tested for the fiscal year 2017
Unmodified opinion –No material instances of non-compliance
3 // experience responsiveness
AUDIT COMMUNICATION LETTER
Significant accounting policies
Significant accounting estimates
Financial statement disclosures
Audit adjustments
Disagreements with management or difficulties encountered
in performing the audit –None
Upcoming accounting pronouncements
4 // experience responsiveness
A GOVERNMENT’S FINANCIAL STATEMENT –WHAT TO LOOK FOR??
Net Cost of Programs (page 28 of the City’s CAFR)
Reserves
Long-Term Debt Levels
Other Long-Term Obligations (page 57 of the City’s CAFR)
Statistical Information (starting on page 133 of the City’s CAFR)
5 // experience responsiveness
RESERVES –COMPARISON TO PEER CITIES
“Unrestricted” Fund Balance as a % of Annual
Expenditures –General Fund
6 // experience responsiveness
2017 2016 2015 2014
City of Brookings 57%45%41%55%
Peer Group 44%32%37%31%
LONG-TERM DEBT LEVELS –COMPARISON TO PEER CITIES
Governmental Debt Principal Outstanding to
Assessed Valuation
7 // experience responsiveness
2017 2016 2015 2014
City of Brookings $2.09 $1.85 $2.14 $2.40
Peer Group $2.42 $2.55 $2.01 $2.02
LONG-TERM DEBT LEVELS –COMPARISON TO PEER CITIES
Governmental Debt Principal Outstanding
to Population
8 // experience responsiveness
2017 2016 2015 2014
City of Brookings $1,069 $938 $1,034 $1,121
Peer Group $1,405 $1,378 $1,133 $1,085
LONG-TERM DEBT LEVELS –COMPARISON TO PEER CITIES
Total Debt (Governmental and Business-Type) Principal
Outstanding to Population
9 // experience responsiveness
Note: City of Brookings figure excludes debt principal for the
Telephone Fund and Health System for comparability purposes.
2017 2016 2015 2014
City of Brookings $2,602 $2,566 $2,509 $2,537
Peer Group $2,313 $2,490 $2,256 $2,399
Questions?
Thank You!!!
10 // experience responsiveness
FISCAL YEAR ENDED
DECEMBER 31, 2017
2017 COMPREHENSIVE ANNUALFINANCIAL REPORT
CITY OF BROOKINGS, SOUTH DAKOTA
About the Cover:
The City of Brookings began the Gateway Improvements Project in 2011 with the installation of 19 limestone signs at key entrances to the
community and park system. The improvements continued with a shared-use path and landscaping improvements at Rotary Park. In 2017,
decorative street lights were added with the 6th Street Reconstruction Project from 20th Avenue to 34th Avenue, decorative bridge railing,
and median irrigation. Total project costs to date for the multi-year improvements are approximately $1.7 million with a donor providing
just over $1.1 million in funding.
2017
COMPREHENSIVE ANNUAL FINANCIAL
REPORT
CITY OF BROOKINGS, SOUTH DAKOTA
_________________________________________
January 1, 2017 – December 31, 2017
_________________________________________
Prepared by:
THE CITY FINANCE OFFICE
Shawna M. Costello, CPA, CPFO
Finance Director
_________________________________________
1
City of Brookings
December 31, 2017
Table of Contents
PART I‐ INTRODUCTORY SECTION
Title Page 1
Table of Contents 2
Letter of Transmittal 4
Certificate of Achievement for Excellence in Financial Reporting 9
Municipal Officials 10
Organizational Chart 11
PART II ‐ FINANCIAL SECTION
Independent Auditors' Report 13
Management's Discussion and Analysis 16
Basic Financial Statements
Government‐wide Financial Statements
Statement of Net Position 27
Statement of Activities 28
Fund Financial Statements
Governmental Fund Financial Statements
Balance Sheet 29
Reconciliation of Balance Sheet of Governmental Funds to the Statement of
Net Position 30
Statement of Revenues, Expenditures, and Changes in Fund Balances 31
Reconciliation of Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 32
Proprietary Fund Financial Statements
Statement of Net Position 33
Statement of Revenues, Expenses, and Changes in Net Position 35
Statement of Cash Flows 36
Fiduciary Fund Financial Statements
Statement of Net Position 38
Notes to the Financial Statements 39
Required Supplementary Information
Schedule of Funding Progress for Postemployment Benefit Plans 78
Schedule of Pension Contributions 79
Schedule of Proportionate Share of Net Pension (Asset) Liability 80
Notes to Required Supplementary Information ‐ Change of Pension Terms and
Assumptions 81
Budgetary Comparison Schedule
General Fund 82
75% Sales and Use Tax 83
Notes to Required Supplementary Information ‐ Budgetary Reporting 84
Supplementary Information and Combining Financial Statements
Nonmajor Governmental Funds
Balance Sheet 85
Statement of Revenues, Expenditures, and Changes in Fund Balances 86
Nonmajor Special Revenue Funds 87
Balance Sheet 88
Statement of Revenues, Expenditures, and Changes in Fund Balances 90
Budgetary Comparison Schedules 92
Nonmajor Debt Service Funds 101
Balance Sheet 102
Statement of Revenues, Expenditures, and Changes in Fund Balances 103
Budgetary Comparison Schedules 104
2
City of Brookings
December 31, 2017
Table of Contents (Continued)
Nonmajor Capital Project Funds 110
Balance Sheet 111
Statement of Revenues, Expenditures, and Changes in Fund Balances 112
Budgetary Comparison Schedules 113
Nonmajor Enterprise Funds 119
Statement of Net Position 120
Statement of Revenues, Expenses, and Changes in Net Position 124
Statement of Cash Flows 126
Fiduciary Funds 130
Statement of Net Position 131
Statement of Changes in Assets and Liabilities 132
PART III ‐ STATISTICAL SECTION 133
Table 1 Net Position by Component 134
Table 2 Changes in Net Position 136
Table 3 Fund Balances of Governmental Funds 142
Table 4 Changes in Fund Balances of Governmental Funds 144
Table 5 Assessed Value and Actual Value of Taxable Property 146
Table 6 Direct and Overlapping Property Tax Rates 146
Table 7 Principal Taxpayers 147
Table 8 Property Tax Levies and Collections 147
Table 9 Historical Sales and Use Tax Receipts 148
Table 10 Taxable Sales by Category 148
Table 11 Direct and Overlapping Sales Tax Rates 150
Table 12 Ratio of Net General Bonded Debt 150
Table 13 Ratio of Outstanding Debt by Type 151
Table 14 Direct and Overlapping Governmental Activities Debt 151
Table 15 Legal Debt Margin Information 152
Table 16 Pledged‐Revenue Coverage 154
Table 17 Demographic and Economic Statistics 157
Table 18 Principal Employers 158
Table 19 Full‐Time Equivalent City Government Employees by Function/Program 159
Table 20 Operating Indicators by Function/Program 160
Table 21 Capital Asset Statistics by Function/Program 161
PART IV ‐ SINGLE AUDIT SECTION
Schedule of Expenditures of Federal Awards 163
Report on Internal Control over Financial Reporting and on Compliance and Other Matters 165
Based on an Audit of Financial Statements Performed in Accordance with Government
Auditing Standards ‐ Independent Auditor's Report
Report on Compliance for the Major Federal Program and Report on Internal Control over 167
Compliance ‐ Independent Auditor's Report
Schedule of Findings and Questioned Costs 169
Summary Schedule of Prior Audit Findings 172
3
May 8, 2018
The Honorable Mayor Keith Corbett
Members of the City Council
Citizens of the City of Brookings, South Dakota
We are pleased to submit to you the Comprehensive Annual Financial Report (CAFR) for the City of Brookings, South
Dakota, for the fiscal year ending December 31, 2017.
The report was prepared by the City’s Finance Department in accordance with U.S. Generally Accepted Accounting
Principles (GAAP) applicable to governments as prescribed by the Governmental Accounting Standards Board (GASB).
Responsibility for both the accuracy of the presented data and the completeness and fairness of presentation, including all
disclosures, rests with the City’s management. We believe the data, as presented, is accurate and reliable in all material
respects; is presented in a manner designed to set forth fairly the financial position and results from operations of the City
as measured by the financial activities of its various funds. The disclosures necessary to enable readers to gain an
understanding of the City’s financial affairs have been included in this report.
Management of the City is responsible for establishing and maintaining an accounting and internal control structure
designed to ensure that the assets of the City are protected from loss, theft, or misuse and to ensure that adequate
accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP. Because the
cost of internal controls should not outweigh their benefits, the City of Brookings’ comprehensive framework of internal
controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free
from material misstatement. We believe that the City’s internal accounting controls adequately safeguard assets and
provide reasonable assurance of proper recording of financial transactions.
The City’s financial statements have been audited by BKD, LLP, a firm of certified public accountants authorized to
conduct the City’s audit by the State of South Dakota. The goal of the independent audit was to provide reasonable
assurance that the financial statements of the City of Brookings for the fiscal year ended December 31, 2017, are free of
material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent auditor concluded, based
upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Brookings’ financial
statements for the fiscal year ending December 31, 2017 are fairly presented in all material respects in accordance with
GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic
financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed
to complement the MD&A and should be read in conjunction with it. The City of Brookings’ MD&A can be found
immediately following the report of the independent auditors.
Profile of the City of Brookings
Brookings is located along the I‐29 corridor in east central South Dakota and has a
population of over 23,000 residents making it the fourth‐largest city in South
Dakota. It is 55 miles north of the State’s largest city, Sioux Falls, and just minutes
from the Minnesota border. It truly is an environment free from the stress of big
city living; but for those who want to occasionally visit metropolitan areas,
Minneapolis‐St. Paul, Fargo/Moorhead, and Omaha are all within a 200 mile
radius. Being along the interstate and miles from the Minnesota border, Brookings
serves as a primary market area for over 70,000 consumers. Brookings is a city
with an extraordinary quality of life and an outstanding school system. Families choose Brookings for its safe, friendly,
and progressive environment.
Home to South Dakota State University (SDSU), Brookings boasts prime educational resources for small businesses and
entrepreneurs. SDSU had an enrollment just over 12,000 students in 2017, making it the largest university in the state.
4
SDSU offers Division 1‐FCS college athletics, performing arts, theater, and a variety of cultural venues. SDSU is an integral
part of the community and attracts many research and technology businesses which compliment core curriculum
activities. A source of recognized research and innovation, SDSU supplies a young, educated workforce with skill and
determination.
The County and the City got their names from one of South Dakota’s greatest pioneer promoters, Wilmot W. Brookings.
Brookings set out for the Dakota Territory in June of 1857. He rose to a high position in the territory, was elected the first
provisional Governor of Dakota Territory, served as a judge, and was appointed superintendent of a road project to be
built from the Minnesota state line west to the Missouri River about 30 miles north of Ft. Pierre, South Dakota. It was
during the construction of this road that Brookings came into contact with land that was part of this county at the time. In
preparation for the railroad, the City of Brookings was surveyed and platted in 1879. Dakota Agricultural College (now
South Dakota State University) was founded in 1881. The City began to grow after the college was built and has been
increasing in size ever since.
In 1999 the City adopted the Council‐Manager form of government. The City is a home‐rule municipality chartered under
the Constitution of the State of South Dakota and is governed by a mayor and six council members. All council positions
are elected at large, for overlapping three year terms.
The City provides a wide range of municipal services including public safety, streets, solid waste collection and disposal,
airport, planning, culture and recreation, retail liquor, and general administrative services. In addition, the City has
established semi‐autonomous enterprise functions, which are governed by appointed boards. They are: Brookings
Municipal Utilities (BMU) which manages electric, water, wastewater, and telecommunications/video/data operations;
and the municipal Brookings Health System, which includes a 49‐bed acute care hospital, home health, hospice, eye clinic,
two regional “satellite” clinics, congregate living units, and a 79‐bed skilled nursing facility.
The City applies budgetary controls to ensure compliance with legal provisions under South Dakota Codified Laws, the
City Charter, the City’s Governance and Ends Policy and with the annual appropriation ordinance and budgetary
guidelines adopted by the City Council. Approved expenditures for the ensuing fiscal year for the General fund, the
Special Revenue funds, Debt Service funds, and Capital Project funds are included in the annual appropriation ordinance,
establishing the legal level of control. The annual budget serves as the foundation for the City of Brookings' financial
planning and control.
South Dakota Codified Law 9‐12‐2 requires the City of Brookings to adopt an ordinance as prescribed by the Department
of Legislative Audit. The ordinance shows the legal level of budgetary control is at the department level within each
fund. Departments are not allowed to exceed their total allocated budget or reallocate appropriations outside their
department without approval of the governing body. The legal spending authority can only be obtained through
contingency funds, capital expenditures carryover, or supplemental budget appropriations ordinance, all of which is
approved by formal action of the City Council.
Economic Condition and Outlook
The information presented in these financial statements is best understood when it is considered from the broader
perspective of the specific environment within which the City of Brookings operates.
Local Economy
“Bring Your Dreams” is the community’s marketing motto and Brookings is fortunate to have a diverse local economy
including SDSU, large and small manufacturing, biosciences, food production and agriculture. This diversity has helped
insulate, to some degree, the economic downturn being experienced by the national economy.
In addition to the diversity, the City’s population continues to grow. The 2010 census reflected a growth of 19 percent
from the 2000 census and moved Brookings from the fifth to the fourth largest city in South Dakota. With the population
now over 23,000, the City has attracted various new retail and food establishments.
The labor force increased from 13,583 to 13,846 from December 31, 2016 to December 31, 2017 and the total
employment increased from 13,214 to 13,363 individuals for those dates, respectively. Unemployment for Brookings was
at 3.5 percent, well below the national average of 4.1 percent and up .8 percent from the 2016 rate of 2.7 percent. Since
the economy in Brookings has not seen the drastic impact felt by most other parts of the nation, the unemployment rate
has stayed fairly steady the past year.
During 2017, the city approved 488 building permits which was a slight increase from the 451 approved in 2016. The
estimated construction value of residential and nonresidential construction was $38.8 million in 2017; down 26 percent
from the $52.8 in 2016. Nonresidential construction accounted for 56.4 percent of the estimated construction value in
2017 compared to 57.1 percent in 2016
5
Long‐Term Planning and Major Initiatives
The City Council meets annually and develops a strategic plan for the City. This plan provides a launchpad for new policy
initiatives but also establishes a guide for a long‐range capital improvement program. It also sets the direction for the
City staff in several operational areas. The 2017‐2018 Strategic Plan includes the following:
Develop initiatives for entrepreneurial approaches for improving city service delivery
Formalize comprehensive entrepreneurial programs through Brookings Economic Development Corporation
(BEDC), or special committee to develop work plans for selected options
Improve the overall livability of Brookings through place‐making initiatives with agendas such as:
o Armory site adaptive re‐use
o Comprehensive Master plan update
o Develop bicycle lanes, and identifying places downtown for implementing greenspace
o Determine/implement select list of bicycle‐friendly activities: (Silver designation, bike racks, bicycle
lane designation.)
o Develop the public art program, implemented in 2017
Expanding lean government service practices
o Lean staff committee will continue to identify opportunities for improvements, undertake selected
projects for implementation.
o Further develop performance management and benchmarking measures for services.
o Host local conferences with other employers working on lean practices
Develop strategies to promote broader and more diverse affordable housing opportunities.
o Support efforts of Affordable Housing Task Force; monitor/take action on their recommendations
commensurate with the charter
Build upon past efforts to expand transparency and utility of public records.
o Research/implement open .gov platform for on‐line/ searchable financial records & budget
o Migrate city records to web for transparency
Implement specific projects of the Sustainability Council for better stewardship of public assets.
o Select specific topics from benchmark work plan for implementation by selected departments
o All future city buildings to be LEED certified.
o Analyze Changes in means and methods of construction using sustainability measures.
Major Initiatives
Some major capital initiatives planned or ongoing are listed below:
Infrastructure:
Street system improvements:
Continue planning for a new arterial street at 20th Street South from 22nd Avenue South to 34th Avenue South to
better connect residential and industrial areas. This involves an interstate overpass or interchange to function
as a “southern ring route” to better move commuter traffic around the growing southern region of Brookings. It
is an intergovernmental partnership project with several local units of government.
Highway 14 upgrade ‐ The third of four phases to the main, central traffic corridor through the center of
Brookings started in 2017 and will be completed in 2018 by the South Dakota Department of Transportation
(SDDOT). The SDDOT has been replacing the aging road system while also improving safety and capacity. The
total project cost for the 2017 project is approximately $17 million and includes interstate bridge replacement
and the addition of pedestrian bicycle lanes and extensive landscape enhancements. The final phase of 6th Street
reconstruction between Main Avenue and Medary Avenue is scheduled for construction in 2020 at an estimated
cost of $3.7 million.
Storm Drainage ‐ Brookings continues incremental, annual work on a comprehensive multi‐year master plan for storm
drainage improvements which includes the following projects:
15th Street South & 7th Avenue South storm sewer.
5th Avenue Drainage Improvements.
Sixth Street storm sewer upgrade.
Lefevre Drive storm sewer pipe project.
Viaduct inlet/surfacing repairs/lighting.
6
Gateway Project ‐ The Gateway Project consists of monumental signage made of stone incorporating the new City logo
placed in the City’s “gateway” corridors welcoming visitors to Brookings. There are also signs throughout the City
identifying the beautiful parks and recreation areas available for the public to enjoy. Subsequent entryway landscape
amenities such as landscaping, signage, decorative street lighting, and bridge amenities will follow in the area of the main
interstate exit ramps following completion by the South Dakota Department of Transportation of highway improvements.
Airport Project ‐ The final phase of the multi‐year runway project is reconstructing Runway 17/35 to comply with FAA
standards. This project started construction in 2017 and will be finalized in 2018 at the estimated cost of $780,000. The
project is eligible for Federal funding through the Airport Improvement Program of the Federal Aviation Administration,
with 90% being funded with Federal funds, 5% State funds, and 5% City funds. The project includes new pavement,
lighting and striping. Brookings has the third busiest airport in the State for landings and take‐offs.
Electrical, Water and Wastewater Plant Improvements – Brookings Municipal Utilities (BMU) is in the final phase of a $6.5
million upgrade to the local electrical grid to upgrade substations, provide redundancy power, and bury previously
overhead power lines; all designed to improve electrical service reliability. In 2016, BMU completed a $30 million – 4‐
year upgrade and expansion of the wastewater treatment plant and pumping facilities to respond to new environmental
regulations and community growth. Similar upgrades to the water treatment plant(s) are in the preliminary facility
planning stages with construction over the next 5 years budgeted at $51 million. BMU is completing a $12 million
technology change in its wireless services under the Sprint PCS brand.
Public Safety
In 2019/2020 the Fire department plans to remodel the current South Station located on 32nd Street South into an indoor
training facility with room to store the compressed air trailer and the collapse trainer. The basic plan would provide for
an interior tow‐story cold smoke training area with movable walls and could be used for rope rescue and confined space
training drills year around. A new, 4‐bay fire station was added to better provide response to the growing southern area
of the community.
Health Care
Brookings Health System ‐The Brookings Health System Expansion and Renovation Project was completed in 2017. The
east hospital expansion, which added nearly 60,000 sq. ft. of new surgical, inpatient, obstetrics, pharmacy and imaging
areas, was completed in February. The renovation and repurposing of the 18,000 sq. ft. of the existing space, as well as
the new grand lobby, were completed in the Fall. The new facilities and expansion of services, including orthopedic
surgery, help provide the Brookings community and surrounding region with high quality healthcare close to home. The
Health System has purchased land adjacent the Health System campus, and plans to construct a new ambulance dispatch
facility.
Cultural and Recreational Facility Improvements
In 2017 the City in collaboration with the School District began working on a master plan for the renovation of the Bob
Shelden, Dwiggins‐Medary athletic complex. Planned improvements include new lighting, replacing the grandstand
seating area and press box, relocating the facility entry point, replacing dugouts and fencing, and possibly replacing the
natural grass field with artificial turf. This will be a multi‐year project with a potential ground breaking date in 2019 or
2020.
Improvements are slated for existing parks such as trail extensions, playground equipment upgrades and replacements,
and on‐going preventative maintenance of existing buildings, grounds, and facilities.
Retail Commercial expansion
The City is partnering with private developers to establish a retail and commercial development on the 25 acres of
property owned by the City at the intersection of Highway 14 and Interstate 29. The project is in the early stages of
planning, developing and attracting national retail franchises to develop in this location.
Civic Infrastructure
The City of Brookings is proud to partner with a wide variety of other governmental, civic, charitable, and service
organizations to optimize multi‐dimensional aspects for great quality of life. The City and County work together on
mutual transportation and development issues. The City and School District jointly share facilities, parks, playgrounds,
and programming for school‐age children. The City Recreation Department has 23 diverse partnerships with other
entities or special‐purpose organizations for athletic, cultural, recreational, and leisure opportunities. The City library
provides a wide variety of services and programs for lifelong learning. The City and South Dakota State University enjoy
an excellent ‘town‐and‐gown’ relationship with each mutually supporting their missions and sharing their success that
comes from a long history of partnerships. In addition to being an economic engine for the Brookings community, SDSU
provides a wellspring of opportunities beyond post‐secondary education to civic, cultural, athletic, and research
advancement.
7
8
9
City of Brookings
Year Ended December 31, 2017
Keith Corbett………………………………………………………………………………………… Mayor
Mary Kidwiler…………………………………………………………………………………………Deputy Mayor
Patty Bacon……………………………………………………………………………………………Council Member
Dan Hansen……………………………………………………………………………………………Council Member
Nick Wendell……………………………………………………………………………………………Council Member
Ope Niemeyer…………………………………………………………………………………………Council Member
Holly Tilton Byrne……………………………………………………………………………………Council Member
Jeffrey W. Weldon………………………………………………………………………………… City Manager
Kevin Catlin…………………………………………………………………………………………… Assistant City Manager
Steven Britzman………………………………………………………………………………………City Attorney
Shari Thornes…………………………………………………………………………………………City Clerk
Jackie Lanning…………………………………………………………………………………………City Engineer
Mike Struck…………………………………………………………………………………………… Community Development Director
Shawna Costello………………………………………………………………………………………Finance Director
Darrell Hartmann……………………………………………………………………………………Fire Chief
Donna Langland………………………………………………………………………………………Human Resources Director
Ashia Gustafson………………………………………………………………………………………Library Director
Janet Coplan……………………………………………………………………………………………Liquor Store Manager
Dan Brettschneider…………………………………………………………………………………Parks, Recreation & Forestry Director
Dave Erickson…………………………………………………………………………………………Police Chief
Todd Langland ……………………………………………………………………………………… Solid Waste Director
Matt Bartley……………………………………………………………………………………………Street Superintendent
Jason R. Merkley…………………………………………………………………………………… Health System Chief Executive Officer
Steve Meyer……………………………………………………………………………………………Utilities Executive Vice President &
General Manager
OFFICIALS OF THE CITY OF BROOKINGS
LEADERSHIP TEAM
10
Brookings Health
System Board
Citizens of
Brookings
Utilities Board
Engineer/
Airport
Utilities
*Electric
*Water
*Wastewater
*Telephone
Mayor &
City Council
City Manager/
IT
City ClerkBrookings Health
System
Finance FireHuman
Resources
Library LiquorParks,
Recreation
Forestry/
Golf/
Ice Arena/
Aquatics
Center
Police/
E-911/
Animal
Control
Solid
WasteStreet
City
Attorney
Event Center
Board
(Swiftel Center)
Community
Development
City of Brookings
December 31, 2017
CITY OF BROOKINGS ORGANIZATION CHART
11
12
Independent Auditor’s Report
The Honorable Mayor
and Members of the City Council
City of Brookings, South Dakota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund and the aggregate remaining fund
information of the City of Brookings, South Dakota (the City) as of and for the year ended December 31,
2017, and the related notes to the financial statements, which collectively comprise the City’s basic
financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not
audit the financial statements of the Brookings Health System Fund and the Brookings Municipal Utilities
Telephone, Electric and Wastewater Funds, which are major funds, and the Brookings Municipal Utilities
Water Fund, which represent 88%, 82% and 94%, respectively, of the total assets and deferred outflows
of resources, net position and revenues of the business-type activities. We also did not audit the financial
statements of the Brookings Health System Foundation, the discretely presented component unit of the
City. The financial statements of the Brookings Health System Fund, Brookings Municipal Utilities
Telephone, Electric, Water and Wastewater Funds, and Brookings Health System Foundation were
audited by other auditors, whose reports thereon have been furnished to us, and our opinions, insofar as
they relate to the amounts included for the above mentioned enterprise funds and the discretely presented
component unit, are based solely on the reports of the other auditors. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
13
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, the discretely presented component unit, each major fund and the
aggregate remaining fund information of the City of Brookings, South Dakota as of December 31, 2017,
and the respective changes in financial position, and where applicable, cash flows thereof for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, pension information, schedules of funding progress and budgetary information as
listed in the table of contents be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The accompanying supplementary and other information,
consisting of combining financial statements, the introductory and statistical sections, and the schedule of
expenditures of federal awards as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as listed in
the table of contents, is presented for purposes of additional analysis and is not a required part of the basic
financial statements.
The combining financial statements and schedule of expenditures of federal awards are the responsibility
of management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the combining financial statements and schedule of expenditures of federal
awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements, and accordingly, we do not express an opinion or provide any
assurance on them.
14
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we also have issued our report dated May 8, 2018,
on our consideration of the City’s internal control over financial reporting and our tests of its compliance
with certain provisions of laws, regulations, contracts and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the City’s internal control over financial reporting or on compliance. That report is an integral part of
an audit performed in accordance with Government Auditing Standards in considering the City’s internal
control over financial reporting and compliance.
Lincoln, Nebraska
May 8, 2018
15
City of Brookings
December 31, 2017
Management's Discussion and Analysis
This discussion and analysis presents an overview of the financial activities and financial position for the City of Brookings (the
“City”) for the year ended December 31, 2017. The information presented in this section should be considered in conjunction
with that presented in the basic financial statements and notes to the financial statements.
Financial Highlights
The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by
$352,695,592 (net position) for the calendar year reported.
The City's total ending net position of $352,695,592 this year compared to the prior year ending net position of
$335,874,277 reflects an increase of $16,821,315 during the calendar year.
Total net position is comprised of the following:
1. Net investment in capital assets, of $213,456,541 includes property and equipment, net of accumulated
depreciation and reduced for outstanding debt related to the purchase or construction of capital assets.
2. Net position of $17,492,158 is restricted by constraints imposed from outside the City such as debt covenants,
grantors, laws, or regulations.
3. Unrestricted net position of $121,746,893 represents the portion available to maintain the City’s continuing
obligations to citizens and creditors.
The City’s governmental activities reported total ending net position of $98,429,323 this year. This compares to the
prior year ending net position of $97,096,791 showing an increase of $1,332,532 during the calendar year.
Unrestricted net position of $16,898,022 at December 31, 2017 shows a $3,166,234 decrease from the prior year.
At the end of the current calendar year, unassigned fund balance for the General Fund was $6,333,144, or 42.6% of
total General Fund expenditures.
The City’s business‐type activities reported increased net position of $15,488,783 compared to the previous year,
ending the current year at $254,266,269. This increase in business‐type activities is somewhat similar to what a
private business might report as net profit. The increase reflects significant private donations to the Health System
for its remodel project.
The City’s total outstanding long‐term liabilities increased by $14,051,072 ending the current fiscal year at
$110,490,894 outstanding. This increase was due in mainly to borrowings related to the Health System’s expansion
and renovations.
Overview of the Financial Statements
This discussion and analysis serves as an introduction to the City’s basic financial statements, which consists of three
components: 1) government‐wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
The report also contains required supplementary information and other supplementary information in addition to the basic
financial statements.
Government‐wide financial statements. The government‐wide financial statements are designed to give users a broad
overview of the City’s finances, in a manner similar to that of a private‐sector business.
The Statement of Net Position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and
deferred inflows of resources, excluding fiduciary funds, with the difference reported as net position. Increases or decreases in
net position over time may serve as a useful indicator of whether the City’s financial position is improving or deteriorating.
16
City of Brookings
December 31, 2017
Management's Discussion and Analysis
The Statement of Activities shows how the City’s net position changed during the fiscal year. All changes in net position are
reported as soon as the underlying event that caused the change occurs, regardless of the timing of the related cash flows.
There are revenues and expenses reported in this statement for some items that will only result in cash flows in future fiscal
years; examples include uncollected taxes and vacation days that are earned, but not used.
Both of the government‐wide financial statements distinguish between functions that are mainly supported by taxes and
intergovernmental revenues (governmental activities) from the functions that are intended to recover all or a significant
portion of their costs through user fees and charges (business‐type activities). The governmental activities of the City include
general government, public safety, public works, health & welfare, culture & recreation, conservation & development, and debt
service. The business‐type activities of the City include the enterprise activities of electric, water, sewer, telephone, hospital,
liquor, solid waste, airport, golf course, and research & technology facility.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain financial control over resources
that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance‐related legal requirements. All of the funds of the City can be
divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government‐wide financial statements. However, unlike the government‐wide financial statements,
governmental fund financial statements focus on near‐term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a
government’s near‐term financing requirements.
Because the focus of the governmental funds is narrower than that of the government‐wide financial statements, it is useful to
compare the information presented for governmental funds with similar information presented for governmental activities in
the government‐wide financial statements. By doing so, readers may better understand the long‐term impact of the
government’s near‐term financing decisions. The governmental funds balance sheet and the statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds
and governmental activities.
The City maintained 22 individual governmental funds for 2017. Information is presented separately in the governmental funds
balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the
General Fund and the 75% Sales and Use Tax Fund which are considered to be a major funds. Data from the other 20
governmental funds are combined into a single aggregated presentation. Fund data for each individual nonmajor
governmental fund is provided in the form of combining statements following the required supplementary information.
The City adopts an annual budget for its governmental funds. A budgetary comparison statement has been provided as
required supplementary information for the major governmental funds (General Fund and 75% Sales and Use Tax Fund) to
demonstrate compliance with this budget.
Proprietary funds. The City maintains two different types of proprietary funds. The first type is enterprise funds, which are
used to report the same functions presented as business‐type activities in the government‐wide financial statements.
Proprietary fund financial statements provide the same type of information as the government‐wide financial statements, only
in more detail. Information is presented separately in the proprietary fund financial statements for the electric, wastewater,
health system, and telephone funds, all of which are considered to be major funds. Data from the remaining enterprise funds is
combined into a single, aggregated presentation. Individual fund data for each of these nonmajor enterprise funds is included
in the combining and individual fund section of this report.
Internal service funds are the other type of proprietary funds. Internal service funds are used to accumulate and allocate costs
internally among the City’s various functions for self‐insurance. Because the self‐insurance fund predominately benefits the
business‐type functions, it has been included with the business‐type activities portion of the presentation of the government‐
wide statements.
17
City of Brookings
December 31, 2017
Management's Discussion and Analysis
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City
government. Fiduciary funds are not reflected in the government‐wide financial statements because the resources of those
funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the
data provided in the government‐wide and fund financial statements.
Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information. This section includes a budgetary comparison schedule and related notes for the General
Fund, select pension information, and the schedule of funding progress for postemployment benefit plans.
The combining statements referred to earlier in connection with nonmajor governmental funds and nonmajor enterprise funds
are presented immediately following the required supplementary information.
Government‐Wide Financial Analysis
Net position. Net position over time serves as a useful indicator of a government’s financial position. At the close of 2017,
assets and deferred outflows exceeded liabilities by $352,695,592. This reflects an increase in the City’s combined net position
of 5.0% between fiscal year 2016 and 2017.
2016 2017 2016 2017 2016 2017
Current and Other Assets $28,185,775 $32,222,673 $116,716,300 $133,383,495 $144,902,075 $165,606,168
Capital Assets 93,495,509 96,342,232 201,224,641 215,410,790 294,720,150 311,753,022
Total Assets 121,681,284 128,564,905 317,940,941 348,794,285 439,622,225 477,359,190
Deferred Outflows of
Resources 3,336,746 3,765,218 11,234,952 13,247,941 14,571,698 17,013,159
Total Assets and Deferred
Outflows of Resources 125,018,030 132,330,123 329,175,893 362,042,226 454,193,923 494,372,349
Other Liabilities 2,521,631 5,323,947 18,739,122 22,116,649 21,260,753 27,440,596
Long‐Term Liabilities 25,385,626 27,936,737 71,054,196 82,554,157 96,439,822 110,490,894
Total Liabilities 27,907,257 33,260,684 89,793,318 104,670,806 117,700,575 137,931,490
Deferred Inflows of Resources 13,982 640,116 605,089 3,105,151 619,071 3,745,267
Total Liabilities and Deferred 27,921,239 33,900,800 90,398,407 107,775,957 118,319,646 141,676,757
Inflows of Resources
Net Investment in Ca pital Assets 72,145,788 76,993,653 136,023,245 136,462,888 208,169,033 213,456,541
Restricted 4,886,747 4,537,648 7,771,643 12,954,510 12,658,390 17,492,158
Unrestricted 20,064,256 16,898,022 94,982,598 104,848,871 115,046,854 121,746,893
Total Net Position 97,096,791 98,429,323 238,777,486 254,266,269 335,874,277 352,695,592
Beg. Net Position 92,017,334 97,096,791 226,138,837 238,777,486 318,156,171 335,874,277
Change in Net Position $5,079,457 $1,332,532 $12,638,649 $15,488,783 $17,718,106 $16,821,315
Percentage Change 5.5% 1.4% 5.6% 6.5% 5.6% 5.0%
Condensed Statements of Net Position
Governmental
Activities
Business‐Type
Activities Total
18
City of Brookings
December 31, 2017
Management's Discussion and Analysis
The Statement of Net Position reports all financial and capital resources. The statement presents the assets, deferred outflows
of resources, liabilities, and deferred inflows of resources in order of relative liquidity. The liabilities with maturities greater
than one year are reported in two components – the amount due within one year and the amount due in more than one year.
The long‐term liabilities of the City, consisting primarily of compensated absences payable, sales tax revenue bonds payable,
loans payable, and capital leases have been reported in this manner on the Statement of Net Position. The difference between
the City’s assets and deferred outflow of resources, and the liabilities and deferred inflow of resources is equal to its net
position.
By far the largest portion (60.5%) of the City’s net position is represented by $213.5 million in investment in capital assets (e.g.,
land, buildings, infrastructure, and equipment); less any related debt used to acquire those assets that are still outstanding.
The City uses these capital assets to provide services to citizens; therefore, these assets are not available for future spending.
Although the City’s net investment in capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate
these liabilities.
Restricted net position makes up 5.0% of the total net position. These assets are subject to external restriction on how they
may be used.
The remaining unrestricted balance of $121.7 million (34.5%) may be used to meet the government’s ongoing obligations to
citizens and creditors. Certain balances within the unrestricted net position have internally imposed designations or limitations
which may further limit the purpose for which such net position may be used.
19
City of Brookings
December 31, 2017
Management's Discussion and Analysis
Changes in net position. The increase in net position for 2017 was $16,821,315. The Governmental Activities Net Position
increased $1,332,532 and the Business‐Type Activities Net Position increased $15,488,783. The Governmental Activities net
position increased in 2017 due to controlled spending and a slight increase in transfers from Business‐Type funds. The
Business‐Type Activities increased their net position even though revenues were flat due to holding expenditures to a modest
increase.
2016 2017 2016 2017 2016 2017
Revenues
Program Revenues
Charges for Services $3,448,488 $2,718,111 $138,518,421 $144,826,388 $141,966,909 $147,544,499
Operating Grants 255,425 344,154 20,766 19,988 276,191 364,142
Capital Grants 1,822,082 2,283,328 3,246,363 2,847,446 5,068,445 5,130,774
General Revenues
Taxes 19,247,664 19,706,541 ‐ ‐ 19,247,664 19,706,541
State Shared Revenues 220,472 189,586 ‐ ‐ 220,472 189,586
Investment Earnings 126,700 116,358 473,140 879,148 599,840 995,506
Miscellaneous 1,906,424 1,548,447 783,252 247,029 2,689,676 1,795,476
Total Revenues 27,027,255 26,906,525 143,041,942 148,819,999 170,069,197 175,726,524
Expenses
General Government 3,105,729 2,683,335 ‐ ‐ 3,105,729 2,683,335
Public Safety 5,565,159 4,982,599 ‐ ‐ 5,565,159 4,982,599
Public Works 6,743,700 6,135,577 ‐ ‐ 6,743,700 6,135,577
Health and Welfare 109,111 62,421 ‐ ‐ 109,111 62,421
Culture and Recreation 7,506,553 8,020,666 ‐ ‐ 7,506,553 8,020,666
Conservation and Development 901,572 6,761,176 ‐ ‐ 901,572 6,761,176
Interest charges 826,085 737,456 ‐ ‐ 826,085 737,456
Electric Fund ‐ ‐ 24,525,853 24,515,516 24,525,853 24,515,516
Health System Fund ‐ ‐ 57,019,809 60,558,629 57,019,809 60,558,629
Telephone Fund ‐ ‐ 30,825,559 29,219,330 30,825,559 29,219,330
Liquor Fund ‐ ‐ 3,859,242 3,678,655 3,859,242 3,678,655
Water Fund ‐ ‐ 2,952,599 2,888,204 2,952,599 2,888,204
Wastewater Fund ‐ ‐ 3,973,778 4,584,074 3,973,778 4,584,074
Airport Fund ‐ ‐ 1,252,509 1,195,489 1,252,509 1,195,489
Golf Fund ‐ ‐ 609,864 558,579 609,864 558,579
Solid Waste Fund ‐ ‐ 2,444,615 2,188,944 2,444,615 2,188,944
Research and Technology Fund ‐ ‐ 129,354 134,559 129,354 134,559
Total Expenses 24,757,909 29,383,230 127,593,182 129,521,979 152,351,091 158,905,209
Excess
Before Transfers 2,269,346 (2,476,705) 15,448,760 19,298,020 17,718,106 16,821,315
Transfers 2,810,111 3,809,237 (2,810,111) (3,809,237) ‐ ‐
Change in Net Position 5,079,457 1,332,532 12,638,649 15,488,783 17,718,106 16,821,315
Beginning Net Position 92,017,334 97,096,791 226,138,837 238,777,486 318,156,171 335,874,277
Ending Net Position 97,096,791$ 98,429,323$ 238,777,486$ 254,266,269$ 335,874,277$ 352,695,592$
Condensed Statements of Activities
Governmental Business‐Type
Activities Activities Total
Governmental activities. Revenues for the City’s governmental activities were $26,906,525. Taxes accounted for 73.2% of
the overall revenues generated in 2017 compared to 71.2% in 2016. Capital grants and contributions increased by $461,246
due to more construction projects where large portions were the responsibility of the developers and areas were funded with
Federal and State grants. Miscellaneous revenue decreased by 18.8% or $357,977 due to a sale of industrial land in 2016 where
no sales occurred in 2017. Charges for services decreased by 21.2% from the previous year, in part because in 2017 the City
agreed to reduce an assessment due by 45% on a project completed in a previous year thereby reducing the amount of
assessment revenue in 2017. In addition, the City’s event center revenue was down ($191,212) from the previous year due low
attendance at some concerts, fewer special events booked, and unanticipated weather conditions. Other revenue sources
reflected a combination of increases and decreases with a minimal net effect.
20
City of Brookings
December 31, 2017
Management's Discussion and Analysis
The most significant source of revenue to the City is based on taxable retail sales in the community (sales & use tax). The City
experienced a flat year with the increase only $3,216 or .02% in sales tax revenue compared to the prior year. The City’s Ends
policy takes a conservative approach to budgeting and provides that the City average the last five years’ tax revenues and
budget a 2.5% increase above that average. The net increase in sales & use tax revenue was reflected as follows: .18% or
$11,637 increase in 1st penny sales and use tax, .19% or $3,139 increase in the 25% portion of the 2nd penny sales and use tax,
.18% or $8,804 increase in the 75% portion of the 2nd penny sales and use tax, and a ‐2.78% or ($20,364) decrease in the 3rd
penny Bed and Booze tax. The decrease can be attributed in part to the reduction at the event center revenue.
Governmental Activities expenses increased by 18.7% or $4,625,321 from 2016. The increase was due in large part to a $5.5
million donation made by the City to South Dakota State University for their addition to the Performing Arts Center. The
contribution is reflected in Conservation and Development. The other categories had a combination of overall increases and
decreases.
Business‐type activities. Overall revenues of the City’s Business‐Type Activities increased 4.0% in 2017 compared to a
decrease of .6% in 2016. Charges for services increased $6.3 million, or 4.6%. Operating and capital contribution/grants
decreased by $399,675 and investment revenue increased by $406,008.
Operating expenses increased by approximately $1.93 million or 1.5% in 2017 compared to a 4.9% increase in 2016. The
increase is a combination of overall increases, with the largest increase in the health system fund which increased by $3.5
million or 6.2% over 2016. This increase can be attributed to the additional expenses associated with the addition to the
hospital.
Financial Analysis of the City’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements.
Some funds are required by statute while others are established internally to assist management in accounting for certain
activities. The City maintains thirty‐three funds – general fund, nine special revenue funds, six debt service funds, six capital
project funds, ten business‐type funds and one internal service fund.
Governmental Funds
The accounting focus of the City’s governmental funds is to provide information on near‐term inflows, outflows and balance of
spendable resources. Such information is useful in assessing the City’s financing activities and abilities. In particular, the
unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of
the fiscal year.
General Fund. The General Fund is the primary operating fund of the City. The fund balance increased by $1,069,207 or 7.3%
from 2016. This increase is due mainly to less capital spending within the general fund.
In 2017, 1st penny sales tax increased by $11,637 and property tax by $79,784 for a combined total of .96%. Miscellaneous
revenue decreased by $221,333 due to a sale of industrial development land in 2016 where no land was sold in 2017. Overall,
revenues as a whole decreased by ‐1.39% or ($181,787).
General Fund expenditures decreased by $1.5 million or 9.4%. The decrease is due to decrease in capital spending from the
General Fund. Beginning in 2017, instead of transferring funds from the sales tax funds to the General Fund for capital
purchases, the purchases were made directly out of the Sales & Use Tax funds.
75% Sales and Use Tax Fund. The 75% Sales and Use Tax Fund is used to account for 75% of the 2nd penny sales tax and is
used for capital improvements. The fund balance decreased by $33,051 or 1.8%. This decrease was due to increased project
expense.
The expenditures increase by $7.8 million or 2.8% due largely to a $5.5 million contribution made to South Dakota State
University for the expansion of the Performing Arts Center, a facility that will enhance the community as a whole.
21
City of Brookings
December 31, 2017
Management's Discussion and Analysis
Total revenues increased by $5.9 million. Despite tax revenues being flat for 2017, private contributions increased by $352,887
due a citizen cost sharing with the City to refurbish the old Carnegie Library, and other financing sources (proceeds from debt)
increased by $5.9 million.
Proprietary (business‐type) Funds
Electric Fund. In 2017, the Electric fund net position increased by $2,968,448, compared to an increase of $1,311,769 in 2016.
Operating revenues increased by $724,000 primarily due to a 4% increase in user charges. Kilowatt‐hour sales were similar to
the prior year, increasing .05% in 2017. Operating expenses increased by $55,000 or .2% in 2017. An increase of $614,000
was due to the cost of purchased power from suppliers which was offset by a decrease of $527,000 in personal services.
Operating transfers totaling $2,055,000 were made from the Electric fund to the General Fund in 2017.
Wastewater Fund. The Wastewater fund net position increased by $1,516,666 in 2017 and $2,146,176 in 2016. Capital
contributions of $500,990 in 2017 and $613,821 in 2016 were responsible for 33.0% and 28.6% of the increase in net position,
respectively. Operating revenues increased by $574,000 in 2017. A 7.5% overall increase to user charges was made to units
billed to customers in 2017. Operating expenses increased $249,000 in 2017, due primarily to higher maintenance expense for
newly constructed facilities.
Health System Fund. Brookings Health System increased its net position by $6,023,151 in 2017 and $4,893,495 in 2016. The
2017 increase was due to greater utilization of the hospital services. The Health System’s charges for services increase by $5.9
million due to increased volumes and improved Medicare revenue from the reinstatement of the Rural Community Hospital
Demonstration (RCHD) project. Capital contribution/grants decreased by ($1.5) million due to a large capital project which
had significant private donations from the community in 2016
Telephone Fund. The Telephone fund net position increased by $1,743,160 in 2017 compared to an increase of $1,489,127 in
2016. Operating revenues decreased by $1.1 million due to decreased usage of the telecommunication facilities. Operating
expenses decreased by $1.4 million over the prior year due to lower reported personal services and lower contractual
expenses. Operating transfers totaling $200,000 were made from the Telephone Fund to the General Fund in 2017.
General fund budgetary highlights
Over the course of the year, the City Council revised the City budget three times. Supplemental appropriations and contingency
transfers were approved for unanticipated, yet necessary, expenses to provide for items necessary for the health and welfare of
its citizens.
The final General Fund expenditure budget reflects an increase to the original budget by $526,202, or about 3.3%. Budget
amendments were made to increase expenditures for salaries and capital outlay which included the following: to authorize
spending grant funds received in 2017 for K‐9 vehicle and equipment, bullet proof glass, and AED’s, purchase an asphalt
reclaimer, pickup, and unexpected equipment replacement purchases. Increases were also necessary to account for
uncompleted capital items carried over from the previous year such as the new restroom at Sexauer Park, remodel of the old
Carnegie Building, Aquatic Center sandblasting and painting, comprehensive master plan, Gateway street lights, and railroad
crossing arms to name a few.
Actual General Fund expenditures were $1,651,839 less than the adjusted budget. Some departments didn’t complete all
scheduled projects in 2017 or budgeted purchases came in lower than anticipated, therefore were under budget as follows:
community development was $91,038 under budget; highways and streets was $300,136 under budget; recreation was
$103,544 under budget; and parks was $534,830 under budget. Overall, the departments held their spending in line with the
budget for 2017.
Actual General Fund revenues were $220,514 more than the adjusted budget due to following the conservative Governance
and Ends Policy relating to budgeted revenues.
22
City of Brookings
December 31, 2017
Management's Discussion and Analysis
Capital Asset Administration
Major activity within the Governmental Activities in 2017 included the following:
Land was purchased that will be used for right‐of‐way, and expansion of the City County Administration Center parking lot.
Construction in progress increased due to the 6th Street project from 20th Ave to 34th Ave, and the traffic signal project.
Buildings increased due to the completion of the new south $1.2 million south main Fire Station. Continuing infrastructure
projects include the continued development of new residential areas. This included street, curb, gutter, and sewer
improvements, much of which is donated to the City by the developer. The value added to infrastructure in 2017 was $1.4
million of which $932,000 was donated, however the depreciation expense exceeded the additions for an overall decrease in
infrastructure net of depreciation.
Major equipment purchased or replaced included 2 replacement police vehicles and 1 additional police vehicle; 1 additional
civil defense siren; replacement of 1 fire tender truck; 2 replacement vehicles for engineering; 1 replacement vehicle for
community development; a variety of machinery and equipment in the street department such as an asphalt reclaimer, 2 new
pickups, motor grader sings and reversible plow, truck with box/hoist; replace pickup for animal control; new scoreboard
display for the Swiftel Center; replacement of 2 pickups, 3 mowers, 1 all‐terrain utility vehicle for the Parks department; and a
truck with box for the Forestry department.
Major activity in the Business‐Type Activities in 2017 included the following:
In 2017, the Electric fund increased capital assets by approximately $2.5 million for the acquisition and construction of assets.
The purchase of a trencher and service truck accounted for $165,0000. The on‐going upgrade of the metering system resulted
in expenditures of $257,000. The balance was spent in the distribution system facilities to meet the needs of customers.
Total Total
Dollar Percentage
Change Change
Capital Assets (Net of Depreciation) 2016 2017 2016‐2017 2016‐2017
Land 10,015,411$ 10,115,950$ 100,539$ 1.0%
Construction in Progress 881,647 2,093,395 1,211,748 137.4%
Buildings and Other Improvements 32,359,162 33,643,264 1,284,102 4.0%
Machinery and Equipment 8,724,785 9,080,355 355,570 4.1%
Infrastructure 41,514,504 41,409,268 (105,236) ‐0.3%
Total Capital Assets (Net) 93,495,509$ 96,342,232$ 2,846,723$ 3.0%
Governmental
Activities
Dollar Percentage
Change Change
Capital Assets (Net of Depreciation) 2016 2017 2016‐2017 2016‐2017
Land 4,770,567$ 4,811,817$ 41,250$ 0.9%
Construction in Progress 31,729,113 3,446,575 (28,282,538) ‐89.1%
Buildings and Other Improvements 154,830,810 191,638,687 36,807,877 23.8%
Machinery and Equipment 9,894,151 15,513,711 5,619,560 56.8%
Total Capital Assets (Net) 201,224,641$ 215,410,790$ 14,186,149$ 7.0%
Total Total
Business‐type
Activities
23
City of Brookings
December 31, 2017
Management's Discussion and Analysis
The Telephone fund increased capital assets by approximately $4.2 million for the acquisition and construction of capital assets
in 2017. Upgrades included the continuing deployment of fiber facility, a variety of electronics and infrastructure
improvements, and increase in wireless capacities, and the continued deployment of broadband services.
The Wastewater fund increased capital assets by approximately $938,000 in the acquisition and construction of assets in 2017.
The purchase of a sewer jet machine for $324,900, the rehab of aging sewer mains for $300,000, and the replacement of mains
on 6th St from 22nd Ave to 34th Ave for $160,000 were the majority of the capital additions.
In 2017 the Brookings Health System capital assets increased $11.59 million due to the continuing construction in progress and
partition completion of the hospital renovation and addition of a medical office building.
The Solid Waste fund had equipment purchases of $425,900 including a replacement of a garbage truck and pickup.
The Airport capital asset additions totaled $55,100. The reconstruction of runway 17/35 started in 2016 and continued in 2017,
other projects/purchases included the taxilane in the Ag‐Area, purchase of a new paint striper, and bobcat. Most of the cost for
the runway project was paid for with Federal Airport Improvement Project funds.
See note 7 for additional information regarding capital assets.
Long‐Term Liabilities
At December 31, the City had the following long‐term liabilities:
Dollar Percentage
2016 2017 2016 2017 Amount Amount
Revenue Bonds 21,795,220$ 19,487,859$ 6,185,336$ 5,865,471$ (2,627,226)$ ‐9.4%
Loans ‐ 5,800,000 29,143,534 28,495,805 5,152,271 17.7%
Capital leases ‐ 260,970 26,696,924 43,297,098 16,861,144 63.2%
OPEB 1,417,833 1,493,993 1,110,929 1,190,116 155,347 6.1%
Amount Due Under
Joint Agreements ‐ ‐ 958,735 1,555,350 596,615 62.2%
Landfill
Closure/Postclosure ‐ ‐ 559,223 606,049 46,826 8.4%
Compensated
Absences 898,563 893,915 1,416,357 1,544,268 123,263 5.3%
Ne t Pension Liability 1,274,010 ‐ 4,983,158 ‐ (6,257,168) 100.0%
Total Long‐Term Liabilities 25,385,626$ 27,936,737$ 71,054,196$ 82,554,157$ 14,051,072$ 14.6%
Total Change
Activities Activities
Governmental Business‐Type
The City has outstanding Sales Tax Revenue Bonds in the amount of $6,510,000 at the end of 2017. The bonds are secured by
revenue generated from the 2nd Penny Sales & Use Tax Fund. These bonds were issued to advance refund outstanding Sales
Tax Revenue Bonds Series 2001, 2003 and 2005, and in addition fund the City’s portion of the construction of the City/County
Administration building. The bonds are scheduled to be retired in 2022.
The City has outstanding Sales Tax Revenue Bonds in the amount of $9,149,693 at the end of 2017. The bonds are secured by
revenue generated from the 2nd Penny Sales & Use Tax Fund. These bond were issued to finance a variety of capital purchases
and construction in 2014. The bonds are scheduled to be retired in 2033.
The City has an outstanding State Revolving Fund Bond in the amount of $509,200. This bond is secured by TIF‐1 property tax
increment revenues and also by revenue generated by the 2nd Penny Sales & Use Tax Fund. The City is the developer and
24
City of Brookings
December 31, 2017
Management's Discussion and Analysis
therefore is responsible for any bond repayment in excess of the property tax revenue generated by the Tax Increment District.
This bond was issued to construct infrastructure at the Innovation Campus which is designed to attract new innovative
companies who can take advantage of the talent at South Dakota State University.
The City has outstanding State Revolving Fund Bonds in the amounts of $301,007, $276,305, $183,957, $1,686,708, and
$423,021. These bonds are secured by Storm Drainage fees assessed to property owners. These bonds were issued to
construct storm drainage projects in the Southland addition, Pheasant’s Nest addition, Nelson addition, Camelot addition and
Division Ave.
The City has an outstanding bond from South Dakota SDHDA in the amount of $277,825. This bond is secured by TIF ‐3
property tax increment revenues with the developer of the project as guarantor of the bond. Therefore, the developer is
responsible for any bond repayments in excess of available property tax revenue generated by the Tax Increment District.
The City has an outstanding Tax Increment Revenue Note in the amount of $110,218. This note is secured by TIF‐4 property tax
increment revenues with the developer of the project as guarantor of the bond. Therefore, the developer is responsible for any
repayments in excess of available property tax revenue generated by the Tax Increment District.
The City has zero‐interest outstanding loans in the amount of $5,400,000 and $400,000. These loans are to be repaid from the
75% Sales and Use Tax and scheduled for completion in 2027 and 2021 respectively.
The City has a capital acquisition lease for purchase of a scoreboard display to be paid using the Swiftel Center funds in the
amount of $260,970.
The City has an electric revenue bond with outstanding principal of $885,471. This bond was used for construction and
modifications of the electric utility system to include the purchase and installation of substation components that enhance the
ability to serve the needs of the South Dakota State University campus and users of the electric utility generally. The interest
rates for the bonds are not to exceed 5.95% with final maturity due June 1, 2028.
The City has an electric revenue bond with outstanding principal of $4,980,000. This bond was issued for construction of a
115KV transmission line, reconstruction of three substations and the installation of four 115/12.5KV transformers and related
improvements. The interest rates for the bonds are 0.65% to 3.9% with final maturity due December 1, 2031.
The City has an outstanding State Revolving Fund (SRF) Loan in the amount of $28,495,805. The loan is secured by revenues of
the wastewater fund. This loan was issued to construct improvements to the wastewater treatment facilities and collection
system. The interest rate on the loan is 3.25% with final maturity October 15, 2044.
The City has capital acquisition leases for purchase of utility plant to be paid using the telephone, water, wastewater, and
electric funds in the amount of $4,525,000.
The City has outstanding Certificates of Participation for the construction of the skilled nursing facility in the amount of
$9,058,204.
The City has Certificates of Participation for the construction of the new medical office building and renovation of existing
hospital in the amount of $7,781,863 and $21,932,031, respectively.
The City is liable for the accrued compensated absences of $893,915 within the Governmental Funds and $1,544,268 within the
Enterprise Funds payable to all full‐time employees who have been employed for more than 6 months.
See note 8 for additional information regarding long‐term liabilities.
Economic Outlook and Next Year’s Budget
The 2017 Sales & Use Tax revenues were up .18% from the 2016 revenue; this flat change is attributed to a sluggish local and
farm economy. Although the results were disappointing, due to conservative budgeting as required under the City’s Ends
25
City of Brookings
December 31, 2017
Management's Discussion and Analysis
Policy, the tax revenue did meet 2017 budgeted revenue. The 2018 tax revenue was budgeted with a projected 3.0% growth
from the 2017 budget.
The 2017 property tax levy (payable in 2018) increased .002 per thousand in valuation. In the last year the taxable valuation for
the City of Brookings has increased $40.2 million.
For 2018 the City budgeted a 2.25% overall salary increase plus movement through steps for employees. At the time the
budget was completed, due to our claims experience health insurance premiums were budgeted to remain the same as that of
2017. Vision premiums remained virtually the same as 2017 as did dental coverage.
The 2018 budget increased the full‐time workforce by one half in the Police department by starting an additional patrol officer
mid‐year. In addition, a full time Street clerical position was replaced with a part‐time position and an additional street
maintenance worker.
The chart at right shows the comparison of
the 2018 budget with the 2017 budget for
all governmental funds. The increase in
personnel services reflects the cost of
living adjustment (COLA) increase and
regular step increases. The increase in
current operations reflects additional
operating expenses, necessary
maintenance and upkeep of aging
facilities. The decrease in subsidies to
other is a result of the near completion for
the expansion projects of two local
companies who receive economic
incentive payments from the City sales tax. (see note 19). The increase in capital outlay reflects construction of planned road
projects, storm drainage projects, continued work on the Brookings Gateway project, and starting the second phase of the S.
Main project. Transfers increased slightly with the addition of the 1% of capital spending going into the Public Art fund.
As with the governmental funds,
increase in personnel services reflects
the cost of living adjustment (COLA)
increase and regular step increases.
Operating expenses increased slightly
due to additional repairs and
maintenance, and an increase in hauling
fees at the landfill. Capital expenses
significantly decrease due to the
substantial completion of runway 17/35
which is planned for 2017/2018. A large portion of the funding for the airport project will come from Federal and State grant
funds.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview
of the City’s finances and to demonstrate the City’s accountability for the monies it receives. If you have questions about this
report or need additional information, contact the City of Brookings Finance Office, 520 3rd Street Suite 230, Brookings, SD
57006.
2017 2018 %
BUDGET BUDGET CHANGE
Personnel $10,252,634 $ 10,646,228 3.8%
Current Operating 8,497,751 8,690,925 2.3%
Subsidies to Other 2,278,750 1,879,700 ‐17.5%
Capital Outlay 7,408,220 11,201,585 51.2%
Debt Service 2,714,096 2,698,942 ‐0.6%
Transfers 2,315,541 2,576,635 11.3%
ALL GOVERNMENTAL FUNDS
(Liquor‐Airport‐SWC‐2017 2017 %
SWD‐Golf ‐R&T Center)BUDGET BUDGET CHANGE
Personnel $1,757,629 $1,807,584 2.8%
Current Operating 4,843,201 5,064,901 4.6%
Capital 2,060,100 1,217,200 ‐40.9%
Transfers 1,124,961 1,206,211 7.2%
ENTERPRISE FUNDS
26
City of Brookings
December 31, 2017
Statement of Net Position
Component
Primary Government Unit
Governmental Business‐Type Health System
Activities Activities Total Foundation
ASSETS
Cash and cash equivalents 17,128,858$ 64,303,123$ 81,431,981$ 268,799$
Investments‐CDs 375,384 25,170,320 25,545,704 ‐
Investments 5,210,520 3,141,990 8,352,510 ‐
Receivables, net 1,589,084 18,308,964 19,898,048 1,375,611
Due from other governments 1,572,921 53,503 1,626,424 ‐
Internal balances 815,472 (815,472) ‐ ‐
Land held for resale 2,586,598 ‐ 2,586,598 ‐
Inventories 74,589 5,032,519 5,107,108 ‐
Deposits 355,852 ‐ 355,852 ‐
Prepaid expenses 558,508 1,007,619 1,566,127 ‐
Prepaid bond insurance 44,534 ‐ 44,534 ‐
Restricted cash and cash equivalents 1,839,090 1,399,782 3,238,872 473,527
Restricted investments‐CDs 38,138 14,808,961 14,847,099 ‐
Other assets ‐ 842,422 842,422 ‐
Net pension asset 33,125 129,764 162,889
Capital assets:
Capital assets not being depreciated 12,209,345 8,258,392 20,467,737 ‐
Capital assets being depreciated, net 84,132,887 207,152,398 291,285,285 ‐
Total capital assets 96,342,232 215,410,790 311,753,022 ‐
Total assets 128,564,905 348,794,285 477,359,190 2,117,937
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 3,363,968 13,247,941 16,611,909 ‐
Loss on debt refunding 401,250 ‐ 401,250 ‐
Total deferred outflows of resources 3,765,218 13,247,941 17,013,159 ‐
Total assets and deferred outflows of resources 132,330,123 362,042,226 494,372,349 2,117,937
LIABILITIES
Accounts payable 2,095,301 18,933,175 21,028,476 287
Accrued expenses 266,911 2,375,910 2,642,821 707
Accrued interest 62,400 563,945 626,345 ‐
Other current liabilities ‐ 9,000 9,000 ‐
Due to other governments 51,326 66,500 117,826 ‐
Customer deposits ‐ 168,119 168,119 ‐
Unearned revenue 2,848,009 ‐ 2,848,009 ‐
Noncurrent liabilities:
Portion due or payable within one year:
Bonds payable 2,140,509 328,525 2,469,034 ‐
Loans payable 200,000 671,357 871,357 ‐
Capital leases 25,613 1,817,708 1,843,321 ‐
Compensated absences 300,000 1,175,845 1,475,845 ‐
Portion due or payable after one year:
Bonds payable 17,347,350 5,536,946 22,884,296 ‐
Loans payable 5,600,000 27,824,448 33,424,448 ‐
Capital leases 235,357 41,479,390 41,714,747 ‐
OPEB payable 1,493,993 1,190,116 2,684,109 ‐
Amount due under joint operating agreement ‐ 1,555,350 1,555,350 ‐
Accrued landfill closure and
postclosure costs ‐ 606,049 606,049 ‐
Compensated absences 593,915 368,423 962,338 ‐
Total liabilities 33,260,684 104,670,806 137,931,490 994
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows 640,116 2,501,034 3,141,150 ‐
Proceeds from sales of future revenues ‐ 604,117 604,117 ‐
Total liabilities and deferred inflows of resources 33,900,800 107,775,957 141,676,757 994
NET POSITION
Net investment in capital assets 76,993,653 136,462,888 213,456,541 ‐
Restricted for:
Debt service and covenants 219,815 1,398,227 1,618,042 ‐
Insurance deposit 355,852 ‐ 355,852 ‐
Other purposes (by donations)59,925 ‐ 59,925 1,849,138
SDRS pension purposes 2,756,977 10,876,671 13,633,648 ‐
Enabling legislation 1,145,079 ‐ 1,145,079 ‐
Landfill closure and post closure ‐ 679,612 679,612 ‐
Unrestricted 16,898,022 104,848,871 121,746,893 267,805
Total net position 98,429,323$ 254,266,269$ 352,695,592$ 2,116,943$
The notes to the financial statements are an integral part of this statement
27
City of Brookings
Year Ended December 31, 2017
Statement of Activities
Program Revenues
Operating Capital Primary Government Component Unit
Charges for Grants and Grants and Governmental Business‐Type Health System
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Foundation
Primary government:
Governmental activities:
General government 2,683,335$ 109,310$ 29,621$ ‐ $ (2,544,404)$ ‐ $ (2,544,404)$ ‐ $
Public safety 4,982,599 96,173 221,772 208,793 (4,455,861) ‐ (4,455,861) ‐
Public works 6,135,577 161,414 6,837 1,655,294 (4,312,032) ‐ (4,312,032) ‐
Health and welfare 62,421 12,240 ‐ ‐ (50,181) ‐ (50,181) ‐
Culture and recreation 8,020,666 2,338,974 85,924 419,241 (5,176,527) ‐ (5,176,527) ‐
Conservation and development 6,761,176 ‐ ‐ ‐ (6,761,176) ‐ (6,761,176) ‐
Interest and fiscal charges 737,456 ‐ ‐ ‐ (737,456) ‐ (737,456) ‐
Total governmental activities 29,383,230 2,718,111 344,154 2,283,328 (24,037,637) ‐ (24,037,637) ‐
Business‐type activities:
Electric 24,515,516 28,502,743 ‐ 862,229 ‐ 4,849,456 4,849,456 ‐
Health System 60,558,629 65,773,982 19,988 521,880 ‐ 5,757,221 5,757,221 ‐
Telephone 29,219,330 31,162,913 ‐ ‐ ‐ 1,943,583 1,943,583 ‐
Liquor 3,678,655 4,132,486 ‐ ‐ ‐ 453,831 453,831 ‐
Water 2,888,204 5,394,391 ‐ 249,563 ‐ 2,755,750 2,755,750 ‐
Wastewater 4,584,074 5,537,130 ‐ 500,990 ‐ 1,454,046 1,454,046 ‐
Airport 1,195,489 47,299 ‐ 712,784 ‐ (435,406) (435,406) ‐
Golf 558,579 385,897 ‐ ‐ ‐ (172,682) (172,682) ‐
Solid Waste 2,188,944 3,721,235 ‐ ‐ ‐ 1,532,291 1,532,291 ‐
Research and Technology 134,559 168,312 ‐ ‐ ‐ 33,753 33,753 ‐
Total business‐type activities 129,521,979 144,826,388 19,988 2,847,446 ‐ 18,171,843 18,171,843 ‐
Total primary government 158,905,209$ 147,544,499$ 364,142$ 5,130,774$ (24,037,637) 18,171,843 (5,865,794) ‐
Component unit:
Health System Foundation 668,834$ 117,771$ 199,557$ ‐$ (351,506)
General revenues:
Taxes:
Property taxes 5,181,164 ‐ 5,181,164 ‐
Sales taxes 14,164,131 ‐ 14,164,131 ‐
Other taxes 361,246 ‐ 361,246 ‐
State shared revenues 189,586 ‐ 189,586 ‐
Unrestricted investment earnings 116,358 879,148 995,506 ‐
Gain on disposition of capital assets ‐ 327 327 ‐
Miscellaneous 1,548,447 246,702 1,795,149 ‐
Transfers 3,809,237 (3,809,237) ‐ ‐
Total general revenues and transfers 25,370,169 (2,683,060) 22,687,109 ‐
Change in net position 1,332,532 15,488,783 16,821,315 (351,506)
Net position ‐ beginning 97,096,791 238,777,486 335,874,277 2,468,449
Net position ‐ ending 98,429,323$ 254,266,269$ 352,695,592$ 2,116,943$
The notes to the financial statements are an integral part of this statement
Net (Expense) Revenue and Changes in Net Position
28
Balance Sheet ‐ Governmental Funds
Other Total
General 75% Sales & Use Governmental Governmental
Fund Tax Fund Funds Funds
ASSETS
Cash and cash equivalents 8,069,352$ 250,536$ 8,808,970$ 17,128,858$
Investments ‐ CDs 172,550 34,732 168,102 375,384
Investments 2,997,445 791,877$ 1,421,198 5,210,520
Restricted cash and cash equivalents 23,041 1,551,557 264,492 1,839,090
Restricted investments‐CDs 38,138 ‐ ‐ 38,138
Receivables, (net of allowances for uncollectibles, if any):
Property taxes 2,628 ‐ ‐ 2,628
Accounts 262,112 352,888 90,687 705,687
Storm drainage fees ‐ ‐ 1,424 1,424
Special assessments ‐ ‐ 861,949 861,949
Interest 10,030 2,294 5,072 17,396
Due from other funds 29,738 ‐ 27 29,765
Due from other governments 775,691 479,840 317,390 1,572,921
Land held for resale 2,586,598 ‐ ‐ 2,586,598
Inventories:
Supplies 56,906 ‐ ‐ 56,906
Stores ‐ ‐ 17,683 17,683
Deposits 355,852 ‐ ‐ 355,852
Advance to other funds 714,693 ‐ ‐ 714,693
Prepaid items 535,967 ‐ 22,541 558,508
Total assets 16,630,741$ 3,463,724$ 11,979,535$ 32,074,000$
LIABILITIES
Accounts payable 438,120$ 112,892$ 1,543,289$ 2,094,301$
Retainage payable ‐ 1,000 1,000
Due to other funds 99,790 27 34,432 134,249
Due to other governments 1,701 ‐ 49,625 51,326
Accrued wages payable 219,989 ‐ 46,922 266,911
Advance from other funds 127,147 ‐ 1,699,622 1,826,769
Unearned revenue ‐ 1,549,682 1,298,327 2,848,009
Total liabilities 886,747 1,662,601 4,673,217 7,222,565
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 2,628 ‐ 863,373 866,001
Total deferred inflows of resources 2,628 ‐ 863,373 866,001
FUND BALANCES
Nonspendable 3,263,418 ‐ 40,224 3,303,642
Restricted 59,925 ‐ 1,364,894 1,424,819
Committed 3,973,356 1,801,123 4,944,454 10,718,933
Assigned 2,111,523 ‐ 1,992,551 4,104,074
Unassigned 6,333,144 ‐ (1,899,178) 4,433,966
Total fund balances 15,741,366 1,801,123 6,442,945 23,985,434
Total liabilities, deferred inflows of resources,
and fund balances 16,630,741$ 3,463,724$ 11,979,535$ 32,074,000$
City of Brookings
December 31, 2017
The notes to the financial statements are an integral part of this statement
29
City of Brookings
December 31, 2017
Reconciliation of Balance Sheet of Governmental Funds to the Statement of Net Position
Total fund balances for governmental funds 23,985,434$
Total net position reported for governmental activities in the statement of net position is different because:
Net pension asset reported in governmental activities is not an available financial resource and therefore is not reported in
the funds.33,125
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those
assets consist of:
Land 10,115,950
Construction in progress 2,093,395
Building and improvements, net of $14,457,445 accumulated depreciation 33,643,264
Equipment, net of $10,543,564 accumulated depreciation 9,080,355
Infrastructure, net of $32,879,332 accumulated depreciation 41,409,268
Total capital assets 96,342,232
Assets such as taxes receivable, special assessment receivables, and other receivables are not available to pay for current
period expenditures and therefore are deferred in the funds.866,001
Pension related deferred outflows are components of the net pension liability and therefore are not reported in the funds.3,363,968
Prepaid bond insurance costs are recorded as an expenditure in the fund statements, whereas in the statement of net
position they are shown as an asset and amortized.44,534
The deferred loss on refunding is not a current period item and therefore, is not reported in the fund financial statement
401,250
Internal service funds are used by management to charge the costs of certain activities, such as insurance, to individual
funds. The assets and liabilities of certain internal service funds are included in governmental activities in the statement of
net position.2,032,032
Pension related deferred inflows are components of the net pension liability and therefore are not reported in the funds.(640,116)
Long‐term liabilities, including bonds payable and accrued leave payable are not due and payable in the current period and
therefore are not reported in the funds. Balances at December 31, 2017 are:
Bonds payable (19,487,859)
Loans payable (5,800,000)
Capital leases (260,970)
OPEB payable (1,493,993)
Compensated absences (893,915)
Accrued interest (62,400)
Total long‐term liabilities (27,999,137)
Total net position of governmental activities 98,429,323$
The notes to the financial statements are an integral part of this statement
30
City of Brookings
Year Ended December 31, 2017
Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Governmental Funds
Other Total
General 75% Sales & Use Governmental Governmental
Fund Tax Fund Funds Funds
REVENUES
Taxes:
General property taxes 3,014,946$ ‐ $ 1,247,505$ 4,262,451$
Storm drainage taxes ‐ ‐ 917,714 917,714
General sales and use taxes 6,642,103 4,972,894 2,549,134 14,164,131
Other taxes 1,536 ‐ 361,246 362,782
Licenses and permits 268,969 ‐ ‐ 268,969
Intergovernmental revenue 824,869 ‐ 111,456 936,325
Charges for goods and services 438,655 ‐ 1,867,475 2,306,130
Fines and forfeits 89,604 ‐ 19,449 109,053
Miscellaneous revenue 1,603,562 368,502 470,021 2,442,085
Total revenues 12,884,244 5,341,396 7,544,000 25,769,640
EXPENDITURES
Current:
General government 2,625,178 ‐ 4,933 2,630,111
Public safety 4,020,762 ‐ 686,147 4,706,909
Public works 2,609,371 ‐ 367,987 2,977,358
Health and welfare 96,106 ‐ ‐ 96,106
Culture and recreation 3,764,573 ‐ 2,474,830 6,239,403
Conservation and development ‐ 5,869,929 891,247 6,761,176
Debt service:
Principal ‐ 1,977,326 451,680 2,429,006
Interest and other charges ‐ 518,723 160,982 679,705
Capital outlay 1,762,315 2,184,835 3,665,558 7,612,708
Total expenditures 14,878,305 10,550,813 8,703,364 34,132,482
Deficiency of revenues under expenditures (1,994,061) (5,209,417) (1,159,364) (8,362,842)
OTHER FINANCING SOURCES (USES)
Transfers in 3,329,787 1,602,523 4,429,916 9,362,226
Transfers out (325,349) (2,326,157) (2,901,483) (5,552,989)
Issuance of long term debt ‐ 5,900,000 294,600 6,194,600
Sale of capital assets 58,830 ‐ ‐ 58,830
Total other financing sources (uses)3,063,268 5,176,366 1,823,033 10,062,667
Net change in fund balances 1,069,207 (33,051) 663,669 1,699,825
Fund balances ‐ beginning 14,672,159 1,834,174 5,779,276 22,285,609
Fund balances ‐ ending 15,741,366$ 1,801,123$ 6,442,945$ 23,985,434$
The notes to the financial statements are an integral part of this statement
31
City of Brookings
Year Ended December 31, 2017
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Net change in fund balances ‐ total governmental funds $1,699,825
The change in net position reported for governmental activities in the statement of activities is different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays ($5,577,579) exceeded
depreciation ($4,219,758) in the current period.1,357,821
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade‐ins, and donations) is to increase net position.
1,488,902
Governmental funds recognize property taxes, special assessments, and certain other receivables as revenue in the fiscal period for which
they were levied provided they are collected within 45 days, but the statement of activities includes the property taxes and special
assessments as revenue in the period for which taxes are levied, exclusive of the availability criteria.
(801,941)
Bond proceeds are reported as financing sources in governmental funds and thus contributed to the change in fund balance. In the
statement of net position, however, issuing debt increases long‐term liabilities and does not effect the statement of activities. Similarly,
repayment of principal is an expenditure in the governmental funds but reduces the liability in the statement of net position:
New Issuances:
Loans (5,900,000)
Capital leases (294,600)
(6,194,600)
Repayments:
Bonds 2,295,376
Loans 100,000
Capital leases 33,630
2,429,006
Under the modified accrual basis of accounting used in governmental funds, expenditures are not recognized for transactions that are not
normally paid with expendable available financial resources. In the statement of activities, however, which is presented on the accrual
basis, expenses and liabilities are reported regardless of when financial resources are available. In addition, interest on long‐term debt is
not recognized under the modified accrual basis of accounting until due, rather than as it accrues. The adjustment combines the net
changes of these liabilities:
Compensated absences 4,648
OPEB liability (76,160)
Amortization of bond insurance costs (8,906)
Amortization of bond premium and deferred amount on refunding (68,264)
Accrued interest 19,419
Combined adjustment (129,263)
Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported
as expenditures in governmental funds. (e.g. pension expense)1,185,159
Changes in the pension related deferred outflows/inflows are direct components of the net pension liability and are not reflected in the
governmental funds.4,562
Internal service funds are used by management to charge costs of certain activities, such as insurance to individual funds. The net revenue
of certain internal service funds is reported within governmental activities.
293,061
Change in net position of governmental activities 1,332,532$
The notes to the financial statements are an integral part of this statement
32
City of Brookings
December 31, 2017
Statement of Net Position ‐ Proprietary Funds
Enterprise Funds
Other Internal Service
Waste‐Health Enterprise Fund /Self
Electric Water System Telephone Funds Total Insurance
ASSETS
Current assets:
Cash and cash equivalents 4,542,767$ 2,564,796$ 32,819,561$ 10,823,190$ 9,977,934$ 60,728,248$ 3,574,875$
Investments‐CDs 2,606,677 4,408,080 ‐ 8,015,114 7,640,449 22,670,320 2,500,000
Investments ‐ ‐ 1,997,490 ‐ 1,144,500 3,141,990 ‐
Receivables, (net of allowances for
uncollectibles, if any):
Accounts 2,229,481 516,032 10,040,305 2,536,753 967,543 16,290,114 12,472
Unbilled accounts 998,705 287,636 ‐ 353,466 316,390 1,956,197 ‐
Interest 7,599 8,171 4,902 14,997 14,512 50,181 ‐
Due from other funds 153,486 4,823 ‐ 156,038 53,744 368,091 ‐
Due from other governments ‐ ‐ ‐ ‐ 53,503 53,503 ‐
Current portion of advances to other funds 1,412,625 57,027 ‐ ‐ ‐ 1,469,652 ‐
Inventories:
Supplies 970,290 51,820 1,384,985 392,148 274,576 3,073,819 ‐
Stores ‐ ‐ ‐ 1,368,619 590,081 1,958,700 ‐
Prepaid expenses 71,850 20,819 135,403 755,950 23,597 1,007,619 ‐
Total current assets 12,993,480 7,919,204 46,382,646 24,416,275 21,056,829 112,768,434 6,087,347
Noncurrent assets:
Restricted cash and cash equivalents 576,685 132,445 688,890 207 1,555 1,399,782 ‐
Restricted investment ‐CDs 3,500,000 4,000,000 ‐ 2,000,000 5,308,961 14,808,961 ‐
Advances to other funds 1,264,365 407,287 ‐ ‐ 1,257,393 2,929,045 ‐
Net pension asset 9,882 4,121 80,849 25,220 9,692 129,764 ‐
Other assets ‐ 10,576 210,082 620,857 907 842,422 ‐
Capital assets:
Land 74,983 73,604 1,659,246 331,267 2,672,717 4,811,817 ‐
Buildings and other improvements 51,259,641 53,555,543 73,313,945 80,394,819 50,168,594 308,692,542 ‐
Machinery and equipment 2,513,352 1,166,873 17,452,774 4,773,681 7,338,098 33,244,778 ‐
Construction in progress 1,959,204 851 ‐ 574,905 911,615 3,446,575 ‐
Less accumulated depreciation (20,192,211) (13,025,634) (19,099,254) (61,547,813) (20,920,010) (134,784,922) ‐
Total noncurrent assets 40,965,901 46,325,666 74,306,532 27,173,143 46,749,522 235,520,764 ‐
Total assets 53,959,381 54,244,870 120,689,178 51,589,418 67,806,351 348,289,198 6,087,347
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 1,021,785 444,760 8,189,160 2,600,871 991,365 13,247,941 ‐
Total assets and deferred outflows of resources 54,981,166$ 54,689,630$ 128,878,338$ 54,190,289$ 68,797,716$ 361,537,139$ 6,087,347$
LIABILITIES
Current liabilities:
Accounts payable 1,884,034$ 49,364$ 10,555,389$ 5,930,479$ 300,390$ 18,719,656$ 210,254$
Retainage payable ‐ ‐ ‐ ‐ 3,265 3,265 ‐
Due to other funds 6,885 22,903 37,441 152,246 44,132 263,607 ‐
Due to other governments ‐ ‐ ‐ ‐ 66,500 66,500 ‐
Accrued interest payable 20,865 193,943 338,945 8,956 1,236 563,945 ‐
Accrued wages payable 5,003 1,068 1,425,300 31,502 44,343 1,507,216 ‐
Accrued taxes payable 126,740 196 546,572 154,465 40,721 868,694 ‐
Other current liabilities ‐ ‐ 9,000 ‐ ‐ 9,000 ‐
Customer deposits 70,278 ‐ 34,636 51,425 11,780 168,119 ‐
Current portion of advances from other funds ‐ ‐ ‐ 1,469,652 ‐ 1,469,652 ‐
Loans payable ‐ 671,357 ‐ ‐ ‐ 671,357 ‐
Revenue bonds payable 328,525 ‐ ‐ ‐ ‐ 328,525 ‐
Capital lease obligations 155,625 23,240 1,402,708 207,500 28,635 1,817,708 ‐
Compensated absences 48,449 24,094 878,112 173,876 51,314 1,175,845 ‐
Total current liabilities 2,646,404 986,165 15,228,103 8,180,101 592,316 27,633,089 210,254
Noncurrent liabilities:
Advances from other funds ‐ ‐ ‐ 1,671,652 145,317 1,816,969 ‐
Loans payable ‐ 27,824,448 ‐ ‐ ‐ 27,824,448 ‐
Revenue bonds payable 5,536,946 ‐ ‐ ‐ ‐ 5,536,946 ‐
Capital lease obligations 1,541,250 230,160 37,369,390 2,055,000 283,590 41,479,390 ‐
Compensated absences ‐ ‐ 244,000 ‐ 124,423 368,423 ‐
OPEB liability 107,654 46,925 600,750 302,640 132,147 1,190,116 ‐
Amount due under joint operating agreements ‐ ‐ 1,555,350 ‐ ‐ 1,555,350 ‐
Accrued landfill closure and
postclosure costs ‐ ‐ ‐ ‐ 606,049 606,049 ‐
Total noncurrent liabilities 7,185,850 28,101,533 39,769,490 4,029,292 1,291,526 80,377,691 ‐
Total liabilities 9,832,254 29,087,698 54,997,593 12,209,393 1,883,842 108,010,780 210,254
Deferred inflows of resources:
Pension related deferred inflows 189,981 79,237 1,554,403 484,880 192,533 2,501,034 ‐
Proceeds from sale of future revenues ‐ ‐ ‐ 599,143 4,974 604,117 ‐
Total liabilities and deferred inflows of resources 10,022,235 29,166,935 56,551,996 13,293,416 2,081,349 111,115,931 210,254
33
City of Brookings
December 31, 2017
Statement of Net Position ‐ Proprietary Funds (continued)
Enterprise Funds
Other Internal Service
Waste‐Health Enterprise Fund /Self
Electric Water System Telephone Funds Total Insurance
NET POSITION
Net investment in capital assets 28,052,623 13,022,032 33,268,350 22,264,359 39,855,524 136,462,888 ‐
Restricted for:
Debt service 576,685 132,445 688,890 207 ‐ 1,398,227 ‐
SDRS pension purposes 841,686 369,644 6,715,606 2,141,211 808,524 10,876,671 ‐
Landfill closure and postclosure ‐ ‐ ‐ ‐ 679,612 679,612 ‐
Unrestricted 15,487,937 11,998,574 31,653,496 16,491,096 25,372,707 101,003,810 5,877,093
Total net position 44,958,931$ 25,522,695$ 72,326,342$ 40,896,873$ 66,716,367$ 250,421,208 5,877,093$
Some amounts reported for business‐type activities in the statement of net position
are different because certain internal service fund assets and liabilities are included
with business‐type activities.3,845,061
Net position of business‐type activities 254,266,269$
The notes to the financial statements are an integral part of this statement
34
City of Brookings
Year Ended December 31, 2017
Statement of Revenues, Expenses, and Changes in Net Position ‐ Proprietary Funds
Enterprise Funds
Other Internal Service
Waste‐Health Enterprise Fund /Self
Electric Water System Telephone Funds Total Insurance
OPERATING REVENUES
Charges for goods and services 27,751,731$ 5,308,015$ 64,468,722$ 28,094,956$ 13,683,626$ 139,307,050$ 3,667,734$
Miscellaneous 751,012 229,115 1,434,313 3,067,957 165,994 5,648,391 ‐
Total operating revenues 28,502,743 5,537,130 65,903,035 31,162,913 13,849,620 144,955,441 3,667,734
OPERATING EXPENSES
Personal services 1,991,305 1,100,952 34,077,867 6,397,795 2,772,661 46,340,580 ‐
Other current expenses 20,582,961 974,243 19,722,037 14,851,267 2,828,280 58,958,788 450,036
Cost of goods sold ‐ ‐ ‐ 4,286,837 3,070,037 7,356,874 ‐
Insurance claims and expenses ‐ ‐ ‐ ‐ ‐ ‐ 2,466,837
Amortization 9,560 3,718 ‐ 95,161 3,718 112,157 ‐
Depreciation 1,666,453 1,596,241 5,505,647 3,447,148 2,046,738 14,262,227 ‐
Total operating expenses 24,250,279 3,675,154 59,305,551 29,078,208 10,721,434 127,030,626 2,916,873
Operating income 4,252,464 1,861,976 6,597,484 2,084,705 3,128,186 17,924,815 750,861
NONOPERATING REVENUES (EXPENSES)
Interest income 237,673 101,488 136,877 218,142 145,645 839,825 24,677
Miscellaneous income (loss)13,733 177 (165,385) 8,942 94,797 (47,736) ‐
Contributions and donations ‐ ‐ 19,988 ‐ ‐ 19,988 ‐
Loss on disposition of capital assets (26,667) ‐ (398,895) (45,334) (5,840) (476,736) ‐
Interest expense and fiscal charges (315,984) (947,965) (688,798) (323,295) (16,017) (2,292,059) ‐
Total nonoperating revenues (expenses)(91,245) (846,300) (1,096,213) (141,545) 218,585 (1,956,718) 24,677
Income before capital contributions
and transfers 4,161,219 1,015,676 5,501,271 1,943,160 3,346,771 15,968,097 775,538
Capital contributions 862,229 500,990 521,880 ‐ 962,347 2,847,446 ‐
Transfers in ‐ ‐ ‐ ‐ 386,509 386,509 ‐
Transfers out (2,055,000) ‐ ‐ (200,000) (1,940,746) (4,195,746) ‐
Change in net position 2,968,448 1,516,666 6,023,151 1,743,160 2,754,881 15,006,306 775,538
Net position ‐ beginning 41,990,483 24,006,029 66,303,191 39,153,713 63,961,486 5,101,555
Net position ‐ ending 44,958,931$ 25,522,695$ 72,326,342$ 40,896,873$ 66,716,367$ 5,877,093$
Some amounts reported for business‐type activities in the statement of activities
are different because the net revenue (expense) of certain internal service funds
is reported with the business‐type activities.482,477
Change in net position of business‐type activities 15,488,783$
The notes to the financial statements are an integral part of this statement
35
City of Brookings
Year Ended December 31, 2017
Statement of Cash Flows ‐ Proprietary Funds
Enterprise Funds
Other Internal Service
Waste‐Health Enterprise Fund /Self
Electric Water System Telephone Funds Total Insurance
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 27,729,433$ 3,164,724$ 65,220,713$ 31,477,952$ 13,598,753$ 141,191,575$ ‐ $
Internal activity‐payments from other funds 1,809,052 110,038 ‐ 1,610,070 428,837 3,957,997 3,667,734
Operating receipts from customers pledged for debt retirement 954,284 2,011,815 ‐ ‐ ‐ 2,966,099 ‐
Other receipts ‐ ‐ 2,042,414 ‐ ‐ 2,042,414 ‐
Payments to suppliers (22,411,153) (1,061,286) (30,127,091) (19,120,659) (5,666,746) (78,386,935) (2,971,804)
Payments to employees (2,345,703) (1,238,851) (23,809,308) (7,284,129) (3,103,153) (37,781,144) ‐
Internal activity‐payments to other funds ‐ ‐ ‐ ‐ (241,300) (241,300) ‐
Net cash provided by operating activities 5,735,913 2,986,440 13,326,728 6,683,234 5,016,391 33,748,706 695,930
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers in ‐ ‐ ‐ ‐ 386,509 386,509 ‐
Transfers out (2,055,000) ‐ ‐ (200,000) (1,940,746) (4,195,746) ‐
Operating grants ‐ ‐ 19,988 ‐ ‐ 19,988 ‐
Contributions to foundation ‐ ‐ (165,385) ‐ ‐ (165,385) ‐
Principal receipts (payments) on interfund advances/loans 1,351,795 54,311 ‐ (1,406,106) ‐ ‐ ‐
Interest receipts (payments) on interfund advances/loans 181,295 25,931 ‐ (207,226) ‐ ‐ ‐
Net cash provided by (used in) noncapital
financing activities (521,910) 80,242 (145,397) (1,813,332) (1,554,237) (3,954,634) ‐
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (2,500,699) (938,051) (18,789,642) (4,217,212) (2,447,528) (28,893,132) ‐
Proceeds from long‐term debt ‐ ‐ 17,510,821 ‐ ‐ 17,510,821 ‐
Proceeds on restricted cash 3,603 395 ‐ 201 ‐ 4,199 ‐
Proceeds from sale of capital assets 306 ‐ ‐ ‐ 327 633 ‐
Capital grants ‐ ‐ 522,481 ‐ 1,726,077 2,248,558 ‐
Principal payments on debt (467,990) (669,849) (515,647) (197,500) (27,255) (1,878,241) ‐
Interest payments on debt (316,982) (951,400) (860,375) (116,850) (16,125) (2,261,732) ‐
Payments on interfund advances/loans ‐ ‐ ‐ ‐ (12,074) (12,074) ‐
Interest payments on interfund advances/loans ‐ ‐ ‐ ‐ 19,784 19,784 ‐
Net cash used in capital
and related financing activities (3,281,762) (2,558,905) (2,132,362) (4,531,361) (756,794) (13,261,184) ‐
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of investments and certificates of deposit 3,600,000 4,800,000 ‐ 9,600,000 8,125,895 26,125,895 ‐
Purchase of investments and certificates of deposit (5,106,677) (5,408,080) ‐ (9,015,113) (9,438,832) (28,968,702) (2,500,000)
Investment income 46,680 69,703 133,797 220,905 117,200 588,285 12,205
Net cash provided by (used in)
investing activities (1,459,997) (538,377) 133,797 805,792 (1,195,737) (2,254,522) (2,487,795)
Net increase (decrease) in cash
and cash equivalents 472,244 (30,600) 11,182,766 1,144,333 1,509,623 14,278,366 (1,791,865)
Balances ‐ beginning of the year 4,647,208 2,727,841 22,325,685 9,679,064 8,469,866 47,849,664 5,366,740
Balances ‐ end of the year 5,119,452 2,697,241 33,508,451 10,823,397 9,979,489 62,128,030 3,574,875
Less restricted cash and cash equivalents (576,685) (132,445) (688,890) (207) (1,555) (1,399,782) ‐
Cash and cash equivalents (current) per statement of net position 4,542,767$ 2,564,796$ 32,819,561$ 10,823,190$ 9,977,934$ 60,728,248$ 3,574,875$
The notes to the financial statements are an integral part of this statement
36
City of Brookings
Year Ended December 31, 2017
Statement of Cash Flows ‐ Proprietary Funds (continued)
Enterprise Funds
Other Internal Service
Waste‐Health Enterprise Fund /Self
Electric Water System Telephone Funds Total Insurance
Reconciliation of operating income to net
cash provided by operating activities:
Operating income 4,252,464$ 1,861,976$ 6,597,484$ 2,084,705$ 3,128,186$ 17,924,815$ 750,861$
Miscellaneous income 13,733 177 ‐ 111,410 94,797 220,117 ‐
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation 1,666,453 1,596,241 5,505,647 3,447,148 2,046,738 14,262,227 ‐
Amortization 9,560 3,718 ‐ 95,161 3,718 112,157 ‐
Landfill closure and postclosure cost ‐ ‐ ‐ ‐ 46,826 46,826 ‐
Provision for uncollectible accounts ‐ ‐ 67,474 67,474
(Increase) decrease in:
Receivables 111,724 (30,974) 262,137 (131,026) 6,481 218,342 ‐
Inventories 92,736 (15,030) (210,625) (238,220) (10,250) (381,389) ‐
Prepaid expenses (4,197) (1,897) 127,799 72,671 (2,151)192,225 ‐
Other assets ‐ ‐ 8,197 ‐ ‐ 8,197 ‐
Deferred outflows related to pensions (137,842) (56,094) (1,324,292) (352,129) (142,632) (2,012,989) ‐
Net pension asset (9,882) (4,121) (80,849) (25,220) (9,692) (129,764) ‐
Increase (decrease) in:
Deferred inflows related to pensions 189,981 (169,190) 1,554,403 484,880 190,475 2,250,549 ‐
Deferred inflows related to other ‐ ‐ ‐ 888 198 1,086
Accounts and other payables (53,723) (289,870) 3,604,087 2,123,064 (35,136) 5,348,422 (54,931)
Accrued wages payable 762 635 173,796 (31,997) 4,847 148,043 ‐
Accrued leave liabilities (14,639) 9,372 109,831 13,039 10,308 127,911 ‐
Accrued OPEB payable 5,419 2,260 62,575 13,830 (4,896) 79,188 ‐
Net pension liability (386,636) 79,237 (3,063,462) (984,970) (378,900) (4,734,731) ‐
Net cash provided by operating
activities 5,735,913$ 2,986,440$ 13,326,728$ 6,683,234$ 5,016,391$ 33,748,706$ 695,930$
NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital asset additions from contributed capital 862,229$ 500,990$ 521,880$ ‐$ 962,347$ 2,847,446$ ‐$
Accounts payable for capital assets 11,701 30,875 1,286,263 3,803 98,917 1,431,559 ‐
Initiation of capital lease ‐ ‐ 17,510,821 ‐ ‐ 17,510,821
The notes to the financial statements are an integral part of this statement
37
City of Brookings
December 31, 2017
Statement of Net Position ‐ Fiduciary Funds
Agency
Funds
ASSETS
Cash and cash equivalents 25,753$
Accounts receivable 2,085
Total assets 27,838
LIABILITIES
Amount held for others 27,838
Total liabilities 27,838
NET POSITION ‐$
The notes to the financial statements are an integral part of this statement
38
City of Brookings
December 31, 2017
Notes to the Financial Statements
1. Summary of Significant Accounting Policies
a. Financial Reporting Entity:
The reporting entity of the City of Brookings, consists of the primary government (which includes all of the funds,
organizations, institutions, agencies, departments, and offices that make up the legal entity, plus those funds for
which the primary government has a fiduciary responsibility, even though those fiduciary funds may represent
organizations that do not meet the criteria for inclusion in the financial reporting entity); those organizations for
which the primary government is financially accountable; and other organizations for which the nature and
significance of their relationship with the primary government are such that their exclusion would cause the
financial reporting entity’s financial statements to be misleading or incomplete.
Component units are legally separate organizations for which the elected officials of the primary government are
financially accountable. The City is financially accountable if its Governing Board/City Council appoints a voting
majority of another organization’s governing body and it has the ability to impose its will on that organization, or
there is a potential for that organization to provide specific financial benefits to, or impose specific financial
burdens on, the City (primary government). The City may also be financially accountable for another
organization if that organization is fiscally dependent on the City.
The Brookings Health System Foundation is reported as a discretely‐presented component unit. Although the
City does not control the timing or amount of receipts from the Foundation, the majority of the resources, or
income thereon, are restricted to the activities of the City by the donors. Because these restricted resources
held by the Foundation are primarily to be used by, or for the benefit of the City, the Foundation is considered a
component unit.
During the year ended December 31, 2017, the Foundation distributed approximately $559,000 to the City to
fund the operations of the Health System and its capital projects.
The Foundation is a private not‐for‐profit organization that reports under the Financial Accounting Standards
Board (FASB) Accounting Standards Codification (ASC), including ASC Topic 958, Not‐for‐Profit Entities. As such,
certain revenue recognition criteria and presentation features are different from GASB revenue recognition
criteria and presentation features. No modifications have been made to the Foundation's statements in the
City's financial reporting entity for these differences. The Foundation has a December 31st year end. Separately
issued financial statements of the Foundation may be obtained from Brookings Health System Foundation, 300
22nd Avenue, Brookings, SD 57006.
b. Basis of Presentation:
Government‐wide Financial Statements:
The Statement of Net Position and Statement of Activities display information about the reporting entity as a
whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish
between governmental and business‐type activities. Governmental activities generally are financed through
taxes, intergovernmental revenues, and other non‐exchange revenues. Business‐type activities are financed in
whole or in part by fees charged to external parties for goods or services.
The statement of activities presents a comparison between direct expenses and program revenues for each
segment of the business‐type activities of the City and for each function of the City's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly
identifiable to a particular function. Program revenues include (a) charges paid by recipients of goods and
services offered by the programs and (b) grants and contributions that are restricted to meeting the operational
or capital requirements of a particular program. Revenues that are not classified as program revenues, including
all taxes, are presented as general revenues.
39
City of Brookings
December 31, 2017
Notes to the Financial Statements
Fund Financial Statements:
Fund financial statements of the reporting entity are organized into funds, each of which is considered to be a
separate accounting entity. Each fund is accounted for by providing a separate set of self‐balancing accounts
that constitute its assets and deferred outflows, liabilities and deferred inflows, fund equity, revenues, and
expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and
fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is
considered major if it is the primary operating fund of the City or it meets the following criteria:
1. Total assets and deferred outflows, liabilities and deferred inflows, revenues, or expenditures/expenses of
the individual governmental or enterprise funds are at least 10 percent of the corresponding total for all
funds of that category or type, and
2. Total assets and deferred outflows, liabilities and deferred inflows, revenues, or expenditures/expenses of
the individual governmental or enterprise fund are at least 5 percent of the corresponding total for all
governmental and enterprise funds combined, or
3. Management has elected to classify one or more governmental or enterprise funds as major for consistency
in reporting from year to year, or because of public interest in the fund’s operations.
The funds of the City financial reporting entity are described below:
Governmental Funds:
The City reports the following major governmental funds:
General Fund – the General Fund is the general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund. The General Fund is always considered to
be a major fund.
75% Sales and Use Tax Fund – The 75% Sales & Use Tax Fund is used to account for 75% of the 2nd penny sales
tax. Proceeds from this tax are committed by the City Council to be used for capital improvements which involve
the construction and financing of public improvements.
Additionally, the City reports the following nonmajor governmental funds:
Special Revenue Funds – special revenue funds are used to account for the proceeds of specific revenue sources
(other than trusts for individuals, private organizations, or other governments or for major capital projects) that
are legally restricted or committed to expenditures for specified purposes.
The special revenue funds are as follows: 25% Sales and Use Tax, Enhanced 911, Swiftel Center, Library
Fines, Special Assessment, Storm Drainage, Bed and Booze Tax, and Business Improvement District (BID)
Fee.
Debt Service Funds – debt service funds are used to account for financial resources accumulated and payments
made for principal and interest on long‐term debt of the governmental funds.
TIF ‐1 Innovation Campus Fund – to account for the financial resources accumulated for repayment of the
State Revolving Fund Loan.
TIF‐3 Valley View Fund – to account for the financial resources accumulated for repayment of a South
Dakota Housing Authority Bond (Guaranteed by Developer).
TIF‐4 Sieler Fund – to account for the financial resources accumulated for repayment of a Tax Increment
Note (Guaranteed by Developer).
40
City of Brookings
December 31, 2017
Notes to the Financial Statements
TIF‐5 32nd Ave Fund ‐ to account for the financial resources accumulated for repayment of a Tax Revenue
Bond.
TIF‐6 Digester Fund – to account for the financial resources accumulated for repayment of City funds
expended on this project.
TIF‐7 S. Main Ave Fund – to account for the financial resources accumulated for repayment of City funds
expended on this project.
Capital Projects Funds – capital projects funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities and other capital assets (other than those financed by
proprietary funds or trust funds for individuals, private organizations, or other governments).
Fire Substation Fund – to account for financial resources used for the design and construction of a new fire
substation to be located on Main Avenue South.
Dakota Nature Park Fund – to account for financial resources used for the development and construction of
the new nature park located on the grounds of the old landfill.
Gateway Project Fund – to account for financial resources used for the construction of new signs and
improvements to the entry ways of the City.
TIF‐6 Digester Fund – to account for financial resources used for the design and construction of a
wastewater digester for the Bel Brands cheese plant.
TIF‐7 South Main Fund ‐ to account for the financial resources used for the design and construction of new
streets and infrastructure surrounding the new grade school.
Street Maintenance Shop ‐ to account for the financial resources used for the design and construction of a
new street maintenance shop.
Proprietary Funds:
Enterprise Funds – enterprise funds are used to account for operations (a) that are financed and operated in a
manner similar to private business enterprises, where the intent of the governing body is that the costs
(expenses, including depreciation) of providing goods or services to the general public on a continuing basis be
financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic
determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance,
public policy, management control, accountability, or other purposes.
The City reports the following major enterprise funds:
Electric Fund – financed primarily by user charges, this fund accounts for the construction and operation of
the municipal electrical system and related facilities.
Wastewater Fund – financed primarily by user charges, this fund accounts for the construction and
operation of the municipal sanitary sewer system and related facilities.
Health System Fund – financed primarily by user charges, this fund accounts for the construction and
operation of the municipal hospital and nursing home and related facilities.
Telephone Fund – financed primarily by user charges, this fund accounts for the construction and operation
of the municipal telephone system and related services.
41
City of Brookings
December 31, 2017
Notes to the Financial Statements
Additionally, the City reports the following nonmajor enterprise funds:
Liquor Fund – financed primarily by user charges, this fund accounts for the operation of the municipal off‐
sale establishment.
Water Fund – financed primarily by user charges, this fund accounts for the construction and operation of
the municipal waterworks system and related facilities.
Airport Fund – financed primarily by user charges, this fund accounts for the construction and operations of
the municipal airport and related facilities.
Golf Fund ‐ financed primarily by user charges, this fund accounts for the construction and operations of the
municipal golf course and related facilities.
Solid Waste Fund – financed primarily by user charges, this fund accounts for the construction and
operation of the municipal solid waste system and related facilities.
Research and Technology Center Fund – financed primarily by user charges, this fund accounts for the
rental of a building that houses new start‐up entities and was originally part of the Brookings Event Center,
Inc.
Internal Service Funds – internal service funds are used to account for the financing of goods or services
provided by one department or agency to other departments or agencies of the primary government. The City
maintains one internal service fund, the self‐insurance fund, which administers insurance claims for other funds
on a cost‐reimbursement basis. Internal Service funds are never considered to be major funds.
Fiduciary Funds:
Fiduciary funds are never considered to be major funds:
Agency Funds ‐ agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of
results of operations. Agency funds are used to account for the accumulation and distribution of employee
Section 125 cafeteria plan transactions and various pass‐through funds.
c. Measurement Focus and Basis of Accounting:
Measurement focus is a term used to describe “how” transactions are recorded within the various financial
statements. Basis of accounting refers to “when” revenues and expenditures or expenses are recognized in the
accounts and reported in the financial statements, regardless of the measurement focus.
Measurement Focus:
Government‐wide Financial Statements:
In the government‐wide Statement of Net Position and Statement of Activities, both governmental and business‐
type activities are presented using the “economic resources” measurement focus, applied on the accrual basis of
accounting.
Fund Financial Statements:
In the fund financial statements, the “current financial resources” measurement focus and the modified accrual
basis of accounting are applied to governmental fund types, while the “economic resources” measurement focus
and the accrual basis of accounting are applied to the proprietary and fiduciary type funds.
42
City of Brookings
December 31, 2017
Notes to the Financial Statements
Basis of Accounting:
Government‐wide Financial Statements:
In the government‐wide Statement of Net Position and Statement of Activities, governmental and business‐type
activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues
and related assets are recorded when earned (usually when the right to receive cash vests); and, expenses and
related liabilities are recorded when an obligation is incurred (usually when the obligation to pay cash in the
future vests).
Fund Financial Statements:
All governmental fund types are accounted for using the modified accrual basis of accounting. Their revenues,
including property taxes, are recognized when they become measurable and available. “Available” means
resources are collected or are to be collected soon enough after the end of the fiscal year that they can be used
to pay the bills of the current period. The accrual period does not exceed one bill‐paying cycle, and for the City
of Brookings, South Dakota, the length of that cycle is 45 days. The revenues which are accrued at December 31,
2017 are property taxes, storm drainage fees, and sales taxes.
Under the modified accrual basis of accounting, receivables may be measurable but not available. “Available”
means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current
period. Deferred inflows of resources, reported as unavailable revenues, are those where asset recognition
criteria have been met but for which revenue recognition criteria have not been met.
Expenditures are generally recognized when the related fund liability is incurred. Exceptions to this general rule
include principal and interest on general long‐term debt which are recognized when due.
All proprietary and fiduciary fund types are accounted for using the accrual basis of accounting. Their revenues
are recognized when they are earned, and their expenses are recognized when they are incurred.
d. Interfund Eliminations and Reclassifications:
Government‐wide Financial Statements:
In the process of aggregating data for the government‐wide financial statements, some amounts reported as
interfund activity and balances in the fund financial statements have been eliminated or reclassified, as follows:
1. In order to minimize the grossing‐up effect on assets and liabilities within the governmental and
business‐type activities columns of the primary government, amounts reported as interfund receivables
and payables have been eliminated in the governmental and business‐type activities columns, except for
the net, residual amounts due between governmental and business‐type activities, which are presented
as Internal Balances.
2. In order to minimize the doubling‐up effect on internal service fund activity, certain “centralized
expenses” including an administrative overhead component, are charged as direct expenses to funds or
programs in order to show all expenses that are associated with a service, program, department, or fund.
When expenses are charged, in this manner, expense reductions occur in the Internal Service Funds, so
that expenses are reported only in the function to which they relate.
Fund Financial Statements:
Noncurrent portions of long‐term interfund receivables (reported in “Advance to” asset accounts) are equally
offset by a nonspendable fund balance account which indicates that they do not constitute “available spendable
resources” since they are not a component of net current position. Current portions of interfund receivables
43
City of Brookings
December 31, 2017
Notes to the Financial Statements
(reported in “Due from” asset accounts) are considered “available spendable resources.”
e. Property Taxes:
Property tax levies are established on or before October 1 of each year. Taxes are recorded as receivable, levied,
and attached as an enforceable lien on property as of January 1 of each year. Taxes are payable in two
installments on or before April 30 and October 31 of that year.
The City is permitted by several state statutes to levy varying amounts of taxes per $1,000 of taxable valuation
on taxable real property in the City.
f. Inventories and Prepaid Items:
Inventory in the General Fund and Swiftel Center Fund consists of expendable supplies held for consumption.
Supply inventories are recorded at cost using the first‐in, first‐out (FIFO) method. Inventory within the
proprietary funds is generally valued at average cost. Inventories are recorded as an asset at the time of
purchase, and charged to expenditures or expenses when consumed.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in both the government‐wide and fund financial statements. The prepayments are charged to
expenditures over the period of their economic benefit.
Amounts of governmental fund inventories and vendor prepaid items are offset by a nonspendable fund balance
account to indicate that they do not represent “available spendable resources.”
g. Capital Assets:
Capital assets include land, buildings, machinery and equipment, and all other tangible or intangible assets that
are used in operations and that have initial useful lives extending beyond a single reporting period.
Infrastructure assets are long‐lived capital assets that normally are stationary in nature and normally can be
preserved for a significantly greater number of years than most capital assets.
The accounting treatment over capital assets depends on whether the assets are used in governmental fund
operations or proprietary fund operations and whether they are reported in the government‐wide or fund
financial statements.
Government‐Wide Statements
Capital assets are recorded at historical cost, or estimated cost, where actual cost could not be determined.
Donated capital assets are valued at their acquisition value at the date donated. Reported cost values include
ancillary charges necessary to place the asset into its intended location and condition for use. Subsequent to
initial capitalization, improvements or betterments that are significant and which extend the useful life of the
capital asset are also capitalized.
Infrastructure assets used in general government operations, consisting of certain improvements other than
buildings, including roads, bridges, sidewalks, drainage systems, and lighting systems, acquired prior to January
1, 1980, were not required to be capitalized by the City. Infrastructure assets acquired since January 1, 1980 are
recorded at cost.
For governmental activities capital assets, construction‐period interest is not capitalized, in accordance with U.S.
generally accepted accounting principles; while for capital assets used in business‐type activities/proprietary
fund operations, construction period interest is included as part of the capitalization value of the assets
constructed in accordance with U.S. generally accepted accounting principles.
44
City of Brookings
December 31, 2017
Notes to the Financial Statements
Depreciation of all exhaustible capital assets is recorded as an allocated expense in the government‐wide
Statement of Activities, except for that portion related to common use assets for which allocation would be
unduly complex, and which is reported as unallocated depreciation with net capital assets reflected in the
Statement of Net Position. Accumulated depreciation is reported on the government‐wide Statement of Net
Position and on each proprietary fund’s Statement of Net Position.
Capitalization thresholds, depreciation methods, and estimated useful lives of capital assets reported in the
government‐wide statements and proprietary funds are as follows:
Land is an inexhaustible capital asset and is not depreciated.
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for as
capital outlay expenditures of the appropriate governmental fund upon acquisition. Capital assets used in
proprietary fund operations are accounted for on the accrual basis, the same as in the government‐wide
statements.
h. Long‐Term Liabilities:
The accounting treatment of long‐term liabilities depends on whether the related assets are used in
governmental fund operations or proprietary fund operations and whether they are reported in the government‐
wide or fund financial statements.
All long‐term liabilities to be repaid from governmental and business‐type resources are reported as liabilities in
the government‐wide statements. The long‐term liabilities primarily consist of revenue bonds, financing (capital
acquisition) leases, compensated absences and OPEB payable.
In the governmental fund financial statements, debt proceeds are reported as revenues (other financing
sources), while payments of principal and interest are reported as expenditures when they become due. The
accounting for proprietary fund long‐term debt is on the accrual basis, the same in the fund statements as in the
government‐wide statements.
i. Pensions
For purposes of measuring the net pension (asset) liability, deferred outflows of resources and deferred inflows
of resources related to pensions, and pension expense, information about the fiduciary net position of the South
Dakota Retirement System (SDRS) and additions to/deductions from SDRS’s fiduciary net position have been
determined on the same basis as they are reported by SDRS. City contributions and the net pension liability are
recognized on an accrual basis of accounting.
Capitalization Depreciation Estimated
Threshold Method Useful Life
Land and land rights All N/A N/A
Improvements other than
buildings $5,000 Straight‐line 10‐25 yrs.
Buildings 5,000 Straight‐line 40‐99 yrs.
Machinery and equipment 5,000 Straight‐line 3‐25 yrs.
Infrastructure 5,000 Straight‐line 25‐50 yrs.
Utility property and
improvements 5,000 Straight‐line 10‐50 yrs.
45
City of Brookings
December 31, 2017
Notes to the Financial Statements
j. Deferred Inflows and Deferred Outflows of Resources:
In addition to assets, the statement of net position reports a separate section for deferred outflows of resources.
Deferred outflows of resources represent consumption of net position that applies to a future period or periods.
These items will not be recognized as an outflow of resources until the applicable future period. The City's
deferred outflows include the following: loss on debt refunding, represents the difference in the carrying value
of refunded debt and its reacquisition price, which will be amortized into interest expense over the shorter of
the life of the refunded or refunding debt; unrecognized items not yet charged to pension expense and
contributions from the employer after the measurement date but before the end of the employer's reporting
period.
In addition to liabilities, the statement of net position and governmental funds balance sheet report a separate
section for deferred inflows of resources. Deferred inflows of resources represent acquisitions of net position
that applies to a future period or periods. These items will not be recognized as an inflow of resources until the
applicable future period. The City's deferred inflows include the following: unavailable revenues, represents
certain receivables recorded by the City which are deferred as they are not received within the City's measurable
period of 45 days, and are not considered measurable and available under the modified accrual basis of
accounting; unrecognized items having not yet reduced pension expense; proceeds from the sale of future
revenues.
k. Program Revenues:
Program revenues derive directly from the program itself or from parties other than the City’s taxpayers or
citizenry, as a whole. Program revenues are classified into three categories, as follows:
1. Charges for services – these arise from charges to customers, applicants, or others who purchase, use, or
directly benefit from the goods, services, or privileges provided, or are otherwise directly affected by the
services.
2. Program‐specific operating grants and contributions – these arise from mandatory and voluntary non‐
exchange transactions with other governments, organizations, or individuals that are restricted for use in
a particular program.
3. Program‐specific capital grants and contributions – these arise from mandatory and voluntary non‐
exchange transactions with other governments, organizations, or individuals that are restricted for the
acquisition of capital assets for use in a particular program.
l. Proprietary Funds Revenue and Expense Classifications:
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds and of
the government’s internal service funds are charges to customers for goods and services. Operating expenses
include the cost of sales and service, administrative expenses, and depreciation on capital assets. All revenues
and expenses not meeting this definition are reported as nonoperating revenues and expenses.
m. Net Position and Fund Balance:
Government‐wide Statements:
Net position is displayed in three components:
1. Net investment in capital assets – consists of capital assets, including restricted capital assets, net of
accumulated depreciation (if applicable) and reduced by the outstanding balances of any bonds, mortgages,
46
City of Brookings
December 31, 2017
Notes to the Financial Statements
notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those
assets. Deferred outflows of resources or deferred inflows of resources that are attributable to the
acquisition, construction, or improvements of those assets or related debt also should be included in this
component of net position. If there are unspent related debt proceeds at year‐end, the portion of the debt
attributable to the unspent proceeds is not included in the calculation of net investment in capital assets.
2. Restricted – consists of restricted assets and deferred outflows of resources, reduced by liabilities and
deferred inflows of resources related to those assets, with constraints placed on their use either by (a)
external groups such as creditors, grantors, contributors, or laws and regulations of other governments; or
(b) law through constitutional provisions or enabling legislation.
3. Unrestricted – consists of the assets, deferred outflows of resources, liabilities, and deferred inflows of
resources that are not included in the net investment in capital assets or the restricted component of net
position.
Fund Financial Statements:
Governmental fund balance may distinguish between “Nonspendable”, “Restricted”, “Committed”, “Assigned”,
and “Unassigned” components. Proprietary fund balance is classified the same as in the government‐wide
financial statements.
Fund balance classification policies and procedures:
In accordance with Government Accounting Standards Board (GASB) No. 54, Fund Balance Reporting and
Governmental Fund‐Type Definitions, the City classifies governmental fund balances as follows:
Nonspendable – includes fund balance amounts that cannot be spent either because it is not in spendable
form or because of legal or contractual constraints.
Restricted – includes fund balance amounts that are constrained for specific purposes which are externally
imposed by providers, such as creditors or amounts constrained due to constitutional provisions or
enabling legislation.
Committed – includes fund balance amounts that are constrained for specific purposes that are internally
imposed by the government through formal action of the highest level of decision making authority and
does not lapse at year‐end.
Assigned – includes fund balance amounts that are intended to be used for specific purposes that are neither
considered restricted or committed. City Council’s Governance and Ends policy gives the City Manager
authority to assign fund balance.
Unassigned – includes positive fund balance within the General fund which has not been classified within the
above mentioned categories and negative fund balance in other governmental funds.
The City Council committed the following fund balances through the Governance and Ends policy:
o Stabilization arrangement where a minimum of $1,000,000 shall be committed and
maintained for use in meeting unanticipated needs and or emergencies, such as an urgent
event that affects the health, safety, or general welfare of the City, its residents, as well as
public and private property. The urgent event could be an extreme blizzard, tornado, fire,
flood, terrorist attack, bombing, explosions, train derailments, extreme straight‐line
winds/severe thunderstorm, hazardous materials incident, water contamination, failure of
electrical grid, mass casualty/fatality or health epidemic. Once the City Manager or his/her
designee has determined that it is necessary to draw down the fund balance, written
communication shall be provided by the City Manager to the City Council, explaining the
nature of the unanticipated need and/or emergency which shall require approval of the
Council.
47
City of Brookings
December 31, 2017
Notes to the Financial Statements
o 5 percent of the of the annual revenue of the 75% ‐ 2nd Penny Sales and Use Tax should be
committed for future economic development opportunities until a one million dollar
balance is achieved.
o One‐time sales of land will be added to the committed fund balance for future land
purchases for industrial and economic development.
The City Council committed the following fund balances through City ordinances:
o Ordinance No. 03‐10 commits use of 25% Sales tax for lease purchase agreements of
realty, land acquisition, the programmed chip sealing street maintenance, specialized
equipment, the transfer to the E‐911 fund, purchasing firefighting vehicles, public safety
equipment, and debt retirement related thereto.
o Ordinance No. 03‐10 commits use of 75% Sales tax for construction and financing of public
improvements.
o Ordinance No. 21‐10 commits funds to finance public storm drainage infrastructure
improvements.
o Ordinance No 23‐11 commits funds for retail economic development investment.
o Ordinance No 02‐12 commits BID Fee funds to promotion and marketing of the City.
n. Application of Net Position and Fund Balances:
It is the City’s policy to first use restricted resources, prior to the use of unrestricted resources, when an
expense is incurred for purposes for which both restricted and unrestricted net positions are available. When
expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance
classification can be used, committed amounts should be reduced first, followed by assigned and the
unassigned amounts.
o. Cash and Cash Equivalents and Investments:
Cash and cash equivalents include cash on hand, demand deposits and short‐term investments with original
maturities of three months or less from the date of acquisition. The City pools the cash resources of its funds for
cash management purposes. The proprietary funds essentially have access to the entire amount of their cash
resources on demand. Accordingly, each proprietary fund’s equity in the cash management pool is considered to
be cash and cash equivalents for the purpose of the Statement of Cash Flows. Interest is allocated to the funds
on the basis of average cash balances.
The City’s investments in money market funds are carried at cost, which approximates fair value. Investments in
certificates of deposit are carried at cost. All other investments are carried at fair value, which is determined
based on quoted market prices. Investment income consists of interest received and the net change in fair value
of investments.
p. Estimates:
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported
amounts of assets, deferred outflows of resources and liabilities and deferred inflows of resources and
disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses/expenditures during the reporting period. Actual results could differ materially from
those estimates.
48
City of Brookings
December 31, 2017
Notes to the Financial Statements
q. Health System Net Patient and Resident Service Revenue and Receivables:
The Health System has agreements with third‐party payors that provide for payments to the Health System at
amounts different from its established rates. Payment arrangements include prospectively determined rates,
reimbursed costs, discounted charges, and per diem payments. Net patient and resident service revenue is
reported at the estimated net realizable amounts from patients, residents, third‐party payors, and others for
services rendered, including estimated retroactive adjustments under reimbursement agreements with third‐
party payors. Retroactive adjustments are accrued on an estimated basis in the period the related services are
rendered and adjusted in future periods as final settlements are determined.
The carrying amount of patient and resident receivables is reduced by a valuation allowance that reflects
management’s best estimate of amounts that will not be collected from patients and residents and third‐party
payors. Management reviews patient and resident receivables by payor class and applies percentages to
determine estimated amounts that will not be collected from third parties under contractual agreements and
amounts that will not be collected from patients and residents due to bad debts. Management considers
historical write off and recovery information in determining the estimated bad debt provisions. Management
also reviews accounts to determine if classification as charity care is appropriate.
As discussed previously, the Health System has agreements with third‐party payors that provide for payments to
the Health System at amounts different from its established rates. A summary of the payment arrangements
with major third‐party payors follows:
Hospital Medicare During 2009, the Health System began participation in the Centers for Medicare and
Medicaid Services (CMS) Rural Community Hospital Demonstration Program (RCHD) as mandated under
Section 410A of the Medicare Modernization Act. For inpatient services provided to patients after January 1,
2009, the Health System is reimbursed on a cost‐based methodology subject to retrospective settlement
within prescribed limits compared to their initial year base costs under the program. The RCHD program
concluded on September 30, 2015, but was extended for five additional years through federal legislation
included in Section 15003 of the Cures Act, enacted on December 13, 2016.
When the Cures Act was enacted, the legislation did not make clear whether the reimbursement program
would be retroactively applied or applied prospectively from the date of the enactment of the Cures Act.
During the year ended December 31, 2017, it was determined that the RCHD reimbursement would be
retroactively reinstated back to October 1, 2015. In connection with this retroactive reinstatement, the
Health System recorded additional net patient service revenue of approximately $1,406,000 during the year
ended December 31, 2017, related to the RCHA reimbursement for services provided from October 1, 2015
through December 31, 2016.
The Health System is reimbursed for cost reimbursable items at a tentative rate with final settlement
determined after submission of annual cost reports by the Health System and audits thereof by the Medicare
Administrative Contractor. The Health System's Medicare cost reports have been audited by the Medicare
Administrative Contractor through the year ended December 31, 2014.
Hospital Medicaid Inpatient acute care services rendered to Hospital Medicaid program beneficiaries are paid
at prospectively determined rates per discharge. These rates vary according to a patient classification system
that is based on clinical, diagnostic, and other factors. Outpatient services rendered to Medicaid program
beneficiaries are reimbursed under a reimbursement methodology based on historical cost. Retroactive
settlements are not carried out by the Medicaid program.
Hospital Blue Cross Services rendered to Hospital Blue Cross subscribers are reimbursed under a
prospectively determined methodology.
Nursing Home The Health System is reimbursed for resident services at established billing rates which are
determined on historical costs adjusted annually for inflation and subject to certain limitations as prescribed
49
City of Brookings
December 31, 2017
Notes to the Financial Statements
by South Dakota Department of Social Services regulations. These rates are subject to retroactive
adjustments by field audit. The Health System also participates in the Medicare program for which payments
for resident services are made on a prospectively determined per diem rate which varies based on a case‐mix
resident classification system.
The Health System has also entered into payments with certain commercial insurance carriers and other
organizations. The basis for payment to the Health System under these agreements includes prospectively
determined rates per discharge and discounts from established charges.
Concentration of gross revenues by major payor accounted for the following percentages of the Health System's
patient and resident service revenues for the year ended 2016:
Laws and regulations governing the Medicare, Medicaid, and other programs are extremely complex and subject
to interpretation. As a result, there is at least a reasonable possibility that recorded estimates will change by a
material amount in the near term. The net patient service revenue for the year ended December 31, 2017
increased by approximately $238,000 due to removal of allowances previously estimated that are no longer
necessary as a result of final settlements and years that are no longer likely subject to audits, review, and
investigations.
Charity Care
The Health System provides care to patients and residents who meet certain criteria under its charity care policy
without charge or at amounts less than its established rates. Because the Health System does not pursue
collection of amounts determined to qualify as charity care, they are not reported as patient and resident service
revenue.
r. Implementation of New Accounting Principles
In 2017 the City implemented the provisions of the following accounting principles:
GASB Statement No. 80, Blending Requirements for Certain Component Units. This Statement amends the
blending requirements established in paragraph 53 of Statement No. 14. The additional criterion requires
blending of a component unit incorporated as a not‐for‐profit corporation in which the primary government is
the sole corporate member.
GASB Statement No. 81, Irrevocable Split‐Interest Agreements. This Statement requires that a government that
receives resources pursuant to an irrevocable split‐interest agreement recognize assets, liabilities, and deferred
inflows of resources at the inception of the agreement. This Statement requires that a government recognize
assets representing its beneficial interests in irrevocable split‐interest agreement that are administered by a
third party, if the government controls the present service capacity of the beneficial interest. It also requires
that a government recognize revenue when the resources become applicable to the reporting period.
The implementation of these GASB Statements did not have a significant impact on the City’s financial
statements.
2. DEFICIT FUND BALANCE
The following funds had a fund balance deficit as of December 31, 2017:
Medicare 42%
Medicaid 7%
Blue Cross 24%
Other 27%
Total 100%
50
City of Brookings
December 31, 2017
Notes to the Financial Statements
Swiftel Center Fund (Special Revenue Fund) had a negative balance of $1,290,666 in large part due to a significant
purchase of a capital asset during 2016 that was financed by an interfund loan. In addition, part of the negative
balance is due to a significant purchase of a capital asset in a prior year, and payment of prior years taxes owed
following a tax audit. Because of this, the fund level statement reflected the large expenditure without any offsetting
revenue thereby having a negative impact on fund balance.
The TIF‐1 Innovation Campus Fund (Debt Service Fund) had a negative balance of $540,016 because of a large advance
to the capital project fund which will be paid off with future tax increment revenue.
The TIF‐6 Digester (Capital Project Fund) had a negative balance of $28,272 because of bills incurred in previous years
and required to be paid by the City as a result of a settlement. The bills were received following year end and reported
as accrued expenses at the end of 2017.
3. DEPOSITS AND INVESTMENTS
The City follows the practice of aggregating the cash and investments of various funds to maximize cash management
efficiency and returns. Various restrictions on deposits and investments are imposed by statutes. These restrictions are
summarized below:
Deposits ‐ The City’s cash deposits are made in qualified public depositories as defined by South Dakota Codified Law
(SDCL) 4‐6A‐1, 7‐20‐1, 7‐20‐1.1 and 9‐22‐6.2, and may be in the form of demand or time deposits.
Qualified depositories are required by SDCL 4‐6A‐3 to maintain at all times, segregated from their other assets, eligible
collateral having a value equal to at least 100 percent of the public deposit accounts which exceed deposit insurance
such as the Federal Deposit Insurance Corporation (FDIC) and National Credit Union Share Insurance (NCUA). In lieu of
pledging eligible securities, a qualified public depository may furnish irrevocable standby letters of credit issued by
Federal Home Loan Banks accompanied by written evidence of that bank's public debt rating which may not be less than
"AA" or a qualified public depository may furnish a corporate surety bond of a corporation authorized to do business in
South Dakota.
Investments ‐ In General, SDCL 4‐5‐6 permits City funds to be invested in (a) securities of the United States and
securities guaranteed by the United States government either directly or indirectly; or (b) repurchase agreements fully
collateralized by securities described in (a); or in (c) shares of an open‐end, no‐load fund administered by an investment
company whose investments are in securities described in (a) and repurchase agreements described in (b). Also, SDCL
4‐5‐9 requires that investments shall be in the physical custody of the political subdivision or may be deposited in a
safekeeping account with any bank or trust company designated by the political subdivision as its fiscal agent.
Fair Value Measurement – Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. Fair value measurements must maximize
the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs
that may be used to measure fair value:
Level 1 – Quoted prices in active markets for identical assets or liabilities.
Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities;
quoted prices in markets that are not active; or other inputs that are observable or can be
corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 – Unobservable inputs supported by little or no market activity and are significant to the fair value of
the assets or liabilities.
The following table presents the fair value measurements of assets and liabilities recognized in the accompanying
financial statements measured at fair value on a recurring basis and the level within the fair value hierarchy in the which
the fair value measurements fall at December 31, 2017.
51
City of Brookings
December 31, 2017
Notes to the Financial Statements
Money Market Funds and Certificates of Deposit (CD’s) are carried at cost, and thus are not included within the fair
value hierarchy.
As of December 31, 2017, the City had the following investments and maturities.
Credit Risk – State law limits eligible investments for the City, as discussed above. The City has an investment policy
that does not further limit its investment choices.
Custodial Credit Risk – Deposits – The risk that in the event of a depository failure the City’s deposits may not be
returned to it. The City does not have a deposit policy for custodial credit risk. As of December 31, 2017, the City's
deposits in financial institutions were fully insured or collateralized and were not exposed to custodial credit risk.
Custodial Credit Risk – Investments – The risk that, in the event of default of the counterparty to a transaction, the City
will not be able to recover the value of investment or collateral securities that are in the possession of an outside party.
United States Government Securities, with a fair market value of $8,352,510, are held in a safekeeping account with
First Bank & Trust Wealth Management Services in Brookings, South Dakota. First Clearing, LLC <FCC>, a non‐bank
affiliate of Wachovia Corporation, and a registered broker‐dealer, a member of the New York Stock Exchange and a
member of the National Association of Securities Dealers, Inc., carries the City of Brookings, SD account and acts as its
custodian for funds and securities deposited with First Bank & Trust Wealth Management directly by the City.
Money Market Funds, with a fair market value of $11,841,408, are held in a safekeeping account with First Bank & Trust
Wealth Management Services in Brookings, South Dakota.
Money Market Funds, with a fair market value of $6,160,248, are held in a safekeeping account with Wells Fargo Asset
Management, in Brookings, South Dakota.
Coverage for cash and securities in protected client accounts is provided from two sources. The Securities Investor
Protection Corporation <SIPC> protects up to $500,000, of which $100,000 may be cash. Additional protection has been
obtained, at no cost to the City of Brookings, SD, for the remaining net equity balance of the cash and securities in the
City’s account. This coverage does not protect against losses from any change in market values of investments.
Concentration of Credit Risk – The City places no limit on the amount that may be invested in any one issuer.
As of December 31, 2017, the City had investments in excess of 5% of the total investment portfolio: 44.93% of the
City's investments are in money markets at First Bank & Trust Wealth Management Services, 16.62% are in US
Treasuries, 15.08% are in Federal Farm Credit Bank securities (FFCB), and 23.37% are in money markets at Wells Fargo
Asset Management.
Interest Rate Risk – The City has a formal investment policy that limits investment maturities to less than five <5> years
from the date of purchase as a means of managing its exposure to fair value losses arising from increasing interest rates.
Credit Carrying Fair Value
Investment Type Rating Value Less than 1 1 to 5Hierachy Level
Money Market Fund ‐ U.S. Agencies Not Rated 11,841,408$ 11,841,408$ ‐$ N/A
Money Market Fund ‐ U.S. Agencies AAAm 6,160,248 6,160,248 ‐ N/A
U.S. Treasuries AAA 4,379,570 3,290,507 1,089,063 2
U.S. Agencies Obligations AAA 3,972,940 2,997,050 975,890 2
Total Investments 26,354,166$ 24,289,213$ 2,064,953$
Maturities in Years
52
City of Brookings
December 31, 2017
Notes to the Financial Statements
Assignment of Investment Income – State law allows income from deposits and investments to be credited to either
the General Fund or the fund making the investment. The City’s policy is to credit all income from investments to the
fund making the investment.
Summary of Deposit and Investment Balances
Following is a reconciliation of the City’s deposit and investment balances as of December 31, 2017:
4. RECEIVABLES AND DUE FROM OTHER GOVERNMENTS:
Receivables for the City’s individual major funds, aggregate nonmajor funds, and fiduciary funds including the applicable
allowances for uncollectible accounts are as follows at December 31, 2017:
The City expects all receivables to be collected within one year, except for $789,004 in deferred Special Assessments in
the Special Revenue Special Assessments Fund.
Allowances for uncollectible accounts receivable in the Enterprise Funds are calculated based on historical trend data.
The other funds receivables are stated at face value. As of December 31, 2017, the allowance for doubtful accounts in
the Enterprise Funds were as follows:
Totals
Investments 26,354,165$
Certificates of deposits 40,392,803
Deposits and cash on hand 66,694,951
133,441,919$
Government‐wide Fiduciary Funds
Statement of Statement of
Net Position Net Position Totals
Cash and cash equivalents 81,431,981$ 25,753$ 81,457,734$
Investments‐CDs 25,545,704 ‐$ 25,545,704
Investments 8,352,510 ‐ 8,352,510
Restricted assets:
Cash and cash equivalents 3,238,872 ‐ 3,238,872
Investments‐CDs 14,847,099 ‐ 14,847,099
133,416,166$ 25,753$ 133,441,919$
Special Unbilled
Interest Taxes Accounts Assessments Accounts Total
General Fund 10,030$ 2,628$ 262,112$ ‐$ ‐$ 274,770$
75% Sales & Use Tax 2,294 352,888 ‐ ‐ 355,182
Electric Fund 7,599 ‐ 2,229,481 ‐ 998,705 3,235,785
Wastewater Fund 8,171 ‐ 516,032 ‐ 287,636 811,839
Health System Fund 4,902 ‐ 10,040,305 ‐ ‐ 10,045,207
Telephone Fund 14,997 ‐ 2,536,753 ‐ 353,466 2,905,216
Nonmajor and Other Funds 19,584 1,424 1,070,702 861,949 316,390 2,270,049
67,577$ 4,052$ 17,008,273$ 861,949$ 1,956,197$ 19,898,048$
Electric Fund 23,861$
Health System Fund 2,616,000
Telephone Fund 30,761
Wastewater Fund 7,500
Water Fund 7,400
2,685,522$
53
City of Brookings
December 31, 2017
Notes to the Financial Statements
The total of Due from Other Governments of $1,626,424 includes the following significant items:
5. OTHER ASSETS
Other assets at December 31, 2017 were as follows:
Telephone Fund
South Dakota Network, LLC $330,357
Express Communications, Inc. 11,895
DHE, LLC 102,939
Capital credits 175,666
Total Telephone Fund 620,857
Wastewater Fund – capital credits 10,576
Water Fund – capital credits 907
Health System Fund – investment in joint venture 210,082
Total other assets – Enterprise Funds $842,422
There is an operating agreement between all of the members of South Dakota Network, LLC (SDN) including the
Telephone Fund, which requires a selling member to first offer to other members of SDN any units available for sale.
The City owns 7.84% of this company.
There is a buy‐sell agreement between all of the shareholders of Express Communications, Inc., including the Telephone
Fund, which requires a selling shareholder to first offer to other shareholders of Express Communications, Inc. any stock
available for sale. The City owns 11,368 shares or 10.14% of Express Communications, Inc.
There is an operating agreement between all the members of DHE, LLC (DHE), including the Telephone Fund, for the
sole and exclusive benefit of the members and no third party shall have any rights under the agreement. The City owns
10.34% of this company as a Class I member.
Capital credits represent each respective Fund’s patronage capital allocation resulting from their relationships with
cooperative associations.
6. PCS LICENSES
The Telephone Fund has FCC licenses to operate a Personal Communication Services (PCS) network in Eastern South
Dakota and Northwestern Iowa which includes the cities of Watertown, Brookings, Sioux Falls and Sioux City. The
license agreements for PCS have been renewed until June 2025. Although the FCC licenses were issued with a stated
term, they can be renewed routinely, and renewal of the license is expected without substantial cost and no legal,
Fund/Fund Type Amount Service
General Fund/Major Governmental 640,912$ State of South Dakota, December Sales and Use Tax
20,403 Brookings County, Property Tax Collected by Brookings County
4,994 Brookings County, County Highway Bridge Tax
1,837 Brookings County, Wheel Tax
41,687 State of South Dakota, December Liquor Tax
64,359 State of South Dakota, State Highway and Bridge Tax
1,499 Brookings County, Billings
25% Sales & Use Tax/Special Revenue Fund 157,696 State of South Dakota, December Sales and Use Tax
75% Sales & Use Tax/Special Revenue Fund 479,840 State of South Dakota, December Sales and Use Tax
Enhanced 911/Special Revenue Fund 79,980 Brookings County, Billings
4,186 State of South Dakota, 911 Surcharge
Storm Drainage/Special Revenue Fund 5,477 Brookings County, Storm Drainage Tax Collected by County
Bed and Booze Tax/Special Revenue Fund 70,051 State of South Dakota, December Sales and Use Tax
Airport/Enterprise Fund 53,503 Federal Government, Airport Improvement Project Grant Funds
Total 1,626,424$
54
City of Brookings
December 31, 2017
Notes to the Financial Statements
regulatory, contractual, or other factors currently exist that limit the useful life of the licenses, so long as the Telephone
Fund continues to operate PCS systems as authorized by each license and provides wireless service to the public. The
costs of the license agreements were amortized equally over an estimated economic useful life of 15 years, and became
fully amortized in 2015.
The Telephone Fund is operating under an agreement with Sprint PCS through December 31, 2028. Under the
agreement, Sprint provides the Telephone Fund significant support services such as billing, collections, long‐distance,
customer care and national advertising. Additionally, the Telephone Fund derives substantial roaming and travel
revenues and expenses when Sprint and Sprint's network partners' wireless subscribers incur minutes of use in the
Telephone Fund's territories. Sprint PCS collects customer payments for the Telephone Fund’s PCS operations, remits
such receipts to the Telephone Fund and invoices the Telephone Fund for amounts due to Sprint PCS for services
provided under the agreement. Estimates have been made for liabilities regarding the settlement process, and may be
subject to further adjustment pursuant to the settlement process called for in the agreement.
The Telephone Fund is also required to make affiliation fee payments based on estimated annual revenues. The actual
cost for the year ended December 31, 2017 was $999,996.
7. CHANGES IN CAPITAL ASSETS
A summary of changes in capital assets for the year ended December 31, 2017 is as follows:
Depreciation expense was charged to functions as follows:
Governmental Activities:
General government $ 204,985
Public safety 525,986
Public works 2,166,631
Culture and recreation 1,317,435
Health and welfare 4,721
Total depreciation expense
Governmental Activities $ 4,219,758
Beginning Ending
Balances Increases Decreases Transfers Balances
Governmental Activities
Capital assets not being depreciated
Land 10,015,411$ 110,200$ (9,661)$ ‐$ 10,115,950$
Construction in progress 881,647 1,517,320 (5,310) (300,262) 2,093,395
Total capital assets not being depreciated 10,897,058 1,627,520 (14,971) (300,262) 12,209,345
Capital assets being depreciated
Infrastructure 72,561,874 1,426,464 ‐ 300,262 74,288,600
Buildings and improvements 45,837,253 2,332,759 (69,303) ‐ 48,100,709
Equipment 18,760,934 1,741,161 (956,156) 77,980 19,623,919
To tal capital assets being depreciated 137,160,061 5,500,384 (1,025,459) 378,242 142,013,228
Less accumulated depreciation for:
Infrastructure 31,047,370 1,831,962 ‐ ‐ 32,879,332
Buildings and improvements 13,478,091 1,048,657 (69,303) ‐ 14,457,445
Equipment 10,036,149 1,339,139 (909,704) 77,980 10,543,564
Total accumulated depreciation 54,561,610 4,219,758 (979,007) 77,980 57,880,341
Total capital assets being dep. net 82,598,451 1,280,626 (46,452) 300,262 84,132,887
Governmental Activities capital assets, net 93,495,509$ 2,908,146$ (61,423)$ ‐$ 96,342,232$
55
City of Brookings
December 31, 2017
Notes to the Financial Statements
Depreciation expense was charged to functions as follows:
Business‐Type Activities:
Electric $1,676,013
Hospital 5,505,647
Telephone 3,542,309
Liquor 29,065
Water 423,692
Wastewater 1,599,959
Airport 933,349
Golf 91,971
Solid Waste 519,372
Research and Technology Center 53,007
Total depreciation expense
Business‐Type Activities $14,374,384
Significant projects included in construction in progress for the primary government are as follows:
Beginning Ending
Balances Increases Decreases Transfers Balances
Business‐Type Activities:
Capital assets not being depreciated:
Land 4,770,567$ 41,250$ ‐$ ‐$ 4,811,817$
Construction in progress 31,729,113 21,558,245 (6,413,601) (43,427,182) 3,446,575
Total capital assets not being depreciated 36,499,680 21,599,495 (6,413,601) (43,427,182) 8,258,392
Capital assets being depreciated:
Buildings and improvements 274,567,051 4,920,303 (14,221,994) 43,427,182 308,692,542
Equipment 39,465,490 9,142,103 (15,284,835) (77,980) 33,244,778
Total capital assets being depreciated 314,032,541 14,062,406 (29,506,829) 43,349,202 341,937,320
Less accumulated depreciation for:
Buildings and improvements 119,736,241 10,970,773 (13,653,159) ‐ 117,053,855
Equipment 29,571,339 3,403,611 (15,165,903) (77,980) 17,731,067
Total accumulated depreciation 149,307,580 14,374,384 (28,819,062) (77,980) 134,784,922
Total capital assets being depreciated, net 164,724,961 (311,978) (687,767) 43,427,182 207,152,398
Business‐Type Activities capital assets, net 201,224,641$ 21,287,517$ (7,101,368)$ ‐$ 215,410,790$
Expended as of
Project Description Authorized 12/31/2017 Committed
Business‐Type Activities:
Airport Fund
Runway 17/35 Improvements 1,161,500$ 853,266$ 308,234$
Telephone Fund
PCS Tower and Site Work 392,330 356,864 35,466
PCS Radio Access Network Equp Phase I 1,977,894 1,970,184 7,710
PCS Radio Access Network Equip Phase II 265,763 250,096 15,667
Electric Fund
Pioneer park Road Relocation 172,628 79,675 92,953
Wastewater Fund
Manhole Rehabilitation 408,925 383,925 25,000
4,379,040$ 3,894,010$ 485,030$
56
City of Brookings
December 31, 2017
Notes to the Financial Statements
8. DEBT OBLIGATIONS
Long Term Liabilities
A summary of changes in long‐term liabilities is as follows:
Governmental Activities:
Business‐Type Activities:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Revenue bonds 21,723,310$ ‐$ (2,295,376)$ 19,427,934$ 2,140,509$
Premium on issuance 71,910 ‐ (11,985) 59,925 ‐
Total bonds payable 21,795,220 ‐ (2,307,361) 19,487,859 2,140,509
Loans ‐ 5,900,000 (100,000) 5,800,000 200,000
Capital leases ‐ 294,600 (33,630) 260,970 25,613
OPEB
General Fund 1,325,318 71,400 ‐ 1,396,718 ‐
Special Revenue Funds 92,515 4,760 ‐ 97,275 ‐
Compensated absences
General Fund 838,704 965,749 (953,796) 850,657 281,600
Special Revenue Funds 59,859 100,943 (117,544) 43,258 18,400
Net pension liability 1,274,010 ‐ (1,274,010) ‐ ‐
Governmental Activities
Long‐Term Liabilities 25,385,626$ 7,337,452$ (4,786,341)$ 27,936,737$ 2,666,122$
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Revenue bonds 6,185,336$ ‐$ (319,865)$ 5,865,471$ 328,525$
Loans payable 29,143,534 ‐ (647,729) 28,495,805 671,357
Capital leases 26,696,924 17,510,821 (910,647) 43,297,098 1,817,708
OPEB 1,110,929 79,187 ‐ 1,190,116 ‐
Landfill closure/ postclosure 559,223 46,826 ‐ 606,049 ‐
Compensated absences 1,416,357 3,122,676 (2,994,765) 1,544,268 1,175,845
Amount due under joint
operating agreement 958,735 596,615 ‐ 1,555,350 ‐
Net pension liability 4,983,158 ‐ (4,983,158) ‐ ‐
Business‐Type Activities
Long‐Term Liabilities 71,054,196$ 21,356,125$ (9,856,164)$ 82,554,157$ 3,993,435$
57
City of Brookings
December 31, 2017
Notes to the Financial Statements
Long‐term liabilities payable at December 31, 2017 is comprised of the following:
Governmental Activities:
Revenue Bonds:
City of Brookings, South Dakota Sales Tax Revenue
Bonds, 2010A Series, final maturity date December 2022;
Interest rate varies from 1.25% to 3.15%; payments are
made from 75% Sales and Use Tax/Public Improvement
Fund. Callable at option of the City in whole or in part beginning
in December, 2018. Original issue $16,735,000.6,510,000$
Plus: Premium on issuance 59,925
City of Brookings, South Dakota Sales Tax Revenue
Bonds, 2014A Series, final maturity date December 2033;
Interest rate 3.15%; payments are made from 75% Sales and
Use Tax/Public Improvement Fund. Original issue $10,000,000.9,149,693
City of Brookings, South Dakota SDHDA TIF #3 Bond,
(Guaranteed by Developer), final maturity date December
2023; interest rate 5%; payments made from the TIF #3 Fund.
Original issue: $1,035,000.277,825
City of Brookings, South Dakota State Revolving Fund Bond #2,
final maturity date December 2035; interest rate 3%; payments
made from TIF #1 Fund. Original issue $670,000.509,200
City of Brookings, South Dakota State Revolving Fund Bond #3,
final maturity date December 2033; interest rate 3%; payments
made from Storm Drainage Fund. Original issue $390,519. 301,007
City of Brookings, South Dakota State Revolving Fund Bond #4,
final maturity date April 2033; interest rate 3%; payments
made from Storm Drainage Fund. Original issue $335,314.276,305
City of Brookings, South Dakota State Revolving Fund Bond #5,
final maturity date January 2033; interest rate 3%; payments 183,957
made from Storm Drainage Fund. Original issue $226,121.
City of Brookings, South Dakota State Revolving Fund Bond #6,
final maturity date October 2032; interest rate 3%; payments 1,686,708
made from Storm Drainage Fund. Original issue $1,972,719.
City of Brookings, South Dakota Tax Increment Revenue Note,
(Guaranteed by Developer), final maturity date June 2019;
interest rate 7.5%; payments made from TIF#4 Fund.
Original issue $450,940.110,218
City of Brookings, South Dakota State Revolving Fund Bond #9,
final maturity date July 2035; interest rate 3%; payments
made from Storm Drainage Fund. Original issue up to $1,570,000.423,021
19,487,859
Loans:
City of Brookings, South Dakota loan from private citizen,
final maturity date November 2027; interest rate 0%; payments
made from 75% Sales and Use Tax Fund. Original issue $5,500,000 5,400,000
City of Brookings, South Dakota loan from Brookings County,
final maturity date November 2021; interest rate 0%; payments
made from 75% Sales and Use Tax Fund. Original issue $400,000 400,000
5,800,000
58
City of Brookings
December 31, 2017
Notes to the Financial Statements
Business‐Type Activities:
Revenue Bonds:
City of Brookings, South Dakota Electric Utility Revenue Bonds
Series 2005; final maturity date July 2028; interest rate
5.95% per annum; payments are made from the Electric Fund.
Callable at option of the City in $10,000 increments at
anytime. Original issue $1,353,319.885,471$
City of Brookings, South Dakota Electric Utility Revenue Bonds Series 2011;
final maturity date December 2031; interest rate .65% to 3.9% depending
on length to maturity; payments are made from the Electric Fund.
Callable at option of the City in whole or in part beginning on
December 1, 2022. Original issue $6,500,000.4,980,000
Total Revenue Bonds:5,865,471
Loans:
City of Brookings, South Dakota State Revolving Fund Bond #7;
final maturity date October 2044; interest rate 3.25%; payments
made from Wastewater Fund. 28,495,805
Total Loans:28,495,805
Financing (Capital Acquisition) Leases:
Lease and purchase of utility plant for the Telephone, Water,
Wastewater, and Electric Funds.
Series 2006; interest rates 4.75% due December 1, 2026. Orig. issue $8,000,000. 4,525,000
Lease and purchase of Skilled Nursing Facility for Brookings Health System.
Series 2012; interest rate 3.98% due October 15, 2042. Original issue $10,000,000.9,058,204
Lease and purchase of Hospital Renovation and Addition of Medical Office Building.
Series 2015A; interest rate2.60% through 2020, variable thereafter, due October 2025.
Original issue $8,000,000. 7,781,863
Series 2015B; interest rate 3.95% through 2025, variable thereafter, due October 2037.
Original issue $22,000,000.21,932,031
Total Leases:43,297,098
OPEB Liability:1,190,116
Landfill Closure/Postclosure Costs:606,049
Compensated Absences:1,544,268
Amount Due Under Joint Operating Agreement:1,555,350
Total Business‐Type Activities Long‐Term Liabilities 82,554,157$
Governmental Activities continued:
Financing (Capital Acquisition) Leases:
Lease purchase of a digital Scoreboard; final maturity date
December 2026; interest rate of 2.9%; annual payments made from
the Swiftel Center Fund. Original issue $294,600. 260,970
Total Leases:260,970
OPEB Liability:1,493,993
Compensated Absences:893,915
Net Pension Liability:
Total Governmental Activities Long‐Term Liabilities 27,936,737$
59
City of Brookings
December 31, 2017
Notes to the Financial Statements
The annual requirements to amortize all debt outstanding for Governmental Activities as of December 31, 2017, except
for the compensated absences, other postemployment benefits (OPEB), and the net pension liability are as follows:
Assets acquired through capital leases for business‐type activities were primarily for buildings and various infrastructure, which
are being depreciated over the lesser of their estimated useful lives or the term of the related lease.
Year Ending Loans
December 31, Principal Interest Principal Interest
2018 2,140,509$ 592,761$ 200,000 ‐
2019 2,202,917 533,478 200,000 ‐
2020 2,265,386 469,346 200,000 ‐
2021 2,335,123 399,514 200,000 ‐
2022 1,125,008 326,630 916,666 ‐
2023‐2027 3,947,660 1,191,863 4,083,334 ‐
2028‐2032 4,419,151 538,960 ‐ ‐
2033‐2037 992,180 26,662 ‐ ‐
19,427,934$ 4,079,214$ 5,800,000$ ‐$
Year Ending Total
December 31, Principal Interest Principal Interest
2018 25,613 8,017 2,366,122 600,778
2019 26,400 7,230 2,429,317 540,708
2020 27,211 6,419 2,492,597 475,765
2021 28,047 5,583 2,563,170 405,097
2022 28,908 4,722 2,070,582 331,352
2023‐2027 124,791 9,729 8,155,785 1,201,592
2028‐2032 ‐ ‐ 4,419,151 538,960
2033‐2037 ‐ ‐ 992,180 26,662
260,970$ 41,700$ 25,488,904$ 4,120,914$
Revenue Bonds
Capital Acquisition Leases
60
City of Brookings
December 31, 2017
Notes to the Financial Statements
The annual requirements to amortize all debt outstanding for Business‐Type Activities as of December 31, 2017, except
for compensated absences, landfill closure/postclosure, OPEB, amounts due under joint operating agreement, and the
net pension liability are as follows:
The Series 2005 Utility Revenue Bonds are secured by a pledge of the revenues from the Electric Fund of the improvements
funded from the issuance, through final maturity of the bonds in 2028. The total principal and interest remaining to be paid
on the bonds is $1,189,209. The Series 2011 Utility Revenue Bonds are secured by a pledge of the revenues from the
Electric Fund, of improvements funded from the issuance, through final maturity of the bonds in 2031. The total principal
and interest remaining to be paid on the bonds is $6,549,967. Total debt service payments for the Series 2005 and 2011
Bonds are expected to require approximately 10 percent of the net revenues of the Electric Fund.
9. CONDUIT DEBT
In the past, the City has issued revenue bonds to provide financial assistance to certain private‐sector entities for acquisition
and/or construction of facilities deemed to be in the public interest. These bonds are secured by the property being
financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds,
ownership of the acquired facilities is retained by the private‐sector entity served by the bond issuance. Neither the City,
the State of South Dakota, or any other political subdivision of the state is obligated in any manner for the repayment of
Business ‐Type Activities:
Year Ending
December 31, Principal Interest Principal Interest
2018 328,525$ 220,744$ 671,357$ 917,987$
2019 337,410 211,162 693,444 895,900
2020 351,532 200,560 716,257 873,087
2021 360,906 188,766 739,820 849,523
2022 375,548 176,144 764,159 825,185
2023-2027 2,107,929 652,182 4,214,843 3,731,877
2028-2032 2,003,621 224,147 4,955,290 2,991,430
2033-2037 ‐ ‐ 5,825,816 2,120,904
2038-2042 ‐ ‐ 6,849,272 1,097,447
2043-2047 ‐ ‐ 3,065,547 113,142
5,865,471$ 1,873,705$ 28,495,805$ 14,416,482$
Year Ending
December 31, Principal Interest Principal Interest
2018 1,817,708$ 1,567,790$ 2,817,590$ 2,706,521$
2019 1,880,113 1,505,673 2,910,967 2,612,735
2020 1,943,843 1,441,280 3,011,632 2,514,927
2021 1,913,510 1,470,001 3,014,236 2,508,290
2022 2,000,630 1,385,319 3,140,337 2,386,648
2023-2027 10,381,568 5,913,885 16,704,340 10,297,944
2028-2032 9,282,717 4,495,086 16,241,628 7,710,663
2033-2037 11,626,118 2,151,685 17,451,934 4,272,589
2038-2042 2,450,891 218,401 9,300,163 1,315,848
2043-2047 ‐ ‐ 3,065,547 113,142
43,297,098$ 20,149,120$ 77,658,374$ 36,439,307$
Revenue Bonds Loans
Capital Acquisition Leases Total
61
City of Brookings
December 31, 2017
Notes to the Financial Statements
these conduit debt issues. Accordingly, these bonds are not reported as liabilities in the accompanying financial statements.
As of December 31, 2017 there was one series of conduit bonds outstanding issued for the benefit of South Dakota State
University, with an unpaid principal amount of $510,402.
10. OPERATING LEASE COMMITMENTS
The Telephone Fund has various leases relating to the Sioux Falls, Sioux City, Watertown and Brookings stores. In
addition to rent, the Fund also pays real estate taxes, repairs and maintenance and insurance above normal premium on
leased property. The Telephone Fund also has various site leases for PCS towers and equipment.
Rent expense and future minimum rental commitments for these leases are as follows:
Expense:
2017 $ 915,447
Commitments:
2018 $ 711,498
2019 659,034
2020 456,607
2021 258,482
2022 154,578
Thereafter 15,834
Total Commitments $2,256,033
The Health System leases clinic office space and equipment under certain non‐cancellable and cancellable long‐term
lease agreements.
Rent expense and future minimum rental commitments for these leases are as follows:
Expense:
2017 $ 640,453
Commitments:
2018 $ 118,000
11. LANDFILLS:
State and federal laws and regulations require Municipalities to place a final cover on their municipal landfill when it
stops accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years after
closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops
accepting waste, the Municipality reports a portion of these closure and postclosure care costs as an operating expense
in each period based on landfill capacity used as of each balance sheet date. The $606,049 reported as landfill closure
and postclosure care liability at December 31, 2017, represents the cumulative amount reported to date based on the
use of 32.00% of the estimated capacity of the landfill. The Municipality will recognize the remaining estimated cost of
closure and postclosure care of $1,287,854 as the remaining estimated capacity is filled. These amounts are based on
what it would cost to perform all closure and postclosure care in 2017. The Municipality expects to close the landfill in
the year of 2047. Actual cost may be higher due to inflation, changes in technology, or changes in regulations.
The Municipality is required by state and federal laws and regulations to make annual contributions to a trust to finance
closure and post closure care. The City is in compliance with these requirements; and, at December 31, 2017,
investments of $1,285,661 are held for these purposes. These are reported as restricted assets on the statement of net
position. The Municipality expects that future inflation costs will be paid from interest earnings on these annual
contributions. However, if interest earnings are inadequate or additional post closure care requirements are
62
City of Brookings
December 31, 2017
Notes to the Financial Statements
determined (due to changes in technology or applicable laws and regulations, for example), these costs may need to be
covered by increased fees to future landfill users or from future tax revenue.
12. SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The Electric Fund maintained by the City provides construction and operation of the municipal electric system and
related facilities. The City has issued separate revenue bonds to finance its Electric Fund. Investors in those bonds rely
solely on the revenue generated by the individual activities for repayment. The Wastewater Fund received a State
Revolving Fund Loan to make improvements to the wastewater treatment facilities and collection system. The loan is
secured by gross revenues derived solely from the revenues of the wastewater surcharge. Segment information for
these separately identifiable activities that have bonds or other debt instruments outstanding with a revenue stream
pledged in support of that debt, as well as a requirement to account for the activity’s revenues, expenses, gains and
losses, assets and liabilities apart from other activities within the same fund or in different funds is as follows:
A. Electric Fund
CONDENSED STATEMENT OF NET POSITION
Unsecured Series
Series Total
Operations 2005 Bonds 2011 Bonds Electric Fund
Assets
Current assets 9,693,010$ 2,118,166$ 1,028,818$ 12,839,994$
Due from other funds 153,486 ‐ ‐ 153,486
Noncurrent assets, excluding capital assets 4,774,248 98,088 478,596 5,350,932
Capital assets 29,462,175 789,384 5,363,410 35,614,969
Total assets 44,082,919 3,005,638 6,870,824 53,959,381
Deferred Outflows of resources 1,021,785 ‐ ‐ 1,021,785
Total assets and deferred outflows of resources 45,104,704$ 3,005,638$ 6,870,824$ 54,981,166$
Liabilities
Current liabilities 2,296,745$ 63,626$ 279,148$ 2,639,519$
Due to other funds 6,885 ‐ ‐ 6,885
Noncurrent liabilities 1,648,904 821,946 4,715,000 7,185,850
Total liabilities 3,952,534 885,572 4,994,148 9,832,254
Deferred inflows of resources 189,981 ‐ ‐ 189,981
Total liabilities and deferred inflows of resource 4,142,515 885,572 4,994,148 10,022,235
Net position
Net Investment in capital assets 27,765,300 (96,087) 383,410 28,052,623
Restricted 841,687 98,088 478,596 1,418,371
Unrestricted 12,355,202 2,118,065 1,014,670 15,487,937
Total net position 40,962,189 2,120,066 1,876,676 44,958,931
Total liabilites, deferred inflows of resources,
and net position 45,104,704$ 3,005,638$ 6,870,824$ 54,981,166$
Electric Fund
December 31, 2017
63
City of Brookings
December 31, 2017
Notes to the Financial Statements
B. Wastewater Fund
CONDENSED STATEMENT OF REVENUES,
EXPENSES, AND CHANGES IN NET POSITION
Unsecured Series Series Total
Operations 2005 Bonds 2011 Bonds Electric Fund
Operating revenues 27,548,459$ 320,786$ 633,498$ 28,502,743$
Depreciation/amortization expense (1,462,501) (36,583) (176,929) (1,676,013)
Other operating expense (22,570,308) (3,958) ‐ (22,574,266)
Operating income 3,515,650 280,245 456,569 4,252,464
Nonoperating revenues (expenses)
Investment income 234,070 358 3,245 237,673
Interest expense (87,051) (54,632) (174,301) (315,984)
Other 849,295 ‐ ‐ 849,295
Transfers out (2,055,000) ‐ ‐ (2,055,000)
Changes in net position 2,456,964 225,971 285,513 2,968,448
Beginning net position 38,505,225 1,894,095 1,591,163 41,990,483
Ending net position 40,962,189$ 2,120,066$ 1,876,676$ 44,958,931$
Year Ended December 31, 2017
CONDENSED STATEMENT OF CASH FLOWS Unsecured Series Series Total
Net cash provided (used) by:Operations 2005 Bonds 2011 Bonds Electric Fund
Operating activities 4,785,585$ 316,830$ 633,498$ 5,735,913$
Noncapital financing activities (521,910) ‐ ‐ (521,910)
Capital and related financing activities (2,732,552) (114,497) (434,713) (3,281,762)
Investing activities (1,463,600) 358 3,245 (1,459,997)
Net increase 67,523 202,691 202,030 472,244
Beginning cash and cash equivalents 1,328,261 2,013,563 1,305,384 4,647,208
Ending cash and cash equivalents 1,395,784$ 2,216,254$ 1,507,414$ 5,119,452$
Electric Fund
Year Ended December 31, 2017
Electric Fund
CONDENSED STATEMENT OF NET POSITION
Unsecured State Revolving Total
Operations Fund Loan Wastewater Fund
Assets
Current assets 4,234,148$ 3,680,233$ 7,914,381$
Due from other funds 4,823 ‐ 4,823
Noncurrent assets, excluding capital assets 4,421,984 132,445 4,554,429
Capital assets 11,778,151 29,993,086 41,771,237
Total assets 20,439,106 33,805,764 54,244,870
Deferred outflows of resources 444,760 ‐ 444,760
Total assets and deferred outflows of resources 20,883,866$ 33,805,764$ 54,689,630$
Liabilities
Current liabilities 98,965$ 864,297$ 963,262$
Due to other funds 22,903 ‐ 22,903
Noncurrent liabilities 277,085 27,824,448 28,101,533
Total liabilities 398,953 28,688,745 29,087,698
Deferred inflows of resources 79,237 ‐ 79,237
Total liabilities and deferred inflows of resources 478,190 28,688,745 29,166,935
Net positions
Net Investment in capital assets 11,524,751 1,497,281 13,022,032
Restricted 369,644 132,445 502,089
Unrestricted 8,511,281 3,487,293 11,998,574
Total net position 20,405,676 5,117,019 25,522,695
Total liabilities, deferred inflows of resources, and
net position 20,883,866$ 33,805,764$ 54,689,630$
Wastewater Fund
December 31, 2017
64
City of Brookings
December 31, 2017
Notes to the Financial Statements
CONDENSED STATEMENT OF REVENUES,
EXPENSES, AND CHANGES IN NET POSITION
Unsecured State Revolving Total
Operations Fund Loan Wastewater Fund
Operating revenues 3,525,315$ 2,011,815$ 5,537,130$
Depreciation/amortization expense (527,020) (1,072,939) (1,599,959)
Other operating expense (1,915,238) (159,957) (2,075,195)
Operating income 1,083,057 778,919 1,861,976
Nonoperating revenues (expenses)
Investment income 101,093 395 101,488
Interest expense (12,999) (934,966) (947,965)
Other 177 ‐ 177
Contributed capital 500,990 ‐ 500,990
Changes in net position 1,672,318 (155,652) 1,516,666
Beginning net position 18,733,358 5,272,671 24,006,029
Ending net position 20,405,676$ 5,117,019$ 25,522,695$
Wastewater Fund
Year Ended December 31, 2017
CONDENSED STATEMENT OF CASH FLOWS Unsecured State Revolving Total
Net cash provided (used) by: Operations Fund Loan Wastewater Fund
Operating activities 1,244,948$ 1,741,492$ 2,986,440$
Noncapital financing activities 80,242 ‐ 80,242
Capital and related financing activities 326,284 (2,885,189) (2,558,905)
Investing activities (538,377) ‐ (538,377)
Net increase (decrease)1,113,097 (1,143,697) (30,600)
Beginning cash and cash equivalents (2,228,534) 4,956,375 2,727,841
Ending cash and cash equivalents (1,115,437)$ 3,812,678$ 2,697,241$
Wastewater Fund
Year Ended December 31, 2017
65
City of Brookings
December 31, 2017
Notes to the Financial Statements
13. INDIVIDUAL INTERFUND BALANCES AND TRANSFERS
Interfund receivables and payables result from the time lag between the dates that interfund goods and services are
provided or reimbursable expenditures occur, transactions are recorded in the accounting system, and payments
between funds are made. The composition of interfund balances as of December 31, 2017 is as follows:
Interfund transfers are used to move revenues from the fund that statute or budget requires to collect them to the
fund that statute or budget requires to expend them, and use unrestricted revenues collected in the general fund to
finance various programs accounted for in other funds in accordance with budgetary authorizations. The financial
statements reflect interfund transfers as follows:
Interfund advances or loans between funds are authorized by the governing board allowing the use of monies available
in one fund to finance a project or purchase in another. The terms are established by the governing board. The
financial statements reflect interfund advances as follows:
General 75% Sales & Nonmajor Health Nonmajor
Due From Fund Use Tax Governmental System Enterprise
General Fund ‐$ ‐$ ‐$ 60,605$ 1,349$ 11,164$ ‐$ 26,672$ 99,790$
75% Sales & Use Tax ‐ ‐ 27 ‐ ‐ ‐ ‐ .27
Nonmajor Governmental 6,111 ‐ ‐ 17,057 379 3,378 ‐ 7,507 34,432
Electric 2,570 ‐ 1,706 138 2,155 ‐ 316 6,885
Wastewater 2,906 ‐ 18,023 179 875 ‐ 920 22,903
Health System ‐ ‐ ‐ 25,350 2,331 7,356 ‐ 2,404 37,441
Telephone 7,272 ‐ ‐ 15,491 365 128,445 ‐ 673 152,246
Nonmajor Enterprise 10,879 ‐ ‐ 15,254 82 2,665 ‐ 15,252 44,132
Total 29,738$ ‐$ 27$ 153,486$ 4,823$ 156,038$ ‐$ 53,744$ 397,856$
Due To
Electric Telephone TotalWastewater
General 75% Sales
&Nonmajor Nonmajor
Transfer Out Fund Use Tax Governmental Enterprise
General Fund 13,107$ 70,562$ $ 12,000 $ 229,680 $ 325,349
75% Sales & Use Tax ‐ 716,001 1,553,327 56,829 2,326,157
Nonmajor Governmental 36,894 2,864,589 ‐ 2,901,483
Electric 2,055,000 ‐ ‐ 2,055,000
Telephone 200,000 ‐ ‐ 200,000
Nonmajor Enterprise 1,024,786 815,960 ‐ 100,000 1,940,746
Total $ 3,329,787 $ 1,602,523 $ 4,429,916 $ 386,509 $ 9,748,735
Total
Owed to Owed from
(Receivable) (Payable) Amount
General Fund TIF 1 Innov Campus Fund 584,693$
General Fund Swiftel Center Fund 130,000
Liquor Fund Golf Fund 145,317
Liquor Fund General Fund 127,147
Solid Waste Fund Swiftel Center Fund 984,929
Wastewater Fund Telephone Fund 464,314
Electric Fund Telephone Fund 2,676,990
5,113,390$
Interfund Advances
66
City of Brookings
December 31, 2017
Notes to the Financial Statements
The annual amounts due for principal and future interest on interfund advances are as follows:
14. RESTRICTED NET POSITION
The following table shows the net position restricted as shown on the Statement of Net Position:
Principal Interest Total
2018 1,799,559$ 178,598$ 1,978,157$
2019 1,875,035 108,702 1,983,737
2020 206,931 27,893 234,824
2021 210,554 24,269 234,823
2022 180,644 20,853 201,497
2023‐2027 648,267 59,741 708,008
2028‐2031 192,400 14,643 207,043
5,113,390$ 434,699$ 5,548,089$
Fund Restricted By Amount
General Fund:
Library 59,925$
Insurance Deposit Contract 355,852
Special Revenue Funds:
Enhanced 911 Law 157,043
Library Fines Law 35,572
Bed and Booze Tax Law 952,464
Debt Service Funds:
TIF 3 Valley View Covenant 2,516
TIF 4 Sieler Covenant 1,344
TIF 5 32nd Ave Covenant 67,189
TIF 6 Digester Covenant 5,278
TIF 7 S. Main Ave Covenant 143,488
Governmental Funds ‐ Pension Purposes Standard 2,756,977
Enterprise Funds:
Electric Fu nd – debt service Covenant 576,685
Telephone Fund ‐ debt service Covenant 207
Wastewater Fund ‐ debt service Covenant 132,445
Health System ‐ debt service Covenant 688,890
Solid Waste Fund – landfill Law 679,612
Enterprise Funds ‐ Pension Purposes Standard 10,876,671
Total Restricted Net Position 17,492,158$
Donors
67
City of Brookings
December 31, 2017
Notes to the Financial Statements
15. FUND BALANCES
The following provides details of the aggregate amounts displayed on the face of the balance sheet:
Other
General 75% Sales & Governmental
Fund Use Tax Funds Total
Fund Balances:
Nonspendable:
Inventory 56,906$ ‐$ 17,683$ 74,589$
Inventory land held for resale 1,600,000 ‐ ‐ 1,600,000
Prepaid items 535,967 ‐ 22,541 558,508
Insurance deposit 355,852 ‐ ‐ 355,852
Advances 714,693 ‐ ‐ 714,693
3,263,418 ‐ 40,224 3,303,642
Restricted for:
Donor purposes 59,925 ‐ ‐ 59,925
Debt service ‐ ‐ 219,815 219,815
Library ‐ ‐ 35,572 35,572
E‐911 ‐ ‐ 157,043 157,043
City promotion ‐ ‐ 952,464 952,464
59,925 ‐ 1,364,894 1,424,819
Committed:
Industrial park development 2,274,400 ‐ ‐ 2,274,400
Emergency financial stabilization 1,642,367 ‐ ‐ 1,642,367
Retail development 1,873 ‐ ‐ 1,873
Police & Fire Capital and other ‐ 801,123 940,522 1,741,645
Economic development ‐ 1,000,000 ‐ 1,000,000
Promotion/marketing of City ‐ ‐ 228,400 228,400
Special assessment projects ‐ ‐ 1,666,514 1,666,514
Storm drainage ‐ ‐ 2,109,018 2,109,018
Public art 54,716 ‐ 54,716
3,973,356 1,801,123 4,944,454 10,718,933
Assigned to:
Capital project carryover 400,745 1,992,551 2,393,296
Budget shortfall 540,000 540,000
Future capital improvement 1,170,778 ‐ ‐ 1,170,778
2,111,523 ‐ 1,992,551 4,104,074
Unassigned 6,333,144 ‐ (1,899,178) 4,433,966
15,741,366$ 1,801,123$ 6,442,945$ 23,985,434$
68
City of Brookings
December 31, 2017
Notes to the Financial Statements
16. PENSION PLAN
Plan Description
All employees, working more than 20 hours per week during the year, participate in the South Dakota Retirement
System (SDRS), a cost‐sharing multiple‐employer defined benefit pension plan administered by SDRS to provide
retirement benefits for employees of the State of South Dakota and its political subdivisions. SDRS provides retirement,
disability, and survivor's benefits based on a member’s class within the Plan. The right to receive retirement benefits
vests after three years of credited service. Authority for establishing, administering, and amending plan provisions are
found in South Dakota Codified Law 3‐12. SDRS issues a publicly available financial report that includes financial
statements and required supplementary information. That report may be obtained at
http://www.sdrs.sd.gov/publications.aspx or by writing to South Dakota Retirement System, P.O. Box 1098, Pierre, SD
57501‐1098 or by calling (605) 773‐3731.
Benefits Provided
SDRS has three different classes of employees: Class A general employees, Class B public safety and Class B Judicial. The
City has no Class B judicial members. Class A retirement benefits are determined as 1.70% prior to 2008, and 1.55%
thereafter of the employee’s final 3‐year average compensation times the employee’s years of service. Class A
employees with 3 years of service are eligible to retire at age 55. Class B public safety benefits are determined as 2.40%
for service prior to 2008 and 2.0% thereafter of employee final average compensation. All Class B employees with 3
years of service are eligible to retire at age 45. Employees are eligible for service‐related disability benefits regardless of
length of service. Disability benefits are determined in the same manner as retirement benefits but are payable
immediately without an actuarial reduction. Death benefits are a percent of the employee’s final average salary.
The annual increase in the amount of SDRS benefits payable on each July 1st is indexed to the consumer price index (CPI)
based on SDRS funded status:
If the SDRS market value funded ratio is 100% or more ‐ 3.1% Cost‐of‐Living Adjustment (COLA)
If the SDRS market value funded ratio is 80.0% to 99.9%, index with the CPI
90.0% to 99.9% funded ‐ 2.1% minimum and 2.8% maximum COLA
80.0% to 90.0% funded ‐ 2.1% minimum and 2.4% maximum COLA
If the SDRS market value funded ratio is less than 80% ‐ 2.1% COLA
The 2017 legislation modified the COLA, effective for the July 1, 2018 increase:
Baseline actuarial accrued liabilities will be calculated assuming the COLA is equal to the long‐term inflation
assumption of 2.25%.
If the fair value of assets is greater or equal to the baseline actuarial accrued liabilities, the COLA will be:
The increase in the 3rd quarter CPI‐W, no less than 0.5% and no greater than 3.5%.
If the fair value of assets is less than the baseline actuarial accrued liabilities, the COLA will be:
The increase in the 3rd quarter CPI‐W, no less than 0.5% and no greater than a restricted
maximum such that, if the restricted maximum is assumed for future COLAs, the fair value to
assets will be greater or equal to the actuarial accrued liabilities.
All benefits except those depending on the Member’s Accumulated Contribution are annually increased by the Cost‐of‐
Living Adjustment.
The Variable Retirement Account (VRA) was established during the 2017 legislative session (SDCL 3‐12‐519 through 3‐
12‐521) and became effective July 1, 2017. The VRA is a flexible benefit provided to each generational member and
will be credited with a Variable Retirement Contribution (up to 1.5 percent of compensation funded by part of the
employer contribution) each year and investment earnings based on SDRS’s net investment return for the fiscal year
(through the month prior to distribution if paid out during the fiscal year). The VRA will be payable in addition to the
SDRS defined benefit upon retirement, disability, or death. Since the Variable Retirement Account is only available to
new hires that start after July 1, 2017, it does not impact the current financial statements.
69
City of Brookings
December 31, 2017
Notes to the Financial Statements
Contributions
Per SDCL 3‐12, contribution requirements of the active employees and the participating employers are established and
may be amended by the SDRS Board. Covered employees are required by state statute to contribute the following
percentages of their salary to the plan; Class A Members ‐ 6.0% of salary and Class B Public Safety Members ‐ 8.0% of
salary. State statute requires the employer to contribute an amount equal to the employee’s contribution. State
statute also requires the employer to make an additional contribution in the amount of 6.2% for any compensation
exceeding the maximum taxable amount for social security for general employees only. Employees who were
members prior to July 1, 2010 may make an additional contribution of 1.50% of their salary for optional spouse
coverage. The City's share of contributions to SDRS for the fiscal year ended December 31, 2017 was $2,235,945,
which is equal to the required contribution.
Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
At June 30, 2017, SDRS is 100.1% funded and accordingly has a net pension asset. The proportionate share of the
components of the net pension asset of SDRS, for the City of Brookings as of the measurement period ending June 30,
2017 and reported by the City of Brookings as of December 31, 2017, are as follows:
The net pension asset was measured as of June 30, 2017 and the total pension liability used to calculate the net pension
asset was determined by an actuarial valuation as of that date. At December 31, 2017, the City reported an asset of
$162,889 for its proportionate share of the net pension asset. The City’s share of the net pension asset was based on
the City’s share of contributions to the Plan relative to all employer contributions to the Plan. At June 30, 2017, City's
proportion was 1.79488890%, which is a decrease of (.0574944%) from the City’s proportion of 1.8523833% at June 30,
2016.
For the year ended December 31, 2017, the City recognized a reduction of pension expense of $3,580,709. At
December 31, 2017, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual experience 2,609,914$ ‐$
Changes in assumptions 12,647,242 ‐
3,131,684
Change in Proportion ‐ City (excluding BMU & BHS) 49,923 9,466
Change in Proportion ‐ Brookings Municipal Utilities (BMU) 126,290 ‐
Change in Proportion ‐ Brookings Health System (BHS) 83,089 ‐
City contributions subsequent to the measurement date 1,095,451 ‐
Total 16,611,909$ 3,141,150$
Net difference between projected and actual earnings on
pension plan investments
Changes in proportion
Deferred outflows of resources related to pensions resulting from City contributions subsequent to the June 30, 2017
measurement date of $1,095,451 will be recognized as an addition to the net pension asset in the fiscal year ending
December 31, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Proportionate share of total pension liability 208,834,668$
Less: proportionate share of net position restricted for pension benefits 208,997,557
Proportionate share of net pension liability (asset) (162,889)$
70
City of Brookings
December 31, 2017
Notes to the Financial Statements
Actuarial Assumptions
The total pension liability in the SDRS June 30, 2017 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement:
Inflation 2.25%
Salary Increases 6.50% at entry to 3.0% after 25 years of service
Discount Rate 6.50%, net of pension plan investment expense
Mortality rates were based on 97% of the RP‐2014 Mortality Table, projected generationally with Scale MP‐2016, white
collar rates for females and total dataset rates for males. Mortality rates for disabled members were based on the RP‐
2014 Disabled Retiree Mortality Table, projected generationally with Scale MP‐2016.
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience
study for the period of July 1, 2011 to June 30, 2016.
Investment portfolio management is the statutory responsibility of the South Dakota Investment Council (SDIC), which
may utilize the services of external money managers for management of a portion of the portfolio. SDIC is governed by
the Prudent Man Rule (i.e., the council should use the same degree of care as a prudent man). Current SDIC investment
policies dictate limits on the percentage of assets invested in various types of vehicles (equities, fixed income securities,
real estate, cash, private equity, etc.). The long‐term expected rate of return on pension plan investments was
determined using a method in which best‐estimate ranges of expected future real rates of return (expected returns, net
of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined
to produce the long‐term expected rate of return by weighting the expected future real rates of return by the target
asset allocation percentage and by adding expected inflation. Best estimates of real rates of return for each major asset
class included in the pension plan's target asset allocation as of June 30, 2017 are summarized in the following table
using geometric means:
Discount Rate
The discount rate used to measure the total pension liability was 6.50%. The projection of cash flows used to determine
the discount rate assumed that employee contributions will be made at the current contribution rate and that matching
employer contributions will be made at rates equal to the member rate. Based on these assumptions, the pension
plan's fiduciary net position was projected to be available to make all future benefit payments of current plan members.
Therefore, the long‐term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the net pension asset.
Target Long‐Term Expected
Asset Class Allocation Real Rate of Return
Global Equity 58.0% 4.5%
Fixed Income 30.0% 1.8%
Real Estate 10.0% 4.6%
Cash 2.0% 0.7%
Total 100.0%
Year‐Ended December 31:Net
2018 3,385,128$
2019 5,599,982
2020 4,112,739
2021 (722,541)
12,375,308$
71
City of Brookings
December 31, 2017
Notes to the Financial Statements
Sensitivity of the City's Proportionate Share of the Net Pension (Asset) Liability to Changes in the Discount Rate
The following presents the City's proportionate share of net pension (asset) liability at June 30, 2017 calculated using
the discount rate of 6.50%, as well as what the City's proportionate share of the net pension (asset) liability would be if
it were calculated using a discount rate that is one percentage point lower (5.50%) or one percentage point higher
(7.50%) than the current rate:
Pension Plan Fiduciary Net Position
Detailed information about the plan's fiduciary net position is available in the separately issued SDRS financial report.
17. OTHER POSTEMPLOYMENT BENEFITS
Plan Description: The City, under the authority of SDCL 9‐14‐35 and SDCL 6‐1‐16, operates three single‐employer
defined benefit healthcare plans: City General, Brookings Municipal Utilities (BMU) and Brookings Health System (BHS or
Health System). Each plan provides medical benefits to eligible employees and their spouses. The City General and
BMU plans are self‐funded plans reported as an internal service fund of the City which is included within the scope of
this report; therefore, they do not issue a stand‐alone financial report nor are they included in the report of another
entity. The Brookings Health System Plan is also self‐funded and reported as an internal service fund within the Health
System fund within this report therefore, no stand‐alone financial report is issued for the Plan.
City General
For current and retired City General employees hired before January 1, 2010, the City pays 50% of the cost of premiums.
Also, the rates being paid by retirees for benefits are typically lower than those had the retirees been rated as a
separate group. The difference between these amounts is the implicit rate subsidy, which is considered other post‐
employment benefits in addition to the portion of premiums paid by the City for retired City General employees.
Benefit provisions for City General employees represented by a collective bargaining agreement are established and
amended through collective bargaining with the recognized bargaining agent for each group. Benefits and eligibility for
administrators and those not covered by a collective bargaining agreement are established and amended by the City
Council.
Brookings Municipal Utilities
BMU retirees are required to pay 100% of the premiums charged to active employees. Similar to City General
employees, as the rates being paid by retirees for benefits are typically lower than those had the retirees been rated as
a separate group, the difference between these amounts is the implicit rate subsidy, which is considered other post‐
employment benefits. Additionally, BMU pays $100 per month to certain qualified BMU retirees for health insurance
premiums. Benefit provisions for BMU employees represented by a collective bargaining agreement are established and
amended through collective bargaining with the recognized bargaining agent for each group. Benefits and eligibility for
administrators and those not covered by a collective bargaining agreement are established and amended by Municipal
Utilities Board.
Brookings Health System
Retirees of BHS are required to pay 100% of the premiums charged to active employees. As the rates being paid by
retirees for benefits are typically lower than those had the retirees been rated as a separate group, the difference
between these amounts is the implicit rate subsidy, which is considered other post‐employment benefits. Benefits
provisions for BHS employees are established and amended by the Health System Board of Directors.
Funding Policy: At this time the City operates all plans on a pay‐as‐you‐go basis. For fiscal year 2017 the City
contributed approximately $305,000, all for current premiums (or 54.0% of the total premiums), and plan participants
Current
1% Decrease Discount Rate 1% Increase
(5.50%) (6.50%) (7.50%)
City's proportionate share
of the net pension (asset) liability 29,832,912$ (162,889)$ (24,589,224)$
72
City of Brookings
December 31, 2017
Notes to the Financial Statements
contributed approximately $260,000 (or 46.0% of total premiums) through required contributions ranging from $269.93
to $1,702.35 per month for coverage.
Annual OPEB Cost and Net OPEB Obligation: The City’s annual other postemployment benefit (OPEB) cost (expense) is
calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis is projected
to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years.
The following table shows the components of the City’s annual OPEB cost for the year, the amount actually paid from
the plan, and changes in the City’s net OPEB obligation.
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation
for 2017 and the preceding two years were as follows:
City BMU Health
General Funds System Fund
Annual required contribution 242,568$ 121,307$ 108,385$
Interest on net OPEB obilgation 45,120 14,597 16,058
Adjustment to annual required contribution (51,920) (16,797) (18,478)
Annual OPEB cost (expense)235,768 119,107 105,965
Contributions made (167,112) (94,991) (43,390)
Change in net OPEB obligation 68,656 24,116 62,575
OPEB obligation at beginning of ye ar 1,504,010 486,577 538,175
OPEB obligation at end of year 1,572,666$ 510,693$ 600,750$
Percenta ge
Fiscal of Annual Net
Year Annual OPEB Cost OBEB
Ended OPEB Cost Contributed Obligation
City General 12/31/2017 235,768$ 70.88% 1,572,666$
12/31/2016 234,777 56.55% 1,504,010
12/31/2015 337,745 57.85% 1,402,003
BMU Funds 12/31/2017 119,107 79.75% 510,693
12/31/2016 118,800 70.14% 486,577
12/31/2015 120,915 90.72% 451,107
Health System Fund 12/31/2017 105,965 40.95% 600,750
12/31/2016 105,781 34.20% 538,175
12/31/2015 99,816 30.27% 468,575
73
City of Brookings
December 31, 2017
Notes to the Financial Statements
As of January 1, 2016, the most recent actuarial valuation date, the City’s actuarial value of assets, actuarial liability for
benefits, unfunded actuarial accrued liability, covered payroll, and unfunded accrual liability as a percentage of covered
payroll is as follows:
Actuarial valuation of an ongoing plan involves estimates of the value of reported amounts and assumptions about the
probability of occurrence of events far into the future. Examples include assumptions about future employment,
mortality, and the health care cost trend. Amounts determined regarding the funded status of the plan and the annual
required contributions of the employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of funding progress, presented as required
supplementary information following the notes to the financial statements, will present multi‐year trend information
about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
Actuarial Methods and Assumptions: Projections of benefits for financial reporting purposes are based on the
substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and
plan members to that point. The actuarial methods and assumptions used include techniques that are designed to
reduce the effects of short‐term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with
the long‐term perspective of the calculations.
In the January 1, 2016 actuarial valuation, the Projected Unit Credit Actuarial Cost Method was used. The actuarial
assumptions included a discount rate of 3.00%. The annual healthcare cost trend rate for Brookings Health System is
5.1% initially, with annual healthcare cost trend rates ranging from 4.1% to 9.0%; and for City General and Brookings
Municipal Utilities 7.1% initially, with cost trend rates ranging from 4.1% to 7.1%. The rates include a 2.3% inflation
assumption. The UAAL is being amortized as a level percentage of projected payrolls over an open period of 30 years.
As the City is operating on a pay‐as‐you‐go basis, the funded status is zero percent.
18. COMMITMENTS AND CONTINGENCIES
The City participates in a number of federally assisted grant programs. Federal financial assistance programs are subject
to financial and compliance audits. The amount of expenditures, if any, which may be disallowed by the granting
agencies is not determinable at this time; however, City officials do not believe that such amounts would be significant.
The City is a defendant in a number of lawsuits and claims in its normal course of operations. Management is currently
of the opinion that ultimate settlement of such lawsuits and claims will not have a materially adverse effect on the
financial statements.
The health care industry is subject to numerous laws and regulations of federal, state, and local governments.
Compliance with these laws and regulations, specifically those relating to the Medicare and Medicaid programs, can be
subject to government review and interpretation, as well as regulatory actions unknown and unasserted at this time.
Federal government activity has increased with respect to investigations and allegations concerning possible violations
by health care providers of regulations, which could result in the imposition of significant fines and penalties, as well as
significant repayments of previously billed and collected revenues from patient services. Management believes that the
Health System is in substantial compliance with current laws and regulations.
Actuarial Unfunded
Accrued Actuarial UAAL as a
Actuarial Liability Accrued Percentage
Value of (Unit Credit Liability Funded Covered of Covered
Assets Cost Method) (UAAL) Ratio Payroll Payroll
(a) (b) (b‐a) (a/b) (c) [(b‐a)/c]
City General Funds ‐$ 2,534,066$ 2,534,066$ 0% 7,654,450$ 33%
Brookings Municipal Utilities Funds ‐ 1,409,853 1,409,853 0% 9,649,600 15%
Brookings Health System Fund ‐ 1,116,774 1,116,774 0% 16,764,400 7%
74
City of Brookings
December 31, 2017
Notes to the Financial Statements
19. TAX ABATEMENTS
As of December 31, 2017 the City provides sales tax incentives programs with one company under the authority of the
South Dakota Codified Law 10‐52A‐2. Under this statute the City may make grants based upon sales tax receipts. These
programs are considered tax abatements in accordance with the provisions of GASB Statement No. 77.
In 2014 the City Council entered into an agreement with 3M Industries to refund a portion of the sales tax paid for
construction on improvements to the 3M plant. The City will reimburse 3M three‐fourths (3/4) of the City sales and use
tax paid on equipment purchases not to exceed $775,500. Refunds are obtained through application by 3M, including
proof that the City tax was paid. Upon receipt, review and approval of the documentation, the City refunds 3M the City
sales and use tax paid.
20. INVESTMENT IN JOINT VENTURE
The Health System is a 50% investor in Avera Home Medical Equipment of Brookings, LLC. This investment is included in
other assets on the statement of net position. Based on the Health System’s ownership percentage, the joint venture
investment and allocated earnings for the year ended December 31, 2017 are as follows:
21. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and
omissions; injuries to employees; and natural disasters. During the period ended December 31, 2017, the City managed its
risks as follows:
Employee Health Insurance
The City is exposed to various risks of loss related to employees. During the fiscal year 1997, the City of Brookings (City
General and BMU) established a Medical Self Insurance Fund (an internal service fund) to account for and finance its
health risks of loss. Under this program, the Medical Self Insurance Fund pays the first $75,000 per person and is reinsured
for any remaining loss for that person. The Plan also has aggregate stop loss coverage for the group which pays 100% of
the group’s claims beyond the aggregate limits (125% of expected claims). Settled claims resulting from these risks have
not exceeded the liability coverage in any of the past three fiscal years. During 2017, $2,466,837 was paid in claims, net of
any stop loss reimbursements.
The Brookings Health System has historically insured the healthcare benefits of its employees under an indemnity plan.
Effective January 1, 2017, the Health System became self‐funded for health benefits for eligible employees and their
dependents. The Health System, in connection with this plan, recognizes health benefit expenses on an accrual basis. An
accrued liability is recorded at year‐end which estimates the incurred by not reported claims that will be paid by the Plan.
The Plan has stop loss insurance to cover catastrophic claims in excess of $40,000 per covered person and an annual
aggregate limit of $1,000,000 for the plan year ended December 31, 2017.
The Health System expenses amounts representing the employer’s portion of actual claims paid, adjusted for the
estimates of liabilities relating to claims resulted from services provided prior to the year‐end not to exceed the annual
Amount of
Taxes Refunded
Tax Abatement Program during 2017
Sales Tax Refund:
3M Industries 139,809$
Investment Share of Income
Avera Home Medical Equpment of Brookings, LLC 210,082$ 129,053$
75
City of Brookings
December 31, 2017
Notes to the Financial Statements
aggregate expense. The estimated liability of $160,000 as of December 31, 2017 is included in payroll taxes and other
accrued expenses in the financial statements. These amounts have been estimated based on historical trends and
actuarial analysis. Changes in the balance of claims liabilities during the past year are as follows:
Current Year
Claims and
Beginning Changes in Claim Ending
Year Liability_ Estimates_ Payments Liability
2017 $ ‐ $1,521,149 $(1,361,149) $160,000
Property and Liability Insurance
The City purchases insurance coverage for its boilers, equipment, and property from a commercial insurance carrier. The
deductible for this coverage is $5,000.
The City joined the South Dakota Public Assurance Alliance (SDPAA), a public entity risk pool currently operating as a
common risk management and insurance program for South Dakota local government entities. The objective of the
SDPAA is to administer and provide risk management services and risk sharing facilities to the members and to defend and
protect the members against liability, to advise members on loss control guidelines and procedures, and provide them
with risk management services, loss control and risk reduction information and to obtain lower costs for that coverage.
The City's responsibility is to promptly report to and cooperate with the SDPAA to resolve any incident which could result
in a claim being made by or against the City. The City pays an annual premium to the pool to provide coverage for
governmental general liability, official’s liability, automobile liability, automobile physical damage, and law enforcement
liability.
The agreement with the South Dakota Public Assurance Alliance provides that the above coverages will be provided to a
$6,000,000 limit for general liability and automobile liability; a $3,000,000 limit for official’s liability and law enforcement
liability. Member premiums are used by the pool for payment of claims and to pay for reinsurance for claims in excess of
$250,000 to the upper limit. A portion of the member premiums are also allocated to a cumulative reserve fund. The City
would be eligible to receive a refund for a percentage of the amount allocated to the cumulative reserve fund on the
following basis:
End of Municipality’s First Full Year 50%
End of Municipality’s Second Full Year 60%
End of Municipality’s Third Full Year 70%
End of Municipality’s Fourth Full Year 80%
End of Municipality’s Fifth Full Year 90%
End of Municipality’s Sixth Full Year and Thereafter 100%
As of December 31, 2017, the Municipality has a vested balance in the cumulative reserve fund of $355,852.
The City carries a $1,000 deductible for the automobile physical damage.
The City does not carry additional insurance to cover claims in excess of the upper limit. Settled claims resulting from
these risks have not exceeded the liability coverage during the past three years.
The Health System has malpractice insurance coverage to provide protection for professional liability losses on a claims‐
made basis subject to a limit of $1 million per claim and an annual aggregate limit of $3 million. Should the claims‐made
policy not be renewed or replaced with equivalent insurance, claims based on occurrences during the term, but reported
subsequently, will be uninsured. The Health System is also insured under an occurrence based excess umbrella policy with
a limit of $3 million.
76
City of Brookings
December 31, 2017
Notes to the Financial Statements
Workers’ Compensation
The City joined the South Dakota Municipal League Worker’s Compensation Fund, a public entity risk pool currently
operating as a common risk management and insurance program for South Dakota local government entities. The City
pays an annual premium to the pool to provide worker’s compensation coverage for its employees. Coverage limits are
set by state statute. The pool pays the first $325,000 of any claim per individual. The pool has statutory coverage.
The City does not carry additional insurance to cover claims in excess of the upper limit. Settled claims resulting from
these risks have not exceeded the liability coverage during the past three years.
Unemployment Benefits
The City has elected to be self‐insured and retain all risk for liabilities resulting from claims for unemployment benefits.
Unemployment claims are charged back to the appropriate department and are paid as they occur.
During the year ended December 31, 2017, 2 claims were filed for unemployment benefits. These claims resulted in the
payment of benefits in the amount of $4,120.
22. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
The following funds had expenditures for which there were no appropriations:
Swiftel Fund $ 160,526
*Through the City Council approved capital improvement plan and budget, the Swiftel Center financed the
purchase of a new scoreboard for $294, 600. The total expense and corresponding proceeds from debt were
recognized on the financial statements. The current portion due was included in the original budget, however,
a formal amendment was not made to the budget to adjust for the accounting requirements.
TIF 6 Digester Capital Project Fund $ 65,633
*Through litigation, the City was declared responsible for certain additional project expenses incurred over the
past 2 years. The amount was not determinable until after year end and the City was not able to make a formal
budget amendment.
23. SUBSEQUENT EVENTS
Subsequent to year‐end, the Health System purchased a medical clinic building adjacent to the hospital campus for
approximately $41.4 million.
Subsequent to year‐end, the Health System began operating the Brookings Health System Investment Authority, a not‐for‐
profit Type1 Supporting Organization, to support Brookings Health System. The Investments Authority is controlled by the
Brookings Health System and will be reported as a blended component unit of the Health System in 2018.
77
City of Brookings
Year Ended December 31, 2017
Required Supplementary Information ‐ Schedule of Funding Progress for Postemployment Benefit Plans
City General Fund
Actuarial Unfunded
Accrued Actuarial UAAL as a
Actuarial Liability Accrued Percentage
Actuarial Value of (Unit Credit Liability Funded Covered of Covered
Valuation Assets Cost Method) (UAAL)Ratio Payroll Payroll
Date (a)(b)(b‐a)(a/b)(c)[(b‐a)/c]
January 1, 2012 ‐$ 3,079,499$ 3,079,499$ 0%6,540,860$ 47%
January 1, 2014 ‐ 3,143,217 3,143,217 0%7,004,859 45%
January 1, 2016 ‐ 2,534,066 2,534,066 0%7,654,450 33%
Brookings Municipal Utilities Funds
Actuarial Unfunded
Accrued Actuarial UAAL as a
Actuarial Liability Accrued Percentage
Actuarial Value of (Unit Credit Liability Funded Covered of Covered
Valuation Assets Cost Method) (UAAL)Ratio Payroll Payroll
Date (a)(b)(b‐a)(a/b)(c)[(b‐a)/c]
January 1, 2012 ‐$ 1,392,070$ 1,392,070$ 0%9,035,740$ 15%
January 1, 2014 ‐ 1,536,714 1,536,714 0%9,311,986 17%
January 1, 2016 ‐ 1,409,853 1,409,853 0%9,649,600 15%
Actuarial Unfunded
Accrued Actuarial UAAL as a
Actuarial Liability Accrued Percentage
Actuarial Value of (Unit Credit Liability Funded Covered of Covered
Valuation Assets Cost Method) (UAAL)Ratio Payroll Payroll
Date (a)(b)(b‐a)(a/b)(c)[(b‐a)/c]
January 1, 2012 ‐$ 1,088,282$ 1,088,282$ 0%13,501,040$ 8%
January 1, 2014 ‐ 1,086,409 1,086,409 0%15,845,473 7%
January 1, 2016 ‐ 1,116,774 1,116,774 0%16,764,400 7%
Brookings Health System Fund
78
City of Brookings
Year Ended December 31, 2017
Required Supplementary Information ‐ Schedule of Pension Contributions
2017 2016 2015 2014
Statutorily required contribution 2,235,945 2,096,488$ 2,069,087$ 2,010,973$
Contributions in relation to the
statutorily required contribution 2,235,945 2,096,488$ 2,069,087$ 2,010,973$
Contribution deficiency (excess)‐$ ‐$ ‐$ ‐$
City's covered payroll 35,680,103 34,066,020$ 32,960,950$ 32,580,616$
Contributions as a percentage of
covered payroll 6.27%6.15%6.28%6.17%
Note to Schedule:
South Dakota Retirement System
This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10‐year
trend is compiled, the City will present information for those years for which information is available. Data reported is
as of the calendar year end.
79
City of Brookings
Year Ended December 31, 2017
Required Supplementary Information ‐ Schedule of Proportionate Share of Net Pension (Asset) Liability
2017 2016 2015 2014
City's proportion of the net pension
(asset) liability 1.79% 1.85%1.87%1.90%
City's proportionate share of net
pension (asset) liability *(162,889) 6,257,168$ (7,930,006)$ (13,709,855)$
City's covered payroll 34,849,490 33,668,846$ 32,688,130$ 32,786,489$
City's proportionate share of the net
pension (asset) liability as a percentage
of its covered payroll 0.47% 18.58% 24.26% 41.82%
Plan fiduciary net position as a
percentage of the total pension liability 100.10% 96.89% 104.10% 107.30%
Notes to the Schedule:
*The amounts presented for each fiscal year were determined as of the measurement date of the collective net pension
(asset) liability which is June 30.
This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10‐year
trend is compiled, the City will present information for those years for which information is available. Data reported is
measured as of measurement date.
South Dakota Retirement System
80
City of Brookings
December 31, 2017
Required Supplementary Information
Notes to Required Supplementary Information – Changes of Pension Terms and Assumptions
Change of Benefit Terms
Legislation enacted in 2017 modified the SDRS Cost‐of‐Living Adjustment (COLA). For COLAs first
applicable in 2018, the SDRS COLA will equal the percentage increase in the most recent third calendar
quarter CPI‐W over the prior year, no less than .05% and no greater than 3.5%. However, if the FVFR
assuming the long‐term COLA is equal to the baseline COLA assumption (currently 2.25%) is less than
100%, the maximum COLA payable will be limited to the increase that if assumed on a long‐term basis,
results in a FVFR equal to or exceeding 100%. That condition exists this year and limits the maximum
COLA payable in 2018 to 1.89%
Legislation was also enacted in 2017 to:
Modify the definition of Compensation to clarify included and excluded items,
Expand the caps on increases in Compensation considered in Final Average Compensation,
Extent the Final Average Compensation period from the current three years to five years for
Foundation Members after a phase‐in period, and
Limit Compensation to the Internal Revenue Code Section 401(a)(17) limits for all Members,
regardless of date of entry into SDRS.
The changes in benefit provisions reduced the Actuarial Accrued Liability by $567 Million, or 5.0% of the
initial Actuarial Accrued Liability, before considering the reduction in maximum COLA payable in 2018 and
assumed to be payable for future years. Based on the Fair Value of Assets at June 30, 2017, the maximum
2018 SDRS COLA will be limited to 1.89%. Future years’ COLAs are assumed to equal the current
maximum limitation. The change in Actuarial Accrued Liability caused by assuming the current restricted
maximum COLA remains in effect is reflected in the impact of the actuarial assumption changes.
Change of Assumptions
As a result of an experience analysis covering the period from July 1, 2011 to June 30, 2016, significant
changes to the actuarial assumptions were recommended by the SDRS Senior Actuary and adopted by the
Board of Trustees first effective for this June 30, 2017 Actuarial Valuation. The changes to economic
assumptions were very significant, and included reducing the inflation assumption to 2.25%m reducing
the investment return assumption to 6.5% and reducing the payroll growth assumption to 3.00%. The
demographic assumption changes were less impactful. Among those changes were new mortality
assumptions, updated retirement, termination and disability rates and updated salary increase
assumptions.
The changes in actuarial assumptions increased the Actuarial Accrued Liability by $1.265 billion, or 11.1%
of the initial Actuarial Accrued Liability, before reflecting the current and assumed future restricted
maximum COLA. Assuming future COLAs restrictions remain at the current 1.89% reduced the Actuarial
Accrued Liability by $445 Million, or 3.9% of the initial Actuarial Accrued Liability. The net impact of all
the assumption changes reflected in the June 30, 2017 Actuarial Valuation is an increase of $820 million in
the Actuarial Accrued Liability, which is a net increase of 7.2% of the initial Actuarial Accrued Liability.
Actuarial assumptions are reviewed in depth periodically, with the next experience analysis anticipated
before the June 30, 2022 Actuarial Valuation and any recommended changes anticipated to be first
implemented in the June 30, 2022 Actuarial Valuation.
81
City of Brookings
Year Ended December 31, 2017
Required Supplementary Information ‐ Budgetary Comparison Schedule ‐ General Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Taxes:
General property taxes 3,070,000$ 3,070,000$ 3,011,466$ (58,534)$
General sales and use taxes 6,428,000 6,428,000 6,642,103 214,103
Amusement taxes 1,500 1,500 1,536 36
Penalties and interest on delinquent taxes 3,650 3,650 3,480 (170)
Licenses and permits 272,200 272,200 268,969 (3,231)
Intergovernmental revenue:
Federal grants 49,664 62,304 47,075 (15,229)
State grants 1,500 57,537 56,537 (1,000)
State shared revenues 575,000 575,000 515,294 (59,706)
County shared revenues 206,500 206,500 205,963 (537)
Charges for goods and services:
Public safety 9,500 9,500 6,509 (2,991)
Public works 225 225 1,350 1,125
Health and welfare 8,800 8,800 8,535 (265)
Culture and recreation 399,833 399,833 422,261 22,428
Fines and forfeits 91,060 91,060 89,604 (1,456)
Miscellaneous revenue:
Interest earned 122,000 122,000 74,147 (47,853)
Rentals 88,835 88,835 93,598 4,763
Contributions and donations from private sources 70,000 134,780 129,086 (5,694)
Liquor Operating Agreement 644,650 644,650 680,462 35,812
Other 482,466 487,356 626,269 138,913
Total revenues 12,525,383 12,663,730 12,884,244 220,514
EXPENDITURES
General government:
Legislative 146,288 146,288 96,419 49,869
Contingency 250,000 171,184 ‐ 171,184
Executive 802,174 816,960 730,064 86,896
Financial administration 704,599 704,596 651,134 53,462
Other 1,223,439 1,285,479 1,159,306 126,173
Public safety:
Police 3,348,918 3,438,225 3,412,915 25,310
Fire 629,942 635,433 603,075 32,358
Other protection 93,265 93,265 93,265 ‐
Public works:
Community development 620,120 640,120 549,082 91,038
Engineer 616,919 636,974 608,882 28,092
Highways and streets 2,605,605 2,757,781 2,457,645 300,136
Health and welfare:
Animal control 107,547 107,547 96,106 11,441
Culture and recreation:
Recreation 747,221 832,671 729,127 103,544
Parks 2,983,462 3,118,363 2,583,533 534,830
Libraries 1,124,443 1,145,258 1,107,752 37,506
Total expenditures 16,003,942 16,530,144 14,878,305 1,651,839
Deficiency of revenues
over expenditures (3,478,559) (3,866,414) (1,994,061) 1,872,353
OTHER FINANCING SOURCES (USES)
Transfers in 3,328,987 3,328,987 3,329,787 800
Transfers out (242,963) (325,525) (325,349) 176
Sale of capital assets 20,000 20,000 58,830 38,830
Total other financing sources 3,106,024 3,023,462 3,063,268 39,806
Net change in fund balances (372,535) (842,952) 1,069,207 1,912,159
Fund balances ‐ beginning 14,672,159 14,672,159 14,672,159 ‐
Fund balances ‐ ending 14,299,624$ 13,829,207$ 15,741,366$ 1,912,159$
82
City of Brookings
Year Ended December 31, 2017
Required Supplementary Information ‐ Budgetary Comparison Schedule ‐ 75% Sales & Use Tax Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Taxes:
General sales and use taxes 4,866,462$ 4,866,462$ 4,972,894$ 106,432$
Grant revenue ‐ 1,051,388 ‐ (1,051,388)
Miscellaneous revenue:
Interest income 20,000 20,000 15,615 (4,385)
Contributions and donations from private sources ‐ 333,500 352,887 19,387
Total revenues 4,886,462 6,271,350 5,341,396 (929,954)
EXPENDITURES
General government:
Other ‐ 48,000 48,000 ‐
Public works
Highways and streets 2,022,500 1,175,714 1,165,490 10,224
Health and welfare
Hospital 50,000 50,000 50,000 ‐
Culture and recreation:
Aduitorium 100,000 100,000 502,247 (402,247)
Historical preservation 175,000 553,046 469,098 83,948
Conservation and development
Economic development 802,500 6,302,500 5,819,929 482,571
Debt Service
Principal 1,877,326 1,877,326 1,977,326 (100,000)
Interest 519,428 519,428 518,723 705
Total expenditures 5,546,754 10,626,014 10,550,813 75,201
Deficiency of revenues
under expenditures (660,292) (4,354,664) (5,209,417) (854,753)
OTHER FINANCING SOURCES (USES)
Transfers in 511,385 1,713,909 1,602,523 (111,386)
Transfers out (945,975) (3,209,975) (2,326,157) 883,818
Debt Proceeds ‐ 5,500,000 5,900,000 400,000
Total other financing sources (uses)(434,590) 4,003,934 5,176,366 1,172,432
Net change in fund balances (1,094,882) (350,730) (33,051) 317,679
Fund balances ‐ beginning 1,834,174 1,834,174 1,834,174 ‐
Fund balances ‐ ending 739,292$ 1,483,444$ 1,801,123$ 317,679$
83
City of Brookings
December 31, 2017
Required Supplementary Information
Notes to Required Supplementary Information – Budgetary Reporting
The City follows these procedures in establishing the budgetary data reflected in the financial statements.
1. At the first regular Council meeting in September of each year or within ten days thereafter, the
governing board introduces the annual appropriation ordinance for the ensuing fiscal year.
2. After adoption by the governing board, the operating budget is legally binding and actual
expenditures for each purpose cannot exceed the amounts budgeted, except as indicated in
number 4.
3. A line item for contingencies may be included in the annual budget. Such a line item may not
exceed 5 percent of the total municipal budget and may be transferred by resolution of the
governing board to any other budget category that is deemed insufficient during the year.
4. If it is determined during the year that sufficient amounts have not been budgeted, state statute
allows the adoption of supplemental budgets.
5. Unexpended appropriations lapse at year‐end unless encumbered by resolution of the governing
board.
6. Formal budgetary integration is employed as a management control device during the year for
the General Fund and special revenue funds and capital projects funds.
7. The Budgetary Comparison Schedules have been prepared on the modified accrual basis of
accounting. The Budgetary Comparison Schedule presents expenditures for capital outlay and
debt service purposes within each function.
84
Combining Balance Sheet ‐ Nonmajor Governmental Funds
Special Debt Capital
Revenue Service Project
Funds Funds Funds Total
ASSETS
Cash and cash equivalents 5,873,208$ ‐ $ 2,935,762$ 8,808,970$
Investments‐CDs 111,286 ‐ 56,816 168,102
Investments 923,977 ‐ 497,221 1,421,198
Restricted cash and cash equivalents ‐ 264,492 ‐ 264,492
Receivables, (net of allowances for
uncollectibles, if any):
Accounts 90,687 ‐ ‐ 90,687
Storm drainage fees 1,424 ‐ ‐ 1,424
Special assessments 861,949 ‐ ‐ 861,949
Interest 3,332 ‐ 1,740 5,072
Due from other funds 27 ‐ ‐ 27
Due from other governments 317,390 ‐ ‐ 317,390
Prepaid items 22,541 ‐ ‐ 22,541
Inventories 17,683 ‐ ‐ 17,683
Total assets 8,223,504$ 264,492$ 3,491,539$ 11,979,535$
LIABILITIES
Accounts payable 716,261$ ‐$ 827,028$ 1,543,289$
Retainage payable ‐ ‐ 1,000 1,000
Due to other funds 11,063 ‐ 23,369 34,432
Due to other governments 49,625 ‐ ‐ 49,625
Accrued wages payable 46,922 ‐ ‐ 46,922
Advance from other funds 1,114,929 584,693 ‐ 1,699,622
Unearned revenue 622,464 ‐ 675,863 1,298,327
Total liabilities 2,561,264 584,693 1,527,260 4,673,217
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 863,373 ‐ ‐ 863,373
Total deferred inflows of resources 863,373 ‐ ‐ 863,373
FUND BALANCES
Nonspendable 40,224 ‐ ‐ 40,224
Restricted 1,145,079 219,815 ‐ 1,364,894
Committed 4,944,454 ‐ ‐ 4,944,454
Assigned ‐ ‐ 1,992,551 1,992,551
Unassigned (1,330,890) (540,016) (28,272) (1,899,178)
Total fund balances (deficit)4,798,867 (320,201) 1,964,279 6,442,945
Total liabilities, deferred inflows of resources
and fund balances (deficit)8,223,504$ 264,492$ 3,491,539$ 11,979,535$
City of Brookings
December 31, 2017
85
City of Brookings
Year Ended December 31, 2017
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ‐ Nonmajor Governmental Funds
Special Debt Capital
Revenue Service Project
Funds Funds Funds Total
REVENUES
Taxes:
Property ‐ $ 1,247,505$ ‐ $ 1,247,505$
Storm drainage 917,714 ‐ ‐ 917,714
General sales and use 2,549,134 ‐ ‐ 2,549,134
Other 361,246 ‐ ‐ 361,246
Intergovernmental:
Federal grants 14,956 ‐ ‐ 14,956
County other 96,500 ‐ ‐ 96,500
Charges for goods and services:
Culture and recreation 1,867,475 ‐ ‐ 1,867,475
Fines and forfeits:
Fines 19,449 ‐ ‐ 19,449
Miscellaneous revenue:
Interest income 21,423 ‐ 5,173 26,596
Special assessments 200,653 ‐ ‐ 200,653
Other 242,772 ‐ ‐ 242,772
Total revenues 6,291,322 1,247,505 5,173 7,544,000
EXPENDITURES
Current:
General government 4,933 ‐ ‐ 4,933
Public safety 686,147 ‐ ‐ 686,147
Public works 226,354 ‐ 141,633 367,987
Culture and recreation 2,474,830 ‐ ‐ 2,474,830
Conservation and development 891,247 ‐ ‐ 891,247
Debt service:
Principal 169,812 281,868 ‐ 451,680
Interest and other charges 88,693 72,289 ‐ 160,982
Capital outlay 1,657,848 ‐ 2,007,710 3,665,558
Total expenditures 6,199,864 354,157 2,149,343 8,703,364
Excess (deficiency) of revenues
over (under) expenditures 91,458 893,348 (2,144,170) (1,159,364)
OTHER FINANCING SOURCES (USES)
Transfers in 909,950 ‐ 3,519,966 4,429,916
Transfers out (2,159,482) (666,000) (76,001) (2,901,483)
Debt proceeds 294,600 ‐ ‐ 294,600
Total other financing sources (uses)(954,932) (666,000) 3,443,965 1,823,033
Net change in fund balances (863,474) 227,348 1,299,795 663,669
Fund balances (deficit) ‐ beginning 5,662,341 (547,549) 664,484 5,779,276
Fund balances (deficit) ‐ ending 4,798,867$ (320,201)$ 1,964,279$ 6,442,945$
86
City of Brookings
December 31, 2017
Combining Statements – Nonmajor Special Revenue Funds
25% Sales & Use Tax Fund– to account for the revenue and expenditures of 25% of the 2nd penny sales tax. Proceeds of this tax
are committed by the City Council to be used for capital improvements, including lease purchase agreements or realty, land
acquisition, the programmed chip sealing, street maintenance, specialized equipment, the transfer to the Enhanced 911 fund,
purchase of firefighting vehicles, public safety and equipment, and debt retirement related thereto.
Enhanced 911 Fund – to account for the per phone line surcharge assessed to customers of private phone companies operating
within Brookings County. These funds are used to defray the costs incurred by the City in providing emergency dispatch
services.
Swiftel Center Fund – to account for the operations and maintenance of the City owned facility. Financing is provided by
revenues from events, rentals, and inter‐fund transfers.
Library Fines Fund – to account for the revenue derived from library fines and other allowed charges. Expenditures are
authorized by the Library Board.
Special Assessment Fund – to account for the revenue and expenditures of projects that may be assessed back to the property
owner.
Storm Drainage Fund – to account for the revenue and expenditures from the storm drainage surcharge to property owners
and interfund transfers. Proceeds of this surcharge are committed by the City Council to be used to maintain and construct
storm drainage facilities.
Bed and Booze Tax Fund – to account for the revenues and expenditures of the special one percent (1%) city gross receipts tax
on lodging, alcoholic beverages, prepared food, and admissions. Revenues are restricted by State Law for the purpose of land
acquisition; architectural fees; construction costs; payment for civic center, auditorium, or athletic facility buildings (including
the maintenance staffing and operations of such facilities); and the promotion and advertising of the City.
Business Improvement District (BID) Fee Fund – to account for the revenues and expenditures of the $2 per night occupancy
fee charged to lodging facilities. Revenues are committed by City Council for improvements benefiting the City and its hotels
and motels located within the District.
87
City of Brookings
December 31, 2017
Combining Balance Sheet ‐ Nonmajor Special Revenue Funds
25% Sales Enhanced Swiftel Library
& Use Tax 911 Center Fines
ASSETS
Cash and cash equivalents 668,807$ 83,108$ 944,137$ 30,073$
Investments‐CDs 14,798 1,784 ‐ 5,699
Investments 129,498 15,608 ‐ ‐
Restricted cash and cash equivalents ‐ ‐ ‐ ‐
Receivables, (net of allowances for
uncollectibles, if any):
Accounts ‐ ‐ 73,504 ‐
Storm drainage fees ‐ ‐ ‐ ‐
Special assessments ‐ ‐ ‐ ‐
Interest 466 55 ‐ 8
Due from other funds ‐ ‐ 27 ‐
Due from other governments 157,696 84,166 ‐ ‐
Prepaid items ‐ ‐ 22,541 ‐
Inventories ‐ ‐ 17,683 ‐
Total assets 971,265$ 184,721$ 1,057,892$ 35,780$
LIABILITIES
Accounts payable 30,743$ 4,949$ 529,789$ 208$
Due to other funds ‐ 3,676 6,111 ‐
Due to other governments ‐ ‐ 49,625 ‐
Accrued wages payable ‐ 19,053 25,640 ‐
Advance from other funds ‐ ‐ 1,114,929 ‐
Unearned revenue ‐ ‐ 622,464 ‐
Total liabilities 30,743 27,678 2,348,558 208
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue ‐ ‐ ‐ ‐
Total deferred inflows of resources ‐ ‐ ‐ ‐
FUND BALANCES
Nonspendable ‐ ‐ 40,224 ‐
Restricted ‐ 157,043 ‐ 35,572
Committed 940,522 ‐ ‐ ‐
Unassigned ‐ ‐ (1,330,890) ‐
Total fund balances (deficit)940,522 157,043 (1,290,666) 35,572
Total liabilities, deferred inflows of resources
and fund balances (deficit)971,265$ 184,721$ 1,057,892$ 35,780$
88
City of Brookings
December 31, 2017
Combining Balance Sheet ‐ Nonmajor Special Revenue Funds (continued)
Special Storm Bed and BID
Assessment Drainage Booze Tax Fee Total
1,487,535$ 1,748,115$ 736,867$ 174,566$ 5,873,208$
31,925 37,518 15,815 3,747 111,286
279,377 328,317 138,392 32,785 923,977
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ 17,183 90,687
‐ 1,424 ‐ ‐ 1,424
861,949 ‐ ‐ ‐ 861,949
1,005 1,181 498 119 3,332
‐ ‐ ‐ ‐ 27
‐ 5,477 70,051 ‐ 317,390
‐ ‐ ‐ ‐ 22,541
‐ ‐ ‐ ‐ 17,683
2,661,791$ 2,122,032$ 961,623$ 228,400$ 8,223,504$
133,328$ 8,085$ 9,159$ ‐$ 716,261$
‐ 1,276 ‐ ‐ 11,063
‐ ‐ ‐ ‐ 49,625
‐ 2,229 ‐ ‐ 46,922
‐ ‐ ‐ ‐ 1,114,929
‐ ‐ ‐ ‐ 622,464
133,328 11,590 9,159 ‐ 2,561,264
861,949 1,424 ‐ ‐ 863,373
861,949 1,424 ‐ ‐ 863,373
‐ ‐ ‐ ‐ 40,224
‐ ‐ 952,464 ‐ 1,145,079
1,666,514 2,109,018 ‐ 228,400 4,944,454
‐ ‐ ‐ ‐ (1,330,890)
1,666,514 2,109,018 952,464 228,400 4,798,867
2,661,791$ 2,122,032$ 961,623$ 228,400$ 8,223,504$
89
City of Brookings
Year Ended December 31, 2017
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ‐ Nonmajor Special Revenue Funds
25% Sales Enhanced Swiftel Library
& Use Tax 911 Center Fines
REVENUES
Taxes:
Storm drainage ‐$ ‐$ ‐$ ‐$
General sales and use 1,634,476 ‐ ‐ ‐
Other ‐ 361,246 ‐ ‐
Intergovernmental:
Federal grants 14,956 ‐ ‐ ‐
County other ‐ 96,500 ‐ ‐
Charges for goods and services:
Culture and recreation ‐ ‐ 1,867,475 ‐
Fines and forfeits:
Fines ‐ ‐ ‐ 19,449
Miscellaneous revenue:
Interest income 5,588 654 ‐ 56
Special assessments ‐ ‐ ‐ ‐
Other ‐ ‐ ‐ ‐
Total revenues 1,655,020 458,400 1,867,475 19,505
EXPENDITURES
Current:
General government ‐ ‐ ‐ ‐
Public safety ‐ 686,147 ‐ ‐
Public works ‐ ‐ ‐ ‐
Culture and recreation ‐ ‐ 2,455,426 19,404
Conservation and development 17,476 ‐ ‐ ‐
Debt service:
Principal ‐ ‐ 33,630 ‐
Interest and other charges ‐ ‐ ‐ ‐
Capital outlay 836,282 ‐ 429,399 ‐
Total expenditures 853,758 686,147 2,918,455 19,404
Excess (deficiency) of revenues
over (under) expenditures 801,262 (227,747) (1,050,980) 101
OTHER FINANCING SOURCES (USES)
Transfers in ‐ 193,000 704,950 12,000
Transfers out (1,704,532) ‐ ‐ ‐
Debt proceeds ‐ ‐ 294,600 ‐
Total other financing sources (uses)(1,704,532) 193,000 999,550 12,000
Net change in fund balances (903,270) (34,747) (51,430) 12,101
Fund balances (deficit) ‐ beginning 1,843,792 191,790 (1,239,236) 23,471
Fund balances (deficit) ‐ ending 940,522$ 157,043$ (1,290,666)$ 35,572$
90
City of Brookings
Year Ended December 31, 2017
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ‐ Nonmajor Special Revenue Funds (continued)
Special Storm Bed and BID
Assessment Drainage Booze Tax Fee Total
‐$ 917,714$ ‐$ ‐$ 917,714$
‐ ‐ 914,658 ‐ 2,549,134
‐ ‐ ‐ ‐ 361,246
‐ ‐ ‐ ‐ 14,956
‐ ‐ ‐ ‐ 96,500
‐ ‐ ‐ ‐ 1,867,475
‐ ‐ ‐ ‐ 19,449
5,386 6,321 2,772 646 21,423
200,653 ‐ ‐ ‐ 200,653
‐ ‐ ‐ 242,772 242,772
206,039 924,035 917,430 243,418 6,291,322
‐ ‐ ‐ 4,933 4,933
‐ ‐ ‐ ‐ 686,147
‐ 226,354 ‐ ‐ 226,354
‐ ‐ ‐ ‐ 2,474,830
‐ ‐ 656,271 217,500 891,247
‐ 136,182 ‐ ‐ 169,812
‐ 88,693 ‐ ‐ 88,693
228,590 163,577 ‐ ‐ 1,657,848
228,590 614,806 656,271 222,433 6,199,864
(22,551) 309,229 261,159 20,985 91,458
‐ ‐ ‐ ‐ 909,950
(50,000) ‐ (404,950) ‐ (2,159,482)
‐ ‐ ‐ ‐ 294,600
(50,000) ‐ (404,950) ‐ (954,932)
(72,551) 309,229 (143,791) 20,985 (863,474)
1,739,065 1,799,789 1,096,255 207,415 5,662,341
1,666,514$ 2,109,018$ 952,464$ 228,400$ 4,798,867$
91
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ 25% Sales & Use Tax Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Taxes:
General sales and use taxes 1,607,000$ 1,607,000$ 1,634,476$ 27,476$
Intergovernmental revenue:
Federal grants ‐ ‐ 14,956 14,956
Miscellaneous revenue:
Interest income 4,200 4,200 5,588 1,388
Total revenues 1,611,200 1,611,200 1,655,020 43,820
EXPENDITURES
Public safety:
Police 243,735 256,375 265,809 (9,434)
Fire 1,183,100 133,100 107,516 25,584
Public Works
Highways and streets 452,500 483,581 462,957 20,624
Conservation and development
Economic development 25,000 25,000 17,476 7,524
Total expenditures 1,904,335 898,056 853,758 44,298
Excess (deficiency) of revenues
over (under) expenditures (293,135) 713,144 801,262 88,118
OTHER FINANCING USES
Transfers out (210,268) (1,701,097) (1,704,532) (3,435)
Total other financing uses (210,268) (1,701,097) (1,704,532) (3,435)
Net change in fund balances 1,400,932 (987,953) (903,270) 84,683
Fund balances ‐ beginning 1,843,792 1,843,792 1,843,792 ‐
Fund balances ‐ ending 3,244,724$ 855,839$ 940,522$ 84,683$
92
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ Enhanced 911 Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Taxes:
Other taxes 357,000$ 357,000$ 361,246$ 4,246$
Intergovernmental revenue:
County shared revenues 96,500 96,500 96,500 ‐
Miscellaneous revenue:
Interest income 500 500 654 154
Total revenues 454,000 454,000 458,400 4,400
EXPENDITURES
Public safety:
Other protection 720,780 720,780 686,147 34,633
Total expenditures 720,780 720,780 686,147 34,633
Deficiency of revenues
under expenditures (266,780) (266,780) (227,747) 39,033
OTHER FINANCING SOURCES
Transfers in 193,000 193,000 193,000 ‐
Total other financing sources 193,000 193,000 193,000 ‐
Net change in fund balances (73,780) (73,780) (34,747) 39,033
Fund balances ‐ beginning 191,790 191,790 191,790 ‐
Fund balances ‐ ending 118,010$ 118,010$ 157,043$ 39,033$
93
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ Swiftel Center Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Charges for goods and services:
Culture and recreation 2,052,979$ 2,052,979$ 1,867,475$ (185,504)$
Total revenues 2,052,979 2,052,979 1,867,475 (185,504)
EXPENDITURES
Culture and recreation:
Auditoriums 2,757,929 2,757,929 2,884,825 (126,896)
Debt Service
Principal ‐ ‐ 33,630 (33,630)
Total expenditures 2,757,929 2,757,929 2,918,455 (160,526)
Deficiency of revenues
under expenditures (704,950) (704,950) (1,050,980) (346,030)
OTHER FINANCING SOURCES
Transfers in 704,950 704,950 704,950 ‐
Debt Proceeds ‐ ‐ 294,600 294,600
Total other financing sources 704,950 704,950 999,550 294,600
Net change in fund balances ‐ ‐ (51,430) (51,430)
Fund deficits ‐ beginning (1,239,236) (1,239,236) (1,239,236) ‐
Fund deficits ‐ ending (1,239,236)$ (1,239,236)$ (1,290,666)$ (51,430)$
94
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ Library Fines Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Fines and forfeits 25,000$ 25,000$ 19,449$ (5,551)$
Miscellaneous revenue:
Interest income ‐ ‐ 56 56
Total revenues 25,000 25,000 19,505 (5,495)
EXPENDITURES
Culture and recreation:
Libraries 30,000 30,000 19,404 10,596
Total expenditures 30,000 30,000 19,404 10,596
Excess (deficiency) of revenues
over (under) expenditures (5,000) (5,000) 101 5,101
OTHER FINANCING SOURCES
Transfers in ‐ 12,000 12,000 ‐
Total other financing sources ‐ 12,000 12,000 ‐
Net change in fund balances (5,000) 7,000 12,101 5,101
Fund balances ‐ beginning 23,471 23,471 23,471 ‐
Fund balances ‐ ending 18,471$ 30,471$ 35,572$ 5,101$
95
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ Special Assessment Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Miscellaneous revenue:
Interest income 1,300$ 1,300$ 5,386$ 4,086$
Special assessments 231,736 231,736 200,653 (31,083)
Total revenues 233,036 233,036 206,039 (26,997)
EXPENDITURES
Public works:
Highways and streets 270,185 1,806,759 228,590 1,578,169
Total expenditures 270,185 1,806,759 228,590 1,578,169
Excess (deficiency) of revenues
over (under) expenditures (37,149) (1,573,723) (22,551) 1,551,172
OTHER FINANCING USES
Transfers out (151,265) (151,265) (50,000) 101,265
Total other financing sources (151,265) (151,265) (50,000) ‐
Net change in fund balances (188,414) (1,724,988) (72,551) 1,652,437
Fund balances ‐ beginning 1,739,065 1,739,065 1,739,065 ‐
Fund balances ‐ ending 1,550,651$ 14,077$ 1,666,514$ 1,652,437$
96
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ Storm Drainage Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis) (Negative)
REVENUES
Taxes:
Storm drainage tax 855,700$ 855,700$ 916,925$ 61,225$
Penalties and interest on delinquent taxes 750 750 789 39
Miscellaneous revenue:
Interest income 1,300 1,300 6,321 5,021
Total revenues 857,750 857,750 924,035 66,285
EXPENDITURES
Public works:
Highways and streets 1,506,469 1,506,469 389,931 1,116,538
Debt Service
Principal 136,184 136,184 136,182 2
Interest 88,697 88,697 88,693 4
Total expenditures 1,731,350 1,731,350 614,806 1,116,544
Excess (deficiency) of revenues
over (under) expenditures (873,600) (873,600) 309,229 1,182,829
Net change in fund balances (873,600) (873,600) 309,229 1,182,829
Fund balances ‐ beginning 1,799,789 1,799,789 1,799,789 ‐
Fund balances ‐ ending 926,189$ 926,189$ 2,109,018$ 1,182,829$
97
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ Bed and Booze Tax Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Taxes:
General sales and use taxes 870,000$ 870,000$ 914,658$ 44,658$
Miscellaneous revenue:
Interest income 1,500 1,500 2,772 1,272
Total revenues 871,500 871,500 917,430 45,930
EXPENDITURES
Conservation and development
Economic development 530,934 710,034 656,271 53,763
Total expenditures 530,934 710,034 656,271 53,763
Excess of revenues
over expenditures 340,566 161,466 261,159 99,693
OTHER FINANCING USES
Transfers out (404,950) (404,950) (404,950) ‐
Total other financing uses (404,950) (404,950) (404,950) ‐
Net change in fund balances (64,384) (243,484) (143,791) 99,693
Fund balances ‐ beginning 1,096,255 1,096,255 1,096,255 ‐
Fund balances ‐ ending 1,031,871$ 852,771$ 952,464$ 99,693$
98
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ BID Fee Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Miscellaneous revenue:
Interest income 350$ 350$ 646$ 296$
Occupancy fee 400,000 400,000 242,772 (157,228)
Total revenues 400,350 400,350 243,418 (156,932)
EXPENDITURES
General government
Financial administration 4,400 5,400 4,933 467
Conservation and development
Economic development 217,500 217,500 217,500 ‐
Total expenditures 221,900 222,900 222,433 467
Excess of revenues
over expenditures 178,450 177,450 20,985 (156,465)
Net change in fund balances 178,450 177,450 20,985 (156,465)
Fund balances ‐ beginning 207,415 207,415 207,415 ‐
Fund balances ‐ ending 385,865$ 384,865$ 228,400$ (156,465)$
99
100
City of Brookings
December 31, 2017
Combining Statements – Nonmajor Debt Service Funds
TIF‐1 Innovation Campus Fund – To account for the revenues and expenditures of the Tax Increment District (TID) # 1. This TID
was created to capture the incremental tax revenue generated by development of the Innovation Campus area and to pay for
the debt incurred on the infrastructure improvements.
TIF‐3 Valley View Fund ‐ To account for the revenues and expenditures of the Tax Increment District (TID) # 3. This TID was
created to capture the incremental tax revenue generated by development of the Valley View addition and to pay for the debt
incurred by the developer on the infrastructure improvements. This debt is developer guaranteed.
TIF‐4 Sieler Fund ‐ To account for the revenues and expenditures of the Tax Increment District (TID) # 4. This TID was created
to capture the incremental tax revenue generated by development of the Sieler addition and to pay for the debt incurred by
the developer on the infrastructure improvements. This debt is developer guaranteed.
TIF‐5 32nd Ave Fund ‐ To account for the revenue and expenditures of the Tax Increment District (TID) #5. This TID was
created to capture the incremental tax revenue generated by development of the area along 32nd Ave and to pay for the debt
incurred by the City on the infrastructure improvements.
TIF‐6 Digester Fund – To account for the revenues and expenditures of the Tax Increment District (TID) #6. This TID was
created to capture the incremental tax revenue generated by development of the Bel Cheese plant area to pay for the debt
incurred by the City on the digester.
TIF‐7 S. Main Ave Fund – To account for the revenues and expenditures of the Tax Increment District (TID) #7. This TID was
created to capture the incremental tax revenue generated by development around the new elementary school area to pay for
the debt incurred by the City on the infrastructure improvements.
101
City of Brookings
December 31, 2017
Combining Balance Sheet ‐ Nonmajor Debt Service Funds
TIF‐1 TIF‐3
Innovation Valley TIF‐4 TIF‐5 TIF‐6 TIF‐7
Campus View Sieler 32nd Ave Digester S Main Ave Total
ASSETS
Restricted cash and cash equivalents 44,677$ 2,516$ 1,344$ 67,189$ 5,278$ 143,488$ 264,492$
Total assets 44,677$ 2,516$ 1,344$ 67,189$ 5,278$ 143,488$ 264,492$
LIABILITIES
Advance from other funds 584,693$ ‐$ ‐$ ‐$ ‐$ ‐$ 584,693$
Total liabilities 584,693 ‐ ‐ ‐ ‐ ‐ 584,693
FUND BALANCES (DEFICITS)
Restricted ‐ 2,516 1,344 67,189 5,278 143,488 219,815
Unassigned (540,016) ‐ ‐ ‐ ‐ ‐ (540,016)
Total fund balances (deficit)(540,016) 2,516 1,344 67,189 5,278 143,488 (320,201)
Total liabilities and fund balances 44,677$ 2,516$ 1,344$ 67,189$ 5,278$ 143,488$ 264,492$
102
City of Brookings
Year Ended December 31, 2017
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ‐ Nonmajor Debt Service Funds
TIF‐1 TIF‐3
Innovation Valley TIF‐4 TIF‐5 TIF‐6 TIF‐7
Campus View Sieler 32nd Ave Digester S Main Ave Total
REVENUES
Taxes:
Property 415,040$ 203,905$ 78,956$ 21,573$ 244,543$ 283,488$ 1,247,505$
Total revenues 415,040 203,905 78,956 21,573 244,543 283,488 1,247,505
EXPENDITURES
Debt service:
Principal 28,858 181,704 71,306 ‐ ‐ ‐ 281,868
Interest and other charges 43,729 20,836 7,724 ‐ ‐ ‐ 72,289
Total expenditures 72,587 202,540 79,030 ‐ ‐ ‐ 354,157
Excess (deficiency) of revenues
over expenditures 342,453 1,365 (74) 21,573 244,543 283,488 893,348
OTHER FINANCING USES
Transfers out ‐ ‐ ‐ ‐ (526,000) (140,000) (666,000)
Total other financing uses ‐ ‐ ‐ ‐ (526,000) (140,000) (666,000)
Net change in fund balances 342,453 1,365 (74) 21,573 (281,457) 143,488 227,348
Fund balances (deficit) ‐ beginning (882,469) 1,151 1,418 45,616 286,735 ‐ (547,549)
Fund balances (deficit) ‐ ending (540,016)$ 2,516$ 1,344$ 67,189$ 5,278$ 143,488$ (320,201)$
103
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ TIF 1 Innovation Campus Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Taxes:
General property taxes 448,328$ 448,328$ 415,040$ (33,288)$
Total revenues 448,328 448,328 415,040 (33,288)
EXPENDITURES
Debt service
Principal 378,328 378,328 28,858 349,470
Interest and other charges 70,000 70,000 43,729 26,271
Total expenditures 448,328 448,328 72,587 375,741
Net change in fund balances ‐ ‐ 342,453 342,453
Fund deficit ‐ beginning (882,469) (882,469) (882,469) ‐
Fund deficit ‐ ending (882,469)$ (882,469)$ (540,016)$ 342,453$
104
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ TIF 3 Valley View Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Taxes:
General property taxes 216,832$ 216,832$ 203,905$ (12,927)$
Total revenues 216,832 216,832 203,905 (12,927)
EXPENDITURES
Debt service
Principal 176,832 176,832 181,704 (4,872)
Interest and other charges 40,000 40,000 20,836 19,164
Total expenditures 216,832 216,832 202,540 14,292
Net change in fund balances ‐ ‐ 1,365 1,365
Fund balances ‐ beginning 1,151 1,151 1,151 ‐
Fund balances ‐ ending 1,151$ 1,151$ 2,516$ 1,365$
105
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ TIF 4 Sieler Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Taxes:
General property taxes 84,380$ 84,380$ 78,956$ (5,424)$
Total revenues 84,380 84,380 78,956 (5,424)
EXPENDITURES
Debt service
Principal 64,380 64,380 71,306 (6,926)
Interest and other charges 20,000 20,000 7,724 12,276
Total expenditures 84,380 84,380 79,030 5,350
Net change in fund balances ‐ ‐ (74) (74)
Fund balances ‐ beginning 1,418 1,418 1,418 ‐
Fund balances ‐ ending 1,418$ 1,418$ 1,344$ (74)$
106
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ TIF 5 32nd Ave Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Taxes:
General property taxes 16,130$ 16,130$ 21,573$ 5,443$
Total revenues 16,130 16,130 21,573 5,443
EXPENDITURES
Debt service
Principal 6,130 6,130 ‐ 6,130
Interest and other charges 10,000 10,000 ‐ 10,000
Total expenditures 16,130 16,130 ‐ 10,000
Net change in fund balances ‐ ‐ 21,573 21,573
Fund balances ‐ beginning 45,616 45,616 45,616 ‐
Fund balances ‐ ending 45,616$ 45,616$ 67,189$ 21,573$
107
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ TIF 6 Digester Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Taxes:
General property taxes 260,120$ 260,120$ 244,543$ (15,577)$
Total revenues 260,120 260,120 244,543 (15,577)
OTHER FINANCING SOURCES (USES)
Transfers out (260,120) (536,120) (526,000) 10,120
Total other financing uses (260,120) (536,120) (526,000) 10,120
Net change in fund balances ‐ (276,000) (281,457) (5,457)
Fund balances ‐ beginning 286,735 286,735 286,735 ‐
Fund balances ‐ ending 286,735$ 10,735$ 5,278$ (5,457)$
108
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ TIF 7 South Main Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Taxes:
General property taxes 100,000$ 100,000$ 283,488$ 183,488$
Total revenues 100,000 100,000 283,488 183,488
OTHER FINANCING SOURCES (USES)
Transfers out (100,000) (140,000) (140,000) ‐
Total other financing uses (100,000) (140,000) (140,000) ‐
Net change in fund balances ‐ (40,000) 143,488 183,488
Fund balances ‐ beginning ‐ ‐ ‐ ‐
Fund balances ‐ ending ‐ $ (40,000)$ 143,488$ 183,488$
109
City of Brookings
December 31, 2017
Combining Statements – Nonmajor Capital Project Funds
Fire Substation Fund – to account for the resources received and expenditures to construct the fire substation to be located on
S. Main St. adjacent to the new elementary school.
Dakota Nature Park Fund ‐ to account for the resources received and expenditures to construct the nature park facility. The
park includes trails, ponds for fishing and recreation, and a Nature Center. Resources are derived from private donations and
grants.
Gateway Project Fund ‐ to account for the resources received and expenditures to purchase and put in place stone signage
throughout the City identifying various parks and entrances to the City. Resources are derived mainly from private donations.
TIF‐6 Digester Fund – to account for the resources and expenditures to construct a digester to treat the waste water generated
from the Bel Brands Cheese Plant. Resources are derived from grants and debt financing.
TIF‐7 South Main Fund ‐ to account for the resources and expenditures to design and construct the streets and infrastructure
surrounding the new grade school.
Street Maintenance Shop Fund ‐ to account for the resources and expenditures to design and construct the new street
department shop.
110
City of Brookings
December 31, 2017
Combining Balance Sheet ‐ Nonmajor Capital Project Funds
Dakota
Fire Nature Gateway TIF 6 TIF 7 Street
Substation Park Project Digester S Main Shop Total
ASSETS
Cash and cash equivalents 288,465$ ‐ $ 741,185$ 72,303$ 1,833,809$ ‐ $ 2,935,762$
Investments‐CDs ‐ ‐ 15,907 1,552 39,357 56,816
Investments 139,204 13,606 344,411 497,221
Receivables, (net of allowances for
uncollectibles, if any):
Interest ‐ ‐ 501 ‐ 1,239 ‐ 1,740
Total assets 288,465$ ‐$ 896,797$ 87,461$ 2,218,816$ ‐$ 3,491,539$
LIABILITIES
Accounts payable 163,577$ ‐$ 547,718$ 115,733$ ‐$ ‐$ 827,028$
Retainage payable 1,000 ‐ ‐ ‐ ‐ ‐ 1,000
Due to other funds ‐ ‐ 23,369 ‐ ‐ ‐ 23,369
Deferred revenue ‐ ‐ ‐ ‐ 675,863 ‐ 675,863
Total liabilities 164,577 ‐ 571,087 115,733 675,863 ‐ 1,527,260
FUND BALANCES
Assigned 123,888 ‐ 325,710 ‐ 1,542,953 ‐ 1,992,551
Unassigned ‐ ‐ ‐ (28,272) ‐ ‐ (28,272)
Total fund balances 123,888 ‐ 325,710 (28,272) 1,542,953 ‐ 1,964,279
Total liabilities and fund balances 288,465$ ‐ $ 896,797$ 87,461$ 2,218,816$ ‐ $ 3,491,539$
111
City of Brookings
Year Ended December 31, 2017
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ‐ Nonmajor Capital Project Funds
Dakota
Fire Nature Gateway TIF6 TIF 7 Street
Substation Park Project Digester S Main Shop Total
REVENUES
Miscellaneous revenue:
Interest income 442$ ‐$ 2,070$ 53$ 2,504$ 104$ 5,173$
Total revenues 442 ‐ 2,070 53 2,504 104 5,173
EXPENDITURES
Current:
Public works ‐ ‐ ‐ 141,633 ‐ ‐ 141,633
Capital outlay 1,381,478 ‐ 573,107 ‐ 47,688 5,437 2,007,710
Total expenditures 1,381,478 ‐ 573,107 141,633 47,688 5,437 2,149,343
Deficiency of revenues
under expenditures (1,381,036) ‐ (571,037) (141,580) (45,184) (5,333) (2,144,170)
OTHER FINANCING SOURCES
Transfers in 1,490,829 ‐ 365,000 76,000 1,588,137 ‐ 3,519,966
Transfers out ‐ (40,885) ‐ ‐ ‐ (35,116) (76,001)
Total other financing sources 1,490,829 (40,885) 365,000 76,000 1,588,137 (35,116) 3,443,965
Net change in fund balances 109,793 (40,885) (206,037) (65,580) 1,542,953 (40,449) 1,299,795
Fund balances ‐ beginning 14,095 40,885 531,747 37,308 ‐ 40,449 664,484
Fund balances (deficit) ‐ ending 123,888$ ‐ $ 325,710$ (28,272)$ 1,542,953$ ‐ $ 1,964,279$
112
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ Fire Substation Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Miscellaneous revenue:
Interest income ‐$ ‐$ 442$ 442$
Total revenues ‐ ‐ 442 442
EXPENDITURES
Public Safety
Fire ‐ 1,490,829 1,381,478 109,351
Total expenditures ‐ 1,490,829 1,381,478 109,351
Deficiency of revenues
under expenditures ‐ (1,490,829) (1,381,036) 109,793
OTHER FINANCING SOURCES
Transfers in ‐ 1,490,829 1,490,829 ‐
Total other financing sources ‐ 1,490,829 1,490,829 ‐
Net change in fund balances ‐ ‐ 109,793 109,793
Fund balances ‐ beginning 14,095 14,095 14,095 ‐
Fund balances ‐ ending 14,095$ 14,095$ 123,888$ 109,793$
113
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ Dakota Nature Park Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
OTHER FINANCING USES
Transfers out ‐ (40,885) (40,885) ‐
Total other financing uses ‐ (40,885) (40,885) ‐
Net change in fund balances ‐ (40,885) (40,885) ‐
Fund balances ‐ beginning 40,885 40,885 40,885 ‐
Fund balances ‐ ending 40,885$ ‐ $ ‐ $ ‐ $
114
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ Gateway Project Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Miscellaneous revenue:
Interest income ‐$ ‐$ 2,070$ 2,070$
Total revenues ‐ ‐ 2,070 2,070
EXPENDITURES
Culture and recreation:
Parks 615,000 1,132,400 573,107 559,293
Total expenditures 615,000 1,132,400 573,107 559,293
Deficiency of revenues
over expenditures (615,000) (1,132,400) (571,037) 561,363
OTHER FINANCING SOURCES
Transfers in 365,000 365,000 365,000 ‐
Total other financing sources 365,000 365,000 365,000 ‐
Net change in fund balances (250,000) (767,400) (206,037) 561,363
Fund balances ‐ beginning 531,747 531,747 531,747 ‐
Fund balances ‐ ending 281,747$ ‐235,653$ 325,710$ 561,363$
115
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ TIF 6 Digester Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis)(Negative)
REVENUES
Miscellaneous revenue:
Interest income ‐$ ‐$ 53$ 53$
Total revenues ‐ ‐ 53 53
EXPENDITURES
Public works
Public works ‐ 76,000 141,633 (65,633)
Total expenditures ‐ 76,000 141,633 (65,633)
Deficiency of revenues
under expenditures ‐ (76,000) (141,580) (65,580)
OTHER FINANCING SOURCES
Transfers in ‐ 76,000 76,000 ‐
Total other financing sources ‐ 76,000 76,000 ‐
Net change in fund balances ‐ ‐ (65,580) (65,580)
Fund balances ‐ beginning 37,308 37,308 37,308 ‐
Fund balances ‐ ending 37,308$ 37,308$ (28,272)$ (65,580)$
116
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ TIF 7 S Main Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis) (Negative)
REVENUES
Miscellaneous revenue:
Interest income ‐$ ‐$ 2,504$ 2,504$
Total revenues ‐ ‐ 2,504 2,504
EXPENDITURES
Conservation and development
Public works ‐ 1,000,000 47,688 952,312
Total expenditures ‐ 1,000,000 47,688 952,312
Deficiency of revenues
under expenditures ‐ (1,000,000) (45,184) 954,816
OTHER FINANCING SOURCES
Transfers in ‐ 2,264,000 1,588,137 (675,863)
Total other financing sources ‐ 2,264,000 1,588,137 (675,863)
Net change in fund balance ‐ 1,264,000 1,542,953 278,953
Fund balances ‐ beginning ‐ ‐ ‐ ‐
Fund balances ‐ ending ‐ $ 1,264,000$ 1,542,953$ 278,953$
117
City of Brookings
Year Ended December 31, 2017
Budgetary Comparison ‐ Street Maintenance Shop Fund
Variance With
Budgeted Amounts Actual Final Budget
(Modified Accrual Positive
Original Final Basis) (Negative)
REVENUES
Miscellaneous revenue:
Interest income ‐$ ‐$ 104$ 104$
Total revenues ‐ ‐ 104 104
EXPENDITURES
Public Works
Highways and Streets ‐ 71,071 5,437 65,634
Total expenditures ‐ 71,071 5,437 65,634
Deficiency of revenues
under expenditures ‐ (71,071) (5,333) 65,738
OTHER FINANCING SOURCES
Transfers out ‐ (35,117) (35,116) 1
Total other financing uses ‐ (35,117) (35,116) 1
Net change in fund balance ‐ (106,188) (40,449) 65,739
Fund balances ‐ beginning 40,449 40,449 40,449 ‐
Fund balances ‐ ending 40,449$ (65,739)$ ‐$ 65,739$
118
City of Brookings
December 31, 2017
Combining Statements – Nonmajor Enterprise Funds
Liquor Fund – to account for revenues and expenses of the City owned liquor store.
Water Fund – to account for water services provided to the residents of the City of Brookings. All activities necessary to
provide such service are accounted for in this fund.
Airport Fund – to account for air transportation services to the residents of the City. All activities necessary to provide such
service are accounted for in this fund, including, but not limited to, administration, operations, and maintenance.
Golf Fund – to account for revenues and expenses of the City‐owned municipal golf course.
Solid Waste Fund – to account for solid waste services provided to the residents of the City. All activities necessary to provide
such services are accounted for in this fund, including, but not limited to administration, operations, maintenance, billing, and
collection.
Research & Technology Center Fund – to account for revenues and expenses of a City‐owned facility designed to house startup
companies.
119
City of Brookings
December 31, 2017
Combining Statement of Net Position ‐ Nonmajor Enterprise Funds
Liquor Water Airport
ASSETS
Current assets:
Cash and cash equivalents 1,763,963$ 4,084,563$ 25,254$
Investments‐CDs 37,774 7,509,663 4,834
Investments 330,557 ‐ 42,306
Receivables, (net of allowances for
uncollectibles, if any):
Accounts 221 455,238 300
Unbilled accounts ‐ 248,321 ‐
Interest 1,186 10,397 153
Due from other funds ‐ 38,261 ‐
Due from other governments ‐ ‐ 53,503
Inventories:
Supplies ‐ 226,827 ‐
Stores 590,081 ‐ ‐
Prepaid expenses ‐ 22,903 694
Total current assets 2,723,782 12,596,173 127,044
Noncurrent assets:
Restricted cash and cash equivalents ‐ ‐ ‐
Restricted investments‐CDs ‐ 3,000,000 ‐
Advances to other funds 272,464 ‐ ‐
Net pension asset 1,028 4,755 449
Other assets ‐ 907 ‐
Capital assets:
Land ‐ 203,013 1,923,340
Buildings and improvements 281,077 17,044,790 24,396,365
Machinery and equipment 337,431 589,892 1,045,745
Construction in progress ‐ 12,983 898,632
Less accumulated depreciation (472,947) (7,237,204) (5,432,139)
Total noncurrent assets 419,053 13,619,136 22,832,392
Total assets 3,142,835 26,215,309 22,959,436
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 91,042 485,499 47,403
Total assets and deferred outflows of resources 3,233,877$ 26,700,808$ 23,006,839$
LIABILITIES
Current liabilities:
Accounts payable 62,841$ 157,447$ 13,767$
Retainage payable ‐ ‐ 3,265
Due to other funds 1,963 15,552 219
Due to other governments ‐ ‐ 66,500
Accrued interest payable ‐ 1,236 ‐
Accrued wages payable 10,305 4,242 2,839
Accrued taxes payable 33,080 495 ‐
Customer deposits 11,000 ‐ 780
Capital lease obligations ‐ 28,635 ‐
Compensated absences 2,708 20,207 1,606
Total current liabilities 121,897 227,814 88,976
Noncurrent liabilities:
Capital lease obligations ‐ 283,590 ‐
Compensated absences 10,832 ‐ 6,422
OPEB liability 15,284 53,474 6,053
Advances from other funds ‐ ‐ ‐
Accrued landfill closure and
postclosure costs ‐ ‐ ‐
Total noncurrent liabilities 26,116 337,064 12,475
Total liabilities 148,013 564,878 101,451
120
City of Brookings
December 31, 2017
Combining Statement of Net Position ‐ Nonmajor Enterprise Funds
Research &
Solid Technology
Golf Waste Center Total
‐ $ 3,992,831$ 111,323$ 9,977,934$
‐ 85,789 2,389 7,640,449
‐ 750,729 20,908 1,144,500
‐ 427,478 84,306 967,543
‐ 68,069 ‐ 316,390
‐ 2,701 75 14,512
‐ 15,483 ‐ 53,744
‐ ‐ ‐ 53,503
‐ 47,749 ‐ 274,576
‐ ‐ ‐ 590,081
‐ ‐ ‐ 23,597
‐ 5,390,829 219,001 21,056,829
‐ 1,555 ‐ 1,555
‐ 2,308,961 ‐ 5,308,961
‐ 984,929 ‐ 1,257,393
594 2,866 9,692
‐ ‐ ‐ 907
50,000 496,364 ‐ 2,672,717
1,573,014 4,754,736 2,118,612 50,168,594
555,594 4,809,436 ‐ 7,338,098
‐ ‐ ‐ 911,615
(1,059,783) (5,931,603) (786,334) (20,920,010)
1,119,419 7,427,244 1,332,278 46,749,522
1,119,419 12,818,073 1,551,279 67,806,351
67,518 299,903 ‐ 991,365
1,186,937$ 13,117,976$ 1,551,279$ 68,797,716$
2,113$ 59,396$ 4,826$ 300,390$
‐ ‐ ‐ 3,265
11,335 15,004 59 44,132
‐ ‐ ‐ 66,500
‐ ‐ ‐ 1,236
2,346 24,611 ‐ 44,343
‐ 7,146 ‐ 40,721
‐ ‐ ‐ 11,780
‐ ‐ ‐ 28,635
7,406 19,387 ‐ 51,314
23,200 125,544 4,885 592,316
‐ ‐ 283,590
29,623 77,546 ‐ 124,423
10,402 46,934 132,147
145,317 ‐ ‐ 145,317
‐ 606,049 ‐ 606,049
185,342 730,529 ‐ 1,291,526
208,542 856,073 4,885 1,883,842
121
City of Brookings
December 31, 2017
Combining Statement of Net Position ‐ Nonmajor Enterprise Funds (continued)
Liquor Water Airport
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows 17,404 91,422 9,345
Proceeds from sale of future revenues ‐ 4,974 ‐
Total liabilities and deferred inflows of resources 165,417 661,274 110,796
NET POSITION
Net investment in capital assets 145,561 10,301,249 22,828,678
Restricted for:
SDRS pension purposes 74,666 398,832 38,507
Landfill closure and postclosure ‐ ‐ ‐
Unrestricted 2,848,233 15,339,453 28,858
Total net position 3,068,460$ 26,039,534$ 22,896,043$
122
City of Brookings
December 31, 2017
Combining Statement of Net Position ‐ Nonmajor Enterprise Funds (continued)
Research &
Solid Technology
Golf Waste Center Total
13,670 60,692 ‐ 192,533
‐ ‐ ‐ 4,974
222,212 916,765 4,885 2,081,349
1,118,825 4,128,933 1,332,278 39,855,524
54,442 242,077 ‐ 808,524
‐ 679,612 ‐ 679,612
(208,542) 7,150,589 214,116 25,372,707
964,725$ 12,201,211$ 1,546,394$ 66,716,367$
123
City of Brookings
Year Ended December 31, 2017
Combining Statement of Revenues, Expenses, and Changes in Net Position ‐ Nonmajor Enterprise Funds
Liquor Water Airport
OPERATING REVENUES
Charges for goods and services 4,132,486$ 5,228,397$ 47,299$
Miscellaneous ‐ 165,994 ‐
Total operating revenues 4,132,486 5,394,391 47,299
OPERATING EXPENSES
Personal services 339,924 1,276,913 126,657
Other current expenses 253,595 1,215,357 133,671
Cost of goods sold 3,070,037 ‐ ‐
Amortization ‐ 3,718 ‐
Depreciation 29,065 419,974 933,349
Total operating expenses 3,692,621 2,915,962 1,193,677
Operating income (loss)439,865 2,478,429 (1,146,378)
NONOPERATING REVENUES (EXPENSES)
Interest income 10,277 96,387 941
Miscellaneous income ‐ 81,508 ‐
Loss on disposition of capital assets ‐ ‐ (6,167)
Interest expense and fiscal charges ‐ (16,017) ‐
Total nonoperating revenues (expenses)10,277 161,878 (5,226)
Income (loss) before capital contributions
and transfers 450,142 2,640,307 (1,151,604)
Capital contributions ‐ 249,563 712,784
Transfers in ‐ ‐ 229,680
Transfers out (400,121) ‐ (815,960)
Change in net position 50,021 2,889,870 (1,025,100)
Net position ‐ beginning 3,018,439 23,149,664 23,921,143
Net position ‐ ending 3,068,460$ 26,039,534$ 22,896,043$
124
City of Brookings
Year Ended December 31, 2017
Combining Statement of Revenues, Expenses, and Changes in Net Position ‐ Nonmajor Enterprise Funds
Research &
Solid Technology
Golf Waste Center Total
385,897$ 3,721,235$ 168,312$ 13,683,626$
‐ ‐ ‐ 165,994
385,897 3,721,235 168,312 13,849,620
226,561 802,606 ‐ 2,772,661
248,081 896,024 81,552 2,828,280
‐ ‐ ‐ 3,070,037
‐ ‐ ‐ 3,718
91,971 519,372 53,007 2,046,738
566,613 2,218,002 134,559 10,721,434
(180,716) 1,503,233 33,753 3,128,186
58 37,439 543 145,645
13,289 ‐ ‐ 94,797
327 ‐ ‐ (5,840)
‐ ‐ ‐ (16,017)
13,674 37,439 543 218,585
(167,042) 1,540,672 34,296 3,346,771
‐ ‐ 962,347
156,829 ‐ ‐ 386,509
‐ (604,665) (120,000) (1,940,746)
(10,213) 936,007 (85,704) 2,754,881
974,938 11,265,204 1,632,098 63,961,486
964,725$ 12,201,211$ 1,546,394$ 66,716,367$
125
City of Brookings
Year Ended December 31, 2017
Combining Statement of Cash Flows ‐ Nonmajor Enterprise Funds
Liquor Water Airport
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 4,133,644$ 5,326,143$ 47,109$
Internal activity‐payments from other funds ‐ 179,473 ‐
Payments to suppliers (3,359,369) (1,306,521) (59,093)
Payments to employees (373,631) (1,435,443) (141,311)
Internal activity‐payments to other funds ‐ ‐ ‐
Net cash provided by (used in) operating
activities 400,644 2,763,652 (153,295)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers in ‐ ‐ 229,680
Transfers out (400,121) ‐ (815,960)
Net cash provided by (used in) noncapital
financing activities (400,121) ‐ (586,280)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets ‐ (944,692) (994,662)
Proceeds from sale of capital assets ‐ ‐ ‐
Capital grants ‐ ‐ 1,726,077
Principal payments on debt (27,255) ‐
Interest payments on debt ‐ (16,125) ‐
Principal receipts (payments) on interfund advances/loans (108,032) ‐ ‐
Interest payments on interfund advances/loans 3,284 ‐ ‐
Net cash provided by (used in) capital
and related financing activities (104,748) (988,072) 731,415
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of investments 45,323 8,000,000 1,626
Purchase of investments (368,989) (8,009,663) (47,233)
Interest income 6,482 89,513 874
Net cash provided by (used in) investing
activities (317,184) 79,850 (44,733)
Net increase (decrease) in cash
and cash equivalents (421,409) 1,855,430 (52,893)
Balances ‐ beginning of the year 2,185,372 2,229,133 78,147
Balances ‐ end of the year 1,763,963 4,084,563 25,254
Less restricted cash and cash equivalents ‐ ‐ ‐
Cash and cash equivalents (current) per
statement of net position 1,763,963$ 4,084,563$ 25,254$
126
City of Brookings
Year Ended December 31, 2017
Combining Statement of Cash Flows ‐ Nonmajor Enterprise Funds
Research &
Solid Technology
Golf Waste Center Total
400,473$ 3,533,257$ 158,127$ 13,598,753$
‐ 249,364 ‐ 428,837
(245,129) (608,534) (88,100) (5,666,746)
(243,848) (908,920) ‐ (3,103,153)
‐ (241,300) ‐ (241,300)
(88,504) 2,023,867 70,027 5,016,391
156,829 ‐ ‐ 386,509
‐ (604,665) (120,000) (1,940,746)
156,829 (604,665) (120,000) (1,554,237)
(49,596) (458,578) ‐ (2,447,528)
327 ‐ ‐ 327
‐ ‐ ‐ 1,726,077
‐ ‐ ‐ (27,255)
‐ ‐ ‐ (16,125)
(19,113) 115,071 ‐ (12,074)
‐ 16,500 ‐ 19,784
(68,382) (327,007) ‐ (756,794)
‐ 78,946 ‐ 8,125,895
‐ (989,608) (23,339) (9,438,832)
57 19,764 510 117,200
57 (890,898) (22,829) (1,195,737)
‐ 201,297 (72,802) 1,509,623
‐ 3,793,089 184,125 8,469,866
‐ 3,994,386 111,323 9,979,489
‐ (1,555) ‐ (1,555)
‐ $ 3,992,831$ 111,323$ 9,977,934$
127
City of Brookings
Year Ended December 31, 2017
Combining Statement of Cash Flows ‐ Nonmajor Enterprise Funds (continued)
Liquor Water Airport
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities:
Operating income (loss)439,865$ 2,478,429$ (1,146,378)$
Miscellaneous income ‐ 81,508
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation 29,065 419,974 933,349
Amortization ‐ 3,718 ‐
Landfill closure and postclosure cost ‐ ‐ ‐
Provision for uncollectible accounts ‐ ‐ 67,474
Change in operating assets and liabilities:
(Increase) decrease in:
Receivables 1,158 (46,778) (190)
Inventories 2,482 (3,725) ‐
Prepaid expenses ‐ (1,457) (694)
Deferred outflows related to pensions (15,783) (66,817) (6,898)
Net pension asset (1,028) (4,755) (449)
Increase (decrease) in:
Deferred inflows related to pensions 17,082 91,422 9,145
Deferred inflows related to other ‐ 198 ‐
Account and other payables (38,219) (9,686) 7,798
Accrued wages payable 1,200 2,167 818
Accrued leave payable 4,104 142 1,259
Accrued OPEB payable (2,101) 2,607 (600)
Net pension liability (37,181) (183,295) (17,929)
Net cash provided by (used in)
operating activities 400,644$ 2,763,652$ (153,295)$
NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital asset additions from contributed capital ‐$ 249,563$ 712,784
Accounts payable for capital assets ‐ 95,652 3,265
128
City of Brookings
Year Ended December 31, 2017
Combining Statement of Cash Flows ‐ Nonmajor Enterprise Funds (continued)
Research &
Solid Technology
Golf Waste Center Total
(180,716)$ 1,503,233$ 33,753$ 3,128,186$
13,289 ‐ ‐ 94,797
91,971 519,372 53,007 2,046,738
‐ ‐ ‐ 3,718
‐ 46,826 ‐ 46,826
‐ ‐ ‐ 67,474
1,287 61,189 (10,185) 6,481
‐ (9,007) ‐ (10,250)
‐ ‐ ‐ (2,151)
(9,119) (44,015) ‐ (142,632)
(594) (2,866) ‐ (9,692)
13,370 59,456 ‐ 190,475
‐ ‐ ‐ 198
2,952 8,567 (6,548) (35,136)
(128) 790 ‐ 4,847
5,067 (264) ‐ 10,308
(900) (3,902) ‐ (4,896)
(24,983) (115,512) ‐ (378,900)
(88,504)$ 2,023,867$ 70,027$ 5,016,391$
‐$ ‐$ ‐$ 962,347$
‐ ‐ ‐ 98,917
129
City of Brookings
December 31, 2017
Combining Statements – Fiduciary Funds
Section 125 Agency Fund – to account for the employees’ withholdings and disbursements for Section 125 Flexible Spending
Accounts.
Rural Fire Agency Fund – to account for deposits and disbursements for the Brookings Rural Volunteer Fire Association.
130
City of Brookings
December 31, 2017
Combining Statement of Net Position ‐ Fiduciary Funds
Section 125 Rural Fire
Agency Fund Agency Fund Total
ASSETS
Cash and cash equivalents 2,023$ 23,730$ 25,753$
Accounts receivable 2,085 ‐ 2,085
Total Assets 4,108 23,730 27,838
LIBILITIES
Amounts held for others 4,108 23,730 27,838
Total Liabilities 4,108$ 23,730$ 27,838$
131
City of Brookings
Year Ended December 31, 2017
Combining Statement of Changes in Assets and Liabilities ‐ Fiduciary Funds
Balance Balance
January 1,December 31,
2017 Additions Deductions 2017
Section 125 Agency Fund
Assets:
Cash and cash equivalents 329$ 56,861$ 55,167$ 2,023$
Accounts receivable 1,743 4,337 3,995 2,085
2,072 61,198 59,162 4,108
Liabilities:
Due to flex claims 2,072$ 52,866$ 50,830$ 4,108$
Rural Fire Agency Fund
Assets:
Cash and cash equivalents 133,863$ 28,013$ 138,146$ 23,730$
Liabilities:
Due to Rural Fire Association 133,863$ 28,013$ 138,146$ 23,730$
Total All Agency Funds
Assets:
Cash and cash equivalents 134,192$ 84,874$ 193,313$ 25,753$
Accounts receivable 1,743 4,337 3,995 2,085
Total assets 135,935$ 89,211$ 197,308$ 27,838$
Liabilities:
Due to flex claims 2,072 52,866 50,830 4,108
Due to Rural Fire Association 133,863 28,013 138,146 23,730
Total liabilities 135,935$ 80,879$ 188,976$ 27,838$
132
City of Brookings
December 31, 2017
Statistical Section
This part of the City of Brookings comprehensive annual financial report presents detailed information
as a context for understanding what the information in the financial statements, note disclosures, and
required supplemental information says about the City’s overall financial health.
Contents Page
Financial Trends 134
These schedules contain trend information to help the reader understand how
the government’s financial performance and well‐being have changed over time.
Revenue Capacity 146
These schedules contain information to help the reader assess two of the
government’s significant local revenue sources: property and sales tax.
Debt Capacity 150
These schedules present information to help the reader assess the affordability
of the government’s current levels of outstanding debt and the government’s
ability to issue additional debt in the future.
Demographic and Economic Information 157
These schedules offer demographic and economic indicators to help the reader
understand the environment in which the government’s financial activities take
place.
Operating Information 159
These schedules contain service and infrastructure data to help the reader
understand how the information in the government’s financial report relates to
the services and activities the government provides and performs.
133
Table 1
2017 2016 2015
Net investment in capital assets 76,993,653$ 72,145,788$ 64,579,729$
Restricted 4,537,648 4,886,747 5,013,005
Unrestricted 16,898,022 20,064,256 22,424,600
Total Governmental Activities Net Position 98,429,323 97,096,791 92,017,334
Net investment in capital assets 136,462,888 136,023,245 114,205,616
Restricted 12,954,510 7,771,643 13,109,068
Unrestricted 104,848,871 94,982,598 98,824,153
Total Business‐type Activities Net Position 254,266,269 238,777,486 226,138,837
Net investment in capital assets 213,456,541 208,169,033 178,785,345
Restricted 17,492,158 12,658,390 18,122,073
Unrestricted 121,746,893 115,046,854 121,248,753
Total Primary Government Net Position 352,695,592$ 335,874,277$ 318,156,171$
Business‐type Activities
Primary Government
Last Ten Fiscal Years
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Statistics (Unaudited)
Governmental Activities
Net Position by Component (accrual basis of accounting)
134
Table 1 (continued)
2014 2013 2012 2011 2010 2009 2008
56,625,781$ 62,699,489$ 58,460,116$ 52,072,530$ 45,842,974$ 45,371,397$ 41,597,591$
3,156,857 2,259,218 3,442,323 6,763,195 2,322,180 12,734,742 13,439,911
20,309,859 14,775,779 15,314,013 15,594,203 19,472,723 6,337,114 6,185,767
80,092,497 79,734,486 77,216,452 74,429,928 67,637,877 64,443,253 61,223,269
104,777,360 95,258,237 80,957,243 73,528,406 70,247,535 65,388,333 58,727,447
4,717,291 4,525,348 4,537,278 5,586,414 5,385,722 7,571,555 7,941,050
89,517,138 75,079,940 73,515,304 69,954,220 64,395,679 60,706,355 62,658,499
199,011,789 174,863,525 159,009,825 149,069,040 140,028,936 133,666,243 129,326,996
161,403,141 157,957,726 139,417,359 125,600,936 116,090,509 110,759,730 100,325,038
7,874,148 6,784,566 7,979,601 12,349,609 7,707,902 20,306,297 21,380,961
109,826,997 89,855,719 88,829,317 85,548,423 83,868,402 67,043,469 68,844,266
279,104,286$ 254,598,011$ 236,226,277$ 223,498,968$ 207,666,813$ 198,109,496$ 190,550,265$
Net Position by Component (accrual basis of accounting)
Last Ten Fiscal Years
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Statistics (Unaudited)
135
2017 2016 2015
2,683,335$ 3,105,729$ 2,865,778$
Public Safety 4,982,599 5,565,159 5,054,020
Public Works 6,135,577 6,743,700 5,934,626
Health and Welfare 62,421 109,111 101,042
Culture and Recreation 8,020,666 7,506,553 7,400,596
6,761,176 901,572 1,209,287
737,456 826,085 734,534
Total Governmental Activities Expenses 29,383,230 24,757,909 23,299,883
Electric 24,515,516 24,525,853 22,650,657
Health System 60,558,629 57,019,809 54,370,009
Telephone 29,219,330 30,825,559 30,598,739
Liquor 3,678,655 3,859,242 3,608,454
Water 2,888,204 2,952,599 2,964,843
Wastewater 4,584,074 3,973,778 3,704,292
Airport 1,195,489 1,252,509 839,807
Golf 558,579 609,864 561,156
Solid Waste 2,188,944 2,444,615 2,168,527
134,559 129,354 119,473
129,521,979 127,593,182 121,585,957
Total Primary Government Expenses 158,905,209 152,351,091 144,885,840
Program Revenues
Governmental Activities:
Charges for Services
General Government 109,310 108,943 106,379
Public Safety 96,173 101,069 99,666
Public Works 161,414 672,785 2,638,528
Health and Welfare 12,240 12,965 10,735
Culture and Recreation 2,338,974 2,552,726 2,419,523
Conservation and Development ‐ ‐ ‐
Operating Grants and Contributions 344,154 255,425 249,049
Capital Grants and Contributions 2,283,328 1,822,082 5,418,303
Total Governmental Activities Program Revenues 5,345,593$ 5,525,995$ 10,942,183$
Business‐type Activities:
Table 2
Changes in Net Position (accrual basis of accounting)
Last Ten Fiscal Years
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Statistics (Unaudited)
Research and Technology
Total Business‐type Activities
Expenses
Governmental Activities:
General Government
Conservation and Development
Interest on Long‐Term Debt
136
2014 2013 2012 2011 2010 2009 2008
3,017,290$ 2,358,748$ 1,055,817$ 2,020,020$ 2,127,308$ 2,000,014$ 1,737,799$
5,036,493 4,764,759 4,270,067 4,118,486 3,917,316 3,690,186 3,397,216
7,410,926 10,914,820 6,729,324 4,290,086 5,803,132 5,153,952 3,339,805
112,621 158,918 92,113 93,423 89,310 93,475 87,399
7,168,741 6,295,703 6,436,427 6,966,088 6,017,894 5,629,096 5,795,387
1,939,064 990,262 2,293,814 870,748 692,741 1,362,380 1,181,557
808,496 675,609 639,310 616,398 694,435 780,087 874,677
25,493,631 26,158,819 21,516,872 18,975,249 19,342,136 18,709,190 16,413,840
21,175,715 20,251,826 19,199,183 19,453,708 18,823,598 17,911,760 15,562,676
52,211,048 36,080,349 35,296,152 31,719,055 30,377,015 29,827,107 27,743,482
33,929,866 33,816,035 32,003,023 29,004,409 29,096,920 28,488,641 29,133,641
3,664,576 9,680,751 9,075,437 8,683,666 8,290,341 8,063,595 7,835,940
2,641,459 2,692,785 2,354,964 2,523,258 2,478,061 2,425,345 2,184,665
3,124,572 2,698,766 2,747,422 2,477,695 2,347,343 2,397,293 2,327,187
383,714 442,346 425,870 375,364 437,557 419,489 426,354
552,028 546,691 548,373 491,379 478,085 473,086 ‐
2,410,877 2,580,584 2,164,105 2,240,293 1,948,344 1,984,222 1,846,228
181,122 169,691 86,983 106,994 85,264 95,361 90,712
120,274,977 108,959,824 103,901,512 97,075,821 94,362,528 92,085,899 87,150,885
145,768,608 135,118,643 125,418,384 116,051,070 113,704,664 110,795,089 103,564,725
103,908 105,121 279,334 133,387 67,569 86,767 146,987
97,099 113,355 103,308 106,281 70,169 77,437 84,017
927,311 1,104,225 661,937 536,813 914,078 1,133,442 496,853
11,848 10,765 12,986 15,081 13,064 16,527 14,878
2,186,594 1,994,400 1,681,932 2,035,253 1,603,842 1,755,012 1,680,555
‐ ‐ ‐ 21,105 17,419 10,064 232,391
881,030 217,529 264,644 204,509 221,492 164,708 488,979
221,332 4,736,387 2,198,436 3,780,047 2,676,500 1,971,109 1,311,600
4,429,122$ 8,281,782$ 5,202,577$ 6,832,476$ 5,584,133$ 5,215,066$ 4,456,260$
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Statistics (Unaudited)
137
2017 2016 2015
Business‐type Activities
Charges for Services
Electric 28,502,743$ 27,779,114$ 26,341,321$
Hospital 65,773,982 59,598,490 61,882,772
Telephone 31,162,913 32,311,864 34,313,078
Liquor 4,132,486 4,340,680 4,169,571
Water 5,394,391 5,151,101 5,004,185
Wastewater 5,537,130 4,963,644 4,816,146
Airport 47,299 33,153 34,459
Golf 385,897 380,066 316,181
Solid Waste 3,721,235 3,771,061 3,703,602
Research and Technology 168,312 189,248 176,524
Operating Grants and Contributions 19,988 20,766 20,112
Capital Grants and Contributions 2,847,446 3,246,363 2,210,269
Total Business‐type Activities Program Revenues 147,693,822 141,785,550 142,988,220
Total Primary Government Program Revenues 153,039,415 147,311,545 153,930,403
Net (Expense)/Revenue
Governmental Activities (24,037,637) (19,231,914) (12,357,700)
Business‐type Activities 18,171,843 14,192,368 21,402,263
Total Primary Government Net Expense (5,865,794) (5,039,546) 9,044,563
General Revenue and Transfers
Governmental Activities:
Taxes
Property Tax 5,181,164 4,729,382 4,397,088
Sales Tax 14,164,131 14,160,915 13,475,972
Other Tax 361,246 357,367 354,971
State Shared Revenues 189,586 220,472 208,033
Unrestricted Investment Earnings (Loss)116,358 126,700 162,862
Gain on Disposition Of Capital Assets ‐ ‐ ‐
Miscellaneous Revenue, Net 1,548,447 1,906,424 1,508,487
Transfers 3,809,237 2,810,111 2,406,167
Total Governmental Activities General Revenues 25,370,169$ 24,311,371$ 22,513,580$
Statistics (Unaudited)
Comprehensive Annual Financial Report
December 31, 2017
Last Ten Fiscal Years
Table 2 (continued)
Changes in Net Position (accrual basis of accounting)
City of Brookings
138
2014 2013 2012 2011 2010 2009 2008
25,314,931$ 23,946,694$ 22,536,286$ 21,971,749$ 20,843,620$ 18,961,413$ 17,450,757$
53,809,700 37,829,424 37,778,186 33,206,801 30,634,289 30,768,105 29,132,073
37,007,090 35,519,726 33,721,116 31,795,176 31,308,878 28,811,968 31,710,534
3,986,650 10,593,780 9,971,319 9,524,345 9,102,921 8,833,238 8,518,713
4,188,992 4,077,955 4,026,895 3,345,211 2,931,954 2,912,247 2,764,407
4,102,822 3,418,736 3,238,910 2,937,624 2,733,661 2,627,272 2,475,986
25,669 20,025 70,845 38,577 50,292 29,685 28,774
304,314 334,640 377,663 324,398 330,926 318,158 ‐
3,485,365 3,248,335 3,057,700 2,893,545 3,034,242 2,954,547 2,742,602
193,430 148,490 99,363 181,972 195,616 196,776 203,700
405,059 34,994 105,083 84,057 38,753 78,557 172,380
11,935,303 7,680,056 2,516,752 902,745 679,348 1,350,487 1,523,419
144,759,325 126,852,855 117,500,118 107,206,200 101,884,500 97,842,453 96,723,345
149,188,447 135,134,637 122,702,695 114,038,676 107,468,633 103,057,519 101,179,605
(21,064,509) (17,877,037) (16,314,295) (12,142,773) (13,758,003) (13,494,124) (11,957,580)
24,484,348 17,893,031 13,598,606 10,130,379 7,521,972 5,756,554 9,572,460
3,419,839 15,994 (2,715,689) (2,012,394) (6,236,031) (7,737,570) (2,385,120)
4,230,428 3,848,367 3,666,358 3,466,805 3,208,774 2,743,170 2,529,446
13,163,848 12,806,189 11,423,187 10,869,687 10,516,247 10,405,659 10,675,328
351,187 355,141 311,280 362,092 491,212 170,218 170,816
210,750 189,336 173,383 154,794 174,797 184,959 174,655
287,430 (13,967) 201,966 417,244 133,621 230,000 353,647
104,521 12,233 (67,947) 175,188 153,249 (277,447) (42,581)
1,853,211 645,650 717,957 504,890 731,405 707,411 1,919,560
1,221,145 2,552,122 2,938,647 2,984,124 1,543,322 2,550,138 2,739,139
21,422,520$ 20,395,071$ 19,364,831$ 18,934,824$ 16,952,627$ 16,714,108$ 18,520,010$
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Statistics (Unaudited)
139
2017 2016 2015
Other Tax ‐$ ‐$ ‐$
Unrestricted Investment Earnings 879,148 473,140 550,280
Gain on Disposition of Capital Assets 327 12,397 175,464
Minority Interest Payment ‐ ‐ ‐
Miscellaneous Revenue, Net 246,702 770,855 192,028
Transfers (3,809,237) (2,810,111) (2,406,167)
Total Business‐type Activities General Revenues (2,683,060) (1,553,719) (1,488,395)
Total Primary Government General Revenues 22,687,109 22,757,652 21,025,185
1,332,532 5,079,457 10,155,880
15,488,783 12,638,649 19,913,868
16,821,315$ 17,718,106$ 30,069,748$
Business‐type Activities
Change in Net Position
Total Primary Government
Governmental Activities
Business‐type Activities
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Last Ten Fiscal Years
Statistics (Unaudited)
Table 2 (continued)
Changes in Net Position (accrual basis of accounting)
140
2014 2013 2012 2011 2010 2009 2008
‐$ ‐$ ‐$ ‐$ ‐$ 8,544$ 5,303$
705,244 344,479 687,850 1,004,282 761,254 1,151,930 2,032,135
5,047 ‐ (102,132) (121,605) (115,988) 31,046 (12,290)
‐ ‐ (573,316) (332,836) (345,268) (184,022) (304,943)
174,770 168,312 138,458 1,344,008 84,045 125,333 128,231
(1,221,145) (2,552,122) (2,938,647) (2,984,124) (1,543,322) (2,550,138) (2,739,139)
(336,084) (2,039,331) (2,787,787) (1,090,275) (1,159,279) (1,417,307) (890,703)
21,086,436 18,355,740 16,577,044 17,844,549 15,793,348 15,296,801 17,629,307
358,011 2,518,034 3,050,536 6,792,051 3,194,624 3,219,984 6,562,430
24,148,264 15,853,700 10,810,819 9,040,104 6,362,693 4,339,247 8,681,757
24,506,275$ 18,371,734$ 13,861,355$ 15,832,155$ 9,557,317$ 7,559,231$ 15,244,187$
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Statistics (Unaudited)
141
Last Ten Fiscal Years
2017 2016 2015
General Fund
Reserved ‐$ ‐$ ‐$
Unreserved, Designated ‐ ‐ ‐
Unreserved ‐ ‐ ‐
Nonspendable 3,263,418 3,220,395 3,606,784
Restricted 59,925 83,215 849,383
Committed 3,973,356 3,918,640 3,609,682
Assigned 2,111,523 1,629,181 1,528,508
Unassigned 6,333,144 5,820,728 5,242,679
Total General Fund 15,741,366 14,672,159 14,837,036
All Other Governmental Funds
Reserved ‐ ‐ ‐
Unreserved, Designated ‐ ‐ ‐
‐ ‐ ‐
‐ ‐ ‐
Nonspendable 40,224 37,709 42,111
Restricted 1,364,894 2,880,425 1,786,616
Committed 6,745,577 6,590,061 5,574,697
Assigned 1,992,551 664,484 2,726,334
Unassigned (1,899,178) (2,559,229) (1,495,895)
8,244,068$ 7,613,450$ 8,633,863$
Note: In 2011, reporting of fund balance was changed to meet the requirements of GASB 54.
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Table 3
Fund Balances of Governmental Funds (modified accrual basis of accounting)
Unreserved, reported in
Special Revenue Funds
Capital Projects Funds
Total All Other Governmental Funds
Statistics (Unaudited)
142
2014 2013 2012 2011 2010 2009 2008
‐$ ‐$ ‐$ ‐$ 2,450,478$ 870,836$ 503,209$
‐ ‐ ‐ ‐ 667,158 2,779,067 2,319,265
‐ ‐ ‐ ‐ 5,373,043 4,115,965 4,568,066
3,907,467 2,528,342 2,634,912 2,616,277 ‐ ‐ ‐
68,104 70,892 58,954 66,553 ‐ ‐ ‐
3,609,682 3,496,014 3,445,058 4,498,922 ‐ ‐ ‐
1,328,102 1,237,505 1,542,554 1,509,153 ‐ ‐ ‐
7,391,078 5,387,268 3,662,265 2,509,943 ‐ ‐ ‐
16,304,433 12,720,021 11,343,743 11,200,848 8,490,679 7,765,868 7,390,540
‐ ‐ ‐ ‐ 1,625,518 3,699,446 4,215,796
‐ ‐ ‐ ‐ ‐ 3,720,000 4,410,374
‐ ‐
‐ ‐ ‐ ‐ 7,089,328 3,069,328 2,139,063
‐ ‐ ‐ ‐ 4,090,906 164,784 1,103,407
114,912 69,673 57,008 56,944 ‐ ‐ ‐
2,732,901 2,442,979 3,398,017 6,305,790 ‐ ‐ ‐
4,549,043 7,330,753 5,857,965 6,102,802 ‐ ‐ ‐
1,834,118 ‐ ‐ ‐ ‐ ‐ ‐
(2,633,850) (3,322,382) (2,159,902) (1,800,429) ‐ ‐ ‐
6,597,124$ 6,521,023$ 7,153,088$ 10,665,107$ 12,805,752$ 10,653,558$ 11,868,640$
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Statistics (Unaudited)
143
Table 4
Changes in Fund Balances of Governmental Funds (modified accrual basis of accounting)
Last Ten Fiscal Years
2017 2016 2015
Revenues
Taxes
General Property Taxes 4,262,451$ 3,866,409$ 3,543,269$
Storm Drainage Taxes 917,714 859,563 854,955
General Sales and Use Tax 14,164,131 14,160,915 13,475,972
Other Taxes 362,782 358,927 356,459
Licenses and Permits 268,969 303,644 278,742
Intergovernmental 936,325 945,470 1,763,471
Charges for Goods and Services 2,306,130 2,515,301 2,381,029
Fines and Forfeitures 109,053 117,509 114,370
Miscellaneous Revenue 2,442,085 2,302,836 2,410,762
Total Revenue 25,769,640 25,430,574 25,179,029
Expenditures
General Government 2,630,111 2,700,095 2,597,446
Public Safety 4,706,909 4,590,036 4,368,472
Public Works 2,977,358 4,660,597 3,535,346
Health and Welfare 96,106 96,325 93,827
Culture and Recreation 6,239,403 6,020,065 5,861,992
Conservation and Development 6,761,176 901,572 1,238,578
Debt Service
Principal 2,429,006 2,232,399 1,892,589
Interest 679,705 753,345 808,782
Capital Outlay 7,612,708 7,538,729 6,832,674
34,132,482 29,493,163 27,229,706
(8,362,842) (4,062,589) (2,050,677)
Other Financing Sources (Uses)
Transfers In 9,362,226 10,044,081 14,486,415
Transfers Out (5,552,989) (7,233,970) (12,080,248)
6,194,600 32,515 187,274
Refunding Bonds Issued ‐ ‐ ‐
Premium (Discount) on Bonds Issued ‐ ‐ ‐
Payment to Refunded Bond Escrow Agent ‐ ‐ ‐
Sale of Capital Assets 58,830 34,673 26,578
Insurance Recoveries ‐ ‐ ‐
10,062,667 2,877,299 2,620,019
1,699,825$ (1,185,290)$ 569,342$
10.89% 13.48% 12.36%
Net Change in Fund Balances
Debt service as a percentage of
noncapital expenditures
Statistics (Unaudited)
Total Expenditures
Deficiency of Revenues under Expenditures
Proceeds From Long Term Debt
Total Other Financing Sources
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
144
2014 2013 2012 2011 2010 2009 2008
3,376,885$ 3,016,469$ 2,841,272$ 2,652,942$ 2,386,777$ 2,195,782$ 2,014,817$
854,150 829,337 824,933 828,081 811,791 544,121 522,267
13,163,848 12,806,189 11,423,187 10,869,687 10,516,247 10,405,658 10,675,328
352,603 356,617 312,756 362,092 491,212 173,839 172,496
239,343 278,460 415,398 221,132 158,086 226,109 258,130
1,418,147 2,264,557 1,158,203 924,513 1,349,720 628,583 897,928
2,148,309 1,966,908 1,660,204 2,018,029 1,585,429 1,740,750 1,900,111
119,012 131,109 125,436 127,095 90,867 97,690 106,023
2,068,555 868,679 1,151,440 4,355,357 1,511,361 1,802,263 2,561,074
23,740,852 22,518,325 19,912,829 22,358,928 18,901,490 17,814,795 19,108,174
2,589,569 2,028,213 1,912,768 1,812,771 1,678,891 1,677,392 1,642,248
4,145,744 4,010,385 3,766,245 3,580,331 3,459,678 3,307,418 3,206,549
3,662,177 8,053,705 3,969,147 3,171,773 3,018,999 2,707,472 2,537,756
97,919 145,749 83,015 87,768 85,601 85,436 83,448
5,869,280 5,144,313 5,128,429 5,752,280 5,065,207 4,725,144 4,908,885
1,951,862 990,262 1,916,933 870,748 696,405 1,275,895 654,175
6,602,213 1,709,729 2,104,628 2,067,011 610,019 1,823,340 1,901,308
750,036 551,795 701,867 574,969 933,626 734,131 805,499
8,585,567 4,955,184 9,131,820 7,190,357 6,414,053 6,188,877 6,689,546
34,254,367 27,589,335 28,714,852 25,108,008 21,962,479 22,525,105 22,429,414
(10,513,515) (5,071,010) (8,802,023) (2,749,080) (3,060,989) (4,710,310) (3,321,240)
4,319,909 9,361,323 7,385,314 7,738,544 6,046,458 5,396,083 7,354,896
(3,098,764) (6,809,201) (4,446,667) (4,754,420) (4,117,803) (2,845,945) (4,615,757)
12,118,405 3,081,110 2,362,261 128,394 6,922,220 1,244,986 399,073
‐ ‐ ‐ ‐ 10,735,000 ‐ ‐
‐ ‐ ‐ ‐ 143,820 ‐ ‐
‐ ‐ ‐ ‐ (13,967,350) ‐ ‐
144,667 181,991 131,991 206,086 175,649 75,432 25,000
689,811 ‐ ‐ ‐ ‐ ‐ ‐
14,174,028 5,815,223 5,432,899 3,318,604 5,937,994 3,870,556 3,163,212
3,660,513$ 744,213$ (3,369,124)$ 569,524$ 2,877,005$ (839,754)$ (158,028)$
25.79% 9.69% 13.61% 14.75% 9.93% 15.66% 17.20%
Statistics (Unaudited)
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
145
Assessed Value and Actual Value of Taxable Property
Fiscal
Year
Agriculture
Property
Residential
Property
Commercial
Property
Total Taxable
Assessed Value
Total Direct
Tax Rate
Estimated
Actual Taxable
Value
Assessed
Value as a
Percentage
of Actual
Value
2017 710,090$ 649,977,680$ 569,081,239$ 1,219,769,009$ 2.55 1,427,426,106$ 85%
2016 1,204,840 626,344,925 551,781,913 1,179,331,678 2.55 1,361,245,510 87%
2015 1,117,070 601,728,500 520,802,468 1,123,648,038 2.61 1,266,747,083 89%
2014 1,001,010 572,896,960 497,095,358 1,070,993,328 2.64 1,220,195,094 88%
2013 880,820 549,048,075 468,646,718 1,018,575,613 2.68 1,171,125,793 87%
2012 922,725 531,622,005 450,729,874 983,274,604 2.65 1,127,965,599 87%
2011 802,040 536,924,455 441,438,513 979,165,008 2.58 1,088,200,532 90%
2010 658,740 531,010,785 418,790,992 950,460,517 2.56 1,057,327,279 90%
2009 1,193,330 519,390,380 404,030,050 924,613,760 2.54 1,016,293,745 91%
2008 1,276,785 481,112,678 371,310,852 853,700,315 2.54 910,434,341 94%
Fiscal City Direct
Year Rate (3)County Rate Operating Debt Service Total School
2017 2.55 4.16 8.21 0.97 9.18 15.89
2016 2.55 4.07 8.67 1.01 9.68 16.30
2015 2.61 4.30 9.29 1.05 10.34 17.25
2014 2.64 4.51 9.56 1.07 10.63 17.78
2013 2.68 4.78 9.69 0.93 10.61 18.07
2012 2.65 4.73 9.25 0.94 10.19 17.57
2011 2.58 4.63 9.17 0.94 10.11 17.32
2010 2.56 4.68 9.17 0.99 10.16 17.40
2009 2.54 4.70 9.23 1.04 10.27 17.51
2008 (2)2.54 4.71 n/a n/a 10.51 17.76
(2) Separate operating rate and debt service rate not available for 2006‐2008.
(3) The City's direct rate is a single component.
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Table 6
Last Ten Fiscal Years
Direct and Overlapping Property Tax Rates
Statistics (Unaudited)
(1) School District amount varies based on class of property, this table uses owner occupied.
Table 5
Last Ten Fiscal Years
Source: Deputy Director of Brookings County Board of Equalization
Source: County Finance Officer
Overlapping Rates
Brookings School District (1)Total Direct &
Overlapping Rates
146
Comprehensive Annual Financial Report
December 31, 2017
Taxable
Assessed Value Rank
Percentage
of Total
Taxable
Assessed
Value
Taxable
Assessed Value Rank
Percentage
of Total
Taxable
Assessed
Value
30,509,900$ 1 2.50% 12,560,200$ 4 1.47%
Bel Brands USA Inc 20,155,800 2 1.65%‐
18,341,800 3 1.50% 19,270,800 1 2.26%
Innovation Village I LLC 17,690,600 4 1.45%‐
14,957,000 5 1.23% 11,816,900 5 1.38%
11,904,300 6 0.98%‐
9,932,500 7 0.81% 9,396,000 7 1.10%
9,870,500 8 0.81% 8,594,200 9 1.01%
9,146,700 9 0.75% 10,517,900 6 1.23%
Lowe's Co Inc 7,910,100 10 0.65% 7,367,100 10
‐ ‐ 16,359,300 3 1.92%
‐ ‐ 8,986,900 8 1.05%
Mills Family Partnership ‐ ‐ 16,439,400 2 1.93%
150,419,200$ 12.33%121,308,700$ 13.35%
Fiscal Year
Ended Dec.
31
Taxes Levied for
the Fiscal Year Actual Amount
Percent of
Levy Collected
Collections
in
Subsequent
Years Amount
Percentage
of Levy
2017 3,112,984$ (see note below)
2016 3,010,404 3,009,134$ 99.96%‐$ 3,009,134$ 99.96%
2015 2,933,514 2,930,670 99.90% 1,957 2,932,627 99.97%
2014 2,829,351 2,827,356 99.93% 1,524 2,828,880 99.98%
2013 2,725,609 2,724,004 99.94% 1,605 2,725,609 100.00%
2012 2,610,007 2,606,943 99.88%3,064 2,610,007 100.00%
2011 2,525,000 2,522,853 99.91%2,147 2,525,000 100.00%
2010 2,435,050 2,431,149 99.84% 3,901 2,435,050 100.00%
2009 2,351,611 2,338,232 99.43% 13,379 2,351,611 100.00%
2008 2,145,259 2,137,070 99.62% 8,189 2,145,259 100.00%
3M
City of Brookings
Statistics (Unaudited)
Table 7
Principal Taxpayers
Current Year and Ten Years Ago
2017 2008
Taxpayer
Dakotronics
Individual
Property Tax Levies and Collections
Global Properties LLC
Larson Manufacturing
Wal‐Mart
RPS Prop of Brookings
Den‐Will
Totals
Source : Brookings County Board of Equalization
Table 8
First Bank & Trust
Note : The year shown on this table indicates the year of the levy for collection in the next year, the 2017 tax levy will
be collected in the year 2018, so such information is not available at the time of preparing this table.
Last Ten Fiscal Years
Total Collection to Date
147
Historical Sales and Use Tax Receipts
Year General Sales Tax
Second Penny
Sales Tax
Bed and Booze
Tax (1)
2017 6,642,103$ 6,607,370$ 914,658$
2016 6,630,466 6,595,427 935,022
2015 6,327,828 6,295,374 852,770
2014 6,180,988 6,148,462 834,398
2013 6,031,135 5,999,034 776,020
2012 5,353,119 5,324,296 745,772
2011 5,083,364 5,055,937 730,386
2010 4,930,652 4,904,535 681,060
2009 4,883,575 4,852,351 669,732
2008 5,034,114 5,023,927 617,287
Note 1: This sales tax is generated on revenue from lodging, alcoholic beverages, prepared food,
Table 10
2017 2016 2015 2014
5,981,653$ 5,854,829$ 4,817,812$ 4,774,773$
Construction 19,042,533 17,709,994 23,198,279 49,954,176
Manufacturing 75,424,180 65,649,247 68,317,602 66,460,875
66,146,585 64,423,894 63,736,072 61,757,973
Wholesale Trade 35,267,841 39,311,898 32,972,756 35,228,991
Retail Trade 434,648,788 424,518,776 403,696,421 388,986,776
10,686,280 8,777,732 7,289,425 7,037,098
Services 117,919,260 110,379,441 103,652,639 98,365,125
Other 1,308 30,827 31,605 243,507
765,118,426$ 736,656,638$ 707,712,611$ 712,809,294$
Finance, Insurance, and Real Estate
Transportation and Public Utilities
Taxable Sales by Category
Last Ten Fiscal Years
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Statistics (Unaudited)
and admission.
Table 9
Last Ten Fiscal Years
Source: South Dakota Department of Revenue & Regulation
Agriculture, Forestry, Fishing, And Mining
148
Table 10 (continued)
2013 2012 2011 2010 2009 2008
3,162,548$ 3,091,160$ 3,087,586$ 3,181,788$ 3,039,659$ 3,440,586$
18,793,981 10,474,771 8,618,867 18,999,179 13,245,268 177,826
45,156,711 41,645,668 38,728,774 39,870,007 44,800,267 51,595,198
58,710,762 53,122,067 55,683,634 57,591,566 56,626,863 67,311,733
36,436,419 29,170,715 28,177,927 28,070,480 28,379,271 17,383,415
374,772,056 353,040,255 341,146,735 337,595,550 325,909,561 279,837,198
8,502,522 7,617,294 7,383,082 7,198,463 7,975,351 6,457,586
94,689,688 87,868,632 93,746,109 73,790,455 73,659,678 62,530,126
1,748,854 343,496 299,735 62,855 156,915 ‐
641,973,541$ 586,374,058$ 576,872,449$ 566,360,343$ 553,792,833$ 488,733,668$
Taxable Sales by Category
Last Ten Fiscal Years
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Statistics (Unaudited)
149
Table 11
Direct and Overlapping Sales Tax Rates
Fiscal Year
City Direct Rate
(1)
City Direct Rate
(2) State Rate Total Tax Rate
2017 2.00%1.00% 4.50% 7.50%
2016 2.00% 1.00% 4.50% 7.50%
2015 2.00% 1.00% 4.00% 7.00%
2014 2.00% 1.00% 4.00% 7.00%
2013 2.00% 1.00% 4.00% 7.00%
2012 2.00% 1.00% 4.00% 7.00%
2011 2.00% 1.00% 4.00% 7.00%
2010 2.00% 1.00% 4.00% 7.00%
2009 2.00% 1.00% 4.00% 7.00%
2008 2.00% 1.00% 4.00% 7.00%
(1) General Rate
Fiscal Year
Sales Tax Revenue
Bonds
Total Taxable
Sales
Percentage
of Actual
Taxable Sales Per Capita
2017 16,168,893 765,118,426 2.11% 696.18
2016 18,075,077 736,656,639 2.45% 778.26
2015 19,936,067 707,712,611 2.82% 858.39
2014 21,343,250 712,809,294 2.99% 918.98
2013 12,724,633 641,973,541 1.98% 563.26
2012 14,090,239 586,374,058 2.40% 623.71
2011 15,805,091 576,872,449 2.74% 711.04
2010 17,405,091 566,360,343 3.07% 789.13
2009 13,768,040 553,792,833 2.49% 682.13
2008 14,815,000 488,733,668 3.03% 745.78
(2) This rate is generated on revenue from lodging, alcoholic beverages, prepared food,
Last Ten Fiscal Years
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Statistics (Unaudited)
and admission.
Table 12
Ratio of Net General Bonded Debt
Last Ten Fiscal Years
Source: South Dakota Department of Revenue and Regulations
150
Comprehensive Annual Financial Report
Table 13
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Year
Capital
Leases Revenue Bonds
Notes and
Loans
Revenue
Bonds Loans Capital Leases
Total Primary
Government
Percentage
of Personal
Income (1)
Per Capita
(1)
2017 260,970$ 19,487,859$ 5,800,000$ 5,865,471$ 28,495,805$ 43,297,098$ 103,207,203$ 7.01% 4,319.20$
2016 ‐ 21,795,220 ‐ 6,185,336 29,143,534 26,696,924 83,821,014 5.64% 3,543.18
2015 ‐ 24,006,034 ‐ 9,816,751 24,064,478 22,484,843 80,372,106 5.83% 3,461
2014 151,640 25,571,694 ‐ 10,809,915 20,593,606 24,784,739 81,911,594 5.80% 3,527
2013 297,042 17,012,869 2,909,217 11,750,015 4,120,364 27,737,866 63,827,373 4.59% 2,825
2012 486,185 17,993,436 380,000 12,642,228 54,166 23,763,569 55,319,584 3.98% 2,449
2011 652,465 17,681,550 148,123 13,491,721 ‐ 21,505,000 53,478,859 3.91% 2,406
2010 811,476 19,153,156 456,123 7,553,650 ‐ 23,455,000 51,429,405 4.26% 2,332
2009 963,495 14,940,935 764,123 8,078,162 ‐ 25,309,999 50,056,714 4.45% 2,480
2008 1,108,835 15,214,073 924,000 8,570,398 70,412 27,085,000 52,972,718 4.62% 2,667
Source:
Direct and Overlapping Governmental Activities Debt
As of December 31, 2017
Debt repaid with property taxes:
School District
Subtotal, overlapping debt
City of Brookings direct debt
Total direct and overlapping debt
35,719,215$ 77%
Sources: Assessed value data used to estimate applicable percentages provided by the County Auditors Office. Debt outstanding data was
provided by the Brookings School District.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City of Brookings. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of
Brookings. This process recognizes that, when considering the governments' ability to issue and repay long‐term debt, the entire debt burden
borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore
responsible for repaying debt, of each overlapping government.
(1) The percentage of overlapping debt applicable is estimated by using taxable assessed property values. Applicable percentages were estimated
by determining the portion of the schools taxable assessed value that is within the City's boundaries and dividing it by the Schools' total taxable
assessed value.
27,503,796$
27,503,796
19,487,859
46,991,655$
Table 14
Estimated Percentage
Applicable
Governmental Activities Business‐type Activities
Estimated Share of
Overlapping Debt (1) Debt OutstandingGovernmental Unit
1) See Table 17 Demographic and Economic Statistics, for income and population data.
Statistics (Unaudited)
City of Brookings
December 31, 2017
151
2017 2016 2015 2014 2013
61,005,575$ 58,966,584$ 56,182,402$ 53,549,666$ 50,928,781$
19,427,934 21,723,310 23,922,139 25,399,103 20,111,263
41,577,641$ 37,243,274$ 32,260,263$ 28,150,563$ 30,817,518$
31.8% 36.8% 42.6% 47.4% 39.5%
Total Net Debt applicable to the
Limit as a Percentage of Debt Limit
Table 15
Legal Debt Margin Information
Last Ten Fiscal Years
Debt Limit (5% limit)
Total Net Debt applicable to Limit
Legal Debt Margin
Fiscal year
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Statistics (Unaudited)
Note: The State of South Dakota Constitution sets two legal debt limits on municipalities. The City has an
unrestricted (i.e. for any legally authorized purpose) legal debt limit equal to 5% of the total assessed
value of taxable property. In addition, the Constitution permits the City to issue debt for water or
sewer improvements in an amount equal to 10% of the total value of taxable property. Water or sewer
debt that applies against the 10% limit does not apply against the 5% limit.
152
Statistics (Unaudited)
2012 2011 2010 2009 2008
49,163,730$ 48,958,250$ 47,523,026$ 46,230,688$ 42,685,016$
18,649,493 17,829,673 19,609,279 15,705,058 16,208,485
30,514,237$ 31,128,577$ 27,913,747$ 30,525,630$ 26,476,531$
37.9% 36.4% 41.3% 34.0% 38.0%
"No Limit"
Debt
Debt Capacity
at 5%
(unrestricted)
Additional 10%
Debt Capacity
(Water/Sewer)
1,220,111,508$
61,005,575$ 122,011,151$
2014A Sales Tax Revenue Bonds (3.15%)‐ 9,149,693 ‐
‐ 6,510,000 ‐
‐ 277,825 ‐
‐ 509,200 ‐
‐ 301,007 ‐
SRF Loan No. 4 Bond (3%)‐ 276,305 ‐
SRF Loan No. 5 Bond (3%)‐ 183,957 ‐
SRF Loan No. 6 Bond (3%)‐ 1,686,708 ‐
SRF Loan No. 7 Bond (3.25)28,495,805 ‐ ‐
SRF Loan No. 9 Bond (3%)423,021
Revenue Note TIF 4 (7.5%)‐ 110,218 ‐
885,471 ‐ ‐
2011 Series electric Utility Revenue Bonds (.65% to 339%)4,980,000 ‐ ‐
34,361,276 19,427,934
Other Debt:
Capital Lease ‐ Scoreboard 260,970
Loan ‐ Private Citizen 5,400,000
Loan ‐ Brookings County ‐ CRC 400,000
4,525,000 ‐ ‐
9,058,204 ‐ ‐
Series 2015A Capital Lease ‐ Hospital Renovation/addition 7,781,863 ‐ ‐
Series 2015B Capital Lease ‐ Hospital Renovation/addition 21,932,031 ‐ ‐
49,358,068 ‐ ‐
Total Debt 83,719,344 19,427,934 ‐
N/A 41,577,641$ 122,011,151$
Total Other Debt
Available Debt Capacity
Series 2006 Capital Lease ‐ Utility Equipment
Series 2012 COP ‐ Skilled Nursing Facility
SDHDA TIF 3 (5%)
SRF Loan No.2 Bond TIF 1 (3%)
SRF Loan No.3 Bond (3%)
2005 Series Electric Utility Revenue Bonds (5.95%)
Total Bonded Debt
Legal Debt Margin Calculation for Fiscal Year 2017
2017 Assessed Value
Maximum Debt Capacity
Existing Bonds:
2010A Sales Tax Revenue Bonds (1.25% to 3.15%)
Table 15 (cont)
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal year
City of Brookings
Comprehensive Annual Financial Report
December 31, 2016
153
Comprehensive Annual Financial Report
Fiscal Sales Tax Utility Service Less Operating Net Available
Year Revenue Principal Interest Coverage
Charge Expense Revenue Principal Interest Coverage
2017 6,607,370$ 1,877,326$ 518,723$ 2.76
2016 6,595,427 1,832,981 560,873 2.76
2015 6,295,374 1,380,000 278,442 3.80 ‐ ‐ ‐ ‐ ‐ ‐
2014 6,148,462 1,355,000 305,542 3.70 ‐ ‐ ‐ ‐ ‐ ‐
2013 5,999,034 1,340,000 322,293 3.61 ‐ ‐ ‐ ‐ ‐ ‐
2012 5,324,296 1,690,000 356,093 2.60 745,772 336,234 409,538 10,822 18,788 13.83
2011 5,055,937 1,600,000 470,023 2.44 ‐ ‐ ‐ ‐ ‐ ‐
2010 4,904,535 1,415,000 588,634 2.45 ‐ ‐ ‐ ‐ ‐ ‐
2009 4,852,351 1,370,000 636,508 2.42 ‐ ‐ ‐ ‐ ‐ ‐
2008 5,023,927 1,330,000 682,434 2.50 ‐ ‐ ‐ ‐ ‐ ‐
City of Brookings
December 31, 2017
Statistics (Unaudited)
Table 16
Pledged‐Revenue Coverage
State Revolving Fund Bond #2 (not shown here) is to be repaid with property tax increment and if that
isn't sufficient, 2nd Penny Sales Tax.
Note: Details regarding the City's outstanding debt can be found in the notes to the
financial statements. Operating Expenses do not include interest, depreciation,
amortization, and other post employment benefit expenses.
State Revolving Fund Bond #3 shown is backed by storm sewer fees.
Last Ten Years
Debt Service Debt Service
Sales Tax Revenue Bonds State Revolving Fund Bond #3
154
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Statistics (Unaudited)
Table 16 (continued)
Pledged‐Revenue Coverage
Last Ten Years
Utility Service Less Operating Net Available
Charge Expense Revenue Principal Interest Coverage
321,144$ 40,539$ 280,605$ 59,865$ 54,632$ 2.45
332,196 43,596 288,600 56,415 58,082 2.52
329,171 41,926 287,245 53,164 61,333 2.51
313,842 42,521 271,321 50,100 64,397 2.37
308,632 40,065 268,567 47,213 67,284 2.35
302,668 44,932 257,736 44,493 70,005 2.25
304,615 44,136 260,479 41,929 72,569 2.27
295,575 49,621 245,954 39,513 74,985 2.15
267,179 43,753 223,426 37,236 77,262 1.95
271,653 40,359 231,294 35,090 79,407 2.02
Debt Service
2005 Utility Revenue Bonds
155
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Statistics (Unaudited)
Table 16 (continued)
Pledged‐Revenue Coverage
Last Ten Years
Utility Service Less Operating Net Available
Charge Expense Revenue Principal Interest Coverage
636,743$ 176,929$ 459,814$ 260,000$ 174,301$ 1.06
629,302 ‐ 629,302 255,000 179,047 1.45
627,635 ‐ 627,635 255,000 182,745 1.43
619,932 ‐ 619,932 250,000 185,266 1.42
599,627 ‐ 599,627 250,000 187,557 1.37
570,484 ‐ 570,484 250,000 185,688 1.31
‐ ‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐ ‐
2011 Utility Revenue Bonds
Debt Service
156
Statistics (Unaudited)
Fiscal Year Population (1)
Per Capita
Income (2)
Total Personal
Income
(thousands of
dollars) (2)
School
Enrollment (3)
Unemploy‐
ment Rate
(4)
2017 23,895 43,111$ 1,471,603$ 3,421 3.5%
2016 23,657 43,815 1,485,181 3,342 2.7%
2015 23,225 41,416 1,379,745 3,400 2.6%
2014 23,225 42,862 1,413,079 3,275 2.6%
2013 22,591 42,615 1,390,472 3,183 2.8%
2012 22,591 42,615 1,390,472 2,983 3.3%
2011 22,228 42,622 1,369,025 2,929 4.2%
2010 22,056 37,693 1,207,146 2,853 4.4%
2009 20,184 35,447 1,124,713 2,794 3.9%
2008 19,865 36,545 1,146,155 2,745 2.4%
2007 19,463 33,337 1,027,816 2,700 2.2%
Source :
3) Brookings School District Business Office
4) South Dakota Department of Labor
Median age from 2010 census was 23.4 year old. Education statistics per the 2010 census indicate that 93.8%
of the population 25 years or older has a high school degree or greater with 45.5% of the same population
holding a Bachelor's degree or greater.
2) U.S. Department of Commerce Bureau of Economic Analysis. Personal
Income and Per Capita Income are based on Brookings County.
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Table 17
Demographic and Economic Statistics
Last Ten Fiscal Years
1) U.S. Census Bureau
157
Current Year and Six Years Ago
Employees Rank
Percentage
of Total City
Employed Employees Rank
Percentage of
Total City
Employed
4,463 1 18.68% 2,121 1 9.54%
1,600 2 6.70% 1,655 2 7.45%
1,100 3 4.60% 796 3 3.58%
557 4 2.33% 551 4 2.48%
500 5 2.09% 405 8 1.82%
450 6 1.88% 443 6 1.99%
425 7 1.78% 425 7 1.91%
Aramark 405 8 1.69%
400 9 1.67% 316 9 1.42%
299 10 1.25% 257 10 1.16%
Fishback Financial Corp.‐ 455 5 2.05%
Total 10,199 42.68%7,424 33.40%
Principal Employers
Employer
2017
Larson Manufacturing
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
Statistics (Unaudited)
Table 18
Wal‐Mart
Twin City Fan
2011
Daktronics
South Dakota State Univ.
3M
Source : Employee data provided by Brookings Economic Development corporation and total city employment
provided by South Dakota Department of Labor.
Hy‐Vee Food Store
Note: The employment survey is not conducted annually by the Brookings Economic Development Corporation. The
data from 10 years ago is not available.
Brookings Health System
Brookings School District
158
Full‐Time Equivalent City Government Employees by Function/Program
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Mayor/City Council 7777777777
City Clerk 3333333333
City Manager 2211111111
Human Resources 2222222222
Finance 4445444444
Information Technology 2221111111
Community Development 4.4 4.4 4.8 4.8 4.8 4444‐
Engineering 4.6 4.6 5.2 5.2 5.2 66669
Police 36 35 36 35 34 33 33 32 30 30
Fire 3333333333
E‐911 9999877777
Streets 14 14 14 14 14 14 14 14 14 13
Animal Control 1111111111
Aquatic Center 000111‐ ‐ ‐ ‐
Recreation 2231114444
Park 12 11 10 988881111
Ice Arena 111222‐ ‐ ‐ ‐
Forestry 4445555544
Library 10 10 10 10 10 10 10 10 10 10
1111111111
5555666666
Water 10 10 10 10 10 16 16 16 16 16
Electric 33 35 36 35 36 37 37 37 39 39
12 12 12 12 12 16 16 16 17 16
Telephone 99 98 100 102 102 94 93 94 95 95
Hospital 236 236 220 225 234 228 223 234 264 250
Golf Course 22333333‐ ‐
2222222222
6666666666
6666677777
Function/Program
Full‐Time Equivalent Employees as of December 31
Table 19
Last Ten Fiscal Years
Statistics (Unaudited)
Public Safety
Public Works
Health and Welfare
Culture and Recreation
General Government
Wastewater
Solid Waste Collection
Solid Waste Disposal
Storm Drainage
Airport
Liquor
City of Brookings
Comprehensive Annual Financial Report
December 31, 2017
159
Table 20
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Public Safety
Dispatch
7,842 8,043 9,962 9,265 8,069 7,528 7,859 7,115 6,948 7,112
450 455 390 434 426 483 420 459 455 533
Fire
212 231 202 237 203 178 180 198 185 145
4:56 6:02 6:47 5:53 6:08 4:33 6:05 6:20 6:03 6:03
Public Works
Community Development
Number of code enforcement
investigations 1,543 1,648 936 1,262 1,685 1,325 1,349 1,774 1,565 800
Percent of rental units inspected
& Licensed 32% 36% 29% 19% 35% 23% 24% 19% 37% 35%
Engineering
Number of building permits issued:
Single family 54 78 88 79 70 71 60 75 114 89
Townhomes 5 4 7 5 3 6 2 2 10 9
Duplexes ‐ ‐ ‐ 2 ‐ 3 ‐ 1 2 5
Apartments 5 6 8 3 10 16 4 ‐ 7 8
5,264 5,060 4,939 4,901 4,758 4,703 4,677 4,655 4580 4,521
836 837 827 822 712 584 565 575 544 517
Tons of refuse collected 4,787 4,738 4,553 4,464 4,406 4,427 4,440 4,577 4,431 4,549
Tons of yard waste collected 696 752 710 589 598 519 514 566 518 397
Street
248.06 246.31 244.13 ‐ 231.44 208.00 208.00 208.00 208 197.7
Total miles swept 2,523.00 2,500.00 2,500.00* 2,500.00* ** ** ** ** ** **
Culture and Recreation
Park & Recreation
Number of season passes sold for pool 1,343 1,420 1,559 1,559 1,410 1,828 1,721 1,861 1659 1,405
Number of season passes sold for golf 341 318 233 198 271 329 313 329 332 282
Number of paid golf rounds played
9‐holes 6,244 6,214 4,729 2,783 3,884 4,735 4,179 4,673 5295 4,903
18‐holes 1,989 1,908 2,673 2,403 2,190 2,600 2,266 2,593 2427 2,125
Library
Participants in children's programs 16,536 15,679 37,838 22,216 21,033 20,940 20,695 20,084 22,384 13,355
Use of electronic databases 5,033 8,891 8,713 5,184 5,120 3,219 2,849 3,636 1,711 2,865
Total circulation 218,775 208,255 274,733 278,588 286,892 286,548 297,798 301,802 297940 275,418
Swiftel
Events Held at Swiftel Center 285 262 213 256 249 225 240 208 200 209
Source: City Departments
Notes:
* adjusted method of measuring
**Indicates information not available
City of Brookings
Comprehensive Annual Financial Repor
December 31, 2017
Statistics (Unaudited)
Number of households collected
Total number of 911 calls
Operating Indicators by Function/Program
Last Ten Fiscal Years
Function/Program
Total number of animals impounded
Fire calls
Solid Waste
Average response time (min:sec)
Total lane miles swept
Tons of recycling collected
160
Statistics (Unaudited)
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
General Government
General Government Buildings 1 1 1 1111111
Stations 1 1 1 1111111
4 4 4 4444444
7 7 7 7776666
248.06 246.31 244.13 236.90 231.44 229.89 228.8 227.97 227.34 227.21
3,157 3,165 3,025 3,025 3,004 2,990 2,933 2,881 2,746 2,664
122 122 118 130 126 126 126 126 118 118
Acreage 662.17 665.55 664.8 664.8 664.8 664.8 664.8 664.8 664.8 664.8
15 15 14 13 13 13 13 13 13 12
21 21 21 21 21 21 21 21 21 20
11 11 11 11 11 11 11 11 11 11
1 1 1 1111111
Runways 2 2 2 2222222
Water
Miles of water mains 120.66 126.96 124.02 124.02 122.2 121.87 121.33 121.18 119.51 118.3
Baseball/Softball Fields
Recreation Centers
Soccer/Football Fields
Airport
Collection Trucks
Other Public Works
Paved Streets (miles)
Street lights
Traffic signals
Parks and Recreation
City of Brookings
December 31, 2017
Comprehensive Annual Financial Report
Playgrounds
Table 21
Last Ten Fiscal Years
Function/Program
Police
Fire Stations
Refuse Collection
Capital Asset Statistics by Function/Program
161
162
Grant Number/
Federal Pass-Through Passed
CFDA Entity Identifying Through to
Number Number Subreceipients
U.S Department of Transportation
Direct Funding:
* Airport Improvement Program
20.106 3-46-0005-26-2013 - 18,157$
20.106 3-46-0005-28-2016 - 11,420
20.106 3-46-0005-29-2017 - 695,576 725,153$
Pass-Through the South Dakota Department of Public Safety,
Office of Highway Safety:
Highway Safety Cluster
State and Community Highway Safety 20.600 2017-00-72 - 13,134
Total U.S. Department of Transportation 738,287
U.S. Department of Health and Human Services
Pass-Through the South Dakota Department of Health
Capacity Building Assistance to Strengthen Public Health Immunization
Infrastructure and Performance 93.733 161MM01 10,000
Pass-Through the State of South Dakota Department of Rural Health:
Small Rural Hospital Improvement Grant Program 93.301 ********* - 8,400
Total U.S. Department of Health and Human Services 18,400
General Services Administration
Pass-Through the South Dakota Federal Property Agency:
Donation of Federal Surplus Personal Property (Note 3) 39.003 ********* - 12,848
Total General Service Administration 12,848
U.S. Department of Interior
Pass-Through the South Dakota State Historic Preservation Office:
Historic Preservation Fund Grants-In-Aid 15.904 12054336 01 - 19,621
Total U.S. Department of Interior 19,621
U.S. Department of Justice
Direct Funding:
Bureau of Justice Assistance,
Bulletproof Vest Partnership Program 16.607 ********* - 1,680
Total U.S. Department of Justice 1,680
U.S. Department of Agriculture
Direct Funding:
Forest Service
Cooperative Forestry Assistance 10.664 ********* - 500
Total U.S. Department of Agriculture 500
U.S Department of Homeland Security
Pass-Through the State of South Dakota Department of
Public Safety
Homeland Security Grant Program 97.067 12054336 12,640 27,596
Total U.S. Department of Homeland Security 27,596
Total Federal Awards 12,640$ 818,932$
CITY OF BROOKINGS, SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2017
Total Federal
ExpendituresFederal Grantor/Pass-Through Grantor/Program or Cluster Title
163
CITY OF BROOKINGS, SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2017
****** No Pass-through entity identifying number available
Note 1:
Note 2:
Note 3: The amount reported represents 23.3% of the original acquisition cost of the federal surplus
property received by the municipality. (Original acquisition cost is provided by Federal Surplus
Property. It is not what the City actually paid for the items.)
Note 4: In accordance with Uniform Guidance, major programs are determined using a risk-based approach.
Programs in the above schedule denoted with an asterisk (*) are determined by the independent
auditor to be major programs.
Note 5 The City previously advanced $372,187 to third parties under the Airport Improvement Program (CFA 20.106),
and these advances where presented as federal expenditures on the schedule of expenditures of federal awards
in prior years. During 2017, the unspent advances were returned to the City, which ultimately remitted the funds
back to the federal agency.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are
recognized following the cost principles the cost principles contained in Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ,
wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts
shown on the Schedule represent adjustments or credits made in the normal course of business to amounts
reported as expenditures in prior years. The City has elected not to use the 10 percent de minimums indirect cost
rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award
activity of the City of Brookings, South Dakota (the “City”) under programs of the federal government for the year
ended December 31, 2017. The accompanying notes are an integral part of this Schedule. The information in
this Schedule is presented in accordance with the requirements of Title 2 U.S . Code of Federal Regulations Part
200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended
to and does not present the financial position, changes in net position or cash flows, where applicable, of the City
of Brookings, South Dakota.
164
Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Independent Auditor's Report
The Honorable Mayor
and Members of the City Council
City of Brookings, South Dakota
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, the discretely presented component unit, each major fund and the
aggregate remaining fund information of the City of Brookings, South Dakota (the City), as of and for the
year ended December 31, 2017, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements, and have issued our report thereon dated May 8, 2018,
which contained a reference to the reports of other auditors. Our report includes a reference to other
auditors who audited the financial statements of the Brookings Health System Fund, the Brookings
Municipal Utilities Telephone, Electric, Water and Wastewater Funds, and the Brookings Health System
Foundation, as described in our report on the City’s financial statements. This report does not include the
results of the other auditors’ testing of internal control over financial reporting or compliance and other
matters that are reported on separately by those auditors.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
165
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose. As required by South Dakota Codified Law 4-
11-11, this report is a matter of public record and its distribution is not limited.
Lincoln, Nebraska
May 8, 2018
166
Report on Compliance for the Major Federal Program
and Report on Internal Control over Compliance
Independent Auditor's Report
The Honorable Mayor
and Members of the City Council
City of Brookings, South Dakota
Report on Compliance for the Major Federal Program
We have audited the City of Brookings, South Dakota's (the City’s) compliance with the types of
compliance requirements described in the OMB Compliance Supplement that could have a direct and
material effect on the City's major federal program for the year ended December 31, 2017. The City's
major federal program is identified in the summary of auditor’s results section of the accompanying
schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations and the terms and conditions
of its federal awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for the City's major federal program based on
our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan
and perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the City's compliance
with those requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal
program. However, our audit does not provide a legal determination of the City's compliance.
Opinion on the Major Federal Program
In our opinion, the City of Brookings, South Dakota complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material effect on its major federal
program for the year ended December 31, 2017.
167
Report on Internal Control over Compliance
Management of the City of Brookings, South Dakota is responsible for establishing and maintaining
effective internal control over compliance with the types of compliance requirements referred to above.
In planning and performing our audit of compliance, we considered the City's internal control over
compliance with the types of requirements that could have a direct and material effect on the major
federal program to determine the auditing procedures that are appropriate in the circumstances for the
purpose of expressing an opinion on compliance for the major federal program and to test and report on
internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not
express an opinion on the effectiveness of the City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material
weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose. As required by South
Dakota Codified Law 4-11-11, this report is a matter of public record and its distribution is not limited.
Lincoln, Nebraska
May 8, 2018
168
City of Brookings, South Dakota
Schedule of Findings and Questioned Costs
Year Ended December 31, 2017
Summary of Auditor’s Results
Financial Statements
1. The type of report the auditor issued on whether the financial statements audited were prepared in
accordance with accounting principles generally accepted in the United States of America (GAAP)
was:
Unmodified Qualified Adverse Disclaimer
2. The independent auditor’s report on internal control over financial reporting disclosed:
Significant deficiency(ies)? Yes None reported
Material weakness(es)? Yes No
3. Noncompliance considered material to the financial statements
was disclosed by the audit?
Yes
No
Federal Awards
4. The independent auditor’s report on internal control over compliance for major federal awards
programs disclosed:
Significant deficiency(ies)? Yes None reported
Material weakness(es)? Yes No
5. The opinion expressed in the independent auditor’s report on compliance for major federal awards
was:
Unmodified Qualified Adverse Disclaimer
6. The audit disclosed findings required to be reported by 2 CFR
200.516(a)?
Yes
No
7. The City’s major program was:
Cluster/Program CFDA Number
Airport Improvement Program 20.106
169
City of Brookings, South Dakota
Schedule of Findings and Questioned Costs (Continued)
Year Ended December 31, 2017
8. The threshold used to distinguish between Type A and Type B programs was $750,000.
9. The City qualified as a low-risk auditee? Yes No
170
City of Brookings, South Dakota
Schedule of Findings and Questioned Costs (Continued)
Year Ended December 31, 2017
Findings Required to be Reported by Government Auditing Standards
Reference
Number Finding
No matters are reportable.
Findings Required to be Reported by the Uniform Guidance
Reference
Number Finding
No matters are reportable.
171
City of Brookings, South Dakota
Summary Schedule of Prior Audit Findings
Year Ended December 31, 2017
Reference
Number Summary of Finding Status
No matters are reportable.
172
The Honorable Mayor, Members of
the City Council and Management
City of Bookings, South Dakota
As part of our audits of the financial statements and compliance of the City of Brookings, South Dakota
as of and for the year ended December 31, 2017, we wish to communicate the following to you.
AUDIT SCOPE AND RESULTS
Auditor’s Responsibility Under Auditing Standards Generally Accepted in the United States of
America and the Standards Applicable to Financial Audits Contained in Government Auditing
Standards Issued by the Comptroller General of the United States and U.S. Office of Management
and Budget (OMB) Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
An audit performed in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States and U.S. Office of Management and Budget
(OMB) Uniform Guidance is designed to obtain reasonable, rather than absolute, assurance about the
financial statements and about whether noncompliance with the types of compliance requirements
described in the OMB Compliance Supplement that could have a direct and material effect on a major
federal program occurred. In performing auditing procedures, we establish scopes of audit tests in
relation to the financial statements taken as a whole. Our engagement does not include a detailed audit of
every transaction. Our engagement letter more specifically describes our responsibilities.
These standards require communication of significant matters related to the financial statement and
compliance audits that are relevant to the responsibilities of those charged with governance in overseeing
the financial reporting process. Such matters are communicated in the remainder of this letter or have
previously been communicated during other phases of the audit. The standards do not require the auditor
to design procedures for the purpose of identifying other matters to be communicated with those charged
with governance.
Audits of the financial statements and compliance do not relieve management or those charged with
governance of their responsibilities. Our engagement letter more specifically describes your
responsibilities.
The audits of the financial statements of the Brookings Health System Fund, the Brookings Municipal
Utilities Telephone, Electric, Water and Wastewater Funds, and the Brookings Health System
Foundation, a discretely presented component unit of the City, are performed by other auditors. Our
opinions, as they relate to the above-mentioned financial statements are based solely on the reports of
other auditors.
2
Qualitative Aspects of Significant Accounting Policies and Practices
Significant Accounting Policies
The City’s significant accounting policies are described in Note 1 of the audited financial statements. The
following accounting policies and practices are of significant importance to the City’s financial
statements:
• Fund accounting and the reconciliation of the governmental funds and government-wide financial
statements
• Determination of governmental fund types and fund balance classifications
• Determination of potential component units
Alternative Accounting Treatments
No matters are reportable.
Management Judgments and Accounting Estimates
Accounting estimates are an integral part of financial statement preparation by management, based on its
judgments. The following areas involve significant areas of such estimates for which we are prepared to
discuss management’s estimation process and our procedures for testing the reasonableness of those
estimates:
• Allowance for uncollectible accounts
• Estimated useful lives assigned to capital assets
• Accrued closure/post-closure care costs
Financial Statement Disclosures
The following areas involve particularly sensitive financial statement disclosures for which we are
prepared to discuss the issues involved and related judgments made in formulating those disclosures:
• Revenue and receivables disclosures in connection with the Brookings Health System Fund
• Debt obligations – Long-term liabilities
• Pension plan
Audit Adjustments
During the course of any audit, an auditor may propose adjustments to financial statement amounts.
Management evaluates our proposals and records those adjustments which, in its judgment, are required
to prevent the financial statements from being materially misstated.
Areas in which adjustments were proposed and recorded include:
• Accounts payable
3
Auditor’s Judgments About the Quality of the City’s Accounting Principles
During the course of the audit, we made the following observations regarding the City’s application of
accounting principles. The City implemented the provisions of the following Governmental Accounting
Standards Board (GASB) Statements for its fiscal year ended December 31, 2017:
• GASB Statement No. 80 – Blending Requirements for Certain Component Units
• GASB Statement No. 81 – Irrevocable Split-Interest Agreements
Disagreements with Management
No matters are reportable.
Difficulties Encountered in Performing the Audit
No matters are reportable.
Other Material Communications
Listed below are other material communications between management and us related to the audit:
• Management representation letter (attached)
• We orally communicated to management another deficiency in internal control identified during
our audit that is not considered a material weaknesses or significant deficiencies
OTHER MATTERS
We observed the following matters and offer these comments and suggestions with respect to matters
which came to our attention during the course of the audit of the financial statements. Our audit
procedures are designed primarily to enable us to form an opinion on the financial statements and,
therefore, may not bring to light all weaknesses in policies and procedures that may exist. However, these
matters are offered as constructive suggestions for the consideration of management as part of the
ongoing process of modifying and improving financial and administrative practices and procedures. We
can discuss these matters further at your convenience and may provide implementation assistance for
changes or improvements.
New Accounting Standards
Governmental Accounting Standards Board Statement No. 75
The Governmental Accounting Standards Board (GASB) has issued Statement No. 75, Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions (GASB 75). GASB 75 addresses
the accounting and financial reporting for Other Postemployment Benefits (OPEB) that are provided to
employees of state and local government employers. GASB 75 establishes standards for measuring and
recognizing assets and liabilities, deferred outflows and inflows of resources, and expenses. Note
disclosures and required supplementary information requirements about OPEB are also addressed.
Governments with postemployment benefits other than pensions need to closely evaluate the impact of
this Standard, as the revisions outlined by GASB may require many governments to recognize a much
larger OPEB liability than is currently being reported.
4
This statement will be effective for the City’s fiscal year ending December 31, 2018.
Governmental Accounting Standards Board Statement No. 83
The Governmental Accounting Standards Board (GASB) has issued Statement No. 83, Certain Asset
Retirement Obligations. GASB 83 establishes uniform criteria for governments to recognize and measure
certain asset retirement obligations (AROs). An ARO is defined as a legally enforceable liability
associated with the retirement of a tangible capital asset. Examples could be costs associated with
decommissioning a nuclear power plant or disposal of an x-ray machine. An ARO is recognized when
the liability is incurred, which is manifested by the occurrence of both an external obligating event (such
as a legally binding contract or a court judgment) and an internal obligating event (such as placing a
tangible capital asset into service). A government also recognizes a deferred outflow of resources when it
recognizes an ARO liability. The ARO is measured at the best estimate of the current value of outlays
expected to be incurred. Additional note disclosures are also required.
This statement will be effective for the City’s fiscal year ending December 31, 2019.
Governmental Accounting Standards Board Statement No. 84
The Governmental Accounting Standards Board (GASB) has issued Statement No. 84, Fiduciary
Activities (GASB 84). GASB 84 establishes criteria for identifying fiduciary activities. It presents
separate criteria for evaluating component units, pension and other postemployment benefit arrangements,
and other fiduciary activities. The focus is on a government controlling the assets of the fiduciary activity
and identification of the beneficiaries of those assets. Fiduciary activities are reported in one of four types
of funds: pension (and other employee benefit) trust funds, investment trust funds, private-purpose trust
funds, or custodial funds. Custodial funds are used to report fiduciary activities that are not held in a
trust. The agency fund designation will no longer be used. GASB 84 also provides guidance on fiduciary
fund statements and timing of recognition of a liability to beneficiaries.
This statement will be effective for the City’s fiscal year ending December 31, 2019.
Governmental Accounting Standards Board Statement No. 87
The Governmental Accounting Standards Board (GASB) has issued Statement No. 87, Leases (GASB
87). GASB 87 provides a new framework for accounting for leases under the principle that leases are
financings. No longer will leases be classified between capital and operating. Leases will recognize an
intangible asset and a corresponding liability. The liability will be based on the payments expected to be
paid over the lease term, which includes an evaluation of the likelihood of exercising renewal or
termination options in the lease. Lessors will recognize a lease receivable and related deferred inflow of
resources. Lessors will not derecognize the underlying asset. An exception to the general model is
provided for short-0term leases that cannot last more than 12 months. Contracts that contain lease and
nonlease components will need to be separated so each component is accounted for accordingly.
This statement will be effective for the City’s fiscal year ending December 31, 2020.
*****
5
This communication is intended solely for the information and use of management, the Mayor, Members
of the City Council and others within the organization and is not intended to be and should not be used by
anyone other than these specified parties.
May 8, 2018
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 2018-0257,Version:1
Informational Presentation on the Bob Shelden Athletic Complex Renovation - Park Site Planning
and Pre-engineering Services.
Summary:
Confluence, in collaboration with the Parks, Recreation and Forestry Department, wishes to provide
an informational presentation to the City Council pertaining to the RFP for park site planning and pre-
engineering services for the renovation of Bob Shelden Athletic Complex.
INTRODUCTION & BACKGROUND
The informational presentation is related to park facility site planning and associated pre-engineering
leading to the eventual renovation of the Bob Shelden Athletic Field Complex.
The project site located at 621 Medary Avenue in Brookings is one of the primary amenities of the
Dwiggins-Medary Community Park and Athletic Complex. It is also adjacent to the Brookings High
School. The facility is a dual-purpose athletic field and hosts youth baseball activities under the
auspices of the Brookings Department of Parks, Recreation, and Forestry. It also hosts sub-varsity
football games for the Brookings School District. The facility is owned by the City of Brookings.
The facility has served the community well, but due to the overall age of the facility and many of its
components, it is in need of replacement in the near future.
FACILITY DESCRIPTION
The current Bob Shelden Field Complex was originally constructed in 1968 and includes a joint use,
full-sized natural grass baseball field and a full-sized football field. The entire boundary footprint of
the complex is fenced. The baseball field dimensions are approximately 318 feet to left field; 355 feet
to left-center field; 412 feet to right-center field; and 357 feet to right field. The field includes a lighting
system installed in 1980, permanent bleachers installed in 1989, irrigation system installed in 1990,
bullpen area, electronic scoreboard, concrete dugouts, roofed grandstand seating with a press box.
Other buildings within the complex include a ticket both/utility building and a maintenance/garage
building originally built with the facility in 1968. The concession stand/restroom building was replaced
in 2011. A shared-use parking lot services the baseball field complex as well as adjacent youth
baseball/softball fields of the Dwiggins-Medary Complex and the Brookings High School Track
Facility.
Attachments:
Presentation
City of Brookings Printed on 5/16/2018Page 1 of 1
powered by Legistar™
BOB SHELDEN ATHLETIC COMPLEX
PARK SITE PLANNING AND PRE-ENGINEERING SUMMARY
May 22nd, 2018
OVERVIEW OF PLANNING PROCESS
REVIEW OF PROJECT GOALS
REVIEW OF RECOMMENDATIONS
STAKEHOLDER INVOLVEMENT
CITY OF BROOKINGSPARKS, RECREATION & FORESTRYCOMMUNITY DEVELOPMENTENGINEERING
BROOKINGS HIGH SCHOOL
BROOKINGS FRIENDS OF BASEBALL
PLANNING DESIGN TEAM
MASTER PLANNINGLANDSCAPE ARCHITECTURE
CIVIL ENGINEERINGSTORMWATERUTILITIES
ARCHITECTUREELECTRICAL ENGINEERINGSTRUCTURAL ENGINEERING
NOVEMBER 28, 2017 PROGRAMMING AND ANALYSIS KICK-OFF
JANUARY 23, 2018 INITIAL PROGRAMMING AND ANALYSIS PRESENTATION AND REVIEW OF PRELIMINARY CONCEPTS
MARCH 13, 2018 REVISED CONCEPT AND PRELIMINARY BUDGET REVIEW
MARCH 23, 2018 DRAFT FINAL CONCEPT AND BUDGET REVIEW
MAY 22, 2018 CITY COUNCIL PRESENTATION
DATE TBD SCHOOL BOARD PRESENTATION
PLANNING PROCESS
29
320
150
Tuesdays and Thursdays 4:30-8:30pm
Mondays and Wednesdays 4:30-8:30pm
4 to 7 Large Tournaments per Season
±90
$1,100,000
SNAPSHOT OF BROOKINGS BASEBALL
Number of teams for the current year………………………………………….
Number of participants in FOB………….…………………………………….
Approximate number of games scheduled for Bob Shelden this upcoming season…………
Little League Fields and Teener West Field usage –upcoming season:
Baseball………………….…………….…….…….
Fastpitch………………….……….……………….
Number of tournaments hosted by FOB…………………….
Number of visiting teams attending tournaments…………….…………………….
Estimate of economic impact related to FOB participants and tournament visitors in 2017…
Sunday
Saturday
Friday
Thursday
Wednesday
Tuesday
Monday
9AM 10AM 11AM NOON 1PM 2PM 3PM 4PM 5PM 6PM 7PM 8PM 9PM 10PM
TYPICAL WEEKLY SUMMER SCHEDULE FOR BOB SHELDEN
Field Maintenance 1:00pm-3:30pm
Available –Practice
Available –Games
PROJECT GOALS –BOB SHELDEN
1. Re-design and replacement of the grandstand building to provide at least a partially-covered seating capacity of 400-500 to
include a press box and underneath storage for teams and equipment. Buildings and structures must meet the most current
standards of the Americans with Disabilities Act (ADA).
PROJECT GOALS –BOB SHELDEN
2. Re-design of the fencing, lighting, signage, baseline spectator seating (permanent and temporary) and dugouts.
PROJECT GOALS –BOB SHELDEN
3.Updating the exterior appearance of the existing ticketing/utility and the concession/restroom buildings.
PROJECT GOALS –BOB SHELDEN
4.Re-design the parking lot for capacity of 175 –200 vehicles with proper ingress/egress for entire Dwiggins-Medary Complex.
EXISTING PARKING
(153 SPACES)
PROJECT GOALS –BOB SHELDEN
5.Landscape Improvements.
PROJECT GOALS –BOB SHELDEN
6.Infield and Outfield turf design options:
a)Natural grass for the infield, outfield, and the football field.
b)Synthetic turf for the infield, outfield, and the football field.
c)Synthetic turf infield and outfield; Natural turf football field.
d)Synthetic turf for infield; Natural grass outfield and football field.
NOTE: Due to the varied surfaces, options ‘c’ and ‘d’ eliminate possibility of football at this location.
PROJECT GOALS –SCHOOL DISTRICT TRACK FACILITY
(separate amenity in the Dwiggins-Medary Complex)
1.Facility lighting options for the potential of lighted football games.
PROJECT GOALS –SCHOOL DISTRICT TRACK FACILITY
(separate amenity in the Dwiggins-Medary Complex)
2.Relocating the long jump pit area, shot put area and any potential current fencing to enlarge the current
natural turf space inside the track area.
PROJECT GOALS –SCHOOL DISTRICT TRACK FACILITY
(separate amenity in the Dwiggins-Medary Complex)
3.Addition of bleacher seating to the west of the existing bleachers to allow for the centering of seating
relative to the 50-yard line.
RECOMMENDATIONS
SUMMARY OF IMPROVEMENTS
(OPTION ‘A’ –SYNTHETIC TURF BASEBALL ONLY;SUB-VARSITY FOOTBALL RELOCATION TO BHS)
CITY OF BROOKINGS
NEW BOB SHELDEN GRANDSTANDS AND PRESS BOX
SYNTHETIC TURF BASEBALL INFIELD AND OUTFIELD
NEW BASEBALL FIELD LIGHTING
RENOVATED BOB SHELDEN PLAZA
EXTERIOR RENOVATION OF EXISTING BUILDINGS
RELOCATED SOFTBALL/LITTLE LEAGUE FIELD
PARKING LOT RENOVATION
UTILITY IMPROVEMENTS
BROOKINGS HIGH SCHOOL
RELOCATION OF TRACK ELEMENTS
FIELD DRAINAGE IMPROVEMENTS
NEW FIELD LIGHTING
BLEACHER EXPANSION
OPTIONAL PARKING EXPANSION
SUMMARY OF IMPROVEMENTS
(OPTION ‘B’ –SYNTHETIC TURF FOR BOTH BASEBALL AND SUB-VARSITY FOOTBALL AT CURRENT LOCATION)
CITY OF BROOKINGS
NEW BOB SHELDEN GRANDSTANDS AND PRESS BOX
SYNTHETIC TURF –FULL BASEBALL & FOOTBALL
NEW BASEBALL & FOOTBALL FIELD LIGHTING
NEW SUB-VARSITY FOOTBALL BLEACHERS AND
PRESS BOX
RENOVATED BOB SHELDEN PLAZA
EXTERIOR RENOVATION OF EXISTING BUILDINGS
RELOCATED SOFTBALL/LITTLE LEAGUE FIELD
PARKING LOT RENOVATION
UTILITY IMPROVEMENTS
BROOKINGS HIGH SCHOOL -OPTIONAL
RELOCATION OF TRACK ELEMENTS
FIELD DRAINAGE IMPROVEMENTS
NEW FIELD LIGHTING
BLEACHER EXPANSION
OPTIONAL PARKING EXPANSION
COST SUMMARY
Estimates prepared in a menu format.
Costs represented are construction costs only.
The following development scenarios include the minimum components necessary based
on feedback from the planning group, including: the School District, City Representatives,
and Friends of Baseball.
DEVELOPMENT OPTION ‘A’
SYNTHETIC TURF BASEBALL ONLY; SUB-VARSITY FOOTBALL RELOCATION TO BHS)
DEVELOPMENT OPTION ‘A’
SYNTHETIC TURF BASEBALL ONLY; SUB-VARSITY FOOTBALL RELOCATION TO BHS)
1. BOB SHELDEN –STADIUM AND PLAZA IMPROVEMENTS
ESTIMATED IMPROVEMENTS: $2,379,250 CITY
RELOCATE LITTLE LEAGUE FIELD $295,000 CITY
2. BOB SHELDEN FIELD SURFACING
SYNTHETIC TURF ON THE ENTIRE BASEBALL FIELD $1,300,000 CITY
3. BOB SHELDEN LED FIELD LIGHTING
BASEBALL FIELD ONLY $395,000 CITY
4. BHS –SITE AND STADIUM IMPROVEMENTS
SEATING EXPANSION –OPT. E (500 ADDITIONAL SEATS) $285,000 S CHOOL DISTRICT
BHS FIELD DRAINAGE IMPROVEMENTS $35,000 SCHOOL DISTRICT
TENNIS COURT REMOVAL (OPTIONAL) $30,000 SCHOOL DISTRICT
PARKING LOT EXPANSION (EXISTING TENNIS COURTS, OPTIONAL) $175,000 SCHOOL DISTRICT
RELOCATE SHOT PUT, DISCUS AND LONG JUMP $65,000 SCHOOL DISTRICT
DRAINAGE IMPROVEMENTS TO RELOCATED SHOT, DISCUS AREA $15,000 SCHOOL DISTRICT
PRACTICE AREA FENCING MODIFICATIONS –6’ CHAIN LINK $43,000 SCHOOL DISTRICT
5. BHS LED FIELD LIGHTING
FOOTBALL FIELD & TRACK LIGHTING $375,000 SCHOOL DISTRICT
PROJECT COST ESTIMATION SUMMARY
CITY……………….$4,369,250*
SCHOOL DISTRICT……$1,023,000*
DEVELOPMENT OPTION ‘B’
SYNTHETIC TURF FOR BOTH BASEBALL AND SUB-VARSITY FOOTBALL AT CURRENT LOCATION)
DEVELOPMENT OPTION ‘B’
SYNTHETIC TURF FOR BOTH BASEBALL AND SUB-VARSITY FOOTBALL AT CURRENT LOCATION)
1. BOB SHELDEN –STADIUM AND PLAZA IMPROVEMENTS
ESTIMATED IMPROVEMENTS: $2,379,250 CITY
NEW FOOTBALL BLEACHER W/ PRESS BOX: $220,000 SCHOOL DISTRICT
RELOCATE LITTLE LEAGUE FIELD $295,000 CITY
2. BOB SHELDEN FIELD SURFACING
SYNTHETIC TURF ON THE ENTIRE BASEBALL FIELD $1,300,000 CITY
ADDITIONAL SYNTHETIC TURF TO INCLUDE FOOTBALL FIELD $255,000 SCHOOL DISTRICT
3. BOB SHELDEN LED FIELD LIGHTING
BASEBALL FIELD ONLY $395,000 CITY
ADDITIONAL LIGHTING TO INCLUDE THE FOOTBALL FIELD $140,000 SCHOOL DISTRICT
4. BHS –SITE AND STADIUM IMPROVEMENTS
TENNIS COURT REMOVAL (OPTIONAL) $30,000 SCHOOL DISTRICT
PARKING LOT EXPANSION (AT EXISTING TENNIS COURTS -OPTIONAL) $175,000 SCHOOL DISTRICT
PROJECT COST ESTIMATION SUMMARY
CITY……………….$4,369,250*
SCHOOL DISTRICT……$820,000*
CONSTRUCTION PHASING(PRELIMINARY)
1. GRANDSTAND PRESS BOX AND PLAZA
•SPRING -FALL CONSTRUCTION
2. FIELD LIGHTING IMPROVEMENTS
•SUMMER -FALL CONSTRUCTION
3. SOFTBALL/LITTLE LEAGUE FIELD
•SUMMER -FALL CONSTRUCTION
4. SYNTHETIC TURF INSTALLATION
•FALL CONSTRUCTION
5. PARKING LOT RENOVATION
•FALL CONSTRUCTION
1.
3.5.
4.
2.TIMELINE TBD
QUESTIONS ?
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:RES 18-039,Version:1
Action to approve Resolution 18-039, a Resolution Awarding Bids on 2018-01SWR, Concrete
Maintenance Project REBID.
Summary:
This resolution will award bids for the 2018-01SWR, Concrete Maintenance Project REBID to
Timmons Construction Inc., Brookings, SD.
Background:
This project is the annual concrete project and entails construction of miscellaneous concrete work
including curb and gutter repair, fillets, valley gutters, curb ramps, and sidewalk. This project also
includes homeowner trip hazards that were not repaired in the 2017 sidewalk area, which is north of
6th Street and east of Medary Avenue, and property owners in the 2018 sidewalk area who
volunteered to be in the project, which is north of 6th Street and west of Medary Avenue.
A bid letting was held on May 1, 2018 for this project, however, no bids were received. The local
contractors indicated their schedules were busy throughout the summer with work at South Dakota
State University and they would not be able to complete the City project by the fall 2018 deadline.
The City chose to rebid this project with a July 2019 deadline. This would allow potential bidders to
start the project in 2018 and complete the work in early summer 2019. This schedule will also allow
the 2019 overlay projects to continue as planned.
A bid letting was held at 1:30 PM on May 15, 2018 at the City & County Government Center and the
City received the following bids:
Timmons Construction Inc., Brookings, SD:$451,942.75
Clark Drew Construction Inc., Brookings, SD $555,192.00
The low bid of Timmons Construction Inc. for $451,942.75 was approximately 16% lower than the
engineer’s estimate of $543,377.00. The low bid prices were similar to 2017 bid prices.
Fiscal Impact:
The City will enter into a contract with Timmons Construction Inc. for the low bid amount of
$451,942.75.
Recommendation:
Staff recommends approval.
Attachments:
Resolution
City of Brookings Printed on 5/17/2018Page 1 of 1
powered by Legistar™
Resolution 18-039
Resolution Awarding Bids on Project 2018-01SWR
Concrete Maintenance Project Rebid
Whereas, the City of Brookings opened bids for Project 2018-01SWR, Concrete
Maintenance Project Rebid on Tuesday, May 15, 2018 at 1:30 pm at the Brookings City
& County Government Center; and
Whereas, the City of Brookings has received the following bids for the
2018-01SWR Concrete Maintenance Project Rebid: Timmons Construction Inc:
$451,942.75 and Clark Drew Construction Inc: $555,192.40.
Now Therefore, Be It Resolved that the low bid of $451,942.75 for Timmons
Construction Inc. be accepted.
Passed and approved this 22nd day of May, 2018.
CITY OF BROOKINGS
________________________________
Keith W. Corbett, Mayor
ATTEST:
_________________________
Shari Thornes, City Clerk
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ORD 18-009,Version:1
Introduction and First Reading on Ordinance 18-009, an Ordinance rezoning the West 199’ of the
East 451’, excluding the South 33’ of Lot 1, Block 1, Christie Springs Addition from Residence R-1D
Single-Family to Residence R-3 Apartment District (Fox Run Addition). Public Hearing: June 12,
2018.
Summary:
The applicant is requesting to rezone a portion of property from R-1D to R-3 to align with the
preliminary plat design for Fox Run Addition.
Background:
The property is currently vacant and is located on the south side of 20th Street South west of Main
Avenue South. The general area includes a mix of residential zoning districts with some
undeveloped commercial property to the east and southeast.
The property was originally rezoned in 2015 as part of the Christie Spring Addition. The City Council
approved a rezoning request on February 27, 2018 which zoned the entire property; however, the
subdivision design has shifted slightly prompting this rezoning request. The area to be rezoned
connects to R-3 zoning to the east. Generally, the established and proposed R-3 zoning is located
closer to 20th Street South and Main Avenue South.
Findings of Fact:
1. The Future Land Use Map in the Vision 2020 Comprehensive Plan shows the area as residential.
2. The Vision 2020 Comprehensive Plan generally supports placing higher density districts close to
arterial streets such as 20th Street South and Main Avenue South.
3. City utilities are available and can be extended to the property.
Planning Commission Recommendation:
The Planning Commission voted 8-0 to recommend approval of the rezoning request on May 1,
2018.
Attachments:
Ordinance
Hearing Notice
Planning Commission Minutes 5/1/2018
Rezoning Map
Current Zoning Map
City of Brookings Printed on 5/16/2018Page 1 of 2
powered by Legistar™
File #:ORD 18-009,Version:1
Additional Zoning Map
R-1D and R-3 Districts
City of Brookings Printed on 5/16/2018Page 2 of 2
powered by Legistar™
Ordinance 18-009
An Ordinance to Change the Zoning within the City of Brookings
Be It Ordained by the City of Brookings, South Dakota:
Section 1. That the real estate situated in the City of Brookings, County of Brookings, State
of South Dakota, described as follows, to-wit:
West 199’ of the East 451’, Excluding the South 33’ of Lot 1, Block 1, Christie
Springs Addition from Residence R-1D Single-Family to Residence
R-3 Apartment District (Fox Run Addition)
In accordance with Section 94-7 of Article I of Ordinance 17-13 of the Code of Ordinances
of Brookings, South Dakota, as said districts are more fully set forth and described in
Articles III and IV, Chapter 94 of Ordinance 17-13 of the City of Brookings, South Dakota.
Section 2. The permitted use of the property heretofore described be and the same is
hereby altered and changed in accordance herewith pursuant to said Ordinance 17-13 of
the City of Brookings, South Dakota.
Section 3. All sections and ordinances in conflict herewith are hereby repealed.
First Reading: May 22, 2018
Second Reading and Adoption: June 12, 2018
Published: June 15, 2018
CITY OF BROOKINGS
________________________
Keith W. Corbett, Mayor
ATTEST:
_________________________
Shari Thornes, City Clerk
If you require assistance, alternative formats and/or accessible locations consistent with the Americans with Disabilities Act,
please contact the City ADA Coordinator at 692-6281 at least 48 hours prior to the meeting.
Published ______ time(s) at an approximate cost of $ _____________.
NOTICE OF HEARING
UPON PETITION TO REZONE
NOTICE IS HEREBY GIVEN That VK Properties LLC and Advantage Investment
Group LLC submitted a petition to rezone the following described real estate in the City of
Brookings and Brookings County, South Dakota:
West 199 feet of the East 451 feet, Excluding the South 33 feet of Lot 1, Block
1, Christie Springs Addition from Residence R-1D Single-Family to
Residence R-3 Apartment District (Fox Run Addition)
NOTICE IS FURTHER GIVEN That said request will be acted on by the City
Planning Commission at 5:30 PM on Tuesday, May 1, 2018, in the Chambers Room on
the third floor of the Brookings City & County Government Center at 520 Third Street,
Brookings, South Dakota. Any action taken by the City Planning Commission is a
recommendation to the City Council.
Any person interested may appear and be heard in this matter.
Dated this 20
th day of April, 2018.
____________________________
Staci Bungard
City Planner
Planning Commission
Brookings, South Dakota
May 1, 2018
OFFICIAL MINUTES
Chairperson Greg Fargen called the regular meeting of the City Planning Commission
to order on Tuesday, May 1, 2018, at 5:30 PM in the Chambers Room #310 on the third
floor of the City & County Government Center. Members present were Tanner Aiken,
Charles Siver, Alan Johnson, Gregg Jorgenson, Lee Ann Pierce, Kristi Tornquist, Eric
Rasmussen, and Fargen. James Drew was absent. Also present were City Planner
Staci Bungard, Community Development Director Mike Struck, City Engineer Jackie
Lanning, James Drew, John Mills, David Kneip, Janet Merriman, Ryan Stadler, Shawn
Groen, Bret Enderson, Yilei Huang, Raeann Thompson, Lori Schultz, Dan Hanson,
Laura & Michael Kondratuk, Todd Stratmoen, Mark Hyde, Michael Leifgen, and others.
Item #4a – VK Properties LLC and Advantage Investment Group LLC have submitted
a petition to rezone the West 199 feet of the East 451 feet, Excluding the South 33 feet
of Lot 1, Block 1, Christie Springs Addition from Residence R-1D Single-Family to
Residence R-3 Apartment District (Fox Run Addition).
(Siver/Rasmussen) Motion to approve the rezone request. All present voted aye.
MOTION CARRIED.
OFFICIAL SUMMARY
Item #4a – This is a rezone request from R-1D to R-3 to align with the preliminary plat
design for Fox Run Addition. This area is located on the south side of 20th Street South
west of Main Avenue South. This area was originally zoned R-1D, but the rezone
request is due to the subdivision design shifting slightly. City utilities are available and
will be extended to this area. James explained that they are just requesting to rezone a
few lots and this will align the zoning with that to the south.
-----------------------\ =-=-=-=-=-=-=-=-=-= � =--=-= = � � �--�-------=-= =-=-=-=--=--=----=-= = =-=----� ---=-=-=-=--=----------7
--�-----i-----�--=:_-_-_-------�-----�----r---------1 ----�------Ll-----\1 I I ' ' I I I I I <! I 0 .. #'� : 1 I 1 '.:j 11 O.L. A
"' "'.c
C Cl "iii (I)
cl, <;,>
I I I
O.L.
D
OWNER:
ARLYCER.
THORNE
O.L.
C
OWNER:
ARLYCE R.
THORNE
I I O I o�oi=:���L�N & I I I I LOT 1 BLOC'1! 1
,1 -t '1 CHRl���;RS:���P�R�'f"�ITION --- - -�I I I I I I I
" -� --_J ---
.
-------------------l_' -------� ���--------� -------.. -L ��·
OWNER:RYAN � - -- -----
---14------<
&J�:��H I
I 14
OWNER:PD,W,
VARENHORST
15
OWNER: TRAVIS &
AMIE ENGEBRETSON
16
OWNER: RICK
LONGVILLE
17
I
O'NNER:VK
PROPERTIES LLC.
11
� �E������! I ;z
l l_:0_,
STEPHANIE KREIE f �:----'
S706.3' OF THE N 1094.2' OF THE E281.9' EXC. S640' OF THE N1062' O F THE E246' THEREOF; AN D EXC. N422' E223' NW1/4 2-109-50
OWNER: ADVANTAGE INVESTMENT GROUP LLC
I
S706.3' O F THE N1094.2' OF THE E281.9' EXC. S640' O F THE N1062' OF THE E246' THEREO F; AND EXC. N422' E223' NW114 2-109-50
OWNER: ADVANTAGE INVESTMENT GROUP LLC
----------------
S640' O F THE N1062' O F THE E246' NW1/4 2-109-50
OWNER: DARELL OLSON
J _l _ � _---
':i: \§ I •
\� \� I::;
I I
\ I S455.8' O F THE N1550.0' O F THE E670.5' EXC. BLK 4 CHR IST IE THIRD ADDITION NW1/4 2-109-50
OWNER: ADVANTAGE INVESTMENT GROUP LLC _LL --r--i;-\•-11
TRACT 1 OWNER: M LLC.
I I
----� - - - --� -Bt0CK<\� - - ---� - --_j
CHRIST IE THIRD ADDITION OWNER: BROOKINGS
SCHOOL DISTRICT 5-1
CHRISTIE THIRD ADDIT ION
OVVNER: ADVANTAGE INVESTMENT GROUP LL
----------------E620.5' O F BLK 4 CHRIST IE THIRD ADDITION
OWNER: ADVANTAGE INVESTMENT GROUP LLC
BLOCK3 CHRIST IE THIRD ADDITION
OWNER: DEAN &
HELEN CHRISTIE
I �I
I \ I i'I I '1 (',,\I I I I
I
I -7 ',,\I I I I i\ 1' 1' I U' I
,',\ ,, � I l
I
R-1D to R-3 District
Rezoning Map
20th Street South
8'' W1.5'' W
1.5'' W
1.5'' W
1.5'' W6'' W1.5'' W
UGF UGF
UGF
UGF
UGF
UGF
UGF
UGF
UGF UGF UGF
UGF
UGF
UGF UGFUGFUGFUGFUGFUGFUGFUGFUGFUGFUGFUGFUGFUGFUGFUGFUGFUGFUGFUGFUGFUGFUGFUGEUGEUGEUGEUGEUGEUGEUGEUGEUGEG
12'' W
12'' W
12'' W
12'' W
12'' W
12'' W
12'' W
12'' W
12'' W
12'' W
12'' W
12'' W
12'' W
12'' W
12'' W 8'' S8'' S8'' S8'' S8'' S8'' S8'' S8'' S8'' S8'' S8'' S8'' S
8'' S
8'' S
8'' S
8'' S
8'' S
8'' S 8'' S8'' S8'' S 8'' S 8'' S
S1617151429303132332928123481720162218192167262524232221201011121328272625242315141312111059BLOCK 1BLOCK 1BLOCK 3BLOCK 3BLOCK 3BLOCK 3BLOCK 4BLOCK 4BLOCK 4BLOCK 4BLOCK 4BLOCK 5BLOCK 5CHRISTIE SPRINGS CIRCLEWEDGEWOOD CIRCLEWEDGEWOOD WAYBLUE BELL DRIVERED FOX CIRCLEGREY FOX CIRCLE20TH STREET SOUTHFOX RUN TRAIL 14663512273471109817181951615141351112TRACT 267891011123456789181920212223242526273130234OWNER: RYAN& ELIZABETHMCMILLANOWNER: ADAMVARENHORSTOWNER: TRAVIS &AMIE ENGEBRETSONOWNER: RICKLONGVILLEOWNER: VKPROPERTIES LLC.OWNER: NEIL &JESSICA ANDALOWNER: MARK &STEPHANIE KREIEOWNER: M LLC.OWNER: BROOKINGSSCHOOL DISTRICT 5-1OWNER: DEAN &HELEN CHRISTIEOWNER: DARELL OLSONOWNER: JOHN &JOY MILLSOWNER: JOHN &JOY MILLSMORNING GLORY DRIVE BLUE BELL DRIVEMORNING GLORY DRIVE
S640' OF THE N1062'OF THE E246'NW1/4 2-109-50MAIN AVE. SOUTHCHRISTIETHIRDADDITION O.L.DO.L.CO.L. AO.L. B
O.L.1ATRACT1CHRISTIEADDITION141516171110987615BLOCK 3CHRISTIE THIRD ADDITIONOWNER:ARLYCE R.THORNEOWNER:ARLYCE R.THORNEF:\22686-00\Design Phase\Acad\Fox Run Preliminary Plat.dwg;12/27/2017 11:59 AM
RE
V
I
EW
ON
L
Y
FORDESIGNED BY:CHECKED BY:DRAWN BY:DATE:JOB No.:PROJECT / SHEET TITLE :
REV.DATE DESCRIPTIONSHEET No. : www.bannerassociates.com - Toll Free: 1.855.323.63421"1/2"0SCALE REDUCTION BARJDBPJCJDBJANUARY 201822686.00REZONING MAP
FOX RUN ADDITION
BROOKINGS, SD3 OF 4LEGENDMONUMENT (FOUND)EXISTING PROPERTY LINEPROPOSED PROPERTY LINEPROPOSED ZONING BOUNDARY200'100'050'100'HORIZONTAL DATUM:- NAD 83- PROJECTION: SOUTH DAKOTA STATE PLANECOORDINATES NORTH ZONEVERTICAL DATUM:- NAVD 88- GEOID 09BASIS OF BEARING: GEODETIC NORTHALL DIMENSIONS SHOWN ARE INTERMS OF U.S. SURVEY FEETGRID BEARINGR-1D ZONER-2 ZONER-3 ZONECURRENT ZONING MAPFOX RUN ADDITIONAN ADDITION TO THE CITY OF BROOKINGS, BROOKINGS COUNTY, SOUTH DAKOTAZONING REGULATIONS:SINGLE-FAMILYDWELLINGTWO DWELLING UNITS6,00050 FEET20 FEET7 FEET25 FEET35 FEETPER UNIT DENSITYSQ. FT.MIN. LOTAREA SQ. FT.MIN. LOTWIDTHMIN. FRONTYARDMIN. SIDEYARDMIN. REARYARDMAX.HEIGHTR-3 APARTMENT DISTRICT1,815**8,40065 FEET20 FEET 7 FEET25 FEET 35 FEETSINGLE FAMILY ATTACHED0 FEET SIDE YARD2 UNITS9,60075 FEET 20 FEET0 FEET OR 7 FEETON NON-PARTYWALL25 FEET 35 FEET3 UNITS12,00090 FEET 20 FEET25 FEET 35 FEET4 UNITS14,000105 FEET 20 FEET25 FEET 35 FEETAPTS, CONDO'S, TOWNHOUSES*(3 OR MORE UNITS)10,00075 FEET 20 FEET7 FEET***25 FEET 45 FEETOTHER ALLOWABLE USES6,00050 FEET 20 FEET7 FEET***25 FEET 45 FEET0 FEET OR 7 FEETON NON-PARTYWALL0 FEET OR 7 FEETON NON-PARTYWALL* THREE HUNDRED SQUARE FEET OF LANDSCAPED AREA SHALL BE PROVIDED FOR EACH DWELLING UNIT EXCLUSIVE OF REQUIREDBUILDING SETBACK AREAS, ACCESS DRIVES AND PARKING LOTS. TWO-THIRDS OF THE LANDSCAPED AREA SHALL BE LOCATED IN ACONTINUOUS, SINGLE TRACT WHICH CONTAINS NO PORTIONS THEREOF WHICH ARE NOT CONTIGUOUS, ADJACENT AND ABUTTING TOEITHER THE ENTIRE WIDTH OR ENTIRE LENGTH OF SAID TRACT. FIFTY PERCENT OF THE REQUIRED LANDSCAPED AREA MAY BE USEDFOR PARKING SPACES IN EXCESS OF THE MINIMUM REQUIREMENT. PARKING LOTS SHALL BE SCREENED FROM SINGLE-FAMILY ANDTWO-FAMILY RESIDENTIAL USES ACCORDING TO SECTION 94-401.** A MAXIMUM OF 24 DWELLING UNITS PER ACRE SHALL BE ALLOWED.*** THE SIDE YARD WILL BE REQUIRED TO BE INCREASED TO TEN FEET WHEN THE BUILDING IS THREE OR MORE STORIES IN HEIGHT.ZONING REGULATIONS:SINGLE-FAMILYSINGLE-FAMILY,0 FT SIDE YARD - 2 UNITS6,0006,00050 FEET20 FEET6 FEET20 FEET35 FEETPER UNIT DENSITYSQ. FT.MIN. LOTAREA SQ. FT.MIN. LOTWIDTHMIN. FRONTYARDMIN. SIDEYARDMIN. REARYARDMAX.HEIGHTR-1D SINGLE FAMILY6,00012,00080 FEET20 FEET 0 FEET* 20 FEET 35 FEETOTHER ALLOWABLE USES10,00075 FEET 20 FEET6 FEET20 FEET 35 FEETOTHER ALLOWABLE USES9,00075 FEET 20 FEET6 FEET20 FEET 35 FEET4,500* OR 6' ON NON-PARTY WALLDENSITY PER FAMILY REQUIREMENTS DO NOT APPLY TO DORMATORIES, FRATERNITIES, SORORITIES, NURSING HOMESOR OTHER SIMILAR GROUP QUARTERS WHERE NO COOKING FACILITIES ARE PROVIDED IN INDIVIDUAL ROOMS.ZONING REGULATIONS:SINGLE-FAMILYDWELLINGSINGLE-FAMILY 0 FEET SIDEYARD 2 UNITSSINGLE-FAMILY 0 FEET SIDEYARD 3 UNITSSINGLE-FAMILY 0 FEET SIDEYARD 4 UNITSTWO-FAMILY DWELLINGSCONDOMINIUMSTOWNHOUSES2 UNITS3 UNITS4 UNITSAPTS., CONDOMINIUMSTOWNHOUSES* 5 OR MORE UNITSOTHER ALLOWABLE USES7,5006,0005,0004,5004,9504,1003,6752,420**7,50012,00015,00018,0009,90012,30014,70016,0007,50050 FEET80 FEET100 FEET120 FEET65 FEET80 FEET95 FEET100 FEET50 FEET25 FEET25 FEET25 FEET25 FEET25 FEET25 FEET25 FEET25 FEET25 FEET0 FEET OR 7 FEET ONNONPARTY WALL7 FEET0 FEET OR 7 FEET ONNONPARTY WALL0 FEET OR 7 FEET ONNONPARTY WALL7 FEET7 FEET7 FEET7 FEET***7 FEET***25 FEET25 FEET25 FEET25 FEET25 FEET25 FEET25 FEET25 FEET25 FEET35 FEET35 FEET35 FEET35 FEET35 FEET35 FEET35 FEET35 FEET35 FEETPER UNIT DENSITYSQ. FT.MIN. LOTAREA SQ. FT.MIN. LOTWIDTHMIN. FRONTYARDMIN. SIDEYARDMIN. REARYARDMAX.HEIGHTR-2 TWO-FAMILY DISTRICT* THREE HUNDRED SQUARE FEET OF LANDSCAPED AREA SHALL BE PROVIDED FOR EACH DWELLINGUNIT EXCLUSIVE OF REQUIRED BUILDING SETBACK AREAS, ACCESS DRIVES AND PARKING LOTS.TWO-THIRDS OF THE LANDSCAPED AREA SHALL BE LOCATED IN A CONTINUOUS, SINGLE TRACTWHICH CONTAINS NO PORTIONS THEREOF WHICH ARE NOT CONTIGUOUS, ADJACENT AND ABUTTINGTO EITHER THE ENTIRE WIDTH OR ENTIRE LENGTH OF SAID TRACT. PARKING LOTS SHALL BESCREENED FROM SINGLE-FAMILY AND TWO-FAMILY RESIDENTIAL USES ACCORDING TO SECTION94-401.** A MAXIMUM OF 18 DWELLING UNITS PER ACRE SHALL BE ALLOWED.*** THE SIDE YARD WILL BE REQUIRED TO BE INCREASED TO TEN FEET WHEN THE BUILDING IS THREEOR MORE STORIES IN HEIGHT.Area to be rezoned from R-1D to R-3
20TH ST S
MAIN AVE S7TH AVE SEBERLEIN DRHALF MOON RDSANTEE TRL OROLE TRLMORNING
GLORY
DR
FINCH CIR
BLUE
B
E
L
L
D
R
WREN CIR
TATANKA PASSSANTEE PASSCOUNCILRIDGE RDTALLGRASS PARKWAYLegend
Rezoning
A
B-2
B-2A
B-3
PDD
R-1B
R-1C
R-1D
R-2
R-3
R-3A²
Fox Run Addition Rezoning Map
R-1D to R-3
Sec. 94-125.7. - Residence R-1D single-family.
(a) Intent.This district is intended to provide for areas of residential use with a gross density of
approximately seven dwelling units per acre or less. The district permits single-family detached
dwellings, single-family attached dwellings, and supportive community facilities such as parks,
playgrounds, schools, and churches.
(b) Scope of regulations.The regulations set forth in this section or set forth elsewhere in this title,
when referred to in this section, are the district regulations of the residence R-1D single-family
district.
(c) Permitted uses.Single-family dwelling including accessory uses incidental thereto such as private
garages, parking areas, etc.
(d) Permitted special uses.A building or premises may be used for the following purposes in
conformance with conditions prescribed herein:
(1) All permitted special uses and conditions as stated in section 94-124(d) (R-1A).
(2) Single-family zero feet side yard dwelling.
a. A maximum of two attached dwelling units are permitted.
(3) Private school of general instruction.
a. One of the frontages of the premises shall abut upon an arterial or collector street.
(4) Family day care.
a. Restricted to 12 or less children at any one time.
(e) Conditional uses.
(1) Retirement or nursing home;
(2) Two-family dwelling;
(3) Group home;
(4) Major home occupation;
(5) Public recreation facility.
(f) Density, area, yard and height regulations.The R-1D district regulations shall be as follows:
Per Unit Density
Sq. Ft.
Min. Lot Area
Sq. Ft.
Min.
Lot
Width
Min.
Front
Yard
Min
Side
Yard
Min.
Rear
Yard
Max.
Height
Single-family 6,000 6,000 50' 20' 6' 20' 35'
Single-family, 0 feet side
yard - 2 units
6,000 12,000 80' 20' 0'* 20' 35'
Two-family 4,500 9,000 75' 20' 6' 20' 35'
Other allowable uses 10,000 75' 20' 6' 20' 35'
* Or 6' on non-party wall
Density per family requirements shall not apply to dormitories, fraternities, sororities, nursing homes or
other similar group quarters where no cooking facilities are provided in individual rooms.
(g) Accessory uses.Accessory uses and buildings permitted in the R-1D district are buildings and uses
customarily incidental to any of the permitted uses in the district.
(h) Parking regulations.Parking, loading and stacking within the R-1D district shall be in conformance
with the regulations set forth in division 4 of article VI of this chapter.
(i) Sign regulations.Signs within the R-1D district shall be in conformance with the regulations set forth
in division 5 of article VI of this chapter.
(j) Other regulations.Development within the R-1D district shall be in conformance with the regulations
set forth in article II of this chapter.
Sec. 94-127. - Residence R-3 apartment district.
(a) Intent.This district is intended to provide for areas of residential use with a gross density of seven to
twenty-four dwelling units per acre. This district provides for single-family, two-family, apartments,
condominiums, townhouses, fraternities and sororities and supportive community facilities such as
schools, parks, churches and community and public buildings.
(b) Scope of regulations.The regulations set forth in this section or set forth elsewhere in this chapter,
when referred to in this section, are the district regulations of the Residence R-3 apartment district.
(c) Permitted uses.
(1) Single-family dwelling including accessory uses incidental thereto, such as private garages,
parking areas, etc.
(2) Two-family dwelling including accessory uses incidental thereto, such as private garages,
parking areas, etc.
(3) Single-family zero-feet side yard dwelling.
(4) Apartment or condominium.
(5) Townhouse.
(6) Fraternity and sorority.
(7) Family day care.
(d) Permitted special uses.A building or premises may be used for the following purposes in
conformance with the conditions prescribed herein:
(1) All permitted special uses and conditions as stated in section 94-124(d) (R-1A).
(2) All permitted special uses and conditions as stated in section 94-126 (R-2), excluding single-
family zero-feet side yard dwelling .
(3) Day care facility.
a. A four-foot high transparent fence shall be constructed between the play area and the
street if the play area is adjacent to any arterial or collector street.
b. A safe pick-up and drop-off area shall be provided.
(4) Retirement or nursing home.
a. Parking areas shall be screened from adjacent residential properties by a four-foot high
fence or equivalent landscaping.
(5) Group home.
a. Applicants shall provide statements as to the type of supervision the home will have.
(6) Domestic abuse shelter.
a. All parking shall be provided on the premises.
(e) Conditional uses.
(1)Public recreation facility.
(2) Nonmunicipal library, museum, art gallery, community center, private club or lodge.
(3) Major home occupation.
(4) Vocational or trade school.
(5) Office.
(6) Bed and breakfast.
(f) Density, area, yard and height regulations.The R-3 district regulations are as follows:
Per
Unit
Density
Sq. Ft.
Min.
Lot
Area
Sq. Ft.
Min.
Lot
Width
Min.
Front
Yard
Min. Side
Yard
Min.
Rear
Yard
Max.
Height
Single-family dwelling 6,000 50 feet 20
feet 7 feet 25
feet
35
feet
Two dwelling units 8,400 65 feet 20
feet 7 feet 25
feet
35
feet
Single-family attached 0 feet
side yard
2 units 9,600 75 feet 20
feet
0 feet or 7 feet on
nonparty wall
25
feet
35
feet
3 units 12,000 90 feet 20
feet
0 feet or 7 feet on
nonparty wall
25
feet
35
feet
4 units 14,000 105
feet
20
feet
0 feet or 7 feet on
nonparty wall
25
feet
35
feet
Apts., condominiums,
townhouses* (3 or more units) 1,815** 10,000 75 feet 20
feet 7 feet*** 25
feet
45
feet
Other allowable uses 6,000 50 feet 20
feet 7 feet*** 25
feet
45
feet
*Three hundred square feet of landscaped area shall be provided for each dwelling unit exclusive of
required building setback areas, access drives and parking lots. Two-thirds of the landscaped area shall
be located in a continuous, single tract which contains no portions which are not contiguous, adjacent and
abutting to either the entire width or entire length of said tract. Fifty percent of the required landscaped
area may be used for parking spaces in excess of the minimum requirement. Parking lots shall be
screened from single-family and two-family residential uses according to section 94-401.
**A maximum of 24 dwelling units per acre shall be allowed.
***The side yard will be required to be increased to ten feet if the building is three or more stories in
height.
Density per family requirements shall not apply to dormitories, fraternities, sororities, nursing homes or
other similar group quarters where no facilities are provided in individual rooms.
(g) Accessory uses.Accessory uses and building permitted in the R-3 district are buildings and uses
customarily incidental to any of the permitted uses in the district.
(h) Parking regulations.Parking, loading and stacking within the R-3 district shall be in conformance
with the regulations set forth in division 4 of article VI of this chapter.
(i) Sign regulations.Signs within the R-3 district shall be in conformance with the regulations set forth in
division 5 of article VI of this chapter.
(j) Other regulations.Development within the R-3 district shall be in conformance with the regulations
set forth in article II of this chapter.
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ORD 18-010,Version:1
Introduction and First Reading on Ordinance 18-010, an Ordinance rezoning the South 245’ of the
West 246’ of the East 495’ of the SE ¼ of the SW ¼ Section 3-T109N-R50W within the Joint
Jurisdiction Area (1002 West 32nd Street South). Public Hearing: June 12, 2018.
Summary:
The owner is requesting the County and City rezone approximately 1.38 acres of land from Joint
Jurisdiction A, Agricultural to Joint Jurisdiction Residence R-1A in order to construct one (1) additional
residence.
Background:
The land is located along West 32nd Street South within the three (3) mile joint jurisdictional area
generally southwest of the City limits. The property is surrounded by agricultural land with some
larger lot residential development within 1/8 of a mile to the east along Opland Loop, which is zoned
Residence R-1B. There are several other parcels to the east, fronting Western Avenue, within
approximately 1/2 mile that are zoned R-1A and R-1B in the joint jurisdiction area. The parcel is
slightly over 40 acres in size and is being used as a small agricultural operation with one (1) existing
home site. The owner would like the flexibility to construct a second residence on the property for his
son. Currently, the Agricultural District restricts a second residence as it allows for one (1) single-
family home per 35 acres.
The land to be rezoned is partially located within the floodplain. The owner plans to fill the area to
meet the floodplain requirements and submit a Final Plat for the property. Any new development will
need to meet the state requirements for wells and septic tanks as City/rural services are not readily
available.
The County and City Planning Commissions both make a recommendation to their respective
governing body. The County Commissioners and City Council hear the rezoning request and make
the final determination. In order for the rezoning to be valid, both governing bodies need to approve
the request. The Brookings County Commission is scheduled to act on the rezoning request on June
7, 2018 at the time of Second Reading.
Findings of Fact:
1. The Vision 2020 Comprehensive Plan provides for some limited residential development in the
Joint Jurisdictional area to the south while balancing the goal of a compact development pattern and
the preservation of farmland.
2. The area is predominantly agricultural in nature with some residential development to the east.
Planning Commission Recommendation:
The City Planning Commission voted 2-5 to recommend approval of the rezoning request to the City
Council (denied). The County Planning Commission voted 0-9 to recommend approval of the
City of Brookings Printed on 5/16/2018Page 1 of 2
powered by Legistar™
File #:ORD 18-010,Version:1
rezoning request to the County Commission (denied).
Attachments:
Ordinance
Joint Planning Commission Minutes 5/1/2018
Hearing Notice
Exhibit Map
Rezoning Map
Joint Jurisdiction Zoning Map
County Staff Report
City of Brookings Printed on 5/16/2018Page 2 of 2
powered by Legistar™
Ordinance 18-010
An ordinance to change the zoning within the
Joint Jurisdictional Area surrounding the City of Brookings
Be It Ordained by the governing body of the City of Brookings, South Dakota:
That the real estate situated in the Joint Jurisdictional Area surrounding the City of
Brookings, in Brookings County, shall be amended as follows, to-wit:
The South 245 feet of the West 246 feet of the East 495 feet of the SE ¼ SW ¼
Section 3-T109N-R50W, also known as 1002 West 32nd Street South
be and the same is hereby rezoned and reclassified from a Joint Jurisdiction A,
Agricultural District to a Joint Jurisdiction Residence R-1A District.
In accordance with Section 800 of Article VIII of Appendix C Joint Jurisdictional Area
Zoning, of the Brookings Joint Jurisdiction Ordinance, Brookings South Dakota, as said
districts are more fully set forth and described in Articles III, IV, V and VI or Ordinance No.
14-80 Appendix C of the City of Brookings, South Dakota.
Section 2. The permitted use of the property heretofore described be and the same is
hereby altered and changed in accordance herewith pursuant to said Ordinance No. 14-
80 Appendix C of the City of Brookings, South Dakota.
Section 3. All sections and ordinances in conflict herewith are hereby repealed.
First Reading:May 22, 2018
Second Reading and Adoption:June 12, 2018
Published:June 15, 2018
CITY OF BROOKINGS
____________________________
Keith W. Corbett, Mayor
ATTEST
_________________________
Shari Thornes, City Clerk
City & County Joint Planning Commission
Brookings, South Dakota
May 1, 2018
OFFICIAL MINUTES
City Chairperson Greg Fargen called the meeting of the City & County Planning Commission
to order on Tuesday, May 1, 2018, at 8:00 PM in the Chambers Room #310 on the third floor
of the City & County Government Center. City members present were Tanner Aiken, Charles
Siver, Alan Johnson, Gregg Jorgenson, Kristi Tornquist, Eric Rasmussen, and Fargen. City
members absent were James Drew and Lee Ann Pierce. County members present were
Robert Rochel-Chairperson, Terrell Spence, Randy Jensen, Chad Ford, Roger Erickson,
Darrell Nelson, Darrell Kleinjan, Kimberly Elenkiwich, and Tom Davis. County members
absent were Lee Ann Pierce and Michael McHugh. Also present were City Planner Staci
Bungard, Community Development Director Mike Struck, County Development Deputy
Director Richard Haugen, Steven Hougland, Duane Knutson and others.
Item #3a – Steven and Sherrie Hougland submitted a petition to rezone the South 245 feet
of the West 246 feet of the East 495 feet of the SE ¼ SW1/4 Section 3-T109N-R50W, also
known as 1002 32nd Street South, from a Joint Jurisdiction A, Agricultural District to a Joint
Jurisdiction Residence R-1A Single-Family District.
(Aiken/Rasmussen) Motion for the City Planning Commission to approve the rezone request.
Aiken and Siver voted aye. All others voted no. MOTION FAILED.
(Jensen/ Elenkiwich) Motion for the County Planning Commission to approve the rezone
request. All present voted no. MOTION FAILED.
OFFICIAL SUMMARY
Item #3a – The owner is requesting the County and City rezone 1.38 acres of land from JJ
Agricultural to Joint Jurisdiction Residence R-1A in order to construct one additional
residence. The land is located along West 32nd Street South within the three mile JJA. The
property is surrounded by agricultural land with some larger lot residential development within
1/8 of a mile to the east. The parcel is slightly over 40 acres in size and is being used as a
small agricultural operation. The owner would like the flexibility to construct a second
residence on the property. Currently, the Agricultural District restricts the second residence
as it allows for one single family home per 35 acres. The residence would be located within
the floodplain and the owner plans to fill the area to meet the floodplain requirements.
Steven Hougland explained that his son and his family would like to construct a home in the
area that is being requested to rezone. Due to the rural water and well restrictions, they are
required to plat off at least 1 acre of land. This area that they have measured off will need to
be surveyed to verify the number of acres. Hougland explained that they do have a permit
from the Department of Agriculture to dig up a wildlife pond. They will then use this fill to
build up this area above the floodplain.
Duane Knutson, adjoining land owner, isn’t opposed to this request but is concerned that if
this request is passed then the 35 acre rule will be surpassed. Just to the east of the area
being requested for rezone, there are 11 approaches within ¼ of a mile, leading to houses.
The 35 acre rule was put into place in the 70’s to prevent this from happening. If this rule
gets waived then there will be several others requesting to sell off 1 acre parcels of land.
Rochel asked how much of the land will be filled, the whole 1.38 acres? Hougland stated no,
only the area where the house will be built. Their intent will be to build a split foyer house.
Rochel asked how high the base level will have to be, how high will it have to be filled?
Hougland suspects that a survey will be completed but they anticipate building up the land by
about 2 to 3 feet.
Tornquist asked how much of this parcel would be in the floodplain. Bungard explained that
just a small portion of it would not be in the floodplain.
If you require assistance, alternative formats and/or accessible locations consistent with the Americans with Disabilities
Act, please contact the City ADA Coordinator at 692-6281 at least 48 hours prior to the meeting.
Published ______ time(s) at an approximate cost of $ _____________.
NOTICE OF HEARING
UPON PETITION TO REZONE
NOTICE IS HEREBY GIVEN That Steven & Sherrie Hougland submitted a petition
to rezone the following described real estate in the Joint Jurisdiction Area of the City of
Brookings and Brookings County, South Dakota:
The South 245 feet of the West 246 feet of the East 495 feet of the SE ¼ SW ¼
Section 3-T109N-R50W, also known as 1002 West 32nd Street South, from a
Joint Jurisdiction A, Agricultural District to a Joint Jurisdiction Residence R-
1A Single-Family District.
NOTICE IS FURTHER GIVEN That said request will be acted on by the City of
Brookings and Brookings County Planning Commission at 8:00 PM on Tuesday, May 1,
2018, in the Chambers Room on the third floor of the Brookings City & County
Government Center at 520 Third Street, Brookings, South Dakota. Any action taken by
the City of Brookings and Brookings County Planning Commission serves as a
recommendation to the Brookings City Council and Brookings County Commission.
Any person interested may appear and be heard in this matter.
Dated this 20th day of April, 2018.
____________________________
Staci Bungard
City Planner
W 32ND ST SW 32ND ST SW 32ND ST SW 32ND ST SHougland Rezoning RequestJJ-A to JJ-R-1A1002 W 32nd Street South246'245'
21 5 S T
S OPLAND LOOP
Legend
Rezoning
Property
Floodplain
.
Hougland Rezoning Map
21 5 ST 470 AVE469 AVEMAIN AVE S26 T H ST S
COUNTY 7735 S T S
H E AT H E R L N
36 S T S
MA P L E D R
S 3 7 T H S T
S 3 8 T H S T 3RD AVE SD E A N C T
ASPEN AVECRAIG CT
UNKNOWNOAK LN
Legend
Zoning
A
B-2
B-3
JJ-A
JJ-B3
JJ-R1A
JJ-R1B
JJ-R3A
R-1B
R-1C
R-2
R-3
R-3A
Rezoning
Property
Floodplain
CityLimits
²
Zoning Map
2018rz001
Staff Report
May 1, 2018
Page 1 of 2
BROOKINGS COUNTY DEVELOPMENT
Brookings City & County Government Center
520 3rd Street, Suite 200
BROOKINGS, SOUTH DAKOTA 57006
(605)-696-8350
E-Mail: zoning@brookingscountysd.gov
RICHARD L. HAUGEN, Deputy Director
TELEPHONE: (605) 696-8350
FAX: (605) 696-8355
E-MAIL: rhaugen@brookingscountysd.gov
Brookings County Planning and Zoning Commission-
Brookings County Board of Adjustment
May 1, 2018 – 8:00 PM meeting
2018rz001 – May 1st, 2018
Prepared by Richard Haugen
To: Brookings County Commission,
May 2, 2018: The Brookings County Planning and Zoning Commission met in a joint
meeting with Brookings City Planning and Zoning Commission on May 1, 2018 at 8:00 PM for the
rezoning application from Steve and Sherrie Hougland to rezone 1.38 acres of property located
in the Joint Jurisdictional Area from an “Agricultural District” to a “Joint Jurisdiction R-1A District”.
The Brookings County Planning and Zoning Commission voted 0 - ayes and 9 – nays and the
Brookings City Planning Commission voted 2-ayes and 5-nays to deny the rezoning request. The
rezoning request is scheduled to be heard by the Brookings County Commission with the First
Reading on May 15, 2018 and Second Reading on June 7, 2018 for final approval or denial and
the Brookings City Commission is scheduled for First Reading on May 22, 2018 and Second
Reading on June 12, 2018 for final approval or denial.
Applicant/Owner: Steve and Sherie Hougland, 1002 W 32nd St S, Brookings, SD 57006
Legal Description: “S245’ of the W246’ of the E495’ of the1/4 of Section 3, T109N, R50W
(Medary Township)”
2018rz001: Steve and Sherrie Hougland have applied for rezoning of 1.38 acres of land
from an Agricultural District to an R1A District located in southwest corner of their farm site
located at 1002 W 32nd St S. The property is located in the Brookings County/Brookings City
2018rz001
Staff Report
May 1, 2018
Page 2 of 2
Joint Jurisdictional area. The applicant owns 40 acres of land that is currently zoned “A –
Agricultural District” which contains their house, a detached garage, barn and numerous out
buildings with the balance of the land being pasture and grassland. Brookings County/Brooking
City Joint Jurisdiction Ordinance Article IV. Agricultural, Residential and Floodplain and
Aquifer Districts Section 410, Residence R-1A single family, 411 Permitted Uses: .1 - Single –
family dwelling. The proposed lot; will be used for a family member to build a residence; is
located in the floodplain area and the structure would have to be built to Federal Emergency
Management Agency floodplain standards and will meet the minimum water and sewer
requirements. There are other properties zoned R-1A in the immediate area (see attached
maps with corresponding number): 1) located ½ mile to the east of the proposed property at
the northeast corner of the intersection of Western Ave and 32nd St; 2) Southern Estates
Addition located on Western Ave, 1 mile south of the proposed area and 3) Nelson Addition
located on W 20th Street, 1 mile north of the proposed area.
The rezoning request will be heard by a joint meeting of the Brookings County Planning
and Zoning Commission and the City of Brookings Planning and Zoning Commission.
Public notices were published in the Brookings Register on April 16 and 24, 2018. The
applicant notified abutting landowner’s by certified mail of the proposed rezoning request at
least 10 days prior to the public hearing.
Letters were sent to the Medary Township Chairman and Clerk.
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:RES 18-038,Version:1
Public Hearing and Action on Resolution 18-038, a Resolution of Intent to Lease Real Property.
Summary:
The City is proposing to extend a lease agreement with Rural Technologies, Inc.
Background:
The City is proposing to lease space in the Research and Technology Center located at 801 32nd
Avenue to Rural Technologies, Inc. Rural Technologies, Inc. has agreed to lease 10,434 square feet
of office and lab space and 2,134 square feet of garage space. The lease will be on a month-to-
month basis with an ending date of December 31, 2020. The space will be utilized by Rural
Technologies, Inc. in the biological and chemical analysis and protein and antibody production.
Enclosed is a copy of the proposed Lease Agreement with the terms and conditions customarily
provided to business and research activities located at the Research and Technology Center. The
Notice of Public Hearing was advertised one time, 10 days prior to the hearing. This resolution will
allow the City to enter into a Lease Agreement with Rural Technologies, Inc. on a month-to-month
basis until December 31, 2020.
The following statutes provide guidance for municipalities leasing property.
9-12-5.1. Powers - Lease of property - Term and conditions. Every municipality may lease its
municipally-owned property. Any such lease shall be for a term and upon the conditions provided by
resolution of the governing body.
9-12-5.2. Powers - Lease to private person - Resolution - Notice -Hearing - Authorization. If the
governing body decides to lease any municipally owned property to any private person for a term
exceeding one hundred twenty days and for an amount exceeding five hundred dollars annual value
it shall adopt a resolution of intent to enter into such lease and fix a time and place for public hearing
on the adoption of the resolution. Notice of the hearing shall be published in the official newspaper
once, at least ten days prior to the hearing. Following the hearing the governing body may proceed to
authorize the lease upon the terms and conditions it determines.
Fiscal Impact:
The lease will generate $112,876 in annual revenue.
Recommendation:
Staff recommends approval.
Attachments:
Resolution
Notice of Public Hearing
Lease Agreement
City of Brookings Printed on 5/17/2018Page 1 of 2
powered by Legistar™
File #:RES 18-038,Version:1
City of Brookings Printed on 5/17/2018Page 2 of 2
powered by Legistar™
Resolution 18-038
Resolution of Intent to Lease Real Property to Rural Technologies, Inc.
Be It Resolved by the governing body of the City of Brookings, South Dakota that the
City of Brookings intends to enter into a Lease Agreement with Rural Technologies,
Inc., on a month-to-month basis terminating on or before December 31, 2018 and
pertaining to the following described property:
Research & Technology Center – 801 32
nd Avenue, Suite 100
The Lease will be an amount of $10.00 per square foot for 10,434 square feet of
office/lab space and $4.00 per square foot for 2,134 square feet of garage/cold storage
space.
Be It Further Noted, that a Public Hearing on this Resolution was held on May 22, 2018
at 6:00 o’clock P.M. at the Brookings City & County Government Center and that all
persons were given an opportunity to be heard on the intent to lease real property.
Passed and approved this the 22nd day of May, 2018.
CITY OF BROOKINGS, SD
Keith W. Corbett, Mayor
ATTEST:
Shari Thornes, City Clerk
NOTICE OF PUBLIC HEARING ON
RESOLUTION OF INTENT TO LEASE REAL PROPERTY
NOTICE IS HEREBY given that on Tuesday, May 22, 2018, at 6:00 o’clock P.M.,
the Brookings City Council will hold a public hearing in the Brookings City and
County Government Center Chambers, located at 520 Third Street, Brookings,
South Dakota, on the Resolution of Intent of the City of Brookings to lease to
Rural Technologies, Inc. the following described property in the Research and
Technology Center:
801 32
nd Avenue, Suite 100, Brookings, SD
At the time and place affixed for said public hearing, all who appear will be given
an opportunity to express their views for or against the proposal to lease the
above described property.
Dated this 11th day of May, 2018.
CITY OF BROOKINGS
__________________________
Shari Thornes, City Clerk
"If you require assistance, alternative formats and/or accessible locations consistent
with the Americans with Disabilities Act, please contact the City ADA Coordinator at
692-6281 at least 48 hours prior to the meeting."
1
LEASE AGREEMENT
_________________
THIS LEASE AGREEMENT is made and entered into by and between the City of
Brookings, South Dakota, a municipal corporation, Lessor, hereinafter referred to as "City", and
Rural Technologies Inc. hereinafter referred to as "Tenant".
WHEREAS, City owns the Brookings Area Research and Technology Center, located at
801 – 32
nd Avenue, in Brookings, South Dakota, and desires to lease a portion of said facilities to
Tenant, and
WHEREAS, the above-named Tenant desires to lease a portion of said facilities
hereinafter described in accordance with the terms and conditions set forth herein, now therefore,
FOR AND IN CONSIDERATION OF THE MUTUAL COVENANTS, CONDITIONS
AND PROMISES, THE PARTIES DO HEREBY AGREE AS FOLLOWS:
1. Lease Agreement
The City does hereby lease unto Tenant and Tenant does hereby agree to lease and take
from City, Suite 100, located in the Brookings Area Research and Technology Center, 801 – 32
nd
Avenue, Brookings, South Dakota, as shown on the attached Exhibit “A”, and Unit 1 which
contains approximately 8,866 square feet, Unit 2 contains approximately 1,568 square feet, and
Unit 3 containing approximately 2,134 square feet, hereinafter referred to as “Unit 1”, “Unit 2”
and “Unit 3”.
2. Term/Option to Renew/Expiration
This Lease Agreement shall commence on July 1, 2018 and shall be for a month-to-
month tenancy which may be cancelled by either party upon giving notice to the other party at
least thirty (30) days prior to the end of the month. The term of this lease shall end no later than
December 31, 2020. In the event the City terminates the lease prior to December 31, 2020, it
shall give as much notice as possible and will work with the Tenant to allow, if possible,
additional time to vacate the premises.
3. Use of Premises
The above leased premises shall be used by Tenant for the following purposes and no
others without the prior written consent of City:
Rural Technologies, Inc. will use the premises to conduct its contract research and
laboratory business. It will serve as the corporate and business office as well as house
laboratories used for biological and chemical analysis and protein and antibody production.
No use by Tenant shall be made or permitted to be made upon the premises nor acts done
which will increase the existing rate of insurance upon the property or cause cancellation of
insurance policies covering said property. Tenant shall not conduct or permit any sale by auction
on the premises.
2
4. Rent
Monthly Rent for the Duration of this Lease
The Tenant shall pay as rent to City during the term of this Lease monthly rent in the sum
of $10.00 per square foot for Unit 1 and 2, based upon the occupancy of 10,434 square feet, the
sum of $4.00 per square foot for Unit 3, based upon the occupancy of 2,134 square feet, the total
annual sum of $112,876 to be payable in equal monthly installments of $9,406.33.
Tenant shall pay each monthly rental on or before the 1st day of each month through the
full term of this Lease, and is late if paid after the 10th day of the month. Failure to timely pay
the rent, in addition to all other remedies, will result in a ten (10%) percent late charge.
5. Utilities
Tenant shall be responsible for paying its’ own utilities.
6. Tenant Covenants
The Tenant makes the following covenants:
A. To keep the interior of Suite 100 (Units 1, 2, and 3) and all fixtures therein in good
condition and repair.
B. Not to make any structural alterations or additions to Suite 100 (Units 1, 2, and 3)
without the written consent of the City.
C. Not to assign this Lease, nor sublet Suite 100 (Units 1, 2, and 3), nor to permit any
other person to occupy Suite 100 (Units 1, 2, and 3), except for employees and invitees of
the Tenant.
D. To remove, at the termination of this Lease, all goods and effects, and to leave Suite
100 (Units 1, 2, and 3) at the conclusion of this Lease in good repair and order,
reasonable wear and tear excepted.
E. To use Suite 100 (Units 1, 2, and 3) for the purpose of the Tenant's business only, and
to comply in all respects to the schedule of Tenant's Rules of Occupation, hereinafter
called "Rules", attached to this Lease as Exhibit "B", or such amended rules that may be
issued by the City or the City's agents.
F. To purchase and maintain such insurance as Tenant deems appropriate to protect
Tenant from loss of Tenant's property due to fire and/or casualty; and to purchase and
maintain a commercial general liability premises policy in the minimum amount of
$1,000,000.00 per occurrence and $2,000,000.00 aggregate, and Tenant shall provide the
City with a Certificate of Insurance showing City as an additional insured. The Certificate
shall provide for a ten (10) day written notice to City in the event of cancellation or
material change of coverage. Tenant shall furthermore hold the City harmless and
3
indemnify it from any injury, loss or damage that may occur to the persons or property of
employees of Tenant or to other persons visiting the Tenant’s place of business.
G. To comply with all Federal, state, or local laws which may affect the Tenant's use of
Suite 100 (Units 1, 2, and 3).
H. Not to affix signs or advertising displays of any kind, either to the exterior or interior
walls of Suite 100 (Units 1, 2, and 3), or to any of its doors or windows, without the prior
written consent of City.
I. Tenant shall not vacate or abandon the premises at any time during the term hereof, and
if Tenant shall abandon or vacate the premises, or be dispossessed by process of law, or
otherwise, any personal property belonging to Tenant left upon the premises shall be
deemed to be abandoned at the option of the City.
J. City shall not be liable for any damage or injury to Tenant, or any other person, or to
any property, occurring on the demised premises or any part thereof, and Tenant agrees to
hold City harmless from any claims for damages unless such damage or injury results
from the negligence of the City.
7. Lessor’s Covenants
The City makes the following covenants:
A. The City covenants that it has the right to grant this Lease as Owner of the building.
B. To keep the exterior of the premises in good repair and condition, and to clean and
maintain the areas of the Brookings Area Research and Technology Center which are
used in common by all Tenants. The City shall be responsible for the exterior and
interior structural maintenance of the building and maintaining the common areas. The
City shall be responsible for pest control around the exterior of the Center and in the
common areas. The City shall also be responsible for maintenance of the heating and
cooling system.
C. To insure and keep insured at all times the buildings, structures and fixtures owned
by the City against fire, windstorm and similar occurrences.
D. To permit the Tenant to occupy Suite 100 (Units 1, 2, and 3) during the term of this
Lease quietly and peaceably, provided the Tenant performs the covenants of this Lease.
E. To provide and update a directory of Tenants in the reception area and to provide
identification signs within the building to enable visitors to locate Tenant.
F. To provide suitable means of disposing of a reasonable amount of non-hazardous
waste materials resulting from use of the leased premises by Tenant.
4
8. Mutual Covenants
A. It is mutually agreed that the principal objective of the Brookings Area Research and
Technology Center is to encourage the formation of successful new businesses and to
create new job opportunities, and this Lease and any other agreement between the City
and the Tenant must be construed in the context of this objective.
B. Both parties agree that if Suite 100 (Units 1, 2, and 3) shall be substantially destroyed
by windstorm, fire or other happening, then either party may elect to terminate this
Lease by giving written notice of termination to the other party.
C. If Tenant receives the City's written permission to alter or add to the structure, the
alterations or additions will be undertaken at the expense of the Tenant. When written
permission has been given by the City, at the time of termination of this Lease by
mutual consent and provided the Tenant has complied with the covenants of this Lease,
the City will undertake to reimburse the Tenant with a proportionate part of the agreed
costs of any alterations or additions which materially improve the building, provided
the Tenant agrees to continue to operate its business in the City of Brookings. The
details of any agreement of this kind will be contained in the letter of consent granted
by the City.
9. Default and Remedies
A. Events of Default. The occurrence of any of the following shall constitute a default
and material breach of this Lease by Tenant:
1. Any failure by Tenant to pay any rent or any other charge required to be paid
under this Lease, or any part thereof, within ten (10) days of the due date; or
2. Any failure by Tenant to observe or perform any other provision, covenant or
condition of this lease to be observed or performed by Tenant where such failure
continues for ten (10) days after written notice thereof from City to Tenant; provided that
if the nature of such default is such that the same cannot reasonably be cured within a ten
(10) day period, Tenant shall not be deemed to be in default if it shall commence such
cure within such period and thereafter diligently pursue such cure to completion; or
3. Abandonment of the Premises by Tenant; or
4. To the extent permitted by law, or the filing by or against Tenant of any
proceeding under bankruptcy law.
B. Remedies. In the event of a default by Tenant, the City, in addition to any other
remedies set forth herein or available to it at law or in equity, including injunction, at its
option, and without further notice or demand of any kind to Tenant or any other person
may:
5
1. Terminate this Lease and declare the Lease Term hereof ended and re-enter the
Premises and take possession thereof and remove all persons and property therefrom, and
Tenant shall have no further claim thereon or hereunder; or
2. Even though the City may have re-entered the Premises, thereafter elect to
terminate this Lease and all of the rights of Tenant in or to the Premises.
3. Should the City have re-entered the Premises under the provisions of paragraph
2 above, City shall not be deemed to have terminated this Lease or the liability of Tenant
to pay any rental or other charges thereafter accruing, or to have terminated Tenant’s
liability for damages under any of the provisions hereof by any action in unlawful
detainer or otherwise to obtain possession of the Premises, unless the City shall have
notified Tenant in writing that it has so elected to terminate this Lease.
Should the City elect to terminate this Lease pursuant to the provisions of this
section, the City may recover from Tenant as damages the following:
(i) The value at the time of the award of any unpaid rent, late charges and
other charges which had been earned or were payable by Tenant at the time of
termination.
C. Cure of Tenant's Default. Should Tenant fail to pay and discharge, when due and
payable any lien or claim for labor or materials, or any claim for damages arising out of
the repair, alteration, maintenance and use of the Premises to be paid by Tenant under
this Lease, or should Tenant fail to provide evidence of the issuance and coverage of any
insurance policy as required by this Lease, or should Tenant fail to fully pay any sum to
be paid or perform any covenant or agreement to be performed by Tenant, as provided for
in this Lease, after ten (10) days’ written notice from the City, then the City may, at its
option and without waiving or releasing Tenant from any of Tenant’s obligations
hereunder, pay any such lien, claim, or charge, or settle or discharge any action therefor
or satisfy any judgment thereon, or obtain any such insurance, or pay any such sum or
perform any such covenant or agreement. All costs, expenses and other sums incurred or
paid by the City in connection therewith, together with interest at the rate of one (1%)
percent per month on such costs, expenses, and sums from the date incurred or paid by
City, shall be deemed to be additional rent hereunder and shall be paid by Tenant to City
upon demand, and any default therein shall constitute a breach of the covenants and
conditions of this Lease.
D. No Waiver. The waiver by the City of any breach of any term, covenant or condition
herein contained shall not be deemed to be a waiver of such term, covenant or condition
or any subsequent breach of the same or any other term, covenant or condition herein
contained. The subsequent acceptance of rent by the City shall not be deemed to be a
waiver of any preceding breach by Tenant of any term, covenant or condition of this
Lease other than the failure of Tenant to pay the particular rent so accepted, regardless of
the City’s knowledge of such preceding breach at the time of acceptance of such rent. No
6
covenant, term or condition of this Lease shall be deemed to have been waived by
Landlord unless such waiver is in writing and executed by the City.
10. Miscellaneous
A. Any notice from the City to Tenant or from Tenant to City shall be deemed duly
served if mailed by certified mail to the last known address of the Tenant, or to the
address of the City or to the address of the Agents acting for City, and the customary
certified mail receipt shall be conclusive evidence of such service.
B. This Lease shall be subject to and construed under the laws of the State of South
Dakota.
IN WITNESS WHEREOF, the parties have hereto placed their signatures on the day and
date set forth below.
Dated this 22nd day of May, 2018.
CITY OF BROOKINGS, SD, LESSOR
By:______________________________________
Jeff Weldon, City Manager
City of Brookings
P.O. Box 270
Brookings, South Dakota 57006
ATTEST:Telephone No. (605) 692-6281
__________________________________
Shari Thornes, City Clerk
Dated this ____ day of___________, 2018.
Rural Technologies, Inc., Tenant
By:_______________________________________
Christopher Chase
Its: President
7
Exhibit "A”
MAP DEPICTING Suite 100
8
Exhibit "B”
TENANT RULES OF OCCUPATION
1. These are the Rules of Occupation referred to in Section 6 of the Tenant Covenants
contained in the Lease between the City and Tenant.
2. Tenants will be required to:
a. Ensure that all access doors into the building are properly closed after exit or entry.
Fire exit doors are for emergency use only and must not be used for entry or exit or for
loading or unloading freight. This requirement is imposed to protect the security and
integrity of the whole building and its occupants.
b. Dispose of all waste materials in the receptacles provided by the City, and not to
leave any garbage or waste materials in any part of the premises or on the parking lot.
No oil, grease, paint, or other deleterious matter can be deposited in any drain inside or
outside the building.
c. Ensure that no gasoline or any other particularly inflammable explosive or
combustible material is stored within Suite 100 (Units 1, 2, and 3) occupied by Tenant
or on any part of the Brookings Area Research and Technology Center in violation of
the City of Brookings Fire Code, with the exception only of fuel contained in the fuel
tanks of Tenant’s vehicles.
d. Take care to connect all plant and machinery to electrical services in an approved
manner and not to overload any electrical circuits.
e. Avoid obstructing the corridors or passageways within the Brookings Area Research
and Technology Center and to use only approved means of transporting freight, goods
or supplies through such corridors or passageways.
f. Permit the City scheduled access at all reasonable times to enter and inspect Suite 100
(Units 1, 2, and 3) leased to the Tenant, and to allow contractors employed by the City
to enter and carry out repairs or alterations to any part of Suite 100 (Units 1, 2, and 3) or
its fixtures, subject to reasonable notice and an opportunity to be present during said
repairs or alterations.
g. Do nothing which would cause the insurance procured by the City to become void or
invalidated.
h. To ensure that all employees of the Tenant that access Suite 100 (Units 1, 2, and 3)
are aware of these Rules and to make it a condition of employment that employees obey
these Rules or any variation of them which are made from time to time.
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 2018-0247,Version:1
Public Hearing and Action on new On-Off Sale Malt Beverage Alcohol Licenses.
Summary:
Enclosed for Council review and action are the applications for an On-Off Sale Malt Alcohol License.
These licenses would be in effect for fiscal year 2018 (7/1/2018 to 6/30/2019). After Council action,
applications will be forwarded to the State Department of Revenue for final action and issuance of
licenses.
Background:
Several South Dakota alcoholic beverage laws have been extensively revised, including repeal of
some license types. Effective July 1, 2018, the following licenses will be repealed:
·Off-Sale (package) Malt (PB License);
·On-Off Sale Malt Beverage and On-Off Sale South Dakota Farm Wine (BW License); and
·Off-Sale (package) Malt Beverage and Off-Sale (package) South Dakota Farm Wine (PF
License).
Effective July 1, 2018, the only malt beverage license available is the new On-Off Sale Malt Beverage
and On-Off Sale South Dakota Farm Wine License (RB License). The license fee remains at $300.
Businesses with BW, PB, or PF Licenses who wish to continue the privileges granted by their license
must apply for the new On-Off Sale Malt Beverage and On-Off Sale South Dakota Farm Wine
License (RB License).
The following businesses all held PB, BW or PF Licenses and are changing to the RB License:
·The Blizzard, Inc., 924 32nd Ave.
·BP of Brookings, Inc., 2420 6th St.
·Casey’s General Store #1694, 620 8th St. So.
·Casey’s General Store #2198, 122 West 6th St.
·Casey’s General Store #2419, 534 22nd Ave. So.
·CHS (dba Zip Trip #63), 1005 6th St.
·CHS (dba Zip Trip #64), 3045 LeFevre Dr.
·El Tapatio, Inc., 1717 6th St.
·Hy-Vee Gas, 716 22nd Ave. So.
·Jim’s Tap, 309 Main Ave.
·Newman’s Kerr McGee, 503 6th St.
·Pints & Quarts, 313 Main Ave.
·Schoon’s Pump-n-Pak, 202 S. Main Ave.
·Sully’s Irish Pub, 421 Main Ave.
·Wal-Mart Supercenter #1538, 2233 6th St.
City of Brookings Printed on 5/17/2018Page 1 of 2
powered by Legistar™
File #:ID 2018-0247,Version:1
Recommendation:
Staff recommends approval.
Attachments:
Hearing Notice
City of Brookings Printed on 5/17/2018Page 2 of 2
powered by Legistar™
NOTICE OF PUBLIC HEARING
On-Off Sale Malt Licenses –
NOTICE IS HEREBY GIVEN that the Brookings City Council in and for the City of
Brookings, South Dakota, on May 22, 2018, at 6:00 p.m. in the Brookings City &
County Government Center Chambers, 520 Third Street, will meet in regular
session to consider an application for issuance of On -Off Sale Malt Licenses for
the following establishments: The Blizzard, Inc., 924 32nd Ave., Chris Canavati &
Mitri Canavati, owners; BP of Brookings, Inc., 2420 6th St., Lance Park, owner;
Casey’s General Store #1694, 620 8th St. So.; Casey’s General Store #2198, 122
West 6th St.; Casey’s General Store #2419, 534 22nd Ave. So., Casey’s Retail
Co., owner; CHS (dba Zip Trip #63), 1005 6th St.; CHS (dba Zip Trip #64), 3045
LeFevre Dr., CHS Inc., owner; El Tapatio, Inc., 1717 6th St., Guadalupe
Rodriguez-Escamilla, owner; Hy-Vee Gas, 716 22nd Ave. So., Curt Osmanshki,
Manager; Jim’s Tap, 309 Main Ave., Don Urquart and Mary VandeCrommert,
owners; Newman’s Kerr McGee, 503 6th St., Gary Newman, owner; Pints &
Quarts, 313 Main Ave., Brennan & Lori Sullivan, owners; Schoon’s Pump -n-Pak,
202 S. Main Ave., Jon Schoon, owner; Sully’s Irish Pub, 421 Main Ave., Brennan
& Lori Sullivan, owners; Wal-Mart Supercenter #1538, 2233 6th St., Dennis
Tramp, Manager, Brookings, South Dakota. At which time and place all persons
interested will be given a full, fair and complete hearing thereon.
Dated at Brookings, South Dakota, this 14th day of May, 2018.
Shari Thornes, City Clerk
Published time(s) at an approximate cost $ .
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:RES 18-042,Version:1
Public Hearing and Action on Resolution 18-042, a Resolution Determining the Necessity of
Proposed Sanitary Sewer Assessment Project, 2018-12SSA, located on Western Avenue between
Martin Boulevard and 20th Street South.
Summary:
The City received a petition to install sanitary sewer on Western Avenue between Martin Boulevard
and 20th Street South. There are three properties on the east side of Western Avenue that would be
subject to the assessment project, and two of the property owners have signed a petition of request.
This is the required public hearing, which is the first step in the assessment process. If the City
Council adopts the resolution after the public hearing, the City and Brookings Municipal Utilities will
proceed with the design and construction of the sanitary sewer.
Background:
The City received a petition to install sanitary sewer on Western Avenue from approximately 240 feet
north of Martin Boulevard to approximately 530 feet north of Martin Boulevard. The project location is
shown on the attached map.
There are three property owners on the east side of Western Avenue which do not currently have a
sanitary sewer main adjacent to their property and are not hooked up to the City’s sanitary sewer
system. This project will provide an extension of the sanitary sewer main and each property will
receive one sanitary sewer service. The City follows the assessment process as outlined in Chapter
9, Section 43 of SDCL and the first step is a public hearing and approval of a resolution determining
the necessity for the project.
The project will be assessed based on special benefits, meaning each of the three property owners
will receive similar benefits and thereby would pay similar costs. The estimated project cost is
$31,329, with each property owner’s estimated cost at $10,433. The attached Resolution outlines
the details, including the interest rate of 10% on the unpaid balance, and the assessment may be
paid over a ten-year time period.
Each property owner was mailed the attached Resolution with a Notice of Hearing by receipt certified
mail, and the notice was published as required. The public may speak for or against the project at
the public hearing. If the resolution is approved, the City Engineering Department and BMU will
proceed with design and construction of the project. The assessment costs will be based on actual
final quantities at the bid costs plus 6% engineering and administration fee.
Fiscal Impact:
The City will assess the cost of the sanitary sewer project when the assessment is levied.
Recommendation:
Staff is not making a recommendation at this time, pending public hearing comments from affected
City of Brookings Printed on 5/17/2018Page 1 of 2
powered by Legistar™
File #:RES 18-042,Version:1
property owners.
Attachments:
Resolution
Property Owner List
Map
City of Brookings Printed on 5/17/2018Page 2 of 2
powered by Legistar™
Resolution 18-042
Sanitary Sewer Assessment Project 2018-12SSA
Western Avenue between Martin Boulevard and 20th Street South
Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows:
The City Council of the City of Brookings hereby declares the necessity of construction
of a sanitary sewer public improvement of the City as follows:
Sanitary sewer main, sanitary sewer services, manhole, and gravel restoration on
Western Avenue South, from approximately 240 feet north of Martin Boulevard to
approximately 530 feet north of Martin Boulevard.
1.The general nature of the improvements is set forth above and reference
for details is hereby made to the drawings and specifications to be
prepared by the City Engineer and on file with the City Clerk.
2.The materials to be used for the project are:
The sanitary sewer shall be 8-inch diameter PVC pipe, manholes
shall be concrete and sanitary sewer services shall be 4-inch
diameter PVC pipe.
3.The sanitary sewer improvements are substantially uniform. The
estimated cost of the sanitary sewer main, services, manhole and street
restoration is approximately $31,329 for the project.
Therefore, the proposed estimated assessment on a special benefits
received basis is $10,443 per property owner.
4.A description of classes of lots to be assessed is as follows:
Three assessable lots and tracks located on the east side of Western
Avenue, between 240 feet north of Martin Boulevard and 20th Street
South.
5.The method of apportionment of benefits is as follows:
The cost thereof to be assessed equally against three assessable
lots and tracts of land within the sanitary sewer service area
according to the special benefits determined by the governing body
to accrue to all such lots and tracts from the construction of the
improvement. The assessed amount includes engineering and
administration costs.
The assessment shall be divided into ten (ten) equal annual
installments and the interest shall be ten (10) percent per annum on
the unpaid balance of the assessment costs for a maximum period
of ten (10) years, with interest and penalties applicable to any
unpaid or delinquent installments.
The above-described improvement shall be hereinafter referred to as Sanitary Sewer
Assessment Project No. 2018-12SSA, which shall be deemed a description of the
improvement of the streets as hereinabove set forth.
Passed and approved this 22nd day of May, 2018.
CITY OF BROOKINGS
___________________________
Keith W. Corbett, Mayor
ATTEST:
____________________________
Shari Thornes, City Clerk
2018 Sanitary Sewer Assessment Project 2018-12SSA
Owner Mailing Address City, State, Zip
Lyle and Holly Hawkinson 429 Southview Drive Brookings, SD 57006
Rainer and Tiffani Westall 2011 Western Avenue South Brookings, SD 57006
Jay and Antonia Triplett 2019 Western Avenue South Brookings, SD 57006
100 ft