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HomeMy WebLinkAbout2017_05_09 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 Vision Statement: "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 9, 2017 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. 5:45 P.M. EXECUTIVE SESSION ID 2017-0304 Executive Session, pursuant to SDCL 1-25-2, for purposes of discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term “employee” does not include any independent contractor. Action: Motion to enter into Executive Session, Voice Vote Action: Motion to exit Executive Session, Voice Vote 6:00 PM REGULAR MEETING 1. Call to Order / Pledge of Allegiance. 2.ID 2017-0129 Present Certificate of Election and Oath of Office to Mayor Keith Corbett and Council Members Ope Niemeyer and Dan Hansen. Certificate of Election & Oath of Office - K. Corbett Certificate of Election & Oath of Office - O. Niemeyer Certificate of Election & Oath of Office - D. Hansen Attachments: 3. Record of Council Attendance. 4. 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 Page 1 City of Brookings May 9, 2017City Council Meeting Agenda 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. 4.A. Action to approve the agenda. 4.B.ID 2017-0300 Action to approve the April 25 City Council Minutes. 4/25/2017 MinutesAttachments: 4.C.RES 17-051 Action on Resolution 17-051, a Resolution Authorizing the Execution of Equipment Lease-Purchase Agreement. Resolution Lease-Purchase Agreement Attachments: 4.D.RES 17-055 Action on Resolution 17-055, a Resolution declaring a 2002 Ford F150 Pickup as Surplus Property (Engineering Dept.). ResolutionAttachments: 4.E.ID 2017-0295 Action on Ex-Officio Appointments. 5. Items removed from Consent Agenda. Action: Motion to Approve, Request Public Comment, Roll Call 6. Open Forum/Presentations/Reports: 6.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. 6.B. SDSU Student Association Report. 6.C.ID 2017-0296 Invitation to attend Patrick Dougherty’s Artist Talk at the Children’s Museum of South Dakota on Thursday, May 18th, from 5:00-6:30 p.m. by Lynn Verschoor from the Brookings Public Arts Commission. InvitationAttachments: 6.D.ID 2017-0272 Presentation of City of Brookings 2016 Annual Financial Report. BKD Presentation 2016 Comprehensive Annual Financial Report (CAFR) Communication Letter Attachments: 7. Contracts/Change Orders: Page 2 City of Brookings May 9, 2017City Council Meeting Agenda 7.A.RES 17-052 Action on Resolution 17-052, a Resolution Awarding the Contract on 2017-08STI Street Maintenance and Overlay Project. ResolutionAttachments: Action: Motion to Approve, Request Public Comment, Roll Call 7.B.RES 17-059 Action on Resolution 17-059, a Resolution authorizing Change Order No. 3 (Final) for 2016-09STI, LeFevre Drive Storm Sewer Project; Timmons Construction, Inc. ResolutionAttachments: Action: Motion to Approve, Request Public Comment, Roll Call 8. 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. 8.A.ORD 17-008 Introduction and First Reading on Ordinance 17-008, an Ordinance amending the Zoning Ordinance of the City of Brookings and pertaining to Section 94-396 Wireless Communication Facilities for the purpose of administration of the Zoning Ordinance. (Ordinance has changed from First Reading held March 28, 2017). Public Hearing: May 23, 2017. Ordinance - clean - posted 5.4.2017 Ordinance - marked - posted 5.4.2017 Letter from Moss & Barnett - posted 4.19.2017 Notice PC Minutes 3-14-2017 SDN Presentation SDN Small Cell Brochure Small Cell Permit Application Ordinance - marked version - posted 4.19.2017 Ordinance - posted 3.23.2017 Ordinance - marked version - posted 3.23.2017 Attachments: Legislative History 4/25/17 City Council tabled to a date specific 9. Public Hearings and Second Readings: 9.A.ORD 17-009 Public Hearing and Action on Ordinance 17-009, an Ordinance rezoning Lots 4, 5, & 6, Block 17, Prairie Hills Addition and the SW 1/4 of the SE 1/4, excluding platted areas in Section 2-T109N-R50W. Page 3 City of Brookings May 9, 2017City Council Meeting Agenda Ordinance Hearing Notice 04/04/2017 Planning Commission Minutes Current Zoning Map Proposed Zoning Map Exhibit Attachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call Legislative History 4/25/17 City Council read into the record 9.B.ORD 17-010 Public Hearing and Action on Ordinance 17-010, an Ordinance pertaining to a Conditional Use Permit for outdoor storage, on Lot 3 Le Fevre Addition, also known as 3100 6th Street. Ordinance Hearing Notice 04/04/2017 Planning Commission Minutes Application & Letter Area Map Site Map Site Plan Attachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call Legislative History 4/25/17 City Council read into the record 9.C.ORD 17-011 Second Reading and Action on Ordinance 17-011, an Ordinance Establishing What Hours Public Parks and Playgrounds are open to the Public in the City of Brookings, South Dakota. OrdinanceAttachments: Action: Motion to Approve, Request Public Comment, Roll Call Legislative History 4/25/17 City Council read into the record 9.D.ORD 17-012 Public Hearing and Action on Ordinance 17-012, an Ordinance amending the Zoning Ordinance of the City of Brookings pertaining to Section 94-1 Definition of Yard, Primary Front, for the purposes of administration of the Zoning Ordinance. Ordinance- Clean Copy Ordinance- Marked Up Hearing Notice 04/04/2017 Planning Commission Minutes Exhibit Comparison Chart Attachments: Page 4 City of Brookings May 9, 2017City Council Meeting Agenda Action: Open & Close Public Hearing, Motion to Approve, Roll Call Legislative History 4/25/17 City Council read into the record 9.E.RES 17-053 Public Hearing and Action on Resolution 17-053, a Resolution Levying Assessment for Project No. 2016-01SWR, 2016 Sidewalk Repair Sites. Resolution Assessment Roll Attachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call 10. Other Business: 10.A.RES 17-050 Action on Resolution 17-050, a Resolution setting forth a schedule of Proposed Fines for Violations of the Ordinances of the City of Brookings, South Dakota. ResolutionAttachments: Action: Motion to Approve, Request Public Comment, Roll Call 10.B.RES 17-054 Action on Resolution 17-054, a Resolution authorizing the City Manager to Sign an Agreement for Federal Aviation Administration Grant for Airport Paint Striper (Fuel Tax Funds). ResolutionAttachments: Action: Motion to Approve, Request Public Comment, Roll Call 10.C.ID 2017-0288 Action to appoint City Council Member, effective 5/9/2017-4/30/2018. Application - Ed Ballou.pdf Application - Nick Schmeichel.pdf Application - Cory Ann Ellis.pdf Application - George Hamer.pdf Application - Holly Tilton Byrne.pdf Press Release Brookings City Charter Excerpt - Vacancies Resolution 90-10 Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 11. 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. 12. Adjourn. Page 5 City of Brookings May 9, 2017City Council Meeting Agenda Brookings City Council: Keith Corbett, Mayor Council Members Patty Bacon, Dan Hansen, Mary Kidwiler, Ope Niemeyer, 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 6 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 2017-0304,Version:1 Executive Session, pursuant to SDCL 1-25-2, for purposes of discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term “employee” does not include any independent contractor. 1-25-2. Executive or closed meetings--Purposes--Authorization--Misdemeanor. Executive or closed meetings may be held for the sole purposes of: 1) Discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term “employee” does not include any independent contractor; 2) Discussing the expulsion, suspension, discipline, assignment of or the educational program of a student; 3) Consulting with legal counsel or reviewing communications from legal counsel about proposed or pending litigation or contractual matters; 4) Preparing for contract negotiations or negotiating with employees or employee representatives; 5) Discussing marketing or pricing strategies by a board or commission of a business owned by the state or any of its political subdivisions, when public discussion may be harmful to the competitive position of the business. However, any official action concerning such matters shall be made at an open official meeting. An executive or closed meeting shall be held only upon a majority vote of the members of such body present and voting, and discussion during the closed meeting is restricted to the purpose specified in the closure motion. Nothing in § 1-25-1 or this section may be construed to prevent an executive or closed meeting if the federal or state Constitution or the federal or state statutes require or permit it. A violation of this section is a Class 2 misdemeanor. Source: SL 1965, ch 269; SL 1980, ch 24, § 10; SL 1987, ch 22, § 1. City of Brookings Printed on 5/4/2017Page 1 of 1 powered by Legistar™ 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 2017-0129,Version:1 Present Certificate of Election and Oath of Office to Mayor Keith Corbett and Council Members Ope Niemeyer and Dan Hansen. Summary: Mayor Keith Corbett and Council Members Ope Niemeyer and Dan Hansen, will be presented with their Certificate of Election and take their Oath of Office. Attachments: Certificate of Election & Oath of Office - K. Corbett Certificate of Election & Oath of Office - O. Niemeyer Certificate of Election & Oath of Office - D. Hansen City of Brookings Printed on 5/4/2017Page 1 of 1 powered by Legistar™ State Of South Dakota County Of Brookings Municipality of Brookings Certificate Of Election This is to certify that on the 11 th day of April 2017, at the municipal election held throughout the City of Brookings Keith Corbett was duly elected by the qualified voters of the City of Brookings to the office of Mayor for a term of one year, beginning May 1, 2017. Dated at Brookings, South Dakota, this 3rd day of May, 2017. Shari Thornes, City Clerk Brookings City Council Oath of Office I, Keith Corbett, having been elected to the office of Mayor within and for the City of Brookings, Brookings County, South Dakota, do solemnly swear I will support the Constitution of the United States and of this State and the Brookings City Charter, and faithfully discharge the duties of my office, and that I am not under direct or indirect obligation to appoint or elect any person to any office, position, or employment under the government of the City of Brookings. Keith Corbett Subscribed and sworn to before me this 3rd day of May, 2017. Steve Britzman, City Attorney State Of South Dakota County Of Brookings Municipality of Brookings Certificate Of Election This is to certify that on the 11th day of April, 2017, at the municipal election held throughout the City of Brookings Oepke “Ope” Niemeyer was duly elected by the qualified voters of the City of Brookings to the office of Council Member for a term of three years, beginning May 1, 2017. Dated at Brookings, South Dakota, this 3rd day of May, 2017. Shari Thornes, City Clerk Brookings City Council Oath of Office I, Oepke “Ope”Niemeyer, having been elected to the office of City Council Member within and for the City of Brookings, Brookings County, South Dakota, do solemnly swear I will support the Constitution of the United States and of this State and the Brookings City Charter, and faithfully discharge the duties of my office, and that I am not under direct or indirect obligation to appoint or elect any person to any office, position, or employment under the government of the City of Brookings. Oepke “Ope” Niemeyer Subscribed and sworn to before me this 3rd day of May, 2017. Keith Corbett, Mayor State Of South Dakota County Of Brookings Municipality of Brookings Certificate Of Election This is to certify that on the 11 th day of April 2017, at the municipal election held throughout the City of Brookings Dan Hansen was duly elected by the qualified voters of the City of Brookings to the office of Council Member for a term of three years, beginning May 1, 2017. Dated at Brookings, South Dakota, this 3rd day of May, 2017. Shari Thornes, City Clerk Brookings City Council Oath of Office I, Dan Hansen, having been elected to the office of City Council Member within and for the City of Brookings, Brookings County, South Dakota, do solemnly swear I will support the Constitution of the United States and of this State and the Brookings City Charter, and faithfully discharge the duties of my office, and that I am not under direct or indirect obligation to appoint or elect any person to any office, position, or employment under the government of the City of Brookings. Dan Hansen Subscribed and sworn to before me this 3rd day of May, 2017. Keith Corbett, Mayor 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 2017-0300,Version:1 Action to approve the April 25 City Council Minutes. Attachments: 4/25/2017 Minutes City of Brookings Printed on 5/4/2017Page 1 of 1 powered by Legistar™ Brookings City Council April 25, 2017 (unapproved) The Brookings City Council held a meeting on Tuesday, April 25, 2017 at 6:00 p.m., at City Hall with the following City Council members present: Mayor Scott Munsterman (on phone), Deputy Mayor Keith Corbett, and Council Members Mary Kidwiler, Dan Hansen, Ope Niemeyer, Nick Wendell, and Patty Bacon. City Manager Jeffrey Weldon, City Attorney Steve Britzman, and City Clerk Shari Thornes were also present. Also present was Boy Scout Troop 13. Deputy Mayor Corbett called the meeting to order. Consent Agenda. A motion was made by Council Member Hansen, seconded by Council Member Wendell, to approve the Consent Agenda. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Hansen, Kidwiler, Bacon, Wendell, and Munsterman 3.A. Action to approve the agenda. 3.B. Action to approve the March 28 and April 18 City Council Minutes. 3.C. Action on various appointments to City Boards, Committees, and Commissions:Airport Board: reappoint Lynn Riedesel (term expires 5/1/2022); Board of Adjustment: appoint Teresa Binkley as 2 nd Alternate (term expires 1/1/2019); Historic Preservation Commission: appoint Carrie Kuhl (term expires 1/1/2018); Human Rights Commission: reappoint Meagan Irvine-Miller as student representative (term ends 5/1/2018); Park & Recreation Board: reappoint Steve Berseth and Sean Binker (terms expire 5/1/2020); reappoint Thomas Thvedt as high school student representative (term expires 5/1/2018); appoint Cole Moderegger as college student representative (term expires 5/1/2018); Sustainability Council: appoint Caleb Vukovich as student representative (term expires 5/1/2018); Utility Board: reappoint Doug Carruthers (term expires 5/1/2022). 3.D. Action on University Community Coalition appointments: appoint Brian Kramme, Jennifer Johnson, Kristina Lankow, Tom Becker, Stacy Aesoph (terms expire 5/1/2019). 3.E. Action on Resolution 17-046, a Resolution authorizing the Brookings Summer Arts Festival Committee to have exclusive use of Pioneer Park. Resolution 17-046 - A Resolution authorizing the Brookings Summer Arts Festival Committee to have Exclusive Use of Pioneer Park Whereas, the Brookings Summer Arts Festival will be held in Pioneer Park on July 8-9, 2017; and Whereas, the Summer Arts Festival Committee has requested the exclusive use and control of Pioneer Park and its facilities for said festival, plus additional days for preparation and takedown; and Whereas, the Summer Arts Festival Committee will provide evidence of liability insurance coverage including the City of Brookings as named insured; and Whereas, the Summer Arts Festival Committee has agreed to accept responsibility for the conduct of the Summer Arts Festival on said premises. Now, Therefore Be It Hereby Resolved, that the use of Pioneer Park and its facilities as a public park shall terminate for the period of July 3 through July 11, 2017. Be It Further Resolved, that the City Council does hereby grant the exclusive use of Pioneer Park and its facilities during the Brookings Summer Arts Festival to the Summer Arts Festival Committee. Further, It Is Resolved, that the Summer Arts Festival Committee shall be responsible for maintaining said facilities and cleaning them and returning them to the City of Brookings in good condition following the festival. 3.F. Action on Resolution 17-045, a Resolution fixing time and place for Hearing Upon Assessment Roll for Sidewalk Assessment Project No. 2016-01SWR (2016 Sidewalk Repair Sites). Resolution 17-045 - Resolution Fixing Time and Place for Hearing Upon Assessment Roll for Sidewalk Assessment Project No. 2016-01SWR, (2016 Sidewalk Repair Sites) Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows: 1. The assessment roll for Sidewalk Assessment Project No. 2016-01SWR having been filed in the office of the City Clerk on the 19th day of April, 2017, and the City Council shall meet in the Chambers at the City & County Government Center, 520 3rd Street, Brookings, SD on Tuesday, the 9th day of May, 2017, at 6:00 o'clock PM, the said date being not less than twenty (20) days from the filing of said assessment roll. 2. The City Engineer is authorized and directed to prepare a notice describing, in general terms Sidewalk Assessment Project No. 2016-01SWR, the date of filing the assessment roll, the time and place of hearing thereon, stating that the assessment roll will be open for public inspection at the office of the City Engineer and referring to the assessment roll for further particulars. 3. The City Clerk is authorized and directed to publish said notice in the official newspaper at least one week prior to the date set for hearing and to mail a copy thereof, by first class mail addressed to the owner or owners of any property to be assessed at his, her or their last mailing address as shown by the records of the Director of Equalization not less than ten nor more than twenty days prior to the hearing. Resolution 17-047. A motion was made by Council Member Kidwiler, seconded by Council Member Wendell, that Resolution 17-047, a Resolution Awarding a Contractor for the purchase of one New Asphalt Zipper for the City of Brookings Street Department, be approved. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Hansen, Kidwiler, Bacon, Wendell, and Munsterman. Resolution 17-047 - Resolution Awarding a Contractor for Purchase of One New Asphalt Zipper for the City of Brookings Street Department Whereas, the City of Brookings has sought and received the following quote for one new AZ500-B203 HP portable asphalt reclaimer and stabilizer from Asphalt Zipper, Inc. through the HGAC Cooperative Purchasing Program: Asphalt Zipper, Inc. for the amount of $157,190. The capital budget for the expenditure of one AZ500-B203 HP portable asphalt reclaimer and stabilizer is to be financed at $32,000.00 per year for 5 years. Now Therefore, Be it Resolved that the contract from Asphalt Zipper, Inc. in the amount of $157,190.00 be accepted. Resolution 17-042. A motion was made by Council Member Hansen, seconded by Council Member Bacon, that Resolution 17-042, a Resolution awarding the Bid for 2017-04STI, Traffic Signal Improvements Project, 2 nd Street South & Main Avenue South and 5 th Street South & Medary Avenue South, be approved. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Hansen, Kidwiler, Bacon, Wendell, and Munsterman. Resolution 17-042 - Resolution awarding the Bid for 2017-04STI, Traffic Signal Improvements Project, 2nd Street South & Main Avenue South, and 5th Street South & Medary Avenue South Whereas, the City of Brookings opened bids for the 2017-04STI Traffic Signal Improvements Project, 2nd Street South & Main Avenue South and 5th Street South & Medary Avenue South on Tuesday, April 18, 2017 at 1:30 pm at the Brookings City and County Government Center; and Whereas, the City of Brookings has received the following bid for the 2017-04STI Traffic Signal Improvements Project: Bowes Construction Inc. $579,233.68. Now Therefore, Be It Resolved that the low bid of $579,233.68 with Bowes Construction Inc. be accepted. Resolution 17-044. A motion was made by Council Member Niemeyer, seconded by Council Member Kidwiler, that Resolution 17-044, a Resolution awarding the Bid for 2017-01SWR, Concrete Maintenance Project, be approved. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Hansen, Kidwiler, Bacon, Wendell, and Munsterman. Resolution 17-044 - Resolution awarding the Bids for Project 2017-01SWR Concrete Maintenance Project Whereas, the City of Brookings opened bids for Project 2017-01SWR Concrete Maintenance Project on Tuesday, April 18, 2017 at 1:30 pm at the Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids for the 2017-01SWR Concrete Maintenance Project: Timmons Construction Inc: $326,047.25, Clark Drew Construction Inc: $326,838.60, and Big O Concrete Inc: $346,751.50; and Whereas, the bid for Timmons Construction Inc. shall be rejected due to lack of bid bond, certified check or cashier’s check as required by SDCL 5-18B-2. Now Therefore, Be It Resolved that the bid of $326,838.60 for Clark Drew Construction, Inc. be accepted. Resolution 17-041. A motion was made by Council Member Niemeyer, seconded by Council Member Hansen, that Resolution 17-041, a Resolution amending the City of Brookings Investment Policy pertaining to local bidding preference, be approved. The following friendly amendment was made by Council Member Hansen “by allowing the closest, non-successful, local bidder the opportunity to match the high, non-local bidder by allowing a qualified local financial institution in 2nd place after the bidding process, to match the 1st place bid of a qualified financial institution that is not located in Brookings.”; and added definition for QUALIFIED FINANCIAL INSTITUTIONS: Pursuant to SDCL 9-22-6 and 6.1, the City Council of the City of Brookings, South Dakota, annually designates depositories for Municipal Funds of the City of Brookings. Qualified financial institutions would be those listed in the adopted annual Resolution.” The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Hansen, Kidwiler, Bacon, Wendell, and Munsterman. Resolution 17-041 - City of Brookings Investment Policy Amended: April 25, 2017 Objective:The purpose of “The City of Brookings Investment Policy” is to set investment objectives, policies, establish guidelines, and define responsibilities for the investment of funds for the City of Brookings. Policy:City of Brookings Investment Policy 1.0 Purpose ................................................................................................................2 2.0 Policy ....................................................................................................................2 3.0 Scope ...................................................................................................................2 4.0 Objective ..............................................................................................................2 5.0 Standard of Care .................................................................................................4 6.0 Authority and Responsibility ….............................................................................5 7.0 Authorized Financial Dealers and Institutions ..................................................... 6 8.0 Authorized & Suitable Investments ..................................................................... 6 9.0 Safekeeping and Custody ................................................................................... 7 10.0 Collateralization ................................................................................................. 7 11.0 Diversification .....................................................................................................7 12.0 Maximum Maturities .......................................................................................... 8 13.0 Reporting ........................................................................................................... 8 14.0 Policy Control .................................................................................................... 8 GLOSSARY............................................................................................................... 9 1.0 PURPOSE The purpose of “The City of Brookings Investment Policy” is to set investment objectives, policies, establish guidelines, and define responsibilities for the investment of funds for the City of Brookings. 2.0 POLICY The policy of the City of Brookings is to invest idle public funds in a manner based upon state law, that will provide the maximum security, sufficient liquidity, and competitive investment return to meet the daily cash flow demands of the City. The primary goals are: A. To ensure compliance with all Federal, State, and local laws governing the investment of public funds under the control of the City Manager. B. To protect the principal monies entrusted to the City’s Finance Department. C. Achieve a reasonable rate of return within the parameters of prudent risk management while minimizing the potential for capital losses arising from market changes or issuer default. 3.0 SCOPE This policy applies to the investment of all funds of Brookings, South Dakota. Except for funds held in trust or special funds that are otherwise specifically provided for, the city will consolidate the balances from all funds to maximize investment 3.1 Pooling of Funds Except for cash in certain restricted and special funds the City of Brookings will consolidate cash balances from all funds, including utilities and hospital, to maximize investment earnings and meet the liquidity requirements of the city subject to the primary objective of providing security of principal. Investment income will be allocated to the various funds based on their respective participation of capital in the overall portfolio in accordance with generally accepted accounting principles. 4.0 OBJECTIVE Pursuant to South Dakota Codified Law, Chapter 4-5-8 it is the policy of the City of Brookings to invest funds in a manner to meet the daily cash flow demands of the City. The primary objectives, in priority order, being: a) Safety of Principal b) Liquidity c) Return on Investments: A) Safety of Principal Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate the following risks. 1. Credit Risk The City of Brookings will minimize credit risk, which is the risk of loss due to the failure of the investment issuer or backer, by limiting the portfolio to the types of investments listed in section8. Authorized and Suitable Investments of this policy and diversifying the investment portfolio to diminish the impact of potential losses from any one type of investment or from any one individual issuer. 2. Interest Rate Risk The City of Brookings will minimize interest rate risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates, by structuring the portfolio to meet the cash requirements of ongoing operations, thereby mitigating the need to liquidate securities at a loss prior to maturity. 3. Concentration Risk The City of Brookings will minimize Concentration of Credit Risk, which is the risk of loss due to having a significant portion of resources invested in a single issuer, by diversifying the investment portfolio as described in section11. Diversification so the impact of potential losses from any one type of security or issuer will be minimized. Investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments are excluded from this requirement. 4. Custodial Credit Risk The City of Brookings will minimize Custodial Credit Risk for deposits, which is the risk that in the event of the failure of a depository financial institution the deposits or collateral securities that are in the possession of an outside party would not be able to be recovered, as addressed in section10. Collateralization. The City of Brookings will minimize Custodial Credit Risk for investments, which is the risk that in the event of the failure of the counterparty to a transaction the value or collateral securities that are in the possession of an outside party would not be able to be recovered, as addressed in section9. Safekeeping and Custody. B) Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should include securities with active secondary or resale markets (dynamic liquidity). Alternatively, a portion of the portfolio may be placed in money market mutual funds or local government investment pools which offer same-day liquidity for short-term funds. C) Return on Investments The portfolio shall be designed to obtain a reasonable rate of return throughout budgetary and economic cycles. The return on investments is to be accorded secondary importance compared to the safety and liquidity objectives described above. The core of investments will focus on relatively low risk securities with an expectation of earning a reasonable return relative to the risk being assumed. Securities shall not be sold prior to maturity, with the following exceptions: A security with declining value may be sold early to minimize loss of principal. A security may be exchanged to improve the quality, yield, or target duration in the portfolio. A security may be sold in order to satisfy liquidity requirements. When selling a security prior to maturity, the City Manager shall provide an explanation for any gains or losses. Policy compliance does not provide a benchmark to meet or exceed, but is a model to follow. The City will benchmark its portfolio performance to the appropriate “treasuries constant maturity” rate based on portfolio maturities of the investment plan. 5.0 Standard of Care 5.1 Prudence The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers, acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes. The “prudent person” standard states that “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” 5.2 Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City of Brookings. The City Investment program shall be managed in a professional and prudent manner worthy of the public trust and review. 6.0 Authority and Responsibility 6.1 Authority In accordance with the City of Brookings, the responsibility for conducting investment transactions resides with the City Manager. The Finance Director, under the general direction of the City Manager, shall be responsible for all transactions undertaken and shall establish a system of controls to regulate activities. 6.2 Responsibility Parties shall refrain from personal business activity that could impair his/her ability to make impartial decisions. The Finance Director acting in accordance with this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual investment’s credit risk or market price changes, provided deviations form expectations are reported in a timely fashion and the liquidity and the sale of investments are carried out in accordance with the terms of this policy. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probably income to be derived. 6.3 Local Preference The City of Brookings strives to support the local economy and community. To honor this, the City will give a local preference to bids from qualified financial institutions in the City of Brookings by allowing the closest, non-successful, local bidder the opportunity to match the high, non-local bidder. This post-bid match opportunity would only occur when the high bidder was a non-local institution. There would be no preference recognized among all local bidders. The purpose of this is to strike a balance between giving local financial institutions credit for their community investments to the local economy and still preserving the fiduciary responsibility of attempting to receive the highest rate of return possible. Example: Financial Institution “A” not located in Brookings bids 1.2% Financial institution “B” located in Brookings bids 1% Financial Institution “C” located in Brookings bids .9% Financial Institution “A” has winning bid, however, if Financial Institution “B” is willing to match Financial Institution “A” bid, Financial Institution “B” will be awarded the bid. 7.0 Authorized Financial Dealers and Institutions 7.1 Selection Process A list of financial institutions authorized to provide investment services to the City of Brookings will be maintained. In addition, a list of broker/dealers will be maintained. This list may include both primary and regional dealers. Dealers will be approved by the Finance Director on the following: Credit worthiness License to conduct business in South Dakota Qualification under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule) 8.0 Authorized & Suitable Investments The City of Brookings is empowered by statue to invest in the following types of securities: Interest bearing checking accounts Savings accounts United States Treasury bills, bonds and notes (SDCL 4-5-6) United States Government Agencies (SDCL 4-5-6) Securities issued by government-sponsored enterprises (GSEs) or federally related institutions that are guaranteed directly or indirectly by the US Government. Securities issued by the Government National Mortgage Association (GNMA or Ginnie Mae) are an example of securities directly guaranteed by the government. Securities issued by other GSEs may be allowable. Interest bearing checking accounts Certificates of Deposit (CDs) (SDCL 9-22(municipalities), Certificates of Deposit (CDs) purchased through CDARS® (Certificate of Deposit Account Registry Service) (SDCL 4-5-6.1)* Money Market Mutual Funds - open-end, no-load (SDCL 4-5-6) Mutual and money market funds that invest in US Treasury securities or securities issued by GSEs or federally related institutions that are guaranteed directly or indirectly by the US Government. Repurchase Agreements fully collateralized by allowable securities (SDCL 4-5-6) South Dakota Public Funds Investment Trust (SD FIT) Local Government Investment Pool When investing in Certificates of Deposit (CDs) public funds will be invested at the highest rate of interest possible. The above listed authorized deposits will be kept in banks in South Dakota as required by SDCL 9-22-6. 9.0 Safekeeping and Custody -9.1 Delivery vs. Payment All trades of marketable securities, where applicable, will be executed by delivery vs. payment (DVP) to ensure that securities are deposited in an eligible financial institution prior to the release of funds. Securities will be held by a third party custodian as evidenced by safekeeping receipts. 9.2 Safekeeping Securities will be held by a centralized custodian selected by the city as evidenced by safekeeping receipts in the City’s name as per SDCL 4-5-9. 9.3 Internal Controls The Finance Director is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City of Brookings are protected from loss, theft, or misuse. The internal controls shall address the following points: Control of collusion Separation of transaction authority from accounting and recordkeeping Custodial safekeeping Delivery versus payment Clear delegation of authority Confirmation of transactions for investments and wire transfers 10.0 Collateralization In accordance with the SDCL 4-6A and 51A-10-9 Qualified Public Depositories will furnish collateral in the sum equal to one hundred percent (100%) of the public deposit account that exceed deposit insurance. The Finance Director will review semi-annually the Under-Collateralized Bank Accounts report found on the SD Department of Legislative Audit website to ascertain compliance by financial institutions of adequate collateral coverage. SDCL 4-6A-3 requires that collateral be segregated by each depository in such manner as approved by the South Dakota Deposit Protection Commission. 11.0 Diversification The purpose of diversification is to reduce overall portfolio risk while attaining market rates of return and to enable the City of Brookings to meet all anticipated cash requirements. The investments shall be diversified by: Limiting investments to avoid over-concentration in securities of a specific issuer (excluding treasury bills). Limiting investment in securities that have higher credit risks. Investing in securities with varying maturities. 12.0 Maximum Maturities To the extent possible, the City of Brookings will attempt to match its investments with anticipated cash flow requirements. The City of Brookings will keep investments for duration not to exceed five (5) years 13.0 Reporting 13.1 Methods The Finance Director shall prepare an investment report quarterly for the City Council. This report will include the following: List of individual securities held at the end of the reporting period further broken down by issuer, purchase date, maturity date, coupon rate, par value, and yield to maturity. 13.2 Performance Standards The investment portfolio shall be designed with the objective of obtaining a competitive rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and cash flow needs. 14.0 Policy Control 14.1 Exemption Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy as long as it was in compliance with State of South Dakota Law and the City’s investment policy in effect at the time of purchase. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. 14.2 Amendments This policy shall be reviewed to ensure consistency to overall objectives of safety, liquidity, yield, compliance to current law, and economic trends. 14.3 Requirements This investment policy is required by SDCL 4-5-8 and approved by the city council. Approved on July 24, 2000 Revised on March 26, 2001 Revised on July 27, 2004 Revised on January 25, 2011 Revised on January 10, 2017 Revised on April 25, 2017 City of Brookings Scott Munsterman, Mayor ATTEST: Shari Thornes, City Clerk GLOSSARY AGENCY: A debt security issued by a federal or federally sponsored agency. Federal agencies are backed by the full faith and credit of the U. S. Government. Federally sponsored agencies (FSAs) are backed by each particular agency with a market perception that there is an implicit government guarantee. An example of a federal agency is the Government National Mortgage Association (GNMA). An example of an FSA is the Federal National Mortgage Association (FNMA). BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investment. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CDs are typically negotiable. CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SERVICE (CDARS): A program with an approved depository that removes the need for collateral by providing full FDIC insurance for certificates of deposit. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date. CREDIT RISK: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. DURATION: A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed-income security. This calculation is based on three variables; term to maturity, coupon rate, and yield to maturity. The duration of a security is a useful indicator of its price volatility for given changes in interest rates. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $100,000 per deposit. FIDUCIARY: Person, company, or association holding assets in trust of a beneficiary. INVESTMENT POLICY: A concise and clear statement of the objectives and parameters formulated by an investor or investment manager for a portfolio of investment securities. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET RISK: The risk that the value of a security will rise or decline as a result of changes in market conditions. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. PORTFOLIO: Collection of securities held by an investor. PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state---the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. QUALIFIED FINANCIAL INSTITUTIONS: Pursuant to SDCL 9-22-6 and 6.1, the City Council of the City of Brookings, South Dakota, annually designates depositories for Municipal Funds of the City of Brookings. Qualified financial institutions would be those listed in the adopted annual Resolution. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is, increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SPECULATION: Assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss. TREASURY BILLS: A non-interest bearing discount security issued by the U. S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term coupon-bearing U. S. Treasury securities issued as direct obligations of the U. S. Government and having initial maturities of more than ten years. TREASURY NOTES: Medium-term coupon-bearing U. S. Treasury securities issued as direct obligations of the U. S. Government and having initial maturities from two to ten years. VOLATILITY: A degree of fluctuation in the price and valuation of securities. YIELD: The rate of annual income return on an investment, expressed as a percentage. (Mayor Munsterman left the meeting at 6:25 p.m.) FIRST READING – Ordinance 17-009. Introduction and First Reading on Ordinance 17-009, an Ordinance rezoning Lots 4, 5, & 6, Block 17, Prairie Hills Addition and the SW 1/4 of the SE 1/4, excluding platted areas in Section 2-T109N-R50W. Public Hearing: May 9, 2017. FIRST READING – Ordinance 17-010. Introduction and First Reading on Ordinance 17-010, an Ordinance pertaining to a Conditional Use Permit for outdoor storage, on Lot 3 LeFevre Addition, also known as 3100 6th Street. Public Hearing: May 9, 2017. FIRST READING – Ordinance 17-011. Introduction and First Reading on Ordinance 17-011, an Ordinance Establishing What Hours Public Parks and Playgrounds are open to the Public in the City of Brookings, South Dakota. Second Reading: May 9, 2017. FIRST READING – Ordinance 17-012. Introduction and First Reading on Ordinance 17-012, an Ordinance amending the Zoning Ordinance of the City of Brookings pertaining to Section 94-1 Definition of Yard, Primary Front, for the purposes of administration of the Zoning Ordinance. Public Hearing: May 9, 2017. FIRST READING – Ordinance 17-008. A motion was made by Council Member Kidwiler, seconded by Council Member Wendell, that Ordinance 17-008, an Ordinance amending the Zoning Ordinance of the City of Brookings and pertaining to Section 94- 396 Wireless Communication Facilities for the purpose of administration of the Zoning Ordinance be tabled to May 9, 2017. The motion carried by the following vote: Yes: 6 - Corbett, Niemeyer, Hansen, Kidwiler, Bacon, and Wendell, Absent: 1 - Munsterman. Resolution 17-048. A motion was made by Council Member Wendell, seconded by Council Member Hansen, that Resolution 17-048, a Resolution Amending the Fee Schedule of the City of Brookings, South Dakota (Small Cell, DAS, and Wi-Fi Facilities Permit) be tabled to May 9, 2017. The motion carried by the following vote: Yes: 6 - Corbett, Niemeyer, Hansen, Kidwiler, Bacon, and Wendell, Absent: 1 – Munsterman. Resolution 17-040. A motion was made by Council Member Niemeyer, seconded by Council Member Hansen, that Resolution 17-040, a Resolution Repealing and Replacing Resolution 15-079 pertaining to the Sale of Surplus Real Property, be approved. The motion carried by the following vote: Yes: 6 - Corbett, Niemeyer, Hansen, Kidwiler, Bacon, and Wendell, Absent: 1 – Munsterman. 6th Street shared-use Bicycle Transportation Path Design. A motion was made by Council Member Bacon, seconded by Council Member Kidwiler, to approve the 6th Street shared-use Bicycle Transportation Path Design on the north side of 6th Street between Main Avenue and Medary Avenue. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Hansen, Kidwiler, Bacon, Wendell, and Munsterman. Adjourn. A motion was made by Council Member Hansen, seconded by Council Member Wendell, to adjourn the meeting at 7:00 p.m. The motion carried by a unanimous vote. CITY OF BROOKINGS Scott Munsterman, 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 #:RES 17-051,Version:1 Action on Resolution 17-051, a Resolution Authorizing the Execution of Equipment Lease-Purchase Agreement. Summary: The scoreboard/electronic display at the Swiftel Center is in need of upgrading. The existing video display board is original to the building and its dependability is becoming more dubious with time. We have experienced some times during events the video board failed and we had to quickly bring in portable units. This model is no longer serviceable and parts are becoming more difficult to obtain. The technology has increased significantly as the new equipment is much better in terms of versatility and resolution. What’s more, our ability to attract many performing artists and events depends upon having state-of-the-art video and sound equipment that can meet the needs of our customers and clients. In order to purchase the new indoor LED video board together with all attachments, tooling, accessories and additions, Swiftel staff has negotiated a lease-purchase agreement with Daktronics financing company. The terms are for ten years at 2.971% interest and annual payments of $33,630. Fiscal Impact: The payments will come out of the $300,000 currently allocated to Swiftel Center for Capital Improvement from 75% Sales Tax. Staff recommends approval. Attachments: Resolution City of Brookings Printed on 5/4/2017Page 1 of 1 powered by Legistar™ Resolution 17-051 Resolution Authorizing The Execution of Equipment Lease – Purchase Agreement Be It Resolved by the City Council of the City of Brookings, South Dakota as follows: Whereas, for the purpose of financing the acquisition of a Daktronics Display/Scoreboard, the City of Brookings desires to execute a Lease-Purchase Agreement in the principal amount not exceeding $294,000, and Whereas, PNC Equipment Finance, LLC will act as Lessor under said Lease; and Whereas, the Lease with PNC Equipment Finance, LLC will bear interest and will contain options to purchase the equipment by the City of Brookings, and annual lease payments will be subject to annual appropriation or renewal by the City Council and shall not constitute general obligations of the City or indebtedness under the Constitution or laws of the State of South Dakota, and Whereas, this Resolution shall take effect immediately upon its adoption and approval. Now, Therefore, It Is Hereby Resolved by the City Council of the City of Brookings, South Dakota, as follows: A. That the City of Brookings enter into an Equipment Lease-Purchase Agreement with PNC Equipment Finance, LLC to acquire an Indoor Daktronics LED Video Board Together with all attachments, tooling, accessories, appurtenances and additions thereto; and B. That the Mayor, City Clerk, City Manager and City Attorney are authorized to execute a Equipment Lease-Purchase Agreement with PNC Equipment Finance, LLC and the required lease financing documents in accordance with this Resolution. Passed and approved on the 9th day of May, 2017. CITY OF BROOKINGS ATTEST:Keith W. Corbett, Mayor 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 #:RES 17-055,Version:1 Action on Resolution 17-055, a Resolution declaring a 2002 Ford F150 Pickup as Surplus Property (Engineering Dept.). Summary: This resolution will surplus the 2002 Ford F150 Pickup formerly used by the Brookings Engineering Department. Background: The City Engineering Department is scheduled to replace their 2002 Ford F150 pickup, VIN # 1FTRX18L62NA35445, in 2017. The pickup has experienced transmission issues and the City plans to sell it. The 2002 Ford F150 vehicle was scheduled to be replaced with a fire department vehicle, however, it was determined to retain the fire department vehicle and purchase a used pickup instead. Fiscal Impact: The City will receive the proceeds from selling the 2002 Ford F150 pickup. Recommendation: Staff recommends approval. Attachments: Resolution City of Brookings Printed on 5/4/2017Page 1 of 1 powered by Legistar™ Resolution 17-055 Declaring Surplus Property – Engineering Department 2002 Ford F150 Pickup Whereas, the City of Brookings is the owner of the following described vehicle formerly used at the Brookings Engineering Department: One (1) 2002 Ford F150 Pickup, VIN #1FTRX18L62NA35445. 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 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. Passed and approved this 9th day of May, 2017. 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 2017-0295,Version:1 Action on Ex-Officio Appointments. Summary: Mayor Corbett recommends the following appointments: ·Brookings Health System Board of Trustees Mayor Keith Corbett Council Member Mary Kidwiler ·Brookings Municipal Utilities Council Member Ope Niemeyer Council Member Patty Bacon ·BEDC Board Council Member Dan Hansen ·BEDC Investment Committee Council Member Mary Kidwiler Council Member Ope Niemeyer Council Member Dan Hansen ·East Central Communications Council (E-911) Council Member Patty Bacon ·Joint Powers Board Council Member Nick Wendell Council Member Mary Kidwiler ·Retail Grant Committee Council Member Nick Wendell City of Brookings Printed on 5/4/2017Page 1 of 1 powered by Legistar™ 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 2017-0296,Version:1 Invitation to attend Patrick Dougherty’s Artist Talk at the Children’s Museum of South Dakota on Thursday, May 18th, from 5:00-6:30 p.m. by Lynn Verschoor from the Brookings Public Arts Commission. Summary: Patrick Dougherty is an internationally-renowned artist who has installed more than 250 of his innovative public art pieces known as “Stickworks” all over the world. His installation in Brookings, completed between May 1-18, will be the first in South Dakota. Come hear Dougherty talk about his site-specific installation and about the value and impact of public art. Attachments: Invitation City of Brookings Printed on 5/5/2017Page 1 of 1 powered by Legistar™ YOU ARE CORDIALLY INVITED TOPATRICK DOUGHERTY’SARTIST TALKTHURSDAY, MAY 18 5:00 - 6:30 PM - ARTIST TALK @ 5:30 CHILDREN’S MUSEUM OF SOUTH DAKOTA Patrick Dougherty is an internationally-renowned artist who has installed more than 250 of his innovative public art pieces known as “Stickworks” all over the world. His installation in Brookings, completed between May 1-18, will be the rst in South Dakota. Come hear Dougherty talk about his site-specic installation and about the value and impact of public art. A Waltz in the Woods (2015) Morris Arboretum of UPA, Philadelphia, PA. Photos: Rob Cardillo River Vessels (2010) Waco Cultural Arts Festival, Waco, TX. Photo: Mark Randolph 2015. Photo: Brianna Brough/Chapel Hill Magazine Photo credits: 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 2017-0272,Version:1 Presentation of City of Brookings 2016 Annual Financial Report. Summary: Chris Lindner, CPA, CGMA, Manager BKD, LLP will be present to discuss the 2016 Financial Audit and the City of Brookings Comprehensive Annual Financial Report. Attachments: Council Audit Presentation 2016 Comprehensive Annual Financial Report (CAFR) Communication Letter City of Brookings Printed on 5/5/2017Page 1 of 1 powered by Legistar™ experience responsiveness // CPAs & ADVISORSCity of Brookings, South Dakota2016 Audit PresentationChris Lindner, CPA, CGFMAbby Dobson, CPA TESTING APPROACH & TIMELINEAudit Interim/Planning, Internal Control WalkthroughsCoordination with Other Auditors Final Audit FieldworkAudit Wrap‐up / Concurring Review / BKD National Office ReviewAudit Results and Communication2// 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 Weaknesses3// experience responsiveness IMPLEMENTATION OF NEW ACCOUNTING PRINCIPLESGASB Statement No. 72 –Fair Value Measurement and ApplicationGASB Statement No. 73 –Accounting and Financial Reporting for Pensions and Related Assets That Are Not Within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statement 67 and 68GASB Statement No. 76 –The Hierarchy of Generally Accepted Accounting Principles for State and Local GovernmentsGASB Statement No. 77 –Tax Abatement DisclosuresGASB Statement No. 79 –Certain External Investment Pools and Pool ParticipantsGASB Statement No. 82 –Pension Issues, an Amendment of GASB Statements No. 67, 68, and 73.4// 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 pronouncements5// 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 58 of the City’s CAFR)Statistical Information (starting on page 131 of the City’s CAFR)6// experience responsiveness RESERVES – COMPARISON TO PEER CITIES“Unrestricted” Fund Balance as a % of Annual Expenditures – General Fund7// experience responsiveness2016 2015     2014     2013     City of Brookings 45% 41% 55% 49%Peer Group 42% 37% 31% 32% LONG‐TERM DEBT LEVELS – COMPARISON TO PEER CITIESGovernmental Debt Principal Outstanding toAssessed Valuation8// experience responsiveness2016 2015 2014 2013City of Brookings $1.85 $2.14 $2.40 $1.99Peer Group $2.55 $2.01 $2.02 $2.02 LONG‐TERM DEBT LEVELS – COMPARISON TO PEER CITIESGovernmental Debt Principal Outstanding to Population9// experience responsiveness2016 2015 2014 2013City of Brookings $938 $1,034 $1,121 $895Peer Group $1,378 $1,133 $1,085 $940 LONG‐TERM DEBT LEVELS – COMPARISON TO PEER CITIESTotal Debt (Governmental and Business‐Type) Principal Outstanding to Population10 // experience responsivenessNote:  City of Brookings figure excludes debt principal for the Telephone Fund and Health System for comparability purposes.2016 2015 2014 2013City of Brookings $2,566 $2,509 $2,537 $1,597Peer Group $2,490 $2,256 $2,399 $2,149 Questions?Thank You!!!11 // experience responsiveness FISCAL YEAR ENDED DECEMBER 31, 2016 2016 COMPREHENSIVE ANNUALFINANCIAL REPORT CITY OF BROOKINGS, SOUTH DAKOTA About the Cover: The City of Brookings dedicated the new Street Department Maintenance Facility in October, 2016. The facility houses the entire Street Department which includes asphalt maintenance, traffic safety and mosquito control. At a cost of $4.1 million, the 36,000 square foot building includes features such as 3,400 sq. ft. wash bay with elevated catwalks, pressure washer and 2” water connection; 25 ft. overhead doors, 8 pull through bays, 8” concrete floors and 8” exterior concrete paving, in-floor radiant heat in the wash bay and mechanics bay, ERV unit, generator backup system, and is fully ADA compliant. 2016 COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF BROOKINGS, SOUTH DAKOTA _________________________________________ January 1, 2016 – December 31, 2016 _________________________________________ Prepared by: THE CITY FINANCE OFFICE Shawna M. Costello, CPA, CPFO Finance Director _________________________________________ 1 City of Brookings December 31, 2016 Table of Contents PART I‐ INTRODUCTIORY 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 Budgetary Comparison Schedule General Fund 81 Notes to Required Supplementary Information ‐ Budgetary Reporting 82 Supplementary Information and Combining Financial Statements Nonmajor Governmental Funds Balance Sheet 83 Statement of Revenues, Expenditures, and Changes in Fund Balances 84 Nonmajor Special Revenue Funds 85 Balance Sheet 86 Statement of Revenues, Expenditures, and Changes in Fund Balances 88 Budgetary Comparison Schedules 90 Nonmajor Debt Service Funds 99 Balance Sheet 100 Statement of Revenues, Expenditures, and Changes in Fund Balances 101 Budgetary Comparison Schedules 102 2 City of Brookings December 31, 2016 Table of Contents (Continued) Nonmajor Capital Project Funds 108 Balance Sheet 109 Statement of Revenues, Expenditures, and Changes in Fund Balances 110 Budgetary Comparison Schedules 111 Nonmajor Enterprise Funds 117 Statement of Net Position 118 Statement of Revenues, Expenses, and Changes in Net Position 122 Statement of Cash Flows 124 Fiduciary Funds 128 Statement of Net Position 129 Statement of Changes in Assets and Liabilities 130 PART III ‐ STATISTICAL SECTION 131 Table 1 Net Position by Component 132 Table 2 Changes in Net Position 134 Table 3 Fund Balances of Governmental Funds 140 Table 4 Changes in Fund Balances of Governmental Funds 142 Table 5 Assessed Value and Actual Value of Taxable Property 144 Table 6 Direct and Overlapping Property Tax Rates 144 Table 7 Principal Taxpayers 145 Table 8 Property Tax Levies and Collections 145 Table 9 Historical Sales and Use Tax Receipts 146 Table 10 Taxable Sales by Category 146 Table 11 Direct and Overlapping Sales Tax Rates 148 Table 12 Ratio of Net General Bonded Debt 148 Table 13 Ratio of Outstanding Debt by Type 149 Table 14 Direct and Overlapping Governmental Activities Debt 149 Table 15 Legal Debt Margin Information 150 Table 16 Pledged‐Revenue Coverage 152 Table 17 Demographic and Economic Statistics 155 Table 18 Principal Employers 156 Table 19 Full‐Time Equivalent City Government Employees by Function/Program 157 Table 20 Operating Indicators by Function/Program 158 Table 21 Capital Asset Statistics by Function/Program 159 Independent Auditor's 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 161 3       May 3, 2017 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, 2016. 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, 2016, 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, 2016 are fairly presented in conformity 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. Bookings 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 under 13,000 students in 2016, 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 13,232 to 13,471 from December 31, 2015 to December 31, 2016 and the total employment increased from 12,912 to 13,109 individuals for those dates, respectively. Unemployment for Brookings was at 2.7 percent, well below the national average of 4.7 percent and up .3 percent from the 2015 rate of 2.4 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 2016, the city approved 451 building permits which was a slight decrease from the 463 approved in 2015. The estimated construction value of residential and nonresidential construction was $52.8 million in 2016; down 9.2 percent from the $58.2 in 2015. Nonresidential construction accounted for 57.1 percent of the estimated construction value in 2016 compared to 60.4 percent in 2015 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 2016‐2017 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 Finalize the public art program, implementation set for 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 will be under construction in 2017/2018 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 $4.2 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. 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 6 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 is scheduled for 2017/2018 at the estimated cost of $1,260,000. 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 will include 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‐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 4 years budgeted at $31 million. BMU is currently in the process of a $6.5 million upgrade to the local electrical grid to reduce the number of substations, provide redundancy power, and bury previously overhead power lines; all designed to improve electrical service reliability. Brookings Municipal Utilities has planned for a $12 million investment in its PCS services under the Sprint cellular brand for 4G capabilities. Public Safety Fire Station – In 2017 the City is constructing a new substation located on South Main Street to better serve the City’s growing population. This station will accommodate four apparatus bays for three engines and one rescue boat, support space, and a display area for the Department’s vintage 1940 GMC Firetruck. The new station will provide additional height to raise the apparatus during service, and will include large glazed overhead doors and transom windows to draw natural light into the space and limit the need for artificial light. The south Main Fire Station is designed for multiple future expansions – up to four bays to the West and overnight space to the East – to reduce construction cost as the City grows. Health Care Brookings Health System ‐The Brookings Health System Expansion and Renovation Project which will be completed in 2017, consists of approximately 60,000 sq. ft. of new construction, 18,000 sq. ft. of renovation, and 24,000 sq. ft. of medical office space. The east hospital expansion will consist of a 2‐story building housing our same‐day surgical unit, operating rooms, central sterilization and imaging on the first floor, while the second floor will consist of our pharmacy and inpatient medical/surgical and obstetrics units. Today we stand in a unique position to further our community’s vision for caring for our own close to home. To do this, we must address three major changes which have occurred since our current hospital was built 50 years ago: Our community has grown significantly; Health care has changed radically; and, Patient expectations regarding health care are drastically different. Cultural and Recreational Facility Improvements Carnegie Building Project ‐ Originally built in 1914, the Carnegie Library building is home to the Brookings Arts Council. The renovation project will include updating and replacing necessary electrical equipment, flooring, and HVAC as well as remodeling of the gallery display areas and arts education classroom. 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 A new hotel and a mixed use residential complex are under construction by private development and another hotel is planned. The City established a niche retail grant program to encourage new, small business in the downtown retail area and formalized an economic development policy to incentivize new and expanding commerce and industry. In addition, the City acquired 25 acres of property at the intersection of Highway 14 and Interstate 29 for more retail and commercial development opportunities. The City hopes to attract major, 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, 2016 Scott Munsterman………………………………………………………………………………… Mayor Keith Corbett………………………………………………………………………………………… Deputy Mayor Patty Bacon……………………………………………………………………………………………Council Member Dan Hansen……………………………………………………………………………………………Council Member Nick Wendell……………………………………………………………………………………………Council Member Ope Niemeyer…………………………………………………………………………………………Council Member Mary Kidwiler…………………………………………………………………………………………Council Member Jeffrey W. Weldon………………………………………………………………………………… 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 Jeff Miller…………………………………………………………………………………………………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 Waste/Street City Attorney Event Center Board (Swiftel Center) Community Development City of Brookings December 31, 2016 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, 2016, 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, Water and Wastewater Funds, which represent 87%, 82% and 94%, respectively, of the total assets, 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 the 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, 2016, 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 listed in the table of contents be presented to supplement the basic financial statements. Such information, although not 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 and the introductory and statistical sections, 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 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 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 have also issued our report dated May 3, 2017, 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 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 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 3, 2017 15 City of Brookings  December 31, 2016      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, 2016.  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  $335,874,277 (net position) for the calendar year reported.     The City's total ending net position of $335,874,277 this year compared to the prior year ending net position of  $318,156,171 reflects an increase of $17,718,106 during the calendar year.       Total net position is comprised of the following:  1. Net investment in capital assets, of $208,169,033 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 $12,658,390 is restricted by constraints imposed from outside the City such as debt covenants,  grantors, laws, or regulations.  3. Unrestricted net position of $115,046,854 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 $97,096,791 this year.  This compares to the  prior year ending net position of $92,017,334 showing an increase of $5,079,457 during the calendar year.   Unrestricted net position of $20,064,256 at December 31, 2016 shows a $2,360,344 decrease from the prior year.     At the end of the current calendar year, unassigned fund balance for the General Fund was $5,820,728, or 35.4% of  total General Fund expenditures.     The City’s business‐type activities reported increased net position of $12,638,649 compared to the previous year,  ending the current year at $238,777,486.  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 $9,987,565 ending the current fiscal year at $96,439,822  outstanding.  This increase was due in large part to the City recognizing $6.26 million in pension liability in 2016 as  opposed to $7.93 million of net pension asset in 2015.  The remainder of the increase was due mainly to borrowings  related to the Health System’s expansion.        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, 2016      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 2016.  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 which is considered to be a major fund.  Data from the other 21 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 fund (General 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, 2016      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 2016,  assets and deferred outflows exceeded liabilities by $335,874,277.  This reflects an increase in the City’s combined net position  of 5.6% between fiscal year 2015 and 2016.      2015 2016 2015 2016 2015 2016 Current and Other Assets $31,206,665 $28,185,775 $128,123,281 $116,716,300 $159,329,946 $144,902,075 Capital  Assets 88,528,412 93,495,509 171,585,236 201,224,641 260,113,648 294,720,150 Total  Assets 119,735,077 121,681,284 299,708,517 317,940,941 419,443,594 439,622,225 Deferred Outflows  of          Resources 2,410,233 3,336,746 7,257,328       11,234,952     9,667,561        14,571,698 Total  Assets and Deferred     Outflows  of Resources  122,145,310 125,018,030 306,965,845 329,175,893 429,111,155 454,193,923 Other Liabilities 2,530,555 2,521,631 15,092,986 18,739,122 17,623,541 21,260,753 Long ‐Term Liabilities 26,155,086 25,385,626 60,297,171 71,054,196 86,452,257 96,439,822 Total  Liabilities 28,685,641 27,907,257 75,390,157 89,793,318 104,075,798 117,700,575 Deferred Inflows  of Resources 1,442,335      13,982           5,436,851       605,089          6,879,186        619,071            Total  Liabilities and Deferred 30,127,976    27,921,239    80,827,008     90,398,407     110,954,984    118,319,646         Inflows  of Resources Net Investment in Ca pital  Assets 64,579,729 72,145,788 114,205,616 136,023,245 178,785,345 208,169,033 Restricted 5,013,005 4,886,747 13,109,068 7,771,643 18,122,073 12,658,390 Unrestricted 22,424,600 20,064,256 98,824,153 94,982,598 121,248,753 115,046,854 Total  Net Position 92,017,334 97,096,791 226,138,837 238,777,486 318,156,171 335,874,277 Beg. Net Position 80,092,497 92,017,334 199,011,789 226,138,837 279,104,286 318,156,171 Change  in Net Position $11,924,837 $5,079,457 $27,127,048 $12,638,649 $39,051,885 $17,718,106 Percentage  Change 14.9% 5.5% 13.6% 5.6% 14.0% 5.6% Condensed Statements of  Net Position Governmental Activities Business‐Type Activities Total   18 City of Brookings  December 31, 2016      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 (62.0%) of the City’s net position is represented by $208.2 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 3.8% of the total net position.  These assets are subject to external restriction on how they  may be used.    The remaining unrestricted balance of $115 million (34.2%) 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, 2016      Management's Discussion and Analysis    Changes in net position.  The increase in net position for 2016 was $17,718,106.  The Governmental Activities Net Position  increased $5,079,457 and the Business‐Type Activities Net Position increased $12,638,649.  The Governmental Activities net  position increased in 2016 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.        2015 2016 2015 2016 2015 2016 Revenues Program  Revenues    Charges  for Services $5,274,831 $3,448,488 $140,757,839 $138,518,421 $146,032,670 $141,966,909    Operating Grants 249,049                 255,425             20,112                 20,766                 269,161                276,191                    Capital  Grants    5,418,303              1,822,082          2,210,269            3,246,363            7,628,572             5,068,445              General  Revenues    Taxes 18,228,031            19,247,664        ‐                           ‐                           18,228,031           19,247,664               State  Shared Revenues 208,033                 220,472             ‐                           ‐                           208,033                220,472                    Investment Earnings  162,862                 126,700             550,280               473,140               713,142                599,840                    Miscellaneous 1,508,487              1,906,424          367,492               783,252               1,875,979             2,689,676              Total  Revenues 31,049,596            27,027,255        143,905,992        143,041,942        174,955,588         170,069,197          Expenses General  Government 2,865,778              3,105,729          2,865,778             3,105,729              Public Safety 5,054,020              5,565,159          5,054,020             5,565,159              Public Works 5,934,626              6,743,700          5,934,626             6,743,700              Health and Welfare 101,042                 109,111             101,042                109,111                 Culture  and Recreation 7,400,596              7,506,553          7,400,596             7,506,553              Conservation  and Development 1,209,287              901,572             1,209,287             901,572                 Interest charges 734,534                 826,085             734,534                826,085                 Electric Fund 22,650,657          24,525,853          22,650,657           24,525,853            Health System  Fund 54,370,009          57,019,809          54,370,009           57,019,809            Telephone Fund 30,598,739          30,825,559          30,598,739           30,825,559            Liquor Fund 3,608,454            3,859,242            3,608,454             3,859,242              Water Fund 2,964,843            2,952,599            2,964,843             2,952,599              Wastewater Fund 3,704,292            3,973,778            3,704,292             3,973,778              Airport Fund 839,807               1,252,509            839,807                1,252,509              Golf Fund 561,156               609,864               561,156                609,864                 Solid Waste  Fund 2,168,527            2,444,615            2,168,527             2,444,615              Research and Technology Fund 119,473               129,354               119,473                129,354                 Total  Expenses 23,299,883            24,757,909        121,585,957        127,593,182        144,885,840         152,351,091          Excess     Before Transfers 7,749,713              2,269,346          22,320,035          15,448,760          30,069,748           17,718,106            Transfers 2,406,167              2,810,111          (2,406,167)           (2,810,111)                          ‐                ‐ Change  in Net Position 10,155,880            5,079,457          19,913,868          12,638,649          30,069,748           17,718,106            Beginning Net Position  81,861,454            92,017,334        206,224,969        226,138,837        288,086,423         318,156,171          Ending Net Position 92,017,334$          97,096,791$      226,138,837$      238,777,486$      318,156,171$       335,874,277$        Governmental Business‐Type Activities Activities Total     Governmental activities.  Revenues for the City’s governmental activities were $27,027,255.  Taxes accounted for 71.2% of  the overall revenues generated in 2016 compared to 58.7% in 2015.  Capital grants and contributions decreased by $3.5 million  due to fewer construction projects where large portions were the responsibility of the developers and areas were funded with  Federal and State grants.  Miscellaneous revenue increased by 26.4% or $397,937 due to a sale of industrial land. Charges for  services decreased by 34.6% from the previous year, because in 2015 the City received significant revenue for a project that  was assessed to the adjacent property owners.  Other revenue sources reflected a combination of increases and decreases with  a minimal net effect.     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 5.1% increase or $684,943 in sales tax revenue compared to the prior year.  The City’s Ends policy takes a  20 City of Brookings  December 31, 2016      Management's Discussion and Analysis    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: 4.8% or $302,638 increase in  1st penny sales and use tax, 4.7% or $73,720 increase in the 25% portion of the 2nd penny sales and use tax, 4.8% or $226,333  increase in the 75% portion of the 2nd penny sales and use tax, and a 9.6% or $82,252 increase in the 3rd penny Bed and Booze  tax.       A portion of the revenue increase within the 1st penny sales and use tax, the 25% of the 2nd penny sales and use tax, and the  75% of the 2nd penny sales & use tax is due to construction phases of improvements to the 3M plant.  The City will reimburse  3M three‐fourths (3/4) of City sales and use tax paid on equipment purchases not to exceed $775,500.  In 2016 the City  reimbursed 3M about $60,700 in sales tax dollars.    Governmental Activities expenses increased by 6.3% from 2015.  The increase is a combination of overall increases and  decreases, with the largest increase in public works due to the completion of the digester the City is building to accommodate  the new Bel Brands Cheese plant.      Business‐type activities.  Overall revenues of the City’s Business‐Type Activities decreased .6% in 2016 compared to a  decrease of 1.2% in 2015.  Charges for services experienced a decrease of $2.2 million, or 1.6%.  Operating and capital  contribution/grants increased by $1 million or 46.5% due to a large capital project which was had significant private donations  from the community.      Operating expenses increased by approximately $6 million or 4.9% in 2016 compared to a 1.1% increase in 2015. The increase is  a combination of overall increases, with the largest increase in the health system fund which increased by $2.6 million or 4.9%  over 2015.         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 decreased slightly by $164,877  or 1.1% from 2015.      In 2016, 1st penny sales tax increased by $302,638 and property tax by $97,387 for a combined total of 4.2%.  Miscellaneous  revenue also increased by $292,256 due to a sale of industrial development land.  Despite these increases, revenues as a whole  decreased by .4% or $58,842.  This overall decrease is mainly due to a 95.5% reduction in grant revenue of $841,024.  In 2015  the City received grants from the State for infrastructure projects.      General Fund expenditures decreased by $151,579 or .9%.  The decrease is a combination of increases and decreases with the  largest factor due to decreased capital spending.  In 2015 the City had a major infrastructure project utilizing the grant funds  mentioned previously.  Although capital projects continued in 2016, most were in, at or near the completion phase and thus  spending decreased.  In 2016 the remainder of the new street shop was completed, and the first portion of the South Main  street project was completed.      21 City of Brookings  December 31, 2016      Management's Discussion and Analysis    Proprietary (business‐type) Funds    Electric Fund.  In 2016, the Electric fund net position increased by $1,311,769, compared to an increase of $1,920,667 in 2015.   Operating revenues increased by $1.44 million primarily due to an overall 4.5% increase in user charges.  Kilowatt‐hour sales  were similar to the prior year increase, .3% in 2016.  Operating expenses increased by $1.9 million or 8.4% in 2016.  $1.2 million  of this increase was due to the cost of purchased power from suppliers.  Operating transfers totaling $2,005,000 were made  from the Electric fund to the General Fund in 2016.      Telephone Fund.  The Telephone fund net position increased by $1,489,127 in 2016 compared to an increase of $3,521,835 in  2015.  Operating revenues decreased by $2.0 million due to decreased usage of the telecommunication facilities.  Operating  expenses increased by $644,000 over the prior year due to higher network expense relating to technical upgrades in switching  and wireless platforms.  Operating transfers totaling $200,000 were made from the Telephone Fund to the General Fund in  2016.      Wastewater Fund.  The Wastewater fund net position increased by $2,146,176 in 2016 and $1,475,854 in 2015.  Capital  contributions of $613,821 in 2016 and $352,496 in 2015 were responsible for 28.6% and 23.9% of the increase in net position,  respectively.  Operating revenues increased by $147,000 in 2016.  A 7.5% overall increase to user charges was made to units  billed to customers in 2016.  Operating expenses decreased $63,000 in 2016, due primarily to lower maintenance expense for  newly constructed facilities.  The fund also received $494,060 in 2016 as cost recovery for a manhole rehabilitation  maintenance project completed in 2015.    Health System Fund.  Brookings Health System increased its net position by $4,893,495 in 2016 and $8,002,702 in 2015. The  2016 increase was due to continued solid hospital utilization as well as a $2 million‐dollar donation for the Progress Lives Here  capital campaign.  Adjustments related to pension resources and liabilities (including deferred inflows and outflows) resulted in  a decrease in net position of $1,161,212.     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 $837,648, or about 4.9%.  Budget  amendments were made to increase expenditures for salaries and capital outlay which included the following:  to authorize  spending grant funds received in 2015 for street projects, purchase of property that unexpectedly came on the market, replace  HVAC system at the Library, new seating at the Swiftel Center, to locate and install a well for Fishback Soccer Park, 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 Pioneer Park, retrofitting street lights with energy efficient LED  bulbs and playground improvements to name a few.    Actual General Fund expenditures were $1,644,836 less than the adjusted budget.  Some departments didn’t complete all  scheduled projects in 2016 or budgeted purchases came in lower than anticipated, therefore were under budget as follows:   community development was $113,093 under budget; highways and streets was $287,038 under budget; recreation was  $170,131 under budget; and parks was $352,175 under budget.  Overall, the departments held their spending in line with the  budget for 2016.    Actual General Fund revenues were $463,505 more than the adjusted budget due to following the conservative Governance  and Ends Policy relating to budgeted revenues.           22 City of Brookings  December 31, 2016      Management's Discussion and Analysis    Capital Asset Administration      Major activity within the Governmental Activities in 2016 included the following:  Land was purchased for $116,400 that will be used for right‐of‐way.  Construction in progress decreased due to completion of  the new $3.9 million street shop building, which conversely increased building and the other improvements assets.  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 2016 was  $2,383,901 of which $1,561,411 was donated.  In addition, other projects included storm drainage, street overlays, and  replacement of various underground pipe.      Major equipment purchased or replaced included security upgrades to the Police station, a repeater to improve mobile  communications for public safety, 2 replacement police vehicles and 1 additional police vehicle; replacement of 1 fire command  vehicle; a variety of machinery and equipment in the street department such as 1 new pickup, 1 snowblower, 1 dump truck, 1  rotary lift and stand; new seating for the Swiftel Center; replacement of 3 pickups, a mower, an overseeder, a loader, 2 all‐ terrain utility vehicles for the Parks department; and a used pickup and brush chipper for the Forestry department.    Dollar Percentage Change Change Capital Assets (Net of  Depreciation) 2015 2016 2015‐2016 2015‐2016 Land 4,770,567$      4,770,567$       ‐$                  0.0% Construction in Progress 32,507,308      31,729,113      (778,195)        ‐2.4% Buildings and Other Improvements 124,158,687    154,830,810    30,672,123    24.7% Machinery and Equipment 10,148,674      9,894,151        (254,523)       ‐2.5% Total  Capital  Assets (Net)171,585,236$  201,224,641$  29,639,405$  17.3% Total Total Business‐type Activities   Major activity in the Business‐Type Activities in 2016 included the following:    In 2016, the Electric fund increased capital assets by approximately $1.9 million for the acquisition and construction of assets.   The purchase of a loader and boring machine accounted for $160,000.  The on‐going upgrade of the metering system resulted  in expenditures of $313,000.  The balance was spent in the distribution system facilities to meet the needs of customers.     Total Total Dollar Percentage Change Change Capital  Assets (Net of  Depreciation) 2015 2016 2015‐2016 2015‐2016 Land 9,825,454$   10,015,411$ 189,957$    1.9% Construction  in Progress 1,447,034     881,647        (565,387)      ‐39.1% Buildings  and Other Improvements 28,806,464   32,359,162   3,552,698   12.3% Machinery and Equipment 7,563,221     8,724,785     1,161,564   15.4% Infrastructure 40,886,239   41,514,504   628,265      1.5% Total  Capital  Assets (Net)88,528,412$ 93,495,509$ 4,967,097$ 5.6% Governmental Activities 23 City of Brookings  December 31, 2016      Management's Discussion and Analysis    The Telephone fund increased capital assets by approximately $5.3 million for the acquisition and construction of capital assets  in 2016. 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 $1.5 million in the acquisition and construction of assets in  2016 for the completing of the wastewater treatment facilities and collection system which began in 2012.  The upgrades to the  wastewater treatment plant were completed and placed in service on July 1, 2016.  The improvements were done through four  projects consisting of the upgrade to the wastewater treatment plant, construction of new equalization basins, construction of  a consolidated pumping station, and the upgrade of sewer mains in 6th Street and Medary Avenue to Western Avenue.  These  projects were funded with a $30 million revenue bond through the State Revolving Fund.     In 2016 the Brookings Health System capital assets increased $38.3 million due to the construction in progress for the hospital  renovation and addition of a medical office building.     The Solid Waste fund had equipment purchases of $606,282 including a replacement of a garbage truck and loader.      The Airport capital asset additions totaled $167,568.  The reconstruction of runway 17/35 was started in 2016, and new water  and sanitary sewer mains were constructed.  Most of the cost for the runway project was paid for with Federal Airport  Improvement Project funds.    See note 7 for additional information regarding capital assets.    Long‐Term Liabilities    At December 31, the City had the following long‐term liabilities:      Dollar Percentage 2015 2016 2015 2016 Amount Amount Revenue Bonds 24,006,034$   21,795,220$   9,816,751$          6,185,336$       (5,842,229)$   ‐17.3% Loans ‐                       ‐                      24,064,478    29,143,534 5,079,056      21.1% Capital  leases ‐                       ‐                      22,484,843          26,696,924       4,212,081      18.7% OPEB 1,314,302       1,417,833       1,007,383            1,110,929         207,077         8.9% Amount Due Under    Joint Agreements ‐                      ‐                      958,734               958,735            1                    0.0% Landfill    Closure/Postclosure ‐                      ‐                      537,893               559,223            21,330           4.0% Compensated    Absences 834,750          898,563          1,427,089            1,416,357         53,081           2.3% Net Pe nsion  Liability ‐                      1,274,010        ‐                          4,983,158         6,257,168      100.0% Total  Long‐Term Liabilities 26,155,086$   25,385,626$   60,297,171$        71,054,196$     9,987,565$    11.6% Total Change Activities Activities Governmental Business ‐Type   The City has outstanding Sales Tax Revenue Bonds in the amount of $7,955,000 at the end of 2016.  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 $9,582,019 at the end of 2016.  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.    24 City of Brookings  December 31, 2016      Management's Discussion and Analysis    The City has an outstanding State Revolving Fund Bond in the amount of $538,058.  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  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 $317,699, $290,113, $193,337, $1,766,139, and  $439,892.  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 $459,529.  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 $181,524.  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 an electric revenue bond with outstanding principal of $945,336.  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 $5,240,000.  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 $29,143,534.  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 $4,920,000.    The City has outstanding Certificates of Participation for the construction of the skilled nursing facility in the amount of  $9,287,745.    The City has Certificates of Participation for the construction of the new medical office building and renovation of existing  hospital in the amount of $8,000,000 and $4,489,179, respectively.    The City is liable for the accrued compensated absences of $898,563 within the Governmental Funds and $1,416,357 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 2016 Sales & Use Tax revenues were up 5.1% from the 2015 revenue; this growth is attributed to an increasing population,  expanding housing developments, a student population with disposable income, and various large events that brought visitors  to eat, stay and play in the City of Brookings.  The 2016 tax revenue was budgeted with a projected 4.0% growth from the 2016  budget.            25 City of Brookings  December 31, 2016      Management's Discussion and Analysis    The 2016 property tax levy (payable in 2017) decreased .059 per thousand in valuation.  In the last year the taxable valuation  for the City of Brookings has increased $55.7 million.    For 2017 the City budgeted a 2.50% overall salary increase plus movement through steps for employees.  At the time the  budget was completed, health insurance premiums were budgeted to increase 4%; however due to our claims experience, the  premium remained the same as that of 2016.  Vision premiums remained virtually the same as 2016 as did dental coverage.            Due to reorganization and lean savings, the 2017 budget reduced the full‐time workforce by one.  The Deputy Finance Manager  position was eliminated and an Assistant to the City Manager was added.  In addition, a full time Engineering clerical position  was replaced with a part‐time position.  Other changes included reorganization within departments under management of  Parks and Recreation with the net effect of no change.      The chart at right shows the  comparison of the 2017 budget with  the 2016 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  increase in subsidies to other is a  result of the City’s first of eleven  payments to SDSU for expansion of the Performing Arts Center (PAC) and the first of ten payments to the expansion of the  hospital.  In addition, the City increased its contribution to the Chamber’s Visitor and Promotion Bureau and made smaller  increases to other agencies in the local area.  The increase in capital outlay reflects construction of the new fire substation on S.  Main St. as well as planned road projects, storm drainage projects and continued work on the Brookings Gateway project.   Transfers decreased significantly due to a change in policy. Rather than transferring money from the 25% and 75% Sales tax  funds to the General Fund for various capital expenditures, in 2017, the capital expenditures will come directly out of the tax  funds.  This will make the transactions more transparent.         As a part of the reorganization of  personnel mentioned above, one full  time employee for the Golf enterprise  fund was moved to the Parks  department within the General Fund.   This move is reflected by the change in  personnel costs coming in lower than  the 2.5% COLA. Operating expenses  remained relatively flat with a slight  increase due to additional repairs and  maintenance.  Capital expenses significantly increase due to the reconstruction 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. 2016 2017 % BUDGET BUDGET CHANGE Personnel  $  9,862,227  $ 10,252,634 4.0% Current  Operating      8,235,724        8,497,751 3.2% Subsidies  to  Other       1,846,752        2,278,750 23.4% Capital  Outlay      5,256,232        7,408,220 40.9% Debt Service        2,695,901        2,714,096 0.7% Transfers 4,789,923   2,315,541    ‐51.7%   ALL GOVERNMENTAL FUNDS (Liquor‐Airport‐SWC‐2016 2016 % SWD‐Golf ‐R&T Center)BUDGET BUDGET CHANGE Personnel $1,733,334 $1,757,629 1.4% Current  Operating 4,760,758 4,843,201 1.7% Capital 1,368,650 2,060,100 50.5% Transfers 1,032,250 1,124,961 9.0% ENTERPRISE FUNDS 26 City of Brookings December 31, 2016 Statement of Net Position Component  Primary Government Unit Governmental Business‐Type Health System Activities Activities Total Foundation ASSETS    Cash and cash equivalents 16,597,993$                  52,504,532$                 69,102,525$                 226,802$                          Investments‐CDs 10,614                            26,000,000                   26,010,614                   ‐                                     Investments 2,353,012                      2,120,226                     4,473,238                     ‐                                    Receivables, net 2,090,359                      18,438,485                  20,528,844                  1,620,177                        Due from other governments 1,619,421                      1,127,771                     2,747,192                     ‐                                    Internal balances 560,256                         (560,256)                       ‐                                 ‐                                    Land held for resale 2,586,598                      ‐                                 2,586,598                     ‐                                    Inventories 34,797                           4,651,130                     4,685,927                     ‐                                    Deposits 355,852                         ‐                                 355,852                        ‐                                    Prepaid expenses 237,101                         1,230,417                     1,467,518                     ‐                                    Prepaid bond insurance 53,440                           ‐                                 53,440                          ‐                                    Restricted cash and cash equivalents 1,648,676                      712,373                        2,361,049                     629,544                           Restricted investments‐CDs 37,656                           9,656,932                     9,694,588                     ‐                                    Other assets ‐                                  834,690                        834,690                        ‐                                    Capital assets:      Capital assets not being depreciated 10,897,058                   36,499,680                  47,396,738                  ‐                                      Capital assets being depreciated, net 82,598,451                   164,724,961                247,323,412                ‐                                          Total capital assets 93,495,509                   201,224,641                294,720,150                ‐                                          Total assets 121,681,284                 317,940,941                439,622,225                2,476,523                     DEFERRED OUTFLOWS OF RESOURCES    Pension related deferred outflows 2,855,247                      11,234,952                  14,090,199                  ‐                                        Loss on debt refunding 481,499                         ‐                                     481,499                        ‐                                              Total deferred outflows of resources 3,336,746                      11,234,952                  14,571,698                  ‐                                          Total assets and deferred outflows of resources 125,018,030                 329,175,893                454,193,923                2,476,523                     LIABILITIES     Accounts payable 1,138,356                      16,195,838                  17,334,194                  4,915                                Accrued expenses 239,002                         2,054,246                     2,293,248                     3,159                                Accrued interest 81,819                           307,179                        388,998                        ‐                                    Other current liabilities ‐                                  8,399                             8,399                             ‐                                    Due to other governments 36,570                           ‐                                 36,570                          ‐                                    Amount held for others 32,546                           ‐                                 32,546                          ‐                                    Customer deposits ‐                                  173,460                        173,460                        ‐                                    Unearned revenue 993,338                         ‐                                 993,338                        ‐                                    Noncurrent liabilities:      Portion due or payable within one year:      Bonds payable 2,110,950                      319,865                        2,430,815                     ‐                                      Loans payable ‐                                  647,729                        647,729                        ‐                                      Capital leases ‐                                  1,083,566                     1,083,566                     ‐                                      Compensated absences 300,000                         1,098,065                     1,398,065                     ‐                                      Portion due or payable after one year:      Bonds payable 19,684,270                   5,865,471                     25,549,741                  ‐                                      Loans payable ‐                                  28,495,805                  28,495,805                  ‐                                      Capital leases ‐                                  25,613,358                  25,613,358                  ‐                                      OPEB payable 1,417,833                      1,110,929                     2,528,762                     ‐                                      Net pension liability 1,274,010                      4,983,158                     6,257,168                     ‐                                      Amount due under joint operating agreement ‐                                  958,735                        958,735                        ‐                                      Accrued landfill closure and             postclosure costs ‐                                  559,223                        559,223                        ‐                                      Compensated absences 598,563                         318,292                        916,855                        ‐                                      Total liabilities 27,907,257                   89,793,318                  117,700,575                8,074                             DEFERRED INFLOWS OF RESOURCES    Pension related deferred inflows 13,982                           2,058                             16,040                           ‐                                        Proceeds from sales of future revenues ‐                                      603,031                        603,031                        ‐                                          Total liabilities and deferred inflows of resources 27,921,239                   90,398,407                  118,319,646                8,074                             NET POSITION    Net investment in capital assets 72,145,788                   136,023,245                208,169,033                ‐                                    Restricted for:       Debt service and covenants 334,920                         845,406                        1,180,326                      ‐                                       Insurance deposit 355,852                         ‐                                 355,852                        ‐                                       Other purposes (by donations)63,131                           ‐                                 63,131                          2,249,720                           Capital assets (by donations)1,254,073                      ‐                                 1,254,073                     ‐                                       SDRS pension purposes 1,567,255                      6,249,735                     7,816,990                     ‐                                       Enabling legislation 1,311,516                      ‐                                 1,311,516                     ‐                                       Landfill closure and post closure ‐                                  676,502                        676,502                         ‐                                    Unrestricted 20,064,256                   94,982,598                  115,046,854                218,729                                 Total net position 97,096,791$                 238,777,486$              335,874,277$              2,468,449$                   The notes to the financial statements are an integral part of this statement 27 City of Brookings Year Ended December 31, 2016 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 3,105,729$             108,943$                27,220$              ‐    $                       (2,969,566)$            ‐    $                         (2,969,566)$            ‐    $                                 Public safety 5,565,159               101,069                   144,193              ‐                        (5,319,897)              ‐                           (5,319,897)              ‐                                   Public works 6,743,700               672,785                   5,216                   1,812,212            (4,253,487)              ‐                           (4,253,487)              ‐                                   Health and welfare 109,111                   12,965                     ‐                       ‐                        (96,146)                   ‐                           (96,146)                   ‐                                   Culture and recreation 7,506,553               2,552,726               78,796                9,870                    (4,865,161)              ‐                           (4,865,161)              ‐                                   Conservation and development 901,572                   ‐                           ‐                       ‐                        (901,572)                 ‐                           (901,572)                 ‐                                   Interest and fiscal charges 826,085                   ‐                           ‐                       ‐                        (826,085)                 ‐                           (826,085)                 ‐                                       Total governmental activities 24,757,909             3,448,488               255,425              1,822,082            (19,231,914)            ‐                           (19,231,914)            ‐                                 Business‐type activities:     Electric 24,525,853             27,779,114             ‐                       ‐                        ‐                           3,253,261                3,253,261               ‐                                   Health System 57,019,809             59,598,490             20,766                2,020,415            ‐                           4,619,862               4,619,862               ‐                                       Telephone 30,825,559             32,311,864             ‐                       ‐                        ‐                           1,486,305               1,486,305               ‐                                       Liquor 3,859,242               4,340,680               ‐                       ‐                        ‐                           481,438                   481,438                   ‐                                       Water 2,952,599               5,151,101               ‐                       547,798                ‐                           2,746,300               2,746,300               ‐                                       Wastewater 3,973,778               4,963,644               ‐                       613,821                ‐                           1,603,687               1,603,687               ‐                                       Airport 1,252,509               33,153                     ‐                       64,329                  ‐                           (1,155,027)              (1,155,027)              ‐                                       Golf 609,864                   380,066                   ‐                       ‐                        ‐                           (229,798)                 (229,798)                 ‐                                       Solid Waste 2,444,615               3,771,061               ‐                       ‐                        ‐                           1,326,446               1,326,446               ‐                                       Research and Technology 129,354                   189,248                   ‐                       ‐                        ‐                           59,894                     59,894                     ‐                                           Total business‐type activities 127,593,182           138,518,421           20,766                3,246,363            ‐                           14,192,368             14,192,368             ‐                               Total primary government 152,351,091$        141,966,909$        276,191$            5,068,445$          (19,231,914)            14,192,368             (5,039,546)              ‐                                 Component unit:    Health System Foundation 2,125,598$             74,857$                   417,172$            ‐$                       (1,633,569)                 General revenues:   Taxes:     Property taxes 4,729,382               ‐                           4,729,382               ‐                                   Sales taxes 14,160,915             ‐                           14,160,915             ‐                                   Other taxes 357,367                   ‐                           357,367                   ‐                                 State shared revenues 220,472                   ‐                           220,472                   ‐                                 Unrestricted investment earnings 126,700                   473,140                   599,840                   ‐                                 Gain on disposition of capital assets ‐                           12,397                     12,397                     ‐                                 Miscellaneous 1,906,424               770,855                   2,677,279               ‐                               Transfers 2,810,111               (2,810,111)              ‐                           ‐                                       Total general revenues and transfers 24,311,371             (1,553,719)              22,757,652             ‐                                             Change in net position 5,079,457               12,638,649             17,718,106             (1,633,569)                 Net position ‐ beginning 92,017,334             226,138,837           318,156,171           4,102,018                   Net position ‐ ending 97,096,791$           238,777,486$        335,874,277$        2,468,449$                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 Governmental Governmental Fund Funds Funds ASSETS   Cash and cash equivalents 8,513,982$                8,084,011$              16,597,993$                 Investments ‐ CDs ‐                               10,614                      10,614                            Investments 1,691,478                   661,534                    2,353,012                      Restricted cash and cash equivalents 34,715                        1,613,961                 1,648,676                      Restricted investments‐CDs 37,656                        ‐                             37,656                           Receivables, (net of allowances for uncollectibles, if any):         Property taxes 3,555                          ‐                                3,555                                   Accounts 258,390                      183,078                   441,468                               Storm drainage fees ‐                                   1,034                        1,034                                   Special assessments ‐                                   1,636,412                1,636,412                            Interest 4,718                          3,172                        7,890                             Due from other funds 32,491                        207,939                   240,430                         Due from other governments 793,041                      826,380                   1,619,421                      Land held for resale 2,586,598                   ‐                                2,586,598                      Inventories:         Supplies 19,679                        ‐                                19,679                                 Stores ‐                                   15,118                     15,118                           Deposits 355,852                      ‐                                355,852                         Advance to other funds 1,030,354                   ‐                                1,030,354                      Prepaid items 214,510                      22,591                     237,101                                  Total assets 15,577,019$              13,265,844$           28,842,863$               LIABILITIES   Accounts payable 581,108$                    521,248$                 1,102,356$                   Retainage payable ‐                               36,000                      36,000                           Due to other funds 92,528                        226,617                    319,145                         Due to other governments 1,181                          35,389                      36,570                           Amount held for others ‐                                   32,546                      32,546                           Accrued wages payable 199,546                      39,456                      239,002                         Advance from other funds ‐                                   2,130,354                 2,130,354                      Unearned revenue ‐                                   993,338                    993,338                                  Total liabilities 874,363                      4,014,948                4,889,311                    DEFERRED INFLOWS OF RESOURCES   Unavailable revenue 30,497                        1,637,446                 1,667,943                                  Total deferred inflows of resources 30,497                        1,637,446                1,667,943                    FUND BALANCES    Nonspendable 3,220,395                   37,709                     3,258,104                       Restricted 83,215                        2,880,425                2,963,640                       Committed 3,918,640                   6,590,061                10,508,701                    Assigned 1,629,181                   664,484                   2,293,665                       Unassigned 5,820,728                   (2,559,229)              3,261,499                               Total fund balances 14,672,159                7,613,450                22,285,609                 Total liabilities, deferred inflows of resources,     and fund balances 15,577,019$              13,265,844$           28,842,863$               City of Brookings December 31, 2016 The notes to the financial statements are an integral part of this statement 29 City of Brookings December 31, 2016 Reconciliation of Balance Sheet of Governmental Funds to the Statement of Net Position Total fund balances for governmental funds 22,285,609$                Total net position reported for governmental activities in the statement of net position is different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds.  Those  assets consist of:       Land 10,015,411                  Construction in progress 881,647                       Building and improvements, net of $13,478,091 accumulated depreciation 32,359,162                  Equipment, net of $10,036,149 accumulated depreciation 8,724,785                    Infrastructure, net of $31,047,370 accumulated depreciation 41,514,504                     Total capital assets 93,495,509                  Assets such as taxes receivable, special assessment receivables, and other receivables are not available to pay for current  period expenditures and therefore are deferred in the funds.1,667,943                    Pension related deferred outflows are components of the net pension liability and therefore are not reported in the funds.2,855,247                    Prepaid bond insurance costs are recorded as an expenditure in the fund statements, whereas in the statement of net  position they are shown as an asset and amortized.53,440                         The deferred loss on refunding is not a current period item and therefore, is not reported in the fund financial statement 481,499                       Internal service funds are used by management to charge the costs of certain activities, such as insurance, to individual  funds.  The assets and liabilities of certain internal service funds are included in governmental activities in the statement of  net position.1,738,971                    Pension related deferred inflows are components of the net pension liability and therefore are not reported in the funds.(13,982)                            Long‐term liabilities, including bonds payable and accrued leave payable are not due and payable in the current period and  therefore are not reported in the funds. Balances at December 31, 2016 are:       Bonds payable (21,795,220)                OPEB payable (1,417,833)                  Compensated absences (898,563)                      Accrued interest (81,819)                           Total long‐term liabilities (24,193,435)                 Net pension liability reported in governmental activities is not due and payable in the current period and therefore is not  reported in the funds.(1,274,010) Total net position of governmental activities 97,096,791$                The notes to the financial statements are an integral part of this statement 30 City of Brookings Year Ended December 31, 2016 Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Governmental Funds Other Total General Governmental Governmental Fund Funds Funds REVENUES Taxes:    General property taxes 2,935,162$                 931,247$                   3,866,409$                    Storm drainage taxes ‐                                 859,563                      859,563                         General sales and use taxes 6,630,466                    7,530,449                   14,160,915                    Other taxes 1,560                            357,367                      358,927                      Licenses and permits 303,644                       ‐                                   303,644 Intergovernmental revenue 820,470                       125,000                      945,470 Charges for goods and services 456,614                       2,058,687                  2,515,301 Fines and forfeits 93,220                         24,289                        117,509 Miscellaneous revenue 1,824,895                   477,941                      2,302,836                            Total revenues 13,066,031                 12,364,543                25,430,574                EXPENDITURES Current:   General government 2,694,967                   5,128                          2,700,095                     Public safety 3,932,608                   657,428                      4,590,036                     Public works 3,373,814                   1,286,783                  4,660,597                     Health and welfare 96,325                         ‐                                   96,325                          Culture and recreation 3,530,265                   2,489,800                  6,020,065                     Conservation and development ‐                                    901,572                      901,572                      Debt service:   Principal ‐                                    2,232,399                  2,232,399                     Interest and other charges ‐                                    753,345                      753,345                      Capital outlay 2,799,096                   4,739,633                  7,538,729                            Total expenditures 16,427,075                 13,066,088                29,493,163                         Deficiency of revenues under expenditures (3,361,044)                  (701,545)                    (4,062,589)                 OTHER FINANCING SOURCES (USES) Transfers in 5,044,500                   4,999,581                  10,044,081                Transfers out (1,883,006)                  (5,350,964)                 (7,233,970)                 Issuance of long term debt ‐                                    32,515                        32,515                        Sale of capital assets 34,673                         ‐                                  34,673                                 Total other financing sources (uses)3,196,167                   (318,868)                    2,877,299                              Net change in fund balances (164,877)                     (1,020,413)                 (1,185,290)                 Fund balances ‐ beginning 14,837,036                 8,633,863                  23,470,899                Fund balances ‐ ending 14,672,159$               7,613,450$                22,285,609$              The notes to the financial statements are an integral part of this statement 31 City of Brookings Year Ended December 31, 2016 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 ($1,185,290) 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 ($7,350,556) exceeded  depreciation ($3,925,402) in the current period.3,425,154           The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade‐ins, and donations) is to increase net position. 1,541,943           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. (230,738)             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:       Bonds (32,515)                   Repayments:       Bonds 2,232,399           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 (63,813)                    OPEB liability (103,531)                  Amortization of bond insurance costs (8,906)                      Amortization of bond premium and deferred amount on refunding (68,264)                    Accrued interest 5,486                          Combined adjustment (239,028)             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)(461,233)             Changes in the pension related deferred outflows/inflows are direct components of the net pension liability and are  not reflected in the  governmental funds.6,279                   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. 22,486                Change in net position of governmental activities 5,079,457$         The notes to the financial statements are an integral part of this statement 32 City of Brookings December 31, 2016 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 4,067,787$                 2,595,396$                  22,325,685$                9,679,058$            8,469,866$             47,137,792$              5,366,740$              Investments‐CDs 3,600,000                    4,800,000                     ‐                                 9,600,000               8,000,000                26,000,000                 ‐                             Investments ‐                                    ‐                                     1,994,410                    ‐                               125,816                   2,120,226                  ‐                                 Receivables, (net of allowances for    uncollectibles, if any):   Accounts 2,179,663                   507,302                       10,302,442                  2,342,348               958,614                   16,290,369                ‐                                   Unbilled accounts 1,168,627                   265,659                       ‐                                     412,489                  285,334                   2,132,109                  ‐                                   Interest 1,505                           2,712                            4,902                            3,315                       3,573                       16,007                        ‐                                 Due from other funds 145,106                       4,556                            ‐                                     160,394                  25,897                     335,953                      ‐                                 Due from other governments ‐                                    ‐                                     ‐                                     ‐                               1,127,771                1,127,771                  ‐                                 Current portion of advances to other funds 1,351,795                   54,311                          ‐                                     ‐                               ‐                                1,406,106                  ‐                                 Inventories:   Supplies 1,063,026                   36,790                          1,174,360                    339,142                  261,844                   2,875,162                  ‐                                   Stores ‐                                    ‐                                     ‐                                     1,183,405               592,563                   1,775,968                  ‐                                 Prepaid expenses 67,653                         19,759                          263,202                        858,257                  21,546                     1,230,417                  ‐                                       Total current assets 13,645,162                 8,286,485                    36,065,001                  24,578,408            19,872,824             102,447,880              5,366,740                 Noncurrent assets: Restricted cash and cash equivalents 579,421                       132,445                       ‐                                     6                               501                           712,373                      ‐                                 Restricted investment ‐CDs 1,000,000                   3,000,000                    ‐                                     1,000,000               4,656,932                9,656,932                  ‐                                 Advances to other funds 2,676,990                   464,314                       ‐                                     ‐                               1,264,430                4,405,734                  ‐                                 Other assets ‐                                    9,739                            218,279                        605,866                  806                           834,690                      ‐                                 Capital assets:   Land 74,983                         73,604                          1,617,996                    331,267                  2,672,717                4,770,567                  ‐                                   Buildings and other improvements 48,557,129                 52,558,627                  46,882,755                  75,923,385            50,645,155             274,567,051               ‐                                   Machinery and equipment 2,445,581                   988,886                       24,540,248                  4,647,552               6,843,223                39,465,490                ‐                                   Construction in progress 1,933,678                   ‐                                     28,079,336                  1,479,765               236,334                   31,729,113                ‐                                   Less accumulated depreciation (19,048,996)                (11,609,136)                (39,387,481)                 (58,311,261)           (20,950,706)            (149,307,580)            ‐                                       Total noncurrent assets 38,218,786                 45,618,479                  61,951,133                  25,676,580            45,369,392             216,834,370              ‐                                          Total assets 51,863,948                  53,904,964                  98,016,134                   50,254,988             65,242,216              319,282,250              5,366,740                 DEFERRED OUTFLOWS OF RESOURCES   Pension related deferred outflows 883,943                        388,666                        6,864,868                     2,248,742               848,733                    11,234,952                 ‐                                    Total assets and deferred outflows of resources 52,747,891$               54,293,630$               104,881,002$              52,503,730$          66,090,949$           330,517,202$           5,366,740$              LIABILITIES Current liabilities: Accounts payable 1,950,494$                 410,271$                     9,468,386$                  3,843,673$            257,829$                 15,930,653$              265,185$                  Due to other funds 7,159                           31,791                          39,994                          153,630                  24,664                     257,238                       ‐                                 Accrued interest payable 21,863                         197,378                       76,856                          9,738                       1,344                       307,179                      ‐                                 Accrued wages payable 4,241                           433                               1,251,504                    63,499                    39,496                     1,359,173                  ‐                                 Accrued taxes payable 123,730                       97                                 343,636                        185,550                  42,060                     695,073                      ‐                                 Other current liabilities ‐                                    ‐                                     8,399                            ‐                               ‐                                8,399                          ‐                                 Customer deposits 67,626                         ‐                                     39,459                          53,645                    12,730                     173,460                      ‐                                 Current portion of advances from other funds ‐                                    ‐                                     ‐                                     1,406,106               ‐                                1,406,106                  ‐                                 Loans payable ‐                                    647,729                       ‐                                     ‐                               ‐                                647,729                      ‐                                 Revenue bonds payable 319,865                       ‐                                     ‐                                     ‐                               ‐                                319,865                      ‐                                 Capital lease obligations 148,125                       22,120                          688,566                        197,500                  27,255                     1,083,566                  ‐                                 Compensated absences 63,088                         14,722                          810,281                        160,837                  49,137                     1,098,065                  ‐                                       Total current liabilities 2,706,191                   1,324,541                    12,727,081                  6,074,178               454,515                   23,286,506                265,185                    Noncurrent liabilities: Advances from other funds ‐                                    ‐                                     ‐                                     3,141,304               164,430                   3,305,734                  ‐                                 Loans payable ‐                                    28,495,805                  ‐                                     ‐                               ‐                                28,495,805                ‐                                 Revenue bonds payable 5,865,471                   ‐                                     ‐                                     ‐                               ‐                                5,865,471                  ‐                                 Capital lease obligations 1,696,875                   253,400                       21,088,358                  2,262,500               312,225                   25,613,358                ‐                                 Compensated absences ‐                                    ‐                                     202,000                        ‐                               116,292                   318,292                      ‐                                 OPEB liability 102,235                       44,665                          538,175                        288,810                  137,044                   1,110,929                  ‐                                 Amount due under joint operating agreements ‐                                    ‐                                     958,735                        ‐                               ‐                                958,735                      ‐                                 Net pension liability 386,636                       169,190                       3,063,462                    984,970                  378,900                   4,983,158                   Accrued landfill closure and    postclosure costs ‐                                    ‐                                     ‐                                     ‐                               559,223                   559,223                      ‐                                       Total noncurrent liabilities 8,051,217                   28,963,060                  25,850,730                  6,677,584               1,668,114                71,210,705                ‐                                          Total liabilities 10,757,408                 30,287,601                  38,577,811                  12,751,762            2,122,629                94,497,211                265,185                    Deferred inflows of resources: Pension related deferred inflows ‐                                    ‐                                     ‐                                     ‐                               2,058                       2,058                          ‐                                 Proceeds from sale of future revenues ‐                                    ‐                                     ‐                                     598,255                  4,776                       603,031                      ‐                                          Total liabilities and deferred inflows of resources 10,757,408                 30,287,601                  38,577,811                  13,350,017            2,129,463                95,102,300                265,185                    33 City of Brookings December 31, 2016 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 25,932,039                 12,592,927                  36,944,758                  21,610,708            38,942,813             136,023,245              ‐                                 Restricted for: Debt service 579,421                       132,445                       133,534                        6                               ‐                                845,406                      ‐                                 SDRS pension purposes 497,307                       219,476                       3,801,406                    1,263,772               467,774                   6,249,735                  ‐                                 Landfill closure and postclosure ‐                                    ‐                                     ‐                                     ‐                               676,502                   676,502                      ‐                                 Unrestricted 14,981,716                 11,061,181                  25,423,493                  16,279,227            23,874,397             91,620,014                5,101,555                        Total net position 41,990,483$               24,006,029$               66,303,191$                39,153,713$          63,961,486$           235,414,902              5,101,555$              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.3,362,584                   Net position of business‐type activities 238,777,486$            The notes to the financial statements are an integral part of this statement 34 City of Brookings Year Ended December 31, 2016 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 26,879,604$         4,801,376$                58,556,852$          29,258,569$           13,664,621$              133,161,022$           3,006,677$          Miscellaneous 899,510                 162,268                      1,041,638               3,053,295                200,688                      5,357,399                  ‐                                      Total operating revenues 27,779,114           4,963,644                   59,598,490            32,311,864              13,865,309                138,518,421              3,006,677            OPERATING EXPENSES Personal services 2,518,169             1,298,213                   32,511,146            7,248,926                3,141,154                   46,717,608                ‐                             Other current expenses 20,133,814           996,691                      20,906,787            15,778,700              2,811,996                   60,627,988                404,998                Cost of goods sold ‐                              ‐                                   ‐                               4,070,567                3,191,246                   7,261,813                  ‐                             Insurance claims and expenses ‐                              ‐                                   ‐                               ‐                                 ‐                                   ‐                                   2,544,066            Amortization 9,560                     3,718                           ‐                               95,161                      3,718                           112,157                      ‐                             Depreciation 1,533,472             1,127,084                   3,423,207               3,289,779                2,055,049                   11,428,591                ‐                                      Total operating expenses 24,195,015           3,425,706                   56,841,140            30,483,133              11,203,163                126,148,157              2,949,064                       Operating income 3,584,099             1,537,938                   2,757,350               1,828,731                2,662,146                   12,370,264                57,613                  NONOPERATING REVENUES  (EXPENSES) Interest income 42,871                   41,654                        122,228                  214,916                   41,074                        462,743                      10,397                  Miscellaneous income (loss)26,577                   494,060                      (175,874)                 6,486                        94,953                        446,202                      ‐                             Contributions and donations ‐                              ‐                                   20,766                    ‐                                 ‐                                   20,766                        ‐                             Gain (loss) on disposition of capital assets (298)                       9,771                           2,626                       (89,465)                    (34,161)                       (111,527)                    ‐                             Payments under joint operating agreement ‐                              ‐                                   148,779                  ‐                                 ‐                                   148,779                      ‐                             Interest expense and fiscal charges (336,480)               (551,068)                     (2,795)                     (271,541)                  (18,470)                       (1,180,354)                 ‐                                      Total nonoperating revenues (expenses)(267,330)               (5,583)                         115,730                  (139,604)                  83,396                        (213,391)                    10,397                             Income before capital contributions             and transfers 3,316,769             1,532,355                   2,873,080               1,689,127                2,745,542                   12,156,873                68,010                  Capital contributions ‐                              613,821                      2,020,415               ‐                                 612,127                      3,246,363                  ‐                             Transfers in ‐                              ‐                                   ‐                               ‐                                 427,139                      427,139                      ‐                             Transfers out (2,005,000)            ‐                                   ‐                               (200,000)                  (1,032,250)                 (3,237,250)                 ‐                                        Change in net position 1,311,769             2,146,176                   4,893,495               1,489,127                2,752,558                   12,593,125                68,010                  Net position ‐ beginning 40,678,714           21,859,853                61,409,696            37,664,586              61,208,928                5,033,545            Net position ‐ ending 41,990,483$         24,006,029$              66,303,191$          39,153,713$           63,961,486$              5,101,555$          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.45,524                         Change in net position of business‐type activities 12,638,649$               The notes to the financial statements are an integral part of this statement 35 City of Brookings Year Ended December 31, 2016 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 26,835,121$           3,242,865$          58,781,570$         33,372,386$        13,519,884$        135,751,826$            ‐    $                           Internal activity‐payments from other funds 1,514,644                106,207                ‐                              1,444,235             418,700                3,483,786                   3,006,677                 Operating receipts from customers pledged for debt retirement 961,168                   2,142,756             ‐                              ‐                              ‐                              3,103,924                   ‐                                  Other receipts ‐                                 ‐                             1,082,882             ‐                              ‐                              1,082,882                   ‐                                  Payments to suppliers (21,595,660)            (1,052,535)           (19,761,938)          (20,191,502)         (5,673,328)            (68,274,963)               (2,932,384)                Payments to employees (2,363,058)               (1,221,502)           (31,188,907)          (6,862,135)            (2,991,943)            (44,627,545)               ‐                                  Internal activity‐payments to other funds ‐                                 ‐                             ‐                              ‐                              (241,605)               (241,605)                     ‐                                           Net cash provided by operating activities 5,352,215                3,217,791             8,913,607             7,762,984             5,031,708             30,278,305                74,293                       CASH FLOWS FROM NONCAPITAL FINANCING  ACTIVITIES Transfers in ‐                                 ‐                             ‐                              ‐                              427,139                427,139                      ‐                                  Transfers out (2,005,000)               ‐                             ‐                              (200,000)               (1,032,250)            (3,237,250)                 ‐                                  Operating grants ‐                                 ‐                             20,766                   ‐                              ‐                              20,766                        ‐                                  Contributions to foundation ‐                                 ‐                             (175,874)               ‐                              ‐                              (175,874)                     ‐                                  Interfund payments (5,500,000)               ‐                             ‐                              5,500,000             (1,400,464)            (1,400,464)                 ‐                                  Principal receipts (payments) on interfund advances/loans 1,471,215                51,725                  ‐                              (1,522,940)            ‐                              ‐                                   ‐                                  Interest receipts (payments) on interfund advances/loans 20,625                      28,518                  ‐                              (49,143)                 ‐                              ‐                                   ‐                                           Net cash provided by (used in) noncapital              financing activities (6,013,160)               80,243                  (155,108)               3,727,917             (2,005,575)            (4,365,683)                 ‐                                  CASH FLOWS FROM CAPITAL AND RELATED  FINANCING ACTIVITIES Acquisition and construction of capital assets (1,920,057)               (1,492,307)           (28,655,101)          (5,344,857)            (1,447,074)            (38,859,396)               ‐                                  Proceeds from long‐term debt ‐                                 5,587,640             12,209,179           1,038                     ‐                              17,797,857                ‐                                  Proceeds on restricted cash 468                           ‐                             ‐                              95                           1                             564                               Proceeds from sale of capital assets 37,486                      10,398                  ‐                              ‐                              4,719                     52,603                        ‐                                  Capital grants ‐                                 ‐                             2,019,220              ‐                              1,578,501             3,597,721                    ‐                                  Principal payments on debt (1,132,015)               (774,803)               (222,098)               (9,840,435)            (167,746)               (12,137,097)               ‐                                  Interest payments on debt (340,340)                  (801,030)               (388,886)               (271,789)               (19,175)                 (1,821,220)                 ‐                                  Payments on interfund advances/loans ‐                                 ‐                             ‐                              ‐                              (1,100,000)            (1,100,000)                 ‐                                           Net cash provided by (used in) capital              and related financing activities (3,354,458)               2,529,898             (15,037,686)          (15,455,948)         (1,150,774)            (32,468,968)               ‐                                  CASH FLOWS FROM INVESTING ACTIVITIES Sale of investments and certificates of deposit 109,716                   ‐                             6,982,480             ‐                              ‐                              7,092,196                   ‐                                  Purchase of investments and certificates of deposit (4,704,075)               (7,800,000)           ‐                              (10,600,000)         (10,777,881)         (33,881,956)               ‐                                  Cash receipts from joint venture partner ‐                                 ‐                             167,321                 ‐                              ‐                              167,321                      ‐                                  Investment income 14,647                      10,209                  111,874                 211,505                37,497                   385,732                      10,397                                Net cash provided by (used in)             investing activities (4,579,712)               (7,789,791)           7,261,675             (10,388,495)         (10,740,384)         (26,236,707)               10,397                                Net increase (decrease) in cash              and cash equivalents (8,595,115)               (1,961,859)           982,488                 (14,353,542)         (8,865,025)            (32,793,053)               84,690                       Balances ‐ beginning of the year 13,242,323              4,689,700             21,343,197           24,032,606           17,335,392           80,643,218                5,282,050                 Balances ‐ end of the year 4,647,208                 2,727,841             22,325,685            9,679,064              8,470,367              47,850,165                 5,366,740                    Less restricted cash and cash equivalents (579,421)                  (132,445)               ‐                              (6)                           (501)                       (712,373)                     ‐                                  Cash and cash equivalents (current) per statement of net position 4,067,787$              2,595,396$          22,325,685$         9,679,058$           8,469,866$           47,137,792$              5,366,740$               The notes to the financial statements are an integral part of this statement 36 City of Brookings Year Ended December 31, 2016 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 3,584,099$              1,537,938$          2,757,350$           1,828,731$           2,662,146$           12,370,264$              57,613$                        Miscellaneous income 26,577                      494,060                 ‐                          19,688                   94,953                   635,278                       ‐                                  Adjustments to reconcile operating income to       net cash provided by operating activities:       Depreciation 1,533,472                1,127,084             3,423,207             3,289,779             2,055,049             11,428,591                ‐                                        Amortization 9,560                        3,718                     ‐                              95,161                   3,718                     112,157                      ‐                                        Landfill closure and postclosure cost ‐                                 ‐                         ‐                              ‐                              21,330                   21,330                        ‐                                        (Increase) decrease in:         Receivables (252,633)                  (74,727)                 242,077                 259,613                (69,907)                 104,423                      ‐                                          Inventories 1,798                        (9,818)                   (37,823)                  224,523                68,246                   246,926                      ‐                                          Prepaid expenses (183)                          593                        17,277                   (237,060)               870                         (218,503)                     ‐                                          Deferred outflows related to pensions (1,957)                       17,074                  (2,445,170)            (35,306)                 (159,136)               (2,624,495)                 ‐                                           Net pension asset 496,313                   228,318                3,871,106             1,245,549             473,717                6,315,003                          Increase (decrease) in:         Deferred inflows related to pensions (732,319)                  (336,888)               (3,324,147)            (1,837,831)            (556,737)               (6,787,922)                 ‐                                          Deferred inflows related to other ‐                                 ‐                             ‐                              20,771                   216                        20,987                                 Accounts and other payables 294,414                   62,232                  1,266,352             1,857,111             45,875                   3,525,984                   16,680                               Accrued wages payable (231)                          (867)                      26,481                   24,338                   2,588                     52,309                        ‐                                          Accrued leave liabilities (1,287)                       (3,595)                   (16,165)                  2,683                     7,633                     (10,731)                       ‐                                          Accrued OPEB payable 7,956                        3,479                    69,600                   20,264                   2,247                     103,546                      ‐                                          Net pension liability 386,636                   169,190                3,063,462             984,970                378,900                4,983,158                   ‐                                           Net cash provided by operating              activities 5,352,215$              3,217,791$          8,913,607$           7,762,984$           5,031,708$           30,278,305$              74,293$                    NONCASH INVESTING, CAPITAL AND   FINANCING ACTIVITIES    Capital asset additions from contributed capital ‐$                           613,821$              ‐$                        ‐$                        637,181$               1,251,002$                 ‐$                               Accounts payable for capital assets 19,048                      110,700                3,011,172             74,752                   11,823                   3,227,495                   ‐                                 Initiation of capital lease ‐                             ‐                         12,209,179            ‐                          ‐                          12,209,179                  The notes to the financial statements are an integral part of this statement 37 City of Brookings December 31, 2016 Statement of Net Position ‐ Fiduciary Funds Agency  Funds ASSETS Cash and cash equivalents 134,192$           Accounts receivable 1,743                            Total assets 135,935             LIABILITIES Amount held for others 135,935                       Total liabilities 135,935             NET POSITION ‐$                    The notes to the financial statements are an integral part of this statement 38 City of Brookings December 31, 2016 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, 2016, the Foundation distributed approximately $2,022,000 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.     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, 2016 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:    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, and this is the only major governmental fund.    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, 75% 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).      TIF‐5 32nd Ave Fund ‐ to account for the financial resources accumulated for repayment of a Tax Revenue  Bond.    40 City of Brookings December 31, 2016 Notes to the Financial Statements 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, 2016 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, 2016 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,  2016 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, 2016 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 estimated fair value on 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, 2016 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, OPEB payable and net pension liability.    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, 2016 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 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 includes 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 included the following: unavailable revenues, represent  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. Equity Classifications:        Government‐wide Statements:      Equity is classified as net position and 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, 2016 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 equity is classified as fund balance, and may distinguish between “Nonspendable”,  “Restricted”, “Committed”, “Assigned”, and “Unassigned” components.  Proprietary fund equity is classified the  same as in the government‐wide financial statements.  Agency funds have no fund equity.       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 a blizzard, tornado, fire, flood,  terrorist attack, bombing, explosions, train derailments, 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, 2016 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, 2016 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 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 and has yet to be extended.  Beginning October 1, 2015, inpatient acute services  rendered to Hospital Medicare program beneficiaries were paid at prospectively determined rates per  discharge.  These rates varied according to a patient classification system that was based on clinical,  diagnostic, and other factors.  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, 2013.    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 a cost‐related basis subject to certain limitations as prescribed 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.    49 City of Brookings December 31, 2016 Notes to the Financial Statements 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, 2016  increased by approximately $691,000 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 2016 the City implemented the provisions of the following accounting principles:     GASB Statement No. 72, Fair Value Measurement and Application.  This Statement provides guidance for  determining a fair value measurement for financial reporting purposes as well as applying fair value to certain  investments and the disclosures related to all fair value measurements.    Implementation of this standard required the City to expand disclosures made about fair value measurements,  the level of fair value hierarchy, valuation techniques, and additional disclosure regarding investments in certain  entities that calculate net asset value per share (or its equivalent)    GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within  the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68.  The  requirements of this Statement are intended to improve financial reporting by establishing a single framework  for the presentation of information about pensions, which will enhance the comparability of pension‐related  information reported by employers and non‐employer contributing entities.    GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local  Governments.  The objective of this Statement is to identify – in the context of the current governmental  financial reporting environment – the hierarchy of generally accepted accounting principles (GAAP).  This  statement reduces the GAAP hierarchy to two categories of authoritative GAAP and addresses the use of  authoritative and nonauthoritative literature in the event that the accounting treatment for a transaction or  other event is not specified within a source of authoritative GAAP.    GASB Statement No. 77, Tax Abatement Disclosures.  This Statement requires governments that enter into tax  abatement agreements to disclose certain specified information about the agreements.    GASB Statement No. 79, Certain External Investment Pools and Pool Participants.  This Statement enhances  comparability of financial statements among governments by establishing specific criteria used to determine  whether a qualifying external investment pool may select to use an amortized cost exception to fair value  Medicare 42% Medicaid 7% Blue  Cross 24% Other 27%       Total  100% 50 City of Brookings December 31, 2016 Notes to the Financial Statements measurement.  Those criteria will provide qualifying external investment pools and participants of those pools  with consistent application of an amortized cost‐based measurement for financial reporting purposes.     GASB Statement No. 82, Pension Issues ‐ an amendment of GASB Statements No. 67, No. 68, and No. 73.  The  requirements of this statement will improve financial reporting by enhancing consistency in the application of  financial reporting requirements to certain pension issues regarding the presentation of payroll‐related  measures in required supplementary information, the selection of assumptions and treatment of deviations from  the guidance in an Actuarial Standard of Practice for financial reporting purposes, and the classification of  payments made by employers to satisfy employee (plan member) contribution requirements.     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, 2016:    Swiftel Center Fund (Special Revenue Fund) had a negative balance of $1,239,236 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 $882,469 because of a large advance  to the capital project fund which will be paid off with future tax increment revenue.      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  51 City of Brookings December 31, 2016 Notes to the Financial Statements 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, 2016.     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, 2016, 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, 2016, 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 $4,473,225, 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 $12,435,470, 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 $2,642,079, are held in a safekeeping account with Wells Fargo  Brokerage Services, LLC, 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 $100,000 may be cash.  Additional protection has been  obtained, at no cost to the City of Brookings, SD, for the remaining net equity balance of the cash and securities in the  City’s account.  This coverage does not protect against losses from any change in market values of investments.  Credit Carrying Fair Value Investment Type Rating Value Less  than 1  1 to 5Hierachy Level Money Market  Fund ‐ U.S. Agencies  Not Rated 12,435,470$    12,435,470$    ‐$                              N/A Money Market  Fund ‐ U.S. Agencies AAAm 2,642,079          2,642,079          ‐                                 N/A U.S. Treasuries AAA 500,555               400,446               100,109               2 U.S. Agencies  Obligations AAA 3,972,670          ‐                                 3,972,670           2 Total  Investments 19,550,774$    15,477,995$    4,072,779$         Maturities in Years 52 City of Brookings December 31, 2016 Notes to the Financial Statements   Concentration of Credit Risk – The City places no limit on the amount that may be invested in any one issuer.      As of December 31, 2016, the City had investments in excess of 5% of the total investment portfolio: 63.61% of the  City's investments are in money markets at First Bank & Trust Wealth Management Services, 5.10% are in Federal Home  Loan Bank securities (FHLB), 15.22% are in Federal Farm Credit Bank securities (FFCB), and 13.51% are in money markets  at Wells Fargo Brokerage Services.    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.  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, 2016:              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, 2016:    The City expects all receivables to be collected within one year, except for $1,554,877 in deferred Special Assessments in  the Special Revenue Special Assessments Fund.       Totals   Investments 19,550,774$         Certificates  of deposits 35,809,277           Deposits  and cash  on hand 56,416,155           111,776,206$        Government‐wide   Fiduciary Funds    Statement of    Statement of    Net Position   Net Position   Totals   Cash  and cash  equivalents 69,102,525$              134,192$                 69,236,717$     Investments‐CDs 26,010,614                 ‐$                             26,010,614       Investments 4,473,238                   ‐                               4,473,238         Restricted  assets:    Cash  and cash  equivalents 2,361,049                  ‐                               2,361,049            Investments‐CDs 9,694,588                  ‐                               9,694,588         111,642,014$            134,192$                 111,776,206$   Special  Unbilled Interest Taxes Accounts Assessments Accounts Total General  Fund 4,718$      3,555$  258,390$         ‐$                     ‐$                  266,663$         Electric Fund 1,505         ‐            2,179,663        ‐                      1,168,627     3,349,795        Wastewater Fund 2,712         ‐            507,302           ‐                      265,659        775,673           Health System Fund 4,902         ‐            10,302,442      ‐                      ‐                    10,307,344      Telephone  Fund 3,315        ‐            2,342,348       ‐                      412,489        2,758,152        Nonmajor and Other Funds 6,745        1,034    1,141,692       1,636,412       285,334        3,071,217        23,897$    4,589$  16,731,837$   1,636,412$     2,132,109$   20,528,844$    53 City of Brookings December 31, 2016 Notes to the Financial Statements 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, 2016, the allowance for doubtful accounts in  the Enterprise Funds were as follows:     The total of Due from Other Governments of $2,747,192 includes the following significant items:    5.      OTHER ASSETS   Other assets at December 31, 2016 were as follows:    Telephone Fund       South Dakota Network, LLC    $330,357      Express Communications, Inc.          11,895      DHE, LLC        117,585       Capital credits       146,029    Total Telephone Fund       605,866    Wastewater Fund – capital credits            9,739    Water Fund – capital credits                 806    Health System Fund – investment in joint venture   218,279    Total other assets – Enterprise Funds  $834,690    There is an operating agreement between all of the members of South Dakota Network, LLC (SDN) including the  Telephone Fund, which requires a selling member to first offer to other members any units available for sale.  The City  owns 7.84% of this company.    There is a buy‐sell agreement between all of the shareholders of Express Communications, Inc., including the Telephone  Fund, which requires a selling shareholder to first offer to other shareholders any stock available for sale.  The City owns  11,368 shares or 10.14% of Express Communications, Inc.    Electric  Fund 17,900$                   Health System  Fund 3,415,000               Telephone  Fund 25,100                      Wastewater Fund 6,100                         Water Fund 6,400                         3,470,500$            Fund/Fund Type Amount Service General Fund/Major Governmental 655,835$       State  of South Dakota, December Sales  and Use  Tax 6,095                Brookings  County, Property Tax  Collected by Brookings  County 4,121                Brookings  County, County Highway Bridge Tax 1,623                Brookings  County, Wheel Tax 35,312             State  of South Dakota, December Liquor Tax 63,113             State  of South Dakota, State  Highway and Bridge  Tax 26,942             Brookings School District, Billings 25% Sales  & Use  Tax/Special  Revenue Fund 161,369          State  of South Dakota, December Sales  and Use  Tax 75% Sales  & Use  Tax/Special  Revenue Fund 491,013          State  of South Dakota, December Sales  and Use  Tax Enhanced 911/Special Revenue  Fund 80,680             Brookings  County, Billings Storm Drainage/Special Revenue  Fund 1,660                Brookings  County, Storm Drainage Tax  Collected by County Bed and Booze Tax/Special  Revenue Fund 88,450             State  of South Dakota, December Sales  and Use  Tax TIF 1  Innovation/ Debt Service  Fund 3,208                Brookings  County, Property Tax  Collected by Brookings  County Solid Waste/Enterprise Fund 60,000             State  of South Dakota, Tire  Removal Grant Airport/Enterprise Fund 1,067,771     Federal Government, Airport  Improvement Project Grant Funds       Total 2,747,192$   54 City of Brookings December 31, 2016 Notes to the Financial Statements 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  11.58% of this company.    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 expired in June 2015 and were 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, 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 cost of the license agreements totaling $3,551,203 were amortized equally over an estimated economic  useful life of 15 years, and are fully amortized at December 31, 2016.    The income related to the PCS system consisted of the following:                                          The Telephone Fund is operating under an agreement with Sprint PCS through June 8, 2028.  Under the agreement,  Sprint provides the Telephone Fund significant support services such as billing, collections, long‐distance, customer care  OPERATING  REVENUES     PCS  service and activation  $   16,164,285      Handsets  and accessories         2,588,678      Tower sublease            428,627      Uncollectibles          (264,287) Total  operating revenues       18,917,303  OPERATING  EXPENSES   Plant specific 3,974,595          Customer 7,186,695          Administrative  and general   591,647             Sales 2,642,615          Cost of goods  sold 2,679,235          Depreciation 1,518,061          Amortization 986                  Total  operating expenses 18,593,834      NET OPERATING  INCOME 323,469           OTHER  INCOME (EXPENSES)    Interest income 69                       Interest expense (100,723)             Miscellaneous 1,990                     Net other expenses (98,664)            PCS  NET INCOME 224,805$         55 City of Brookings December 31, 2016 Notes to the Financial Statements 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.    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, 2016 was $1,207,372.    7. CHANGES IN CAPITAL ASSETS   A summary of changes in capital assets for the year ended December 31, 2016 is as follows:   Depreciation expense was charged to functions as follows:    Governmental Activities:  General government    $    205,500  Public safety           496,708  Public works        1,994,325  Culture and recreation        1,224,102  Health and welfare              4,767  Total depreciation expense    Governmental Activities   $ 3,925,402    Beginning Ending Balances Increases Decreases Transfers Balances Governmental Activities Capital assets not being depreciated  Land 9,825,454$       189,957$            ‐$                                ‐$                                10,015,411$     Construction in progress 1,447,034          704,105               ‐                                   (1,269,492)           881,647                Total  capital assets not being depreciated 11,272,488       894,062               ‐                                   (1,269,492)           10,897,058        Capital assets being depreciated Infrastructure 70,177,973       2,383,901          ‐                                   ‐                                   72,561,874        Buildings  and improvements 41,365,420       3,246,292          (43,951)                   1,269,492             45,837,253        Equipment 16,743,578       2,397,582          (380,226)                ‐                                   18,760,934          Total  capital assets being depreciated 128,286,971    8,027,775          (424,177)                1,269,492             137,160,061       Less accumulated depreciation for:     Infrastructure 29,291,734       1,755,636          ‐                                   ‐                                   31,047,370            Buildings and improvements 12,558,956       962,088               (42,953)                   ‐                                   13,478,091            Equipment 9,180,357          1,207,678          (351,886)                ‐                                   10,036,149              Total  accumulated depreciation 51,031,047       3,925,402          (394,839)                ‐                                   54,561,610                 Total  capital assets being dep. net 77,255,924       4,102,373          (29,338)                   1,269,492             82,598,451        Governmental  Activities capital assets, net 88,528,412$    4,996,435$       (29,338)$                ‐$                                93,495,509$     Beginning Ending Balances Increases Decreases Transfers Balances Business‐Type  Activities: Capital assets not being depreciated: Land 4,770,567$           ‐$                              ‐$                          ‐$                           4,770,567$            Construction in progress 32,507,308           35,840,371        (7,031,791)     (29,586,775)   31,729,113            Total  capital assets not being depreciated 37,277,875           35,840,371        (7,031,791)     (29,586,775)   36,499,680            Capital assets being depreciated: Buildings and improvements 245,020,442        10,177,231        (10,217,397)  29,586,775     274,567,051         Equipment 37,755,074           2,742,229           (1,031,813)     ‐                              39,465,490              Total  capital assets being depreciated 282,775,516        12,919,460        (11,249,210)  29,586,775     314,032,541           Less accumulated depreciation for:   Buildings and improvements 120,861,755        8,726,690           (9,852,204)     ‐                              119,736,241           Equipment 27,606,400           2,814,058           (849,119)         ‐                              29,571,339                Total  accumulated depreciation 148,468,155        11,540,748        (10,701,323)  ‐                              149,307,580               Total  capital assets being depreciated, net 134,307,361        1,378,712           (547,887)         29,586,775     164,724,961         Business ‐Type  Activities capital assets, net 171,585,236$     37,219,083$     (7,579,678)$  ‐$                           201,224,641$      56 City of Brookings December 31, 2016 Notes to the Financial Statements Depreciation expense was charged to functions as follows:  Business‐Type Activities:  Electric  $1,543,032  Hospital     3,423,207  Telephone     3,384,940  Liquor          42,037  Water        355,293  Wastewater     1,130,802  Airport       938,217  Golf         86,363  Solid Waste        583,850  Research and Technology Center          53,007  Total depreciation expense    Business‐Type Activities                                 $11,540,748    Significant projects included in construction in progress for the primary government are as follows:     Expended as of   Project Description Authorized 12/31/2016  Committed  Business‐Type Activities: Airport Fund    Runway 17/35 Improvements 1,260,000$       67,715$             1,192,285$        Telephone Fund     Sioux Falls LTE Tower & Site  Work 385,523            340,335             45,188                   PCS  Radio Access  Network 1,977,894         1,771,154          206,740             Water Fund     Tower Controls  Equipment 116,900            105,210             11,690               All  Funds     BMU NW Parking Lot Improvements 218,349             ‐                         218,349             Health System    Renovation and Construction of Facilities 38,000,000       26,500,000        11,500,000        41,958,666$     28,784,414$      13,174,252$      57 City of Brookings December 31, 2016 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 23,922,139$    32,515$            (2,231,344)$    21,723,310$    2,110,950$       Premium on issuance 83,895                   ‐                              (11,985)              71,910                   ‐                              Total  bonds payable 24,006,034       32,515               (2,243,329)       21,795,220       2,110,950        OPEB      General  Fund 1,228,258          97,060               ‐                               1,325,318          ‐                                  Special  Revenue Funds 86,044                  6,471                  ‐                               92,515                  ‐                              Compensated absences     General  Fund 781,226               913,804            (856,326)           838,704               281,600                Special  Revenue Funds 53,524                  57,654               (51,319)              59,859                  18,400               Net  pension liability ‐                                 1,274,010         ‐                               1,274,010           ‐                              Governmental Activities   Long‐Term Liabilities 26,155,086$    2,381,514$     (3,150,974)$    25,385,626$    2,410,950$     Beginning Ending Due Within Balance Additions Reductions Balance One Year Revenue bonds 9,816,751$      ‐$                   (3,631,415)$    6,185,336$     319,865$       Loans  payable 24,064,478     5,587,640      (508,584)         29,143,534     647,729         Capital  leases 22,484,843     12,209,179    (7,997,098)      26,696,924     1,083,566      OPEB 1,007,383       103,546          ‐                      1,110,929        ‐                     Landfill  closure/ postclosure 537,893          21,330            ‐                      559,223           ‐                     Compensated  absences 1,427,089       3,114,874      (3,125,606)      1,416,357       1,098,065      Amount due under joint      operating agreement 958,734          1                     ‐                      958,735           ‐                     Net pension liability ‐                      4,983,158       ‐                      4,983,158        ‐                     Business‐Type  Activities   Long‐Term Liabilities 60,297,171$   26,019,728$  (15,262,703)$  71,054,196$   3,149,225$    58 City of Brookings December 31, 2016 Notes to the Financial Statements Long‐term liabilities payable at December 31, 2016 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 on December, 2018. Original  issue $16,735,000. 7,955,000$             Plus: Premium  on issuance 71,910                 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. 9,582,019            City of Brookings, South Dakota  SDHDA TIF #3 Bond, (Guaranteed by Developer), fi nal  maturity date December 2023; interest rate  5%; payments  made  from the  TIF  #3 Fund.                Original  issue: $1,035,000.459,529               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 $670,000.538,058               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. 317,699               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. 290,113               City of Brookings, South Da kota  State  Revolving Fund Bond #5, final  maturity date January 2033; interest rate  3%; payments 193,337               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 1,766,139            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 $450,940.181,524               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  $1,570,000.439,892               21,795,220          OPEB Liability:1,417,833            Compensated  Absences:898,563               Net Pension  Liability:1,274,010            Total  Governmental  Activities  Long‐Term Liabilities 25,385,626$        59 City of Brookings December 31, 2016 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 $1,353,319. 945,336$           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 $6,500,000.5,240,000             Total  Revenue Bonds:6,185,336          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. 29,143,534             Total  Loans:29,143,534        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. 4,920,000          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. 9,287,745          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. 8,000,000                 Series  2015B; interest rate  3.95% through  2025, variable  thereafter, due  October 2037.            Original  issue $22,000,000. 4,489,179               Total  Leases:26,696,924        OPEB  Liability:1,110,929          Landfill  Closure/Postclosure  Costs:559,223             Compensated  Absences:1,416,357          Amount Due  Under Joint Operating  Agreement:958,735             Net Pension  Liability:4,983,158          Total  Business ‐Type  Activities  Long‐Term Liabilities 71,054,196$      60 City of Brookings December 31, 2016 Notes to the Financial Statements The annual requirements to amortize all debt outstanding for Governmental Activities as of December 31, 2016, 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.    The annual requirements to amortize all debt outstanding for Business‐Type Activities as of December 31, 2016, except  for compensated absences, landfill closure/postclosure, OPEB, amounts due under joint operating agreement, and the  net pension liability are as follows:  Business ‐Type  Activities: Year Ending December 31, Principal Interest Principal Interest 2017 319,865$                229,345$                 647,729$                938,313$               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                   849,524                  2022-2026 2,030,100              732,136                    4,080,598              3,866,121             2027-2031 2,456,998              320,337                    4,797,462              3,149,258             2032-2036 ‐                                      ‐                                      5,640,261              2,306,458             2037-2041 ‐                                      ‐                                      6,631,120              1,315,599             2042-2045 ‐                                      ‐                                      4,525,486              242,548                  6,185,336$           2,103,050$            29,143,534$        15,354,795$       Year  Ending December 31, Principal Interest Principal Interest 2017 1,083,566$           828,351$                 2,051,160$           1,996,009$          2018 2,526,631              858,867                    3,526,513              1,997,598             2019 2,617,456              768,330                    3,648,310              1,875,392             2020 2,710,745              674,379                    3,778,534              1,748,026             2021 2,711,157              672,354                    3,811,883              1,710,644             2022-2026 8,434,026              2,043,001               14,544,724           6,641,258             2027-2031 1,706,450              964,228                    8,960,910              4,433,823             2032-2036 2,012,211              658,466                    7,652,472              2,964,924             2037-2041 2,372,758              297,919                    9,003,878              1,613,518             2042-2045 521,924                   10,825                       5,047,410              253,373                  26,696,924$        7,776,720$            62,025,794$        25,234,565$       Revenue Bonds Loans Capital  Acquisition Leases Total Year  Ending December 31, Principal Interest 2017 2,110,950$         658,359$                      2018 2,163,877            602,920                         2019 2,227,647            542,274                         2020 2,291,562            476,697                         2021 2,362,833            405,331                         2022‐2026 4,339,129            1,337,020                    2027‐2031 4,346,402            676,913                         2032‐2036 1,880,910            78,192                            21,723,310$      4,777,706$                 Revenue Bonds 61 City of Brookings December 31, 2016 Notes to the Financial Statements 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 $1,303,706.  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 $6,984,680.  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.    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.    Rent expense and future minimum rental commitments for these leases are as follows:    Expense:   2016       $  882,091  Commitments:   2017       $  686,809   2018                569,684   2019           513,942   2020           366,627   2021           130,955   Total Commitments                  $2,268,017       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:   2016       $  863,882  Commitments:   2017        $ 118,143                 10. 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 $559,223 reported as landfill closure  and postclosure care liability at December 31, 2016, represents the cumulative amount reported to date based on the  use of 30.00% of the estimated capacity of the landfill.  The Municipality will recognize the remaining estimated cost of  closure and postclosure care of $1,304,845 as the remaining estimated capacity is filled.  These amounts are based on  what it would cost to perform all closure and postclosure care in 2016.  The Municipality expects to close the landfill in  the year of 2046.  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, 2016,  investments of $1,235,725 are held for these purposes.  These are reported as restricted assets on the statement of net  position.  The Municipality expects that future inflation costs will be paid from interest earnings on these annual  62 City of Brookings December 31, 2016 Notes to the Financial Statements contributions.  However, if interest earnings are inadequate or additional post closure care requirements are  determined (due to changes in technology or applicable laws and regulations, for example), these costs may need to be  covered by increased fees to future landfill users or from future tax revenue.    11.    SEGMENT INFORMATION FOR ENTERPRISE FUNDS    The Electric Fund maintained by the City provides construction and operation of the municipal electric system and  related facilities.  The City has issued separate revenue bonds to finance its Electric Fund.  Investors in those bonds rely  solely on the revenue generated by the individual activities for repayment.  Segment information for these separately  identifiable activities that have bonds or other debt instruments outstanding with a revenue stream pledged in support  of that debt, as well as a requirement to account for the activity’s revenues, expenses, gains and losses, assets and  liabilities apart from other activities within the same fund or in different funds is as follows:      A.  Electric Fund  CONDENSED STATEMENT OF NET POSITION Unsecured Series Series Total Operations 2005 Bonds 2011 Bonds Electric Fund Assets     Current assets 10,760,530$                1,909,488$                830,038$        13,500,056$                     Due from  other funds 145,106                          ‐                                         ‐                             145,106                               Noncurrent assets, excluding capital assets 3,676,990                      104,075                       475,346           4,256,411                           Capital  assets 27,596,069                   825,968                       5,540,338       33,962,375                          Total  assets 42,178,695                   2,839,531                   6,845,722       51,863,948                    Deferred Outflows  of resources 883,943                          ‐                                         ‐                             883,943                              Total  assets and deferred outflows of resourc 43,062,638$                2,839,531$                6,845,722$    52,747,891$                 Liabilities     Current liabilities 2,364,508$                   59,965$                       274,559$        2,699,032$                        Due to other funds 7,159                                 ‐                                          ‐                             7,159                                     Noncurrent liabilities 2,185,746                      885,471                       4,980,000       8,051,217                              Total  liabilities 4,557,413                      945,436                       5,254,559       10,757,408                    Net  position    Net Investment in capital assets 25,751,069                   (119,368)                      300,338           25,932,039                       Restricted 497,307                          104,075                       475,346           1,076,728                          Unrestricted 12,256,849                   1,909,388                   815,479           14,981,716                    Total  net position 38,505,225                   1,894,095                   1,591,163       41,990,483                    Total  liabilites and net position 43,062,638$                2,839,531$                6,845,722$    52,747,891$                 Electric  Fund December 31, 2016 63 City of Brookings December 31, 2016 Notes to the Financial Statements CONDENSED STATEMENT OF REVENUES,   EXPENSES, AND  CHANGES IN NET POSITION Unsecured Series Series Total Operations 2005 Bonds 2011 Bonds Electric  Fund Operating revenues  26,817,945$   331,867$       629,302$      27,779,114$    Depreciation/amortization  expense (1,329,520)       (36,583)                    (176,929) (1,543,032)        Other operating expense (22,644,970)    (7,013)                                           ‐ (22,651,983)        Operating income 2,843,455         288,271          452,373         3,584,099          Nonoperating revenues  (expenses)    Investment income 42,410                329                                          132 42,871                    Interest expense (99,713)               (58,082)                    (178,685) (336,480)                Other 26,279                ‐                                                         ‐ 26,279                    Transfers  out (2,005,000)       ‐                                                         ‐ (2,005,000)          Changes  in net position 807,431             230,518          273,820         1,311,769          Beginning net position 37,697,794      1,663,577     1,317,343     40,678,714       Ending net position 38,505,225$   1,894,095$  1,591,163$  41,990,483$    Year  Ended December 31, 2016 CONDENSED STATEMENT OF CASH FLOWS Unsecured Series Series Total Net  cash provided (used) by:Operations 2005 Bonds 2011 Bonds Electric Fund    Operating activities 4,398,057$      324,856$       629,302$      5,352,215$          Noncapital financing activities (6,013,160)        ‐                                                        ‐ (6,013,160)           Capital and related financing activities (2,805,914)       (114,497)                (434,047) (3,354,458)           Investing activities (4,580,173)       329                    132                    (4,579,712)             Net increase (decrease) (9,001,190)       210,688          195,387         (8,595,115)        Beginning cash and cash equivalents 10,329,451      1,802,875     1,109,997     13,242,323       Ending cash and cash equivalents 1,328,261$      2,013,563$  1,305,384$  4,647,208$                       Electric  Fund Year  Ended December 31, 2016 Electric  Fund CONDENSED STATEMENT OF NET POSITION Unsecured State Revolving Total Operations Fund Loan Wastewater Fund Assets     Current assets 3,457,999$          4,823,930$            8,281,929$                    Due from  other funds 4,556                       ‐                                      4,556                                 Noncurrent assets, excluding capital assets 3,474,053             132,445                    3,606,498                       Capital assets 12,245,104          29,766,877            42,011,981                      Total  assets 19,181,712          34,723,252            53,904,964                Deferred outflows of resources 388,666                 ‐                                      388,666                          Total  assets and deferred outflows of resources 19,570,378$       34,723,252$         54,293,630$             Liabilities     Current liabilities 337,974$              954,776$                 1,292,750$                    Due to other funds 31,791                    ‐                                      31,791                              Noncurrent liabilities 467,255                 28,495,805            28,963,060                       Total  liabilities 837,020                 29,450,581            30,287,601                Net positions    Net Investment in capital assets 11,969,584          623,343                    12,592,927                   Restricted 219,476                 132,445                    351,921                          Unrestricted 6,544,298             4,516,883               11,061,181                Total  net position 18,733,358          5,272,671               24,006,029                  Total  liabilities and net position 19,570,378$       34,723,252$         54,293,630$             Wastewater Fund December 31, 2016 64 City of Brookings December 31, 2016 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  2,820,888$     2,142,756$    4,963,644$               Depreciation/amortization  expense (517,736)           (613,066)          (1,130,802)                 Other  operating expense (2,157,191)      (137,713)          (2,294,904)                    Operating income 145,961            1,391,977       1,537,938                  Nonoperating revenues (expenses)    Investment income 41,438               216                      41,654                             Interest expense (16,096)              (534,972)          (551,068)                        Other 503,831            ‐                              503,831                          Contributed capital 613,821            ‐                              613,821                         Changes  in net position 1,288,955        857,221            2,146,176                  Beginning net position 17,444,403     4,415,450       21,859,853               Ending net position 18,733,358$  5,272,671$    24,006,029$            Wastewater Fund Year  Ended  December 31, 2016 CONDENSED STATEMENT OF CASH FLOWS Unsecured State  Revolving Total Net  cash provided (used) by: Operations Fund Loan Wastewater Fund    Operating activities 2,118,239$     1,099,552$    3,217,791$                  Noncapital  financing activities 80,243                ‐                              80,243                             Capital and related financing activities (1,284,080)      3,813,978       2,529,898                     Investing activities (7,789,791)       ‐                              (7,789,791)                      Net increase (decrease) (6,875,389)      4,913,530       (1,961,859)                 Beginning cash and cash equivalents 4,646,855        42,845               4,689,700                  Ending cash and cash equivalents (2,228,534)$   4,956,375$    2,727,841$               Wa stewater Fund Year  Ended December 31, 2016 65 City of Brookings December 31, 2016 Notes to the Financial Statements 12.      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, 2016 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 Nonmajor Health Nonmajor Due From Fund Governmental System Enterprise General  Fund ‐$               ‐$                      71,808$    1,303$       10,160$      ‐$            9,257$          92,528$        Nonmajor Governmental 14,992       207,939            2,863        52              405             ‐                  366               226,617        Electric 3,060         ‐                        1,442        144            2,193          ‐                  320               7,159            Wastewater ‐                 18,621      124            930             ‐                  12,116          31,791          Health System ‐                 ‐                        21,517      2,639         13,026        ‐                  2,812            39,994          Telephone 6,115         ‐                        14,507      193            132,248      ‐                  567               153,630        Nonmajor Enterprise 8,324         14,348      101            1,432          ‐                  459               24,664          Total     32,491$     207,939$          145,106$  4,556$       160,394$    ‐$                25,897$        576,383$      Due To Electric Telephone TotalWastewater General Nonmajor Nonmajor Transfer Out Fund Governmental Enterprise General  Fund ‐$                   $       1,653,356  $   229,650  $   1,883,006  Nonmajor Governmental      1,882,250            3,346,225        122,489        5,350,964  Electric      2,005,000                          ‐                    ‐        2,005,000  Telephone         200,000                          ‐                    ‐           200,000  Nonmajor Enterprise         957,250                          ‐          75,000        1,032,250  Total  $  5,044,500  $       4,999,581  $   427,139  $ 10,471,220  Transfer In Total Owed  to Owed from (Receivable) (Payable) Amount  General  Fund TIF 1  Innov Campus  Fund 930,354$          General  Fund Swiftel  Center Fund 100,000             Liquor Fund Golf Fund 164,430             Solid Waste Fund Swiftel  Center Fund 1,100,000        Wastewater Fund Telephone  Fund 518,625             Electric  Fund Telephone  Fund 4,028,785        6,842,194$     Interfund Advances 66 City of Brookings December 31, 2016 Notes to the Financial Statements   The annual amounts due for principal and future interest on interfund advances are as follows:        13.      RESTRICTED NET POSITION    The following table shows the net position restricted as shown on the Statement of Net Position:     Principal   Interest Total 2017 1,687,642$  251,638$  1,939,280$   2018 1,654,415    184,864    1,839,279     2019 1,859,712    115,147    1,974,859     2020 191,430       34,516      225,946        2021 194,875       31,071      225,946        2022‐2026 897,211       100,949    998,160        2027‐2031 356,909       30,484      387,393        6,842,194$  748,669$  7,590,863$   Fund Restricted By Amount General Fund:    Library 62,454$               D.A.R.E Donors 677                      Insurance Deposit Contract 355,852               STP Funds  (Surface  Transportation  Grant) Grantor 20,084              Special Revenue Funds:   Enhanced  911 Law 191,790              Library Fines Law 23,471                Bed and Booze Tax Law 1,096,255           75% Sales  Tax ‐ STP Funds  Grantor 1,233,989         Debt Service Funds:   TIF 3 Valley View Covenant 1,151                  TIF 4 Sieler Covenant 1,418                  TIF 5 32nd  Ave Covenant 45,616                TIF 6 Digester Covenant 286,735            Governmental  Funds  ‐ Pension  Purposes Standard 1,567,255         Enterprise Funds:   Electric Fund – debt service Covenant 579,421              Telephone Fund ‐ debt service Covenant 6                         Wastewater Fund ‐ debt service Covenant 132,445              Health System ‐ debt service Covenant 133,534              Solid Waste  Fund – landfill Law 676,502            Enterprise  Funds  ‐ Pension  Purposes Standard 6,249,735         Total Restricted Net Position 12,658,390$     Donors 67 City of Brookings December 31, 2016 Notes to the Financial Statements 14.  FUND BALANCES  The following provides details of the aggregate amounts displayed on the face of the balance sheet:   Other    General  Governmental  Fund  Funds Total Fund Balances:   Nonspendable:     Inventory 19,679$             15,118$                 34,797$                   Inventory land held for resale 1,600,000         ‐                             1,600,000              Prepaid items 214,510             22,591                    237,101                   Insurance deposit 355,852             ‐                                   355,852                   Advances 1,030,354         ‐                                   1,030,354          3,220,395         37,709                    3,258,104            Restricted for:     Donor purposes 63,131                ‐                                   63,131                      Debt service ‐                               334,920                 334,920                   Library ‐                               23,471                    23,471                      E‐911 ‐                               191,790                 191,790                  Grant conditions 20,084                1,233,989             1,254,073              City promotion ‐                               1,096,255             1,096,255          83,215                2,880,425             2,963,640            Committed:     Industrial park development 2,274,400         ‐                                   2,274,400              Financial stabilization 1,642,367         ‐                                   1,642,367              Retail  development 1,873                   ‐                                   1,873                         Police & Fire  Capital and other ‐                               1,843,792             1,843,792              Economic development ‐                               1,000,000             1,000,000              Promotion/marketing of City ‐                               207,415                 207,415                   Special  assessment projects ‐                               1,739,065             1,739,065              Storm drainage ‐                               1,799,789             1,799,789          3,918,640         6,590,061             10,508,701         Assigned  to:     Capital project carryover 375,042             664,484                 1,039,526              Budget shortfall 429,022             429,022                   Future  capital improvement 825,117             ‐                                   825,117               1,629,181         664,484                 2,293,665            Unassigned 5,820,728         (2,559,229)           3,261,499          14,672,159$   7,613,450$          22,285,609$    68 City of Brookings December 31, 2016 Notes to the Financial Statements 15.      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 members: Class A general members, Class B public safety and judicial members, and  Class C cement plant retirement fund members.  The City has no Class B judicial members or Class C members.  Class A  retirement benefits are determined as the larger of that provided by the standard formula or the alternate formula.  The  Class A standard formula benefit is determined as 1.70% times credited service prior to 2008, plus 1.55% times credited  service thereafter times the employee's final average compensation.  Final average compensation is the highest average  annual compensation earned by a member during 12 consecutive calendar quarters of the last 40 such quarters during  the periods of credited service.  The Class A alternate formula is determined as 2.40% times credited service prior to  2008, plus 2.25% times credited service thereafter times the employee's final average compensation less 80 percent of  the member’s primary Social Security benefit.  Class A members who retire after age 65 with three years of service are  entitled to an unreduced annual retirement benefit.  An unreduced annual retirement benefit is also available after age  55 for Class A members where the sum of age and credited service is greater than or equal to 85.  Class B public safety  benefits are determined as 2.40% times credited service prior to 2008, plus 2.00% times credited service thereafter  times the employee’s final average compensation.  Class B public safety members with 3 years of credited service are  eligible to retire at age 55. An unreduced annual retirement benefit is also available after age 45 for Class B public safety  members where the sum of age and credited service is greater than or equal to 75.  Employees are eligible for service‐ related disability.  Disability benefits are determined as a percentage of the member’s final average compensation,  dependent on several factors, but are payable immediately without an actuarial reduction.  Death benefits are  determined as a percentage of the employee's final average salary. See the SDRS annual report for further details.  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    All benefits except those depending on the Member's Accumulated Contributions are annually increased by the Cost‐of‐ Living Adjustment.    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.   All participating employers are required to contribute an amount equal to the members’ contributions.   Employees whom were members prior to July 1, 2010 may make an additional contribution of 1.5% of their salary for  optional spouse coverage. State statute requires the employer to contribute an amount equal to the employee's  contribution plus an additional contribution in the amount of 6.2% for any Class A member’s calendar year  compensation exceeding the maximum taxable amount for Social Security.  The City's share of contributions to SDRS for  the fiscal year ended December 31, 2016, was $2,096,488, equal to the required contributions for the year.  69 City of Brookings December 31, 2016 Notes to the Financial Statements Net Pension Liability, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources  Related to Pensions  At June 30, 2016, the measurement date used for the December 31, 2016 net pension liability, SDRS was 96.89% funded  and accordingly had a net pension liability.  The proportionate shares of the components of the net pension liability of  SDRS, for the City as of December 31, 2016, are as follows:          The net pension liability was measured as of June 30, 2016 and the total pension liability used to calculate the net  pension liability was determined by an actuarial valuation as of that date.  At December 31, 2016, the City reported a  liability of $6,257,168 for its proportionate share of the net pension liability.  The City’s share of the net pension liability  was based on the City’s share of contributions to the Plan relative to all employer contributions to the Plan.  At June 30,  2016, City's proportion was 1.8523833%, which is a decrease of (.0173347%) from the City’s proportion of 1.8697180%  at June 30, 2015.  For the year ended December 31, 2016, the City recognized pension expense of $4,436,128.  At December 31, 2016, the  City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following  sources:    Deferred Outflows Deferred Inflows of Resources of Resources Difference between expected and actual  experience 2,178,259$                 ‐$                                Changes in assumptions 3,747,748                   ‐                                  6,960,087                   ‐                                  Change in Proportion ‐ City (excluding BMU & BHS) 9,127                           16,040                           Change in Proportion ‐ Brookings Municipal  Utilities (BMU) 86,120                         ‐                                  Change in Proportion ‐ Brookings Health System (BHS)61,245                        ‐                                  City contributions subsequent to the measurement date 1,047,613                  ‐                                  Total 14,090,199$              16,040$                         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, 2016  measurement date of $1,047,613 will be recognized as a reduction of the net pension liability in the fiscal year ending  December 31, 2017.  Other amounts reported as deferred outflows of resources and deferred inflows of resources  related to pensions will be recognized in net pension expense as follows:               Proportionate  share  of total position liability 201,006,785$              Less  proportionate share of net position restricted for pension benefits 194,749,617                Proportionate share of net pension liability 6,257,168$                  Year‐Ended December 31:Net 2017 3,527,321$        2018 2,153,524          2019 4,439,884          2020 2,905,817          13,026,546$      70 City of Brookings December 31, 2016 Notes to the Financial Statements Actuarial Assumptions  The total pension liability in the SDRS June 30, 2016 actuarial valuation was determined using the following actuarial  assumptions, applied to all periods included in the measurement:  Inflation 3.25%  Salary Increases 5.83% at entry to 3.87% after 30 years of service (3.75% in prior year)  Investment Rate of Return 7.50%, net of pension plan investment expense    Mortality rates were based on the RP‐2000 Mortality Table, projected generally with Scale BB and with rates reduced to  fit recent experience analysis.  The actuarial assumptions used in the SDRS June 30, 2016 valuation were based on the results of an actuarial experience  study for the period July 1, 2005 through June 30, 2011 (June 30, 2010 in prior year).  The mortality assumptions were  revised based on an extension of the experience study including mortality experience through June 30, 2013.  Investment portfolio management is the statutory responsibility of the South Dakota Investment Council (SDIC), which  may utilize the 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, 2016 are summarized in the following table:              Discount Rate  The discount rate used to measure the total pension liability was 7.50%.  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  contributions from employers will be made at contractually required rates.  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 total pension liability.    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, 2016 calculated using  the discount rate of 7.50%, 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 (6.50%) or one percentage point higher  (8.50%) than the current rate:           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% Current  1% Decrease Discount Rate 1% Increase (6.50%) (7.50%) (8.50%) City's proportionate share       of the net pension (asset) liability 35,015,033$    6,257,168$  (17,197,958)$   71 City of Brookings December 31, 2016 Notes to the Financial Statements   Pension Plan Fiduciary Net Position  Detailed information about the plan's fiduciary net position is available in the separately issued SDRS financial report.    16.     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 administered by Wellmark Blue Cross and no separate 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 2016 the City  contributed approximately $252,000, all for current premiums (or 52.6% of the total premiums), and plan participants  contributed approximately $227,000 (or 47.4% of total premiums) through required contributions ranging from $269.93  to $1,107.58 per month for coverage.       72 City of Brookings December 31, 2016 Notes to the Financial Statements   Annual OPEB Cost and Net OPEB Obligation:  The City’s annual other postemployment benefit (OPEB) cost (expense) is  calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with the  parameters of GASB Statement 45.  The ARC represents a level of funding that, if paid on an ongoing basis is projected  to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years.   The following table shows the components of the City’s annual OPEB cost for the year, the amount actually paid from  the plan, and changes in the City’s net OPEB obligation.        The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation  for 2016 and the preceding two years were as follows:         City BMU Health   General  Funds  System Fund Annual  required  contribution 242,568$            121,307$         108,385$             Interest on net OPEB obilgation 42,060                13,533             14,057                 Adjustment to  annual required  contribution (49,851)               (16,040)           (16,661)                  Annual  OPEB cost (expense)234,777              118,800           105,781               Contributions  made (132,770)             (83,330)           (36,181)                Change  in net OPEB obligation 102,007              35,470             69,600                 OPEB  obligation at beginning of ye ar 1,402,003           451,107           468,575               OPEB  obligation at end of year 1,504,010$         486,577$         538,175$             Percenta ge Fiscal of Annual Net Year Annual OPEB  Cost OBEB Ended OPEB Cost Contributed Obligation City General  12/31/2016 234,777$      56.55% 1,504,010$     12/31/2015 337,745        57.85% 1,402,003       12/31/2014 338,798        44.18% 1,259,645       BMU Funds 12/31/2016 118,800        70.14% 486,577          12/31/2015 120,915        90.72% 451,107          12/31/2014 121,055        79.04% 439,882          Health System Fund 12/31/2016 105,781        34.20% 538,175          12/31/2015 99,816          30.27% 468,575          12/31/2014 100,210        29.15% 398,975          73 City of Brookings December 31, 2016 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.    17.        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, 2016 Notes to the Financial Statements 18.      TAX ABATEMENTS  As of December 31, 2016 the City provides sales tax incentives programs with two companies 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 2012 the City Council entered into an agreement with Bel Brands cheese to refund City sales tax paid on the construction and  equipment purchases for a new plant located in Brookings.  During Phase I and Phase II of the project, the City is reimbursing  the cheese plant an amount equal to the Brookings City sales and use tax paid on equipment purchases up to $2,520,000.  As of  December 31, 2016 there are remaining funds to be drawn during Phase II.  In addition, the City has provided a reimbursement  of Brookings City sales and use tax paid by the cheese plant during Phase I on the purchase of construction materials for the  facility of $390,000, all of which has been refunded.  Refunds are obtained through application by Bel Brands, including proof  that the City tax was paid.  Upon receipt, review and approval of the documentation, the City refunds Bel Brands the City sales  and use tax paid.    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.                          19.      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, 2016, 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  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 2016, $2,544,066 was paid in claims, net of any stop loss  reimbursements.  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 $5,000.    The City joined the South Dakota Public Assurance Alliance (SDPAA), a public entity risk pool currently operating as a  common risk management and insurance program for South Dakota local government entities.  The objective of the  SDPAA is to administer and provide risk management services and risk sharing facilities to the members and to defend and  protect the members against liability, to advise members on loss control guidelines and procedures, and provide them  with risk management services, loss control and risk reduction information and to obtain lower costs for that coverage.   The City's responsibility is to promptly report to and cooperate with the SDPAA to resolve any incident which could result  Amount of  Taxes  Refunded Tax  Abatement Program during 2016 Sales Tax  Refund: Bel  Brands ‐$                          3M Industries 60,704                      75 City of Brookings December 31, 2016 Notes to the Financial Statements 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, 2016, 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.  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, 2016, 4 claims were filed for unemployment benefits.  These claims resulted in the  payment of benefits in the amount of $2,957.     76 City of Brookings December 31, 2016 Notes to the Financial Statements   20.      EXCESS OF EXPENDITURES OVER APPROPRIATIONS    The following funds had expenditures for which there were no appropriations:      Swiftel Fund                    $     66,002              *The Swiftel Center operating revenue was over budget by $62,532 due to more events than anticipated and thus  expenditures were greater than anticipated.      Library Fine Fund    $      1,807   *The Library Board approved the additional expenditures, however an amendment was not made to the formal  budget.      BID Fee Fund     $         728  * This excess is due to the fund generating more tax than anticipated and therefore the 2% administrative  expense required by the Governance and Ends Policy exceeded expectations.        TIF 3 Valley View Debt Service Fund      $       8,204  *This excess is due to the Tax Increment District generating more tax increment revenue than anticipated and  that revenue being remitted to the agency holding the loan.          77 City of Brookings Year Ended December 31, 2016 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, 2016 Required Supplementary Information ‐ Schedule of Pension Contributions 2016 2015 2014 Statutorily required contribution 2,096,488$          2,069,087$                 2,010,973$                         Contributions in relation to the  statutorily required contribution 2,096,488$          2,069,087$                 2,010,973$                         Contribution deficiency (excess)‐$                      ‐$                             ‐$                                     City's covered‐employee payroll 34,066,020$        32,960,950$               32,580,616$                       Contributions as a percentage of  covered‐employee payroll 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, 2016 Required Supplementary Information ‐ Schedule of Proportionate Share of Net Pension (Asset) Liability 2016 2015 2014 City's proportion of the net pension (asset) liability 1.85%1.87%1.90% City's proportionate share of net  pension liability (asset)*6,257,168$        (7,930,006)$      (13,709,855)$     City's covered‐employee payroll 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‐employee payroll 18.58%‐24.26%‐41.82% Plan fiduciary net position as a  percentage of the total pension (asset) liability 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 Year Ended December 31, 2016 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 3,006,365$                     3,006,365$                     2,932,571$                            (73,794)$                            General sales and use taxes 6,180,000                      6,180,000                      6,630,466                               450,466                              Amusement taxes 1,500                               1,500                               1,560                                      60                                        Penalties and interest on delinquent taxes 3,065                               3,065                               2,591                                      (474)                                  Licenses and permits 261,225                          279,225                          303,644                                  24,419                             Intergovernmental revenue:    Federal grants 49,549                            61,049                            39,458                                    (21,591)                               State grants 19,025                            5,200                               5,216                                      16                                        State shared revenues 541,045                          541,045                          571,593                                  30,548                                County shared revenues 236,600                          236,600                          204,203                                  (32,397)                            Charges for goods and services:    Public safety 44,800                            44,800                            7,799                                      (37,001)                               Public works 225                                  225                                  180                                         (45)                                       Health and welfare 8,800                               8,800                               9,675                                      875                                      Culture and recreation 423,662                          423,662                          438,960                                  15,298                             Fines and forfeits 105,860                          105,860                          93,220                                    (12,640)                            Miscellaneous revenue:    Interest earned 186,800                          186,800                          96,862                                    (89,938)                               Rentals 86,355                            86,355                            99,380                                    13,025                                Contributions and donations from private sources 67,000                            134,920                          85,601                                    (49,319)                               Liquor Operating Agreement 607,200                          607,200                          668,300                                  61,100                                Other 676,515                          689,855                          874,752                                 184,897                                    Total revenues 12,505,591                    12,602,526                    13,066,031                           463,505                           EXPENDITURES General government:    Legislative 128,616                          128,616                          104,325                                  24,291                                Contingency 462,000                          90,804                            ‐                                          90,804                                Executive 731,471                          856,514                          796,045                                  60,469                                Financial administration 779,260                          696,743                          649,196                                  47,547                                Other 1,579,835                      1,576,970                      1,267,864                               309,106                           Public safety:    Police 3,457,691                      3,512,842                      3,446,340                               66,502                                Fire 751,637                          762,746                          729,905                                  32,841                                Other protection 90,045                            90,045                            83,701                                    6,344                                Public works:    Community development 435,024                          542,752                          429,659                                  113,093                              Engineer 474,305                          498,318                          476,729                                  21,589                                Highways and streets 3,627,668                      3,973,476                      3,686,438                               287,038                           Health and welfare:    Animal control 142,612                          110,554                          99,171                                    11,383                             Culture and recreation:    Recreation 731,040                          822,738                          652,607                                  170,131                              Parks 2,728,839                      3,164,790                      2,812,615                               352,175                              Libraries 1,114,220                      1,244,003                      1,192,480                              51,523                                      Total expenditures 17,234,263                    18,071,911                    16,427,075                           1,644,836                                Deficiency of revenues             over expenditures (4,728,672)                     (5,469,385)                     (3,361,044)                            2,108,341                       OTHER FINANCING SOURCES (USES) Transfers in 4,911,179                      5,257,009                      5,044,500                               (212,509)                         Transfers out (229,650)                        (1,883,006)                     (1,883,006)                             ‐                                    Sale of capital assets 50,150                            60,080                            34,673                                   (25,407)                                     Total other financing sources 4,731,679                      3,434,083                      3,196,167                              (237,916)                                  Net change in fund balances 3,007                               (2,035,302)                     (164,877)                                 1,870,425                       Fund balances ‐ beginning 14,837,036                    14,837,036                    14,837,036                           ‐                                   Fund balances ‐ ending 14,840,043$                   12,801,734$                   14,672,159$                          1,870,425$                      81 City of Brookings  December 31, 2016    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.          82 Combining Balance Sheet ‐ Nonmajor Governmental Funds Special Debt Capital  Revenue Service Project Funds Funds Funds Total ASSETS   Cash and cash equivalents 7,354,967$           ‐    $                         729,044$                 8,084,011$                 Investments‐CDs 10,614                   ‐                           ‐                            10,614                         Investments 661,534                ‐                           ‐                                661,534                      Restricted cash and cash equivalents 1,234,364             379,597                   ‐                                1,613,961                   Receivables, (net of allowances for      uncollectibles, if any):         Accounts 183,078                ‐                           ‐                                183,078                            Storm drainage fees 1,034                     ‐                           ‐                                1,034                                 Special assessments 1,636,412             ‐                           ‐                                1,636,412                         Interest 3,172                     ‐                           ‐                                3,172                           Due from other funds 207,939                ‐                           ‐                                207,939                      Due from other governments 823,172                3,208                       ‐                                826,380                      Prepaid items 22,591                   ‐                           ‐                                22,591                        Inventories 15,118                   ‐                           ‐                                15,118                               Total assets 12,153,995$         382,805$                 729,044$                 13,265,844$             LIABILITIES   Accounts payable 492,688$              ‐$                         28,560$                   521,248$                     Retainage payable ‐                             ‐                               36,000                     36,000                        Due to other funds 226,617                ‐                               ‐                                226,617                      Due to other governments 35,389                  ‐                               ‐                                35,389                        Amount held for others 32,546                  ‐                               ‐                                32,546                        Accrued wages payable 39,456                  ‐                               ‐                                39,456                        Advance from other funds 1,200,000             930,354                  ‐                                2,130,354                   Unearned revenue 993,338                ‐                               ‐                                993,338                             Total liabilities 3,020,034             930,354                  64,560                     4,014,948                 DEFERRED INFLOWS OF RESOURCES   Unavailable revenue 1,637,446             ‐                           ‐                                1,637,446                         Total deferred inflows of resources 1,637,446             ‐                               ‐                                1,637,446                 FUND BALANCES    Nonspendable 37,709                  ‐                               ‐                                37,709                         Restricted 2,545,505             334,920                  ‐                                2,880,425                    Committed 6,590,061             ‐                               ‐                                6,590,061                    Assigned ‐                             ‐                               664,484                   664,484                       Unassigned (1,676,760)           (882,469)                 ‐                                (2,559,229)                         Total fund balances (deficit)7,496,515             (547,549)                 664,484                   7,613,450                 Total liabilities, deferred inflows of resources     and fund balances (deficit)12,153,995$        382,805$                729,044$                 13,265,844$             City of Brookings December 31, 2016 83 City of Brookings Year Ended December 31, 2016 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 ‐    $                         931,247$                ‐    $                          931,247$                      Storm drainage 859,563                  ‐                               ‐                                859,563                        General sales and use 7,530,449               ‐                               ‐                                7,530,449                    Other 357,367                  ‐                               ‐                                357,367                     Intergovernmental:    County other 125,000                  ‐                               ‐                                125,000                     Charges for goods and services:    Culture and recreation 2,058,687               ‐                               ‐                                2,058,687                 Fines and forfeits:    Fines 24,289                    ‐                               ‐                                24,289                       Miscellaneous revenue:    Interest income 26,824                    ‐                               3,014                        29,838                          Special assessments 134,358                  ‐                               ‐                                134,358                        Contributions and donations from           private sources ‐                               ‐                               100                           100                               Other 305,480                  ‐                               8,165                        313,645                              Total revenues 11,422,017             931,247                  11,279                      12,364,543               EXPENDITURES Current:    General government 5,128                      ‐                               ‐                                5,128                            Public safety 657,428                  ‐                               ‐                                657,428                        Public works 222,558                  ‐                               1,064,225                1,286,783                    Culture and recreation 2,489,800               ‐                               ‐                                2,489,800                    Conservation and development 901,572                  ‐                               ‐                                901,572                     Debt service:    Principal 1,958,083               274,316                  ‐                                2,232,399                    Interest and other charges 658,013                  95,332                    ‐                                753,345                     Capital outlay 1,956,570               ‐                               2,783,063                4,739,633                          Total expenditures 8,849,152               369,648                  3,847,288                13,066,088                          Excess (deficiency) of revenues              over (under) expenditures 2,572,865               561,599                  (3,836,009)               (701,545)                   OTHER FINANCING SOURCES (USES) Transfers in 3,529,756               ‐                               1,469,825                4,999,581                 Transfers out (5,036,659)              (189,805)                 (124,500)                  (5,350,964)                Debt proceeds 32,515                    ‐                               ‐                                32,515                                Total other financing sources (uses)(1,474,388)              (189,805)                 1,345,325                (318,868)                              Net change in fund balances 1,098,477               371,794                  (2,490,684)               (1,020,413)                Fund balances (deficit) ‐ beginning 6,398,038               (919,343)                 3,155,168                8,633,863                 Fund balances (deficit) ‐ ending 7,496,515$             (547,549)$               664,484$                  7,613,450$               84 City of Brookings  December 31, 2016    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.     75% Sales & Use Tax Fund – to account for the revenue and expenditures of 75% of the 2nd penny sales tax.  Proceeds of this  tax are committed by the City Council to be used for capital improvements which involve the construction and financing of  public improvements.    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 $2 per night occupancy  fee charged to lodging facilities.  Revenues are committed by City Council for improvements benefiting the City and its hotels  and motels located within the District.                                            85 City of Brookings December 31, 2016 Combining Balance Sheet ‐ Nonmajor Special Revenue Funds 25% Sales 75% Sales Enhanced Swiftel Library & Use Tax & Use Tax 911 Center Fines ASSETS   Cash and cash equivalents 1,648,134$           465,619$             130,857$               370,064$              27,040$                   Investments‐CDs ‐                         ‐                        ‐                          ‐                         10,614                      Investments 34,275                   526,513                2,721                     ‐                             ‐                              Restricted cash and cash equivalents ‐                             1,234,364            ‐                              ‐                             ‐                                Receivables, (net of allowances for      uncollectibles, if any):         Accounts ‐                             ‐                            ‐                              161,976                ‐                                      Storm drainage fees ‐                             ‐                            ‐                              ‐                             ‐                                      Special assessments ‐                             ‐                            ‐                              ‐                             ‐                                      Interest 14                          3,068                    ‐                              ‐                             49                             Due from other funds ‐                             ‐                            ‐                              207,939                ‐                                Due from other governments 161,369                491,013                80,680                   ‐                             ‐                                Prepaid items ‐                             ‐                            ‐                              22,591                  ‐                                Inventories ‐                             ‐                            ‐                              15,118                  ‐                                        Total assets 1,843,792$           2,720,577$           214,258$               777,688$               37,703$                  LIABILITIES    Accounts payable ‐$                       2,601$                  2,405$                    440,525$               2,232$                      Due to other funds ‐                             207,939                3,676                     2,992                     12,000                     Due to other governments ‐                             ‐                            ‐                              35,389                  ‐                                Amount held for others ‐                             ‐                            ‐                              ‐                             ‐                                Accrued wages payable ‐                             ‐                            16,387                   20,543                  ‐                                Advance from other funds ‐                             ‐                            ‐                              1,200,000             ‐                                Unearned revenue ‐                             675,863                ‐                              317,475                ‐                                       Total liabilities ‐                             886,403                22,468                   2,016,924             14,232                   DEFERRED INFLOWS OF RESOURCES   Unavailable revenue ‐                             ‐                            ‐                              ‐                             ‐                                      Total deferred inflows of resources ‐                             ‐                            ‐                              ‐                             ‐                              FUND BALANCES    Nonspendable ‐                             ‐                            ‐                              37,709                  ‐                                 Restricted ‐                             1,233,989            191,790                 ‐                             23,471                      Committed 1,843,792             1,000,000            ‐                              ‐                             ‐                                 Unassigned ‐                             (399,815)              ‐                              (1,276,945)            ‐                                       Total fund balances (deficit)1,843,792             1,834,174            191,790                 (1,239,236)            23,471                   Total liabilities, deferred inflows of resources     and fund balances (deficit)1,843,792$           2,720,577$          214,258$               777,688$              37,703$                 86 City of Brookings December 31, 2016 Combining Balance Sheet ‐ Nonmajor Special Revenue Funds (continued) Special Storm Bed and BID Assessment Drainage Booze Tax Fee Total 1,704,810$              1,795,958$             1,029,969$              182,516$                 7,354,967$            ‐                            ‐                           ‐                            ‐                            10,614                    35,461                     37,349                     21,419                     3,796                        661,534                 ‐                                ‐                               ‐                                ‐                                1,234,364              ‐                                ‐                               ‐                                21,102                     183,078                 ‐                                1,034                       ‐                                ‐                                1,034                      1,636,412                ‐                               ‐                                ‐                                1,636,412              15                              16                            9                                1                                3,172                      ‐                                ‐                               ‐                                ‐                                207,939                 ‐                                1,660                       88,450                     ‐                                823,172                 ‐                                ‐                               ‐                                ‐                                22,591                   ‐                                ‐                               ‐                                ‐                                15,118                   3,376,698$               1,836,017$              1,139,847$               207,415$                  12,153,995$          1,221$                      32,658$                   11,046$                    ‐$                          492,688$               ‐                                10                            ‐                                ‐                                226,617                 ‐                                ‐                               ‐                                ‐                                35,389                   ‐                                ‐                               32,546                     ‐                                32,546                   ‐                                2,526                       ‐                                ‐                                39,456                   ‐                                ‐                               ‐                                ‐                                1,200,000              ‐                                ‐                               ‐                                ‐                                993,338                 1,221                        35,194                     43,592                     ‐                                3,020,034              1,636,412                1,034                       ‐                                ‐                                1,637,446              1,636,412                1,034                       ‐                                ‐                                1,637,446              ‐                                 ‐                                ‐                                 ‐                                37,709                   ‐                                 ‐                               1,096,255                 ‐                                2,545,505              1,739,065                1,799,789                ‐                                207,415                   6,590,061              ‐                                ‐                               ‐                                ‐                                (1,676,760)             1,739,065                1,799,789               1,096,255                207,415                   7,496,515              3,376,698$              1,836,017$             1,139,847$              207,415$                 12,153,995$          87 City of Brookings Year Ended December 31, 2016 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ‐ Nonmajor Special Revenue Funds 25% Sales 75% Sales Enhanced Swiftel Library & Use Tax & Use Tax 911 Center Fines REVENUES Taxes:    Storm drainage ‐$                         ‐$                         ‐$                          ‐$                          ‐$                             General sales and use 1,631,337               4,964,090               ‐                                ‐                                ‐                                   Other ‐                               ‐                               357,367                    ‐                                ‐                                Intergovernmental:    County other ‐                               ‐                               125,000                    ‐                                ‐                                Charges for goods and services:    Culture and recreation ‐                               ‐                               ‐                                2,058,687                ‐                                Fines and forfeits:    Fines ‐                               ‐                               ‐                                ‐                                24,289                     Miscellaneous revenue:    Interest income 7,159                      4,106                      2,590                        ‐                                51                                Special assessments ‐                               ‐                               ‐                                ‐                                ‐                                   Other 32,480                    ‐                               ‐                                ‐                                ‐                                         Total revenues 1,670,976               4,968,196               484,957                    2,058,687                24,340                     EXPENDITURES Current:    General government ‐                               ‐                               ‐                                ‐                                ‐                                   Public safety ‐                               ‐                               657,428                    ‐                                ‐                                   Public works ‐                               ‐                               ‐                                ‐                                ‐                                   Culture and recreation ‐                               ‐                               ‐                                2,457,993                31,807                        Conservation and development 7,588                      284,764                  ‐                                ‐                                ‐                                Debt service:    Principal ‐                               1,834,037               ‐                                ‐                                ‐                                   Interest and other charges ‐                               560,312                  ‐                                ‐                                ‐                                Capital outlay ‐                               73,896                    ‐                                1,506,908                ‐                                         Total expenditures 7,588                      2,753,009               657,428                    3,964,901                31,807                                Excess (deficiency) of revenues              over (under) expenditures 1,663,388               2,215,187               (172,471)                  (1,906,214)               (7,467)                      OTHER FINANCING SOURCES (USES) Transfers in ‐                               1,422,594               251,800                    802,744                    ‐                                Transfers out (1,365,968)              (2,695,528)              ‐                                ‐                                ‐                                Debt proceeds ‐                               ‐                               ‐                                ‐                                ‐                                         Total other financing sources (uses)(1,365,968)              (1,272,934)              251,800                    802,744                    ‐                                           Net change in fund balances 297,420                  942,253                  79,329                      (1,103,470)               (7,467)                      Fund balances (deficit) ‐ beginning 1,546,372               891,921                  112,461                    (135,766)                  30,938                     Fund balances (deficit) ‐ ending 1,843,792$             1,834,174$             191,790$                  (1,239,236)$             23,471$                   88 City of Brookings Year Ended December 31, 2016 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 ‐$                      859,563$                 ‐$                          ‐$                          859,563$                  ‐                            ‐                                935,022                    ‐                                7,530,449                ‐                            ‐                                ‐                                ‐                                357,367                   ‐                            ‐                                ‐                                ‐                                125,000                   ‐                            ‐                                ‐                                ‐                                2,058,687                ‐                            ‐                                ‐                                ‐                                24,289                     1,900                    9,114                       1,598                        306                           26,824                     134,358                ‐                                ‐                                ‐                                134,358                   ‐                            ‐                                10,068                      262,932                   305,480                   136,258                868,677                   946,688                    263,238                   11,422,017              ‐                             ‐                                 ‐                                5,128                        5,128                       ‐                             ‐                                 ‐                                 ‐                                657,428                   ‐                            222,558                    ‐                                 ‐                                222,558                   ‐                             ‐                                 ‐                                 ‐                                2,489,800                ‐                             ‐                                399,220                    210,000                   901,572                   ‐                            124,046                    ‐                                 ‐                                1,958,083                ‐                            97,701                      ‐                                 ‐                                658,013                   76,305                  299,461                   ‐                                ‐                                1,956,570                76,305                  743,766                   399,220                    215,128                   8,849,152                59,953                  124,911                   547,468                    48,110                     2,572,865                1,052,618             ‐                                 ‐                                 ‐                                3,529,756                (600,163)               ‐                                (375,000)                   ‐                                (5,036,659)               ‐                            32,515                     ‐                                ‐                                32,515                     452,455                32,515                     (375,000)                  ‐                                (1,474,388)               512,408                157,426                   172,468                    48,110                     1,098,477                1,226,657            1,642,363                923,787                    159,305                   6,398,038                1,739,065$          1,799,789$              1,096,255$              207,415$                 7,496,515$              89 City of Brookings Year Ended December 31, 2016 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 1,545,000$                     1,545,000$                     1,631,337$                            86,337$                           Miscellaneous revenue:    Interest income 4,700                               4,700                               7,159                                      2,459                                   Other ‐                                  ‐                                  32,480                                   32,480                                      Total revenues 1,549,700                      1,549,700                      1,670,976                              121,276                           EXPENDITURES Conservation and development    Economic development 25,000                            25,000                            7,588                                     17,412                                      Total expenditures 25,000                            25,000                            7,588                                     17,412                                      Excess of revenues             over expenditures 1,524,700                      1,524,700                      1,663,388                              138,688                           OTHER FINANCING USES Transfers out (1,258,729)                     (1,471,847)                     (1,365,968)                            105,879                                    Total other financing uses (1,258,729)                     (1,471,847)                     (1,365,968)                            105,879                                    Net change in fund balances 290,971                          52,853                            297,420                                  244,567                           Fund balances ‐ beginning 1,546,372                      1,546,372                      1,546,372                              ‐                                   Fund balances ‐ ending 1,837,343$                     1,599,225$                     1,843,792$                            244,567$                         90 City of Brookings Year Ended December 31, 2016 Budgetary Comparison ‐ 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 4,679,290$             4,679,290$          4,964,090$                   284,800$                            Grant revenue ‐                          675,863                ‐                                 (675,863)                         Miscellaneous revenue:    Interest income 40,000                    40,000                  4,106                            (35,894)                                     Total revenues 4,719,290              5,395,153            4,968,196                    (426,957)                         EXPENDITURES Public works     Highways and streets ‐                              144,917               73,896                          71,021                             Conservation and development    Economic development 499,500                 499,500               284,764                       214,736                           Debt Service    Principal 1,836,981              1,836,981            1,834,037                    2,944                                   Interest 562,073                 562,073               560,312                       1,761                                        Total expenditures 2,898,554              3,043,471            2,753,009                    290,462                                    Excess of revenues             over expenditures 1,820,736              2,351,682            2,215,187                    (136,495)                         OTHER FINANCING SOURCES (USES) Transfers in 300,000                 1,532,789            1,422,594                    (110,195)                         Transfers out (2,318,844)             (2,803,669)           (2,695,528)                   108,141                                    Total other financing sources (uses)(2,018,844)             (1,270,880)           (1,272,934)                   (2,054)                                       Net change in fund balances (198,108)                1,080,802            942,253                       (138,549)                         Fund balances ‐ beginning 891,921                 891,921               891,921                       ‐                                   Fund balances ‐ ending 693,813$               1,972,723$          1,834,174$                   (138,549)$                       91 City of Brookings Year Ended December 31, 2016 Budgetary Comparison ‐ Enhanced 911 Fund Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis)(Negative) REVENUES Taxes:    Other taxes 362,000$                        362,000$                        357,367$                                (4,633)$                            Intergovernmental revenue:    County shared revenues 125,000                          125,000                          125,000                                  ‐                                    Miscellaneous revenue:    Interest income 500                                 500                                 2,590                                     2,090                                        Total revenues 487,500                          487,500                          484,957                                 (2,543)                              EXPENDITURES Public safety:    Other protection 699,299                          710,380                          657,428                                 52,952                                      Total expenditures 699,299                          710,380                          657,428                                 52,952                                      Deficiency of revenues             under expenditures (211,799)                        (222,880)                        (172,471)                                50,409                             OTHER FINANCING SOURCES  Transfers in 251,800                          251,800                          251,800                                 ‐                                            Total other financing sources 251,800                          251,800                          251,800                                 ‐                                            Net change in fund balances 40,001                            28,920                            79,329                                    50,409                             Fund balances ‐ beginning 112,461                          112,461                          112,461                                 ‐                                   Fund balances ‐ ending 152,462$                        141,381$                        191,790$                               50,409$                           92 City of Brookings Year Ended December 31, 2016 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 1,996,155$                     1,996,155$                     2,058,687$                            62,532$                                    Total revenues 1,996,155                      1,996,155                      2,058,687                              62,532                             EXPENDITURES Culture and recreation:    Auditoriums 2,671,155                      3,898,899                      3,964,901                              (66,002)                                     Total expenditures 2,671,155                      3,898,899                      3,964,901                              (66,002)                                     Deficiency of revenues             under expenditures (675,000)                        (1,902,744)                     (1,906,214)                            (3,470)                              OTHER FINANCING SOURCES  Transfers in 675,000                          802,744                          802,744                                 ‐                                            Total other financing sources 675,000                          802,744                          802,744                                 ‐                                            Net change in fund balances ‐                                   (1,100,000)                     (1,103,470)                            (3,470)                               Fund deficits ‐ beginning (135,766)                        (135,766)                        (135,766)                                ‐                                   Fund deficits ‐ ending (135,766)$                      (1,235,766)$                   (1,239,236)$                          (3,470)$                            93 City of Brookings Year Ended December 31, 2016 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$                          24,289$                                  (711)$                                Miscellaneous revenue:    Interest income ‐                                  ‐                                  51                                          51                                             Total revenues 25,000                            25,000                            24,340                                   (660)                                 EXPENDITURES Culture and recreation:    Libraries 30,000                            30,000                            31,807                                   (1,807)                                       Total expenditures 30,000                            30,000                            31,807                                   (1,807)                                       Deficiency of revenues             under expenditures (5,000)                             (5,000)                             (7,467)                                    (2,467)                                       Net change in fund balances (5,000)                              (5,000)                              (7,467)                                     (2,467)                               Fund balances ‐ beginning 30,938                            30,938                            30,938                                   ‐                                   Fund balances ‐ ending 25,938$                          25,938$                          23,471$                                 (2,467)$                            94 City of Brookings Year Ended December 31, 2016 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$                            1,900$                                     600$                                    Special assessments 202,196                          291,596                          134,358                                 (157,238)                                  Total revenues 203,496                          292,896                          136,258                                 (156,638)                         EXPENDITURES Public works:    Highways and streets 1,610,000                      1,612,500                      76,305                                   1,536,195                                Total expenditures 1,610,000                      1,612,500                      76,305                                   1,536,195                                Excess (deficiency) of revenues             over (under) expenditures (1,406,504)                     (1,319,604)                     59,953                                   1,379,557                       OTHER FINANCING SOURCES (USES) Transfers in 900,000                          1,052,618                      1,052,618                               ‐                                    Transfers out ‐                                  (600,163)                        (600,163)                                ‐                                             Total other financing sources 900,000                          452,455                          452,455                                 ‐                                            Net change in fund balances (506,504)                        (867,149)                        512,408                                  1,379,557                       Fund balances ‐ beginning 1,226,657                      1,226,657                      1,226,657                              ‐                                   Fund balances ‐ ending 720,153$                        359,508$                        1,739,065$                           1,379,557$                     95 City of Brookings Year Ended December 31, 2016 Budgetary Comparison ‐ Storm Drainage Fund Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis) (Negative) REVENUES Taxes:    Storm drainage tax 854,940$                        838,350$                        857,547$                                19,197$                              Penalties and interest on delinquent taxes 750                                  150                                  2,016                                      1,866                                Miscellaneous revenue:    Interest income 2,850                              4,600                              9,114                                     4,514                                        Total revenues 858,540                          843,100                          868,677                                 25,577                             EXPENDITURES Public works:    Highways and streets 1,020,852                      922,276                          522,019                                  400,257                           Debt Service    Principal 115,820                          124,820                          124,046                                  774                                      Interest 79,280                            98,280                            97,701                                   579                                           Total expenditures 1,215,952                      1,145,376                      743,766                                 401,610                                    Excess (deficiency) of revenues             over (under) expenditures (357,412)                        (302,276)                        124,911                                 427,187                           OTHER FINANCING SOURCES  Proceeds from long term debt ‐                                  32,515                            32,515                                   ‐                                            Total other financing sources ‐                                  32,515                            32,515                                   ‐                                            Net change in fund balances (357,412)                        (269,761)                        157,426                                  427,187                           Fund balances ‐ beginning 1,642,363                      1,642,363                      1,642,363                              ‐                                   Fund balances ‐ ending 1,284,951$                    1,372,602$                     1,799,789$                            427,187$                         96 City of Brookings Year Ended December 31, 2016 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 825,000$                        825,000$                        935,022$                                110,022$                         Miscellaneous revenue:    Miscellaneous ‐                                   ‐                                   10,068                                        Interest income 1,500                              1,500                              1,598                                     98                                             Total revenues 826,500                          826,500                          946,688                                 110,120                           EXPENDITURES Conservation and development   Economic development 413,602                          427,602                          399,220                                 28,382                                      Total expenditures 413,602                          427,602                          399,220                                 28,382                                      Excess of revenues             over expenditures 412,898                          398,898                          547,468                                 148,570                           OTHER FINANCING USES Transfers out (375,000)                        (375,000)                        (375,000)                                ‐                                            Total other financing uses (375,000)                        (375,000)                        (375,000)                                ‐                                            Net change in fund balances 37,898                            23,898                            172,468                                  148,570                           Fund balances ‐ beginning 923,787                          923,787                          923,787                                 ‐                                   Fund balances ‐ ending 961,685$                        947,685$                        1,096,255$                            148,570$                         97 City of Brookings Year Ended December 31, 2016 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$                                 306$                                        (44)$                                     Occupancy fee 400,000                          400,000                          262,932                                 (137,068)                                  Total revenues 400,350                          400,350                          263,238                                 (137,112)                         EXPENDITURES General government     Financial administration 4,400                               4,400                               5,128                                      (728)                                  Conservation and development    Economic development 200,000                          210,000                          210,000                                 ‐                                            Total expenditures 204,400                          214,400                          215,128                                 (728)                                          Excess of revenues             over expenditures 195,950                          185,950                          48,110                                   (137,840)                                  Net change in fund balances 195,950                          185,950                          48,110                                    (137,840)                         Fund balances ‐ beginning 159,305                          159,305                          159,305                                 ‐                                   Fund balances ‐ ending 355,255$                        345,255$                        207,415$                               (137,840)$                       98 City of Brookings  December 31, 2016    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.                99 City of Brookings December 31, 2016 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$                1,151$              1,418$              45,616$               286,735$             ‐$                    379,597$                     Due from other governments 3,208                    ‐                        ‐                        ‐                           ‐                           ‐                          3,208                         Total assets 47,885$                1,151$              1,418$              45,616$               286,735$             ‐$                    382,805$                   LIABILITIES    Advance from other funds 930,354$              ‐$                   ‐$                   ‐$                     ‐$                     ‐$                    930,354$                   Total liabilities 930,354                ‐                        ‐                        ‐                           ‐                           ‐                          930,354                    FUND BALANCES (DEFICITS)   Restricted ‐                             1,151                1,418                45,616                286,735              ‐                          334,920                      Unassigned (882,469)               ‐                        ‐                        ‐                           ‐                           ‐                          (882,469)                            Total fund balances (deficit)(882,469)               1,151                1,418                45,616                286,735              ‐                          (547,549)                   Total liabilities and fund balances 47,885$                1,151$              1,418$              45,616$              286,735$            ‐    $                    382,805$                  100 City of Brookings Year Ended December 31, 2016 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 355,442$             207,570$           82,483$               13,438$            182,509$        89,805$               931,247$                           Total revenues 355,442               207,570             82,483                  13,438              182,509           89,805                 931,247                     EXPENDITURES Debt service:    Principal 28,008                  175,988             70,320                  ‐                        ‐                       ‐                            274,316                        Interest and other charges 52,724                  31,863               10,745                  ‐                        ‐                       ‐                            95,332                                Total expenditures 80,732                  207,851             81,065                  ‐                        ‐                       ‐                            369,648                                Excess (deficiency) of revenues              over expenditures 274,710               (281)                   1,418                    13,438              182,509           89,805                 561,599                     OTHER FINANCING USES Transfers out ‐                            ‐                          ‐                            ‐                        (100,000)         (89,805)                (189,805)                            Total other financing uses ‐                            ‐                          ‐                            ‐                        (100,000)         (89,805)                (189,805)                              Net change in fund balances 274,710               (281)                   1,418                    13,438              82,509             ‐                            371,794                     Fund balances (deficit) ‐ beginning (1,157,179)           1,432                 ‐                            32,178              204,226           ‐                            (919,343)                   Fund balances (deficit) ‐ ending (882,469)$            1,151$               1,418$                  45,616$            286,735$        ‐    $                      (547,549)$                 101 City of Brookings Year Ended December 31, 2016 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 307,700$                        307,700$                        355,442$                               47,742$                                    Total revenues 307,700                          307,700                          355,442                                 47,742                             EXPENDITURES Debt service    Principal 237,700                          237,700                          28,008                                    209,692                              Interest and other charges 70,000                            70,000                            52,724                                   17,276                                      Total expenditures 307,700                          307,700                          80,732                                   226,968                                    Net change in fund balances ‐                                   ‐                                   274,710                                  274,710                           Fund deficit ‐ beginning (1,157,179)                     (1,157,179)                     (1,157,179)                            ‐                                   Fund deficit ‐ ending (1,157,179)$                   (1,157,179)$                   (882,469)$                             274,710$                         102 City of Brookings Year Ended December 31, 2016 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 199,647$                    199,647$                    207,570$                           7,923$                                  Total revenues 199,647                      199,647                      207,570                             7,923                           EXPENDITURES Debt service    Principal 159,647                      159,647                      175,988                             (16,341)                           Interest and other charges 40,000                        40,000                        31,863                               8,137                                    Total expenditures 199,647                      199,647                      207,851                             (8,204)                                   Net change in fund balances ‐                               ‐                               (281)                                   (281)                             Fund balances ‐ beginning 1,432                          1,432                          1,432                                 ‐                                Fund balances ‐ ending 1,432$                        1,432$                        1,151$                               (281)$                           103 City of Brookings Year Ended December 31, 2016 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 82,200$                          82,200$                          82,483$                                 283$                                         Total revenues 82,200                            82,200                            82,483                                   283                                  EXPENDITURES Debt service    Principal 58,200                            58,200                            70,320                                    (12,120)                               Interest and other charges 24,000                            24,000                            10,745                                   13,255                                      Total expenditures 82,200                            82,200                            81,065                                   1,135                                        Net change in fund balances ‐                                   ‐                                   1,418                                      1,418                                Fund balances ‐ beginning ‐                                  ‐                                  ‐                                         ‐                                   Fund balances ‐ ending ‐    $                                ‐    $                                1,418$                                   1,418$                             104 City of Brookings Year Ended December 31, 2016 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 15,000$                          15,000$                               13,438$                                 (1,562)$                                     Total revenues 15,000                            15,000                                 13,438                                   (1,562)                              EXPENDITURES Debt service    Principal 5,000                               5,000                                    ‐                                           5,000                                   Interest and other charges 10,000                            10,000                                 ‐                                          10,000                                      Total expenditures 15,000                            15,000                                 ‐                                         10,000                                      Net change in fund balances ‐                                   ‐                                        13,438                                    13,438                             Fund balances ‐ beginning 32,178                            32,178                                 32,178                                   ‐                                   Fund balances ‐ ending 32,178$                          32,178$                               45,616$                                 13,438$                           105 City of Brookings Year Ended December 31, 2016 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 100,000$                        100,000$                        182,509$                               82,509$                                    Total revenues 100,000                          100,000                          182,509                                 82,509                             OTHER FINANCING SOURCES (USES) Transfers out (100,000)                        (100,000)                        (100,000)                                ‐                                            Total other financing uses (100,000)                        (100,000)                        (100,000)                                ‐                                            Net change in fund balances ‐                                   ‐                                   82,509                                    82,509                             Fund balances ‐ beginning 204,226                          204,226                          204,226                                 ‐                                   Fund balances ‐ ending 204,226$                        204,226$                        286,735$                               82,509$                           106 City of Brookings Year Ended December 31, 2016 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 200,000$                        200,000$                        89,805$                                 (110,195)$                                Total revenues 200,000                          200,000                          89,805                                   (110,195)                         OTHER FINANCING SOURCES (USES) Transfers out (200,000)                        (200,000)                        (89,805)                                  110,195                                    Total other financing uses (200,000)                        (200,000)                        (89,805)                                  110,195                                    Net change in fund balances ‐                                   ‐                                   ‐                                          ‐                                    Fund balances ‐ beginning ‐                                  ‐                                  ‐                                         ‐                                   Fund balances ‐ ending ‐    $                                ‐    $                                ‐    $                                       ‐    $                                 107 City of Brookings  December 31, 2016    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.      108 City of Brookings December 31, 2016 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 18,385$          41,396$             531,747$         56,333$             ‐    $                81,183$       729,044$             Total assets 18,385$          41,396$              531,747$          56,333$             ‐$                 81,183$       729,044$             LIABILITIES    Accounts payable 4,290$             511$                   ‐$                  19,025$             ‐$                 4,734$          28,560$                 Retainage payable ‐                       ‐                          ‐                        ‐                         ‐                       36,000         36,000                 Total liabilities 4,290              511                     ‐                        19,025               ‐                       40,734         64,560                 FUND BALANCES    Assigned 14,095            40,885               531,747           37,308               ‐                       40,449         664,484                        Total fund balances 14,095            40,885               531,747           37,308               ‐                       40,449         664,484               Total liabilities and fund balances 18,385$          41,396$             531,747$         56,333$             ‐    $                81,183$       729,044$             109 City of Brookings Year Ended December 31, 2016 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 18$                      294$                  487$                  ‐$                       ‐$                   2,215$            3,014$                      Contributions and donations from           private sources ‐                          100                    ‐                        ‐                             ‐                        ‐                      100                          Other ‐                          ‐                         ‐                        ‐                             8,165                ‐                      8,165                             Total revenues 18                       394                    487                   ‐                             8,165                2,215              11,279                  EXPENDITURES Current:    Public works ‐                          ‐                         ‐                        1,064,225             ‐                        ‐                      1,064,225             Capital outlay 40,923                52,743              7,600                ‐                             ‐                        2,681,797      2,783,063                      Total expenditures 40,923                52,743              7,600                1,064,225             ‐                        2,681,797      3,847,288                        Excess (deficiency) of revenues              over (under) expenditures (40,905)               (52,349)             (7,113)               (1,064,225)            8,165                (2,679,582)     (3,836,009)           OTHER FINANCING SOURCES Transfers in 55,000                ‐                         275,000            1,095,230             44,595              ‐                      1,469,825             Transfers out ‐                          (124,500)           ‐                        ‐                             ‐                        ‐                      (124,500)                        Total other financing sources 55,000                (124,500)           275,000            1,095,230             44,595              ‐                      1,345,325                        Net change in fund balances 14,095                (176,849)           267,887            31,005                  52,760              (2,679,582)     (2,490,684)           Fund balances (deficit)‐ beginning ‐                          217,734            263,860            6,303                     (52,760)             2,720,031      3,155,168             Fund balances  ‐ ending 14,095$              40,885$            531,747$          37,308$                ‐    $                  40,449$          664,484$              110 City of Brookings Year Ended December 31, 2016 Budgetary Comparison ‐ Fire Substation Fund Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis)(Negative) REVENUES Miscellaneous revenue:    Interest income ‐$                            ‐$                          18$                                18$                                            Total revenues ‐                             ‐                            18                                  18                                    EXPENDITURES Public Safety    Fire 55,000                       55,000                     40,923                          14,077                                      Total expenditures 55,000                       55,000                     40,923                          14,077                                      Deficiency of revenues             under expenditures (55,000)                      (55,000)                    (40,905)                         14,095                             OTHER FINANCING SOURCES Transfers in 55,000                       55,000                     55,000                          ‐                                            Total other financing sources 55,000                       55,000                     55,000                          ‐                                            Net change in fund balances ‐                              ‐                            14,095                          14,095                             Fund balances ‐ beginning ‐                             ‐                            ‐                                 ‐                                   Fund balances ‐ ending ‐    $                           ‐    $                          14,095$                        14,095$                           111 City of Brookings Year Ended December 31, 2016 Budgetary Comparison ‐ Dakota Nature Park Fund Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis)(Negative) REVENUES Miscellaneous revenue:    Interest income ‐$                            ‐$                          294$                               294$                                     Contributions and donations from private sources ‐                             11,000                     100                                (10,900)                                     Total revenues ‐                             11,000                     394                                (10,606)                            EXPENDITURES Culture and recreation:    Parks 57,000                       90,863                     52,743                          38,120                                      Total expenditures 57,000                       90,863                     52,743                          38,120                                      Deficiency of revenues             under expenditures (57,000)                      (79,863)                    (52,349)                         27,514                             OTHER FINANCING USES Transfers out ‐                             (124,500)                  (124,500)                       ‐                                            Total other financing uses ‐                             (124,500)                  (124,500)                       ‐                                            Net change in fund balances (57,000)                      (204,363)                  (176,849)                       27,514                             Fund balances ‐ beginning 217,734                     217,734                   217,734                        ‐                                   Fund balances ‐ ending 160,734$                   13,371$                   40,885$                        27,514$                           112 City of Brookings Year Ended December 31, 2016 Budgetary Comparison ‐ Gateway Project Fund Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis)(Negative) REVENUES Miscellaneous revenue:    Interest income ‐$                            ‐$                             487$                               487$                            Total revenues ‐                              ‐                               487                                  487                     EXPENDITURES Culture and recreation:    Parks 525,000                     525,000                      7,600                              517,400                      Total expenditures 525,000                     525,000                      7,600                              517,400                      Deficiency of revenues             over expenditures (525,000)                    (525,000)                     (7,113)                             517,887             OTHER FINANCING SOURCES  Transfers in 275,000                     275,000                      275,000                          ‐                               Total other financing sources 275,000                     275,000                      275,000                          ‐                               Net change in fund balances (250,000)                    (250,000)                     267,887                          517,887             Fund balances ‐ beginning 263,860                     263,860                      263,860                          ‐                      Fund balances ‐ ending 13,860$                      13,860$                       531,747$                        517,887$            113 City of Brookings Year Ended December 31, 2016 Budgetary Comparison ‐ TIF 6 Digester Fund Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis)(Negative) EXPENDITURES Public works    Public works ‐$                          1,095,230$           1,064,225$                    31,005$                             Total expenditures ‐                            1,095,230             1,064,225                      31,005                              Deficiency of revenues             under expenditures ‐                            (1,095,230)           (1,064,225)                    31,005                     OTHER FINANCING SOURCES Transfers in ‐                                1,095,230             1,095,230                      ‐                                         Total other financing sources ‐                            1,095,230             1,095,230                      ‐                                     Net change in fund balances ‐                            ‐                        31,005                           31,005                     Fund balances ‐ beginning 6,303                        6,303                    6,303                             ‐                            Fund balances ‐ ending 6,303$                     6,303$                  37,308$                         31,005$                   114 City of Brookings Year Ended December 31, 2016 Budgetary Comparison ‐ TIF 7 S Main Fund Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis) (Negative) REVENUES Miscellaneous revenue:    Other ‐$                          ‐$                       8,165$                            8,165$                               Total revenues ‐                            ‐                        8,165                             8,165                       OTHER FINANCING SOURCES  Transfers in ‐                                44,595                  44,595                           ‐                                         Total other financing sources ‐                            44,595                  44,595                           ‐                                     Net change in fund balance ‐                            44,595                  52,760                           8,165                       Fund balances (deficit) ‐ beginning (52,760)                    (52,760)                 (52,760)                          ‐                            Fund balances (deficit) ‐ ending (52,760)$                  (8,165)$                 ‐$                               8,165$                     115 City of Brookings Year Ended December 31, 2016 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 ‐$                         ‐$                         2,215$                      2,215$                             Total revenues ‐                          ‐                          2,215                        2,215                     EXPENDITURES Public Works    Highways and Streets 2,443,994               2,716,870               2,681,797                 35,073                             Total expenditures 2,443,994              2,716,870              2,681,797                35,073                            Deficiency of revenues             under expenditures (2,443,994)             (2,716,870)            (2,679,582)              37,288                            Net change in fund balance (2,443,994)             (2,716,870)            (2,679,582)              37,288                   Fund balances ‐ beginning 2,720,031              2,720,031              2,720,031                ‐                         Fund balances ‐ ending 276,037$               3,161$                    40,449$                   37,288$                 116 City of Brookings  December 31, 2016    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.       117 City of Brookings December 31, 2016 Combining Statement of Net Position ‐ Nonmajor Enterprise Funds Liquor Water Airport ASSETS Current assets:    Cash and cash equivalents 2,185,372$                 2,229,133$                   78,147$                          Investments‐CDs ‐                                 8,000,000                      ‐                                    Investments 45,323                         ‐                                       1,617                              Receivables, (net of allowances for      uncollectibles, if any):       Accounts 1,380                           446,768                         110                                     Unbilled accounts ‐                                    223,496                         ‐                                          Interest 18                                 3,523                              ‐                                       Due from other funds ‐                                    24,778                           ‐                                       Due from other governments ‐                                    ‐                                       1,067,771                      Inventories:       Supplies ‐                                    223,102                         ‐                                          Stores 592,563                       ‐                                       ‐                                       Prepaid expenses ‐                                    21,546                           ‐                                          Total current assets 2,824,656                   11,172,346                   1,147,645                   Noncurrent assets:    Restricted cash and cash equivalents ‐                                     ‐                                       ‐                                         Investments‐CDs ‐                                    2,500,000                     ‐                                       Advances to other funds 164,430                       ‐                                       ‐                                       Other assets ‐                                    806                                 ‐                                       Capital assets:      Land ‐                                    203,013                         1,923,340                        Buildings and improvements 281,077                       15,761,798                   26,188,570                      Machinery and equipment 337,431                       559,655                         973,029                            Construction in progress ‐                                    168,619                         67,715                              Less accumulated depreciation (443,883)                     (6,934,002)                    (6,375,854)                        Total noncurrent assets 339,055                       12,259,889                   22,776,800                          Total assets 3,163,711                    23,432,235                    23,924,445                  DEFERRED OUTFLOWS OF RESOURCES   Pension related deferred outflows 75,259                          418,682                          40,505                                 Total assets and deferred outflows of resources 3,238,970$                 23,850,917$                 23,964,950$               LIABILITIES Current liabilities:    Accounts payable 97,870$                       86,020$                         9,364$                            Due to other funds 1,963                           13,162                           141                                  Accrued interest payable ‐                                    1,344                              ‐                                       Accrued wages payable 9,105                           2,075                              2,021                              Accrued taxes payable 35,269                         169                                 ‐                                       Customer deposits 12,000                         ‐                                       730                                  Capital lease obligations ‐                                    27,255                           ‐                                       Compensated absences 1,887                           20,065                           1,354                                 Total current liabilities 158,094                       150,090                         13,610                         Noncurrent liabilities:    Capital lease obligations ‐                                    312,225                         ‐                                       Compensated absences 7,549                           ‐                                       5,415                              OPEB liability 17,385                         50,867                           6,653                              Pension liability 37,181                         183,295                         17,929                            Advances from other funds ‐                                    ‐                                       ‐                                       Accrued landfill closure and         postclosure costs ‐                                    ‐                                       ‐                                          Total noncurrent liabilities 62,115                         546,387                         29,997                                  Total liabilities 220,209                       696,477                         43,607                         DEFERRED INFLOWS OF RESOURCES    Pension related deferred inflows 322                               ‐                                       200                                  Proceeds from sale of future revenues ‐                                    4,776                              ‐                                           Total liabilities and deferred inflows of resources 220,531                       701,253                         43,807                         118 City of Brookings December 31, 2016 Combining Statement of Net Position ‐ Nonmajor Enterprise Funds Research & Solid Technology Golf Waste Center Total ‐    $                             3,793,089$                184,125$                   8,469,866$                    ‐                                ‐                                ‐                               8,000,000                       ‐                                   78,876                        ‐                                   125,816                          1,287                          434,949                      74,120                        958,614                          ‐                                   61,838                        ‐                                   285,334                          ‐                                   32                                ‐                                   3,573                               ‐                                   1,119                          ‐                                   25,897                            ‐                                   60,000                        ‐                                   1,127,771                      ‐                                   38,742                        ‐                                   261,844                          ‐                                   ‐                                   ‐                                   592,563                          ‐                                   ‐                                   ‐                                   21,546                            1,287                          4,468,645                  258,245                     19,872,824                    ‐                                   501                               ‐                                   501                                  ‐                                   2,156,932                   ‐                                   4,656,932                      ‐                                   1,100,000                  ‐                                   1,264,430                      ‐                                   ‐                                   ‐                                   806                                  50,000                        496,364                      ‐                                   2,672,717                      1,573,014                  4,722,084                  2,118,612                  50,645,155                    524,428                      4,448,680                  ‐                                   6,843,223                      ‐                                   ‐                                   ‐                                   236,334                          (986,242)                    (5,477,399)                 (733,326)                    (20,950,706)                   1,161,200                  7,447,162                  1,385,286                  45,369,392                    1,162,487                   11,915,807                 1,643,531                   65,242,216                     58,399                         255,888                       ‐                               848,733                           1,220,886$                12,171,695$              1,643,531$               66,090,949$                  1,717$                        51,484$                      11,374$                     257,829$                        8,780                          559                              59                                24,664                            ‐                                   ‐                                   ‐                                   1,344                               2,474                          23,821                        ‐                                   39,496                            ‐                                   6,622                          ‐                                   42,060                            ‐                                   ‐                                   ‐                                   12,730                            ‐                                   ‐                                   ‐                                   27,255                            6,392                          19,439                        ‐                                   49,137                            19,363                        101,925                      11,433                        454,515                          ‐                                    ‐                                   312,225                          25,570                        77,758                         ‐                                   116,292                          11,302                        50,837                        137,044                          24,983                        115,512                       ‐                                   378,900                          164,430                       ‐                                    ‐                                   164,430                          ‐                                   559,223                      ‐                                   559,223                          226,285                      803,330                      ‐                                   1,668,114                      245,648                      905,255                      11,433                        2,122,629                      300                              1,236                           ‐                                   2,058                               ‐                                   ‐                                   ‐                                   4,776                               245,948                      906,491                      11,433                        2,129,463                      119 City of Brookings December 31, 2016 Combining Statement of Net Position ‐ Nonmajor Enterprise Funds (continued) Liquor Water Airport NET POSITION Net investment in capital assets 174,625                       9,419,603                     22,776,800                 Restricted for:    SDRS pension purposes 37,756                         235,387                         22,376                            Landfill closure and postclosure ‐                                    ‐                                       ‐                                    Unrestricted 2,806,058                   13,494,674                   1,121,967                            Total net position 3,018,439$                 23,149,664$                 23,921,143$               120 City of Brookings December 31, 2016 Combining Statement of Net Position ‐ Nonmajor Enterprise Funds (continued) Research & Solid Technology Golf Waste Center Total 996,770                      4,189,729                  1,385,286                  38,942,813                    33,115                        139,140                      ‐                                   467,774                          ‐                                   676,502                      ‐                                   676,502                          (54,947)                       6,259,833                  246,812                     23,874,397                    974,938$                   11,265,204$              1,632,098$               63,961,486$                  121 City of Brookings Year Ended December 31, 2016 Combining Statement of Revenues, Expenses, and Changes in Net Position ‐ Nonmajor Enterprise Funds Liquor Water Airport OPERATING REVENUES Charges for goods and services 4,340,680$               4,950,413$                   33,153$                      Miscellaneous ‐                                  200,688                        ‐                                            Total operating revenues 4,340,680                 5,151,101                     33,153                        OPERATING EXPENSES Personal services 369,401                     1,440,792                     138,775                      Other current expenses 257,630                     1,140,894                     175,851                      Cost of goods sold 3,191,246                  ‐                                      ‐                                   Amortization ‐                                  3,718                              ‐                                   Depreciation 42,037                       351,575                        938,217                               Total operating expenses 3,860,314                 2,936,979                     1,252,843                              Operating income (loss)480,366                     2,214,122                     (1,219,690)                  NONOPERATING REVENUES  (EXPENSES) Interest income 4,056                         22,750                          23                                Miscellaneous income ‐                                  82,051                          ‐                                   Loss on disposition of capital assets ‐                                  (509)                               ‐                                   Interest expense and fiscal charges ‐                                  (18,470)                         ‐                                            Total nonoperating revenues (expenses)4,056                         85,822                          23                                           Income (loss)  before capital contributions             and transfers 484,422                     2,299,944                     (1,219,667)                  Capital contributions ‐                                  547,798                        64,329                        Transfers in ‐                                  ‐                                     321,494                      Transfers out (352,250)                   ‐                                     ‐                                              Change in net position 132,172                     2,847,742                     (833,844)                     Net position ‐ beginning 2,886,267                 20,301,922                   24,754,987                 Net position ‐ ending 3,018,439$               23,149,664$                23,921,143$              122 City of Brookings Year Ended December 31, 2016 Combining Statement of Revenues, Expenses, and Changes in Net Position ‐ Nonmajor Enterprise Funds Research & Solid Technology Golf Waste Center Total 380,066$                   3,771,061$                    189,248$                   13,664,621$                     ‐                                  ‐                                       ‐                                  200,688                             380,066                     3,771,061                      189,248                     13,865,309                       253,144                     939,042                           ‐                                  3,141,154                         237,321                     923,953                          76,347                       2,811,996                         ‐                                   ‐                                        ‐                                  3,191,246                         ‐                                   ‐                                        ‐                                  3,718                                 86,363                       583,850                          53,007                       2,055,049                         576,828                     2,446,845                      129,354                     11,203,163                       (196,762)                    1,324,216                      59,894                       2,662,146                         34                               13,824                            387                             41,074                               12,902                        ‐                                        ‐                                  94,953                               (33,652)                       ‐                                        ‐                                  (34,161)                              ‐                                  ‐                                       ‐                                  (18,470)                              (20,716)                      13,824                            387                             83,396                               (217,478)                    1,338,040                      60,281                       2,745,542                         ‐                                        ‐                                  612,127                             105,645                      ‐                                        ‐                                  427,139                             ‐                                  (575,000)                        (105,000)                    (1,032,250)                        (111,833)                    763,040                          (44,719)                      2,752,558                         1,086,771                  10,502,164                    1,676,817                  61,208,928                       974,938$                   11,265,204$                  1,632,098$                63,961,486$                     123 City of Brookings Year Ended December 31, 2016 Combining Statement of Cash Flows ‐ Nonmajor Enterprise Funds Liquor Water Airport CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 4,343,598$                  5,050,628$                     81,238$                     Internal activity‐payments from other funds ‐                                     168,271                           ‐                                  Payments to suppliers (3,338,389)                   (1,136,410)                      (204,252)                    Payments to employees (354,540)                      (1,368,918)                      (129,207)                    Internal activity‐payments to other funds ‐                                     ‐                                        ‐                                           Net cash provided by (used in) operating              activities 650,669                        2,713,571                       (252,221)                    CASH FLOWS FROM NONCAPITAL FINANCING  ACTIVITIES Transfers in ‐                                     ‐                                        321,494                     Transfers out (352,250)                      ‐                                        ‐                                  Interfund payments ‐                                     ‐                                        (1,400,464)                          Net cash provided by (used in) noncapital              financing activities (352,250)                      ‐                                        (1,078,970)                 CASH FLOWS FROM CAPITAL AND RELATED  FINANCING ACTIVITIES Acquisition and construction of capital assets (8,347)                           (683,919)                         (167,568)                    Proceeds from sale of capital assets ‐                                     118                                   ‐                                  Proceeds from restricted cash ‐                                     1                                       ‐                                  Capital grants ‐                                     ‐                                        1,578,501                  Principal payments on debt (167,746)                         ‐                                  Interest payments on debt ‐                                     (19,175)                            ‐                                  Principal payments on interfund advances/loans 17,644                          ‐                                        ‐                                           Net cash provided by (used in) capital              and related financing activities 9,297                            (870,721)                         1,410,933                  CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (45,323)                         (10,500,000)                    (1,617)                        Interest income 4,037                            19,226                             22                                        Net cash provided by (used in) investing             activities (41,286)                         (10,480,774)                    (1,595)                                 Net increase  (decrease) in cash              and cash equivalents 266,430                        (8,637,924)                      78,147                       Balances ‐ beginning of the year 1,918,942                    10,867,057                     ‐                                  Balances ‐ end of the year 2,185,372                     2,229,133                        78,147                          Less restricted cash and cash equivalents ‐                                 ‐                                        ‐                                  Cash and cash equivalents (current) per               statement of net position 2,185,372$                  2,229,133$                     78,147$                     124 City of Brookings Year Ended December 31, 2016 Combining Statement of Cash Flows ‐ Nonmajor Enterprise Funds Research & Solid Technology Golf Waste Center Total 391,681$                   3,459,232$                     193,507$                  13,519,884$                     ‐                                   250,429                           ‐                                 418,700                             (246,708)                    (676,884)                         (70,685)                     (5,673,328)                        (248,880)                    (890,398)                         ‐                                 (2,991,943)                        ‐                                   (241,605)                         ‐                                 (241,605)                           (103,907)                    1,900,774                       122,822                    5,031,708                         105,645                       ‐                                         ‐                                 427,139                             ‐                                   (575,000)                         (105,000)                   (1,032,250)                        ‐                                   ‐                                        ‐                                 (1,400,464)                        105,645                      (575,000)                         (105,000)                   (2,005,575)                        (20,255)                      (566,985)                         ‐                                 (1,447,074)                        4,601                          ‐                                        ‐                                 4,719                                 ‐                                   ‐                                        ‐                                 1                                         ‐                                   ‐                                        ‐                                 1,578,501                         ‐                                   ‐                                        ‐                                 (167,746)                           ‐                                   ‐                                        ‐                                 (19,175)                              (17,644)                      (1,100,000)                      ‐                                 (1,100,000)                        (33,298)                      (1,666,985)                      ‐                                 (1,150,774)                        ‐                                   (230,941)                          ‐                                 (10,777,881)                      34                                13,791                             387                            37,497                               34                                (217,150)                         387                            (10,740,384)                      (31,526)                      (558,361)                         18,209                      (8,865,025)                        31,526                        4,351,951                       165,916                    17,335,392                       ‐                               3,793,590                        184,125                     8,470,367                          ‐                                   (501)                                 ‐                                 (501)                                   ‐    $                             3,793,089$                     184,125$                  8,469,866$                       125 City of Brookings Year Ended December 31, 2016 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)480,366$                     2,214,122$                     (1,219,690)$                 Miscellaneous income ‐                                 82,051                              ‐                                   Adjustments to reconcile operating income (loss) to      net cash provided by (used in) operating activities:       Depreciation 42,037                          351,575                           938,217                            Amortization ‐                                     3,718                               ‐                                        Landfill closure and postclosure cost ‐                                     ‐                                        ‐                                      Change in operating assets and liabilities:       (Increase) decrease in:         Receivables 2,918                            (62,482)                            48,085                               Inventories 73,463                          10,291                             ‐                                          Prepaid expenses ‐                                     870                                   ‐                                          Deferred outflows related to pensions (29,381)                         (4,563)                              (14,168)                               Net pension asset 40,083                          233,033                           23,012                             Increase (decrease) in:         Deferred inflows related to pensions (35,475)                         (343,845)                         (20,350)                               Deferred inflows related to other ‐                                     216                                   ‐                                          Account and other payables 37,023                          41,336                             (28,401)                              Accrued wages payable 1,438                            (501)                                 197                                     Accrued leave payable 1,443                            684                                   3,070                                  Accrued OPEB payable (427)                              3,771                               (122)                                    Net pension liability 37,181                          183,295                           17,929                                Net cash provided by (used in)             operating activities 650,669$                     2,713,571$                     (252,221)$                  NONCASH INVESTING, CAPITAL AND   FINANCING ACTIVITIES    Capital asset additions from contributed capital ‐$                               547,798$                         89,383$                         Accounts payable for capital assets ‐                                     11,823                             ‐$                            126 City of Brookings Year Ended December 31, 2016 Combining Statement of Cash Flows ‐ Nonmajor Enterprise Funds (continued) Research & Solid Technology Golf Waste Center Total (196,762)$                  1,324,216$                     59,894$                    2,662,146$                       12,902                        ‐                                    ‐                              94,953                                86,363                        583,850                           53,007                      2,055,049                         ‐                                   ‐                                        ‐                                 3,718                                 ‐                                   21,330                             ‐                                 21,330                               (1,287)                         (61,400)                            4,259                         (69,907)                              ‐                                   (15,508)                            ‐                                 68,246                               ‐                                   ‐                                        ‐                                 870                                    (19,743)                      (91,281)                            ‐                                 (159,136)                           33,774                        143,815                           ‐                                 473,717                             (29,863)                      (127,204)                         ‐                                 (556,737)                           ‐                                   ‐                                        ‐                                 216                                    (9,387)                         (358)                                 5,662                         45,875                               (567)                            2,021                               ‐                                 2,588                                 (4,137)                         6,573                               ‐                                 7,633                                 (183)                            (792)                                 ‐                                 2,247                                 24,983                        115,512                           ‐                                 378,900                             (103,907)$                  1,900,774$                     122,822$                  5,031,708$                       ‐$                             ‐$                                  ‐$                           637,181$                           ‐                                   ‐                                        ‐                                 11,823                               127 City of Brookings  December 31, 2016    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.    I‐29 Corridor Agency Fund – to account for the deposits and disbursements for the I‐29 Corridor Committee.  This fund was  closed in 2016 and funds returned to those who originally contributed.    128 City of Brookings December 31, 2016 Combining Statement of Net Position ‐ Fiduciary Funds Section 125 Rural Fire I‐29 Corridor Agency Fund Agency Fund Agency Fund Total ASSETS   Cash and cash equivalents 329$                        133,863$             ‐$                      134,192$             Accounts receivable 1,743                       ‐                        ‐                        1,743                   Total Assets 2,072                       133,863               ‐                        135,935             LIBILITIES   Amounts held for others 2,072                       133,863               ‐                        135,935               Total Liabilities 2,072$                     133,863$             ‐$                      135,935$           129 City of Brookings Year Ended December 31, 2016 Combining Statement of Changes in Assets and Liabilities ‐ Fiduciary Funds Balance Balance January 1,December 31, 2016 Additions Deductions 2016 Section 125 Agency Fund Assets:   Cash and cash equivalents 5,247$                     51,810$               56,728$               329$                     Accounts receivable ‐                           3,827                    2,084                    1,743                 5,247$                     55,637$               58,812$               2,072$               Liabilities:  Due to flex claims 5,247$                     53,552$               56,727$               2,072$               Rural Fire Agency Fund Assets:   Cash and cash equivalents 57,958$                  110,117$             34,212$               133,863$           Liabilities:  Due to Rural Fire Association 57,958$                  110,117$             34,212$               133,863$           I‐29 Corridor Agency Fund Assets:   Cash and cash equivalents 38,714$                  ‐$                      38,714$               ‐$                   Liabilities:  Due to I‐29 Corridor Committee 38,714$                  ‐$                      38,714$               ‐$                   Total All Agency Funds Assets:   Cash and cash equivalents 101,919$                161,927$             129,654$             134,192$             Accounts receivable ‐$                         3,827$                  2,084$                  1,743$                  Total assets 101,919                  161,927               129,654               135,935             Liabilities:  Due to flex claims 5,247                       53,552                  56,727                  2,072                  Due to Rural Fire Association 57,958                     110,117               34,212                  133,863              Due to I‐29 Corridor Committee 38,714                     ‐                        38,714                  ‐                         Total liabilities 101,919$                163,669$             129,653$             135,935$           130 City of Brookings  December 31, 2016    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 132    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 144     These schedules contain information to help the reader assess two of the  government’s significant local revenue sources: property and sales tax.    Debt Capacity 148    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 155    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 157    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.      131 Table 1 2016 2015 2014 Net investment in capital assets 72,145,788$          64,579,729$        56,625,781$           Restricted 4,886,747              5,013,005           3,156,857                Unrestricted 20,064,256           22,424,600         20,309,859              Total Governmental Activities Net Position 97,096,791           92,017,334         80,092,497              Net investment in capital assets 136,023,245         114,205,616       104,777,360           Restricted 7,771,643              13,109,068         4,717,291                Unrestricted 94,982,598           98,824,153         89,517,138              Total Business‐type Activities Net Position 238,777,486         226,138,837       199,011,789           Net investment in capital assets 208,169,033         178,785,345       161,403,141           Restricted 12,658,390           18,122,073         7,874,148                Unrestricted 115,046,854         121,248,753       109,826,997           Total Primary Government Net Position 335,874,277$         318,156,171$      279,104,286$         City of Brookings  Comprehensive Annual Financial Report December 31, 2016 Statistics (Unaudited) Governmental Activities Net Position by Component (accrual basis of accounting) Business‐type Activities Primary Government Last Ten Fiscal Years 132 Table 1 (continued) 2013 2012 2011 2010 2009 2008 2007 62,699,489$           58,460,116$         52,072,530$         45,842,974$        45,371,397$       41,597,591$      35,609,628$      2,259,218                3,442,323              6,763,195              2,322,180            12,734,742        13,439,911       12,297,442        14,775,779              15,314,013            15,594,203            19,472,723          6,337,114          6,185,767         6,753,769          79,734,486              77,216,452            74,429,928            67,637,877          64,443,253        61,223,269       54,660,839        95,258,237              80,957,243            73,528,406            70,247,535          65,388,333        58,727,447       52,110,330        4,525,348                4,537,278              5,586,414              5,385,722            7,571,555          7,941,050         7,064,753          75,079,940              73,515,304            69,954,220            64,395,679          60,706,355        62,658,499       61,470,156        174,863,525           159,009,825         149,069,040         140,028,936       133,666,243      129,326,996    120,645,239      157,957,726           139,417,359         125,600,936         116,090,509       110,759,730      100,325,038    87,719,958        6,784,566                7,979,601              12,349,609            7,707,902            20,306,297        21,380,961       19,362,195        89,855,719              88,829,317            85,548,423            83,868,402          67,043,469        68,844,266       68,223,925        254,598,011$         236,226,277$       223,498,968$       207,666,813$       198,109,496$      190,550,265$    175,306,078$     Net Position by Component (accrual basis of accounting) Last Ten Fiscal Years City of Brookings  Comprehensive Annual Financial Report December 31, 2016 Statistics (Unaudited) 133 2016 2015 2014 3,105,729$            2,865,778$            3,017,290$             Public Safety 5,565,159              5,054,020              5,036,493               Public Works 6,743,700              5,934,626              7,410,926               Health and Welfare 109,111                 101,042                 112,621                  Culture and Recreation 7,506,553              7,400,596              7,168,741               901,572                 1,209,287              1,939,064               826,085                 734,534                 808,496                  Total Governmental Activities Expenses 24,757,909            23,299,883            25,493,631             Electric 24,525,853            22,650,657            21,175,715             Health System 57,019,809            54,370,009            52,211,048             Telephone 30,825,559            30,598,739            33,929,866             PCS ‐                          ‐                          ‐                           Liquor 3,859,242              3,608,454              3,664,576               Water 2,952,599              2,964,843              2,641,459               Wastewater 3,973,778              3,704,292              3,124,572               Airport 1,252,509              839,807                 383,714                  Golf 609,864                 561,156                 552,028                  Solid Waste 2,444,615              2,168,527              2,410,877               129,354                 119,473                 181,122                  127,593,182         121,585,957         120,274,977          Total Primary Government Expenses 152,351,091         144,885,840         145,768,608          Program Revenues   Governmental Activities:     Charges for Services General Government 108,943                 106,379                 103,908                  Public Safety                                                                                                            101,069                 99,666                    97,099                     Public Works 672,785                 2,638,528              927,311                  Health and Welfare 12,965                    10,735                    11,848                     Culture and Recreation 2,552,726              2,419,523              2,186,594               Conservation and Development ‐                          ‐                          ‐                               Operating Grants and Contributions 255,425                 249,049                 881,030                      Capital Grants and Contributions 1,822,082              5,418,303              221,332                    Total Governmental Activities Program Revenues 5,525,995$            10,942,183$         4,429,122$             Statistics (Unaudited) Research and Technology Total Business‐type Activities Expenses Governmental Activities: General Government Conservation and Development Interest on Long‐Term Debt City of Brookings  Comprehensive Annual Financial Report December 31, 2016 Table 2 Changes in Net Position (accrual basis of accounting) Last Ten Fiscal Years Business‐type Activities: 134 2013 2012 2011 2010 2009 2008 2007 2,358,748$            1,055,817$            2,020,020$            2,127,308$       2,000,014$       1,737,799$     1,645,669$      4,764,759              4,270,067              4,118,486              3,917,316         3,690,186         3,397,216        3,186,250         10,914,820            6,729,324              4,290,086              5,803,132         5,153,952         3,339,805        835,588            158,918                 92,113                    93,423                    89,310               93,475               87,399             87,304              6,295,703              6,436,427              6,966,088              6,017,894         5,629,096         5,795,387        5,472,577         990,262                 2,293,814              870,748                  692,741             1,362,380         1,181,557        2,185,183         675,609                 639,310                  616,398                  694,435             780,087             874,677           868,693            26,158,819            21,516,872            18,975,249            19,342,136       18,709,190       16,413,840     14,281,264      20,251,826            19,199,183            19,453,708            18,823,598       17,911,760       15,562,676     14,298,942      36,080,349            35,296,152            31,719,055            30,377,015       29,827,107       27,743,482     25,231,796      33,816,035            32,003,023            29,004,409            29,096,920       28,488,641       29,133,641     31,431,991      ‐                           ‐                           ‐                           ‐                     ‐                     ‐                    1,325,629         9,680,751              9,075,437              8,683,666              8,290,341         8,063,595         7,835,940        7,464,533         2,692,785              2,354,964              2,523,258              2,478,061         2,425,345         2,184,665        2,151,034         2,698,766              2,747,422              2,477,695              2,347,343         2,397,293         2,327,187        2,180,399         442,346                 425,870                  375,364                  437,557             419,489             426,354           483,848            546,691                 548,373                  491,379                  478,085             473,086             ‐                    ‐                     2,580,584              2,164,105              2,240,293              1,948,344         1,984,222         1,846,228        1,742,340         169,691                 86,983                    106,994                  85,264               95,361               90,712             86,130              108,959,824         103,901,512          97,075,821            94,362,528       92,085,899       87,150,885     86,396,642      135,118,643         125,418,384          116,051,070          113,704,664     110,795,089     103,564,725   100,677,906    105,121                 279,334                  133,387                  67,569               86,767               146,987           97,459              113,355                 103,308                  106,281                  70,169               77,437               84,017             91,106              1,104,225              661,937                  536,813                  914,078             1,133,442         496,853           463,042            10,765                    12,986                    15,081                    13,064               16,527               14,878             15,699              1,994,400              1,681,932              2,035,253              1,603,842         1,755,012         1,680,555        2,053,842         ‐                           ‐                          21,105                    17,419               10,064               232,391           55,800              217,529                 264,644                  204,509                  221,492             164,708             488,979           116,898            4,736,387              2,198,436              3,780,047              2,676,500         1,971,109         1,311,600        579,544            8,281,782$            5,202,577$            6,832,476$            5,584,133$       5,215,066$       4,456,260$     3,473,390$      Statistics (Unaudited) City of Brookings  Comprehensive Annual Financial Report December 31, 2016 135 2016 2015 2014   Business‐type Activities     Charges for Services Electric 27,779,114$         26,341,321$         25,314,931$          Hospital 59,598,490            61,882,772            53,809,700             Telephone 32,311,864            34,313,078            37,007,090             PCS ‐                          ‐                          ‐                           Liquor 4,340,680              4,169,571              3,986,650               Water 5,151,101              5,004,185              4,188,992               Wastewater 4,963,644              4,816,146              4,102,822               Airport 33,153                    34,459                    25,669                     Golf 380,066                 316,181                 304,314                  Solid Waste 3,771,061              3,703,602              3,485,365               Research and Technology 189,248                 176,524                 193,430                      Operating Grants and Contributions 20,766                    20,112                    405,059                      Capital Grants and Contributions 3,246,363              2,210,269              11,935,303               Total Business‐type Activities Program Revenues 141,785,550         142,988,220         144,759,325            Total Primary Government Program Revenues 147,311,545         153,930,403         149,188,447          Net (Expense)/Revenue   Governmental Activities (19,231,914)          (12,357,700)          (21,064,509)             Business‐type Activities 14,192,368            21,402,263            24,484,348               Total Primary Government Net Expense (5,039,546)             9,044,563              3,419,839               General Revenue and Transfers   Governmental Activities:     Taxes Property Tax 4,729,382              4,397,088              4,230,428               Sales Tax 14,160,915            13,475,972            13,163,848             Other Tax 357,367                 354,971                 351,187                      State Shared Revenues 220,472                 208,033                 210,750                      Unrestricted Investment Earnings (Loss)126,700                 162,862                 287,430                      Gain  on Disposition Of Capital Assets ‐                          ‐                          104,521                      Miscellaneous Revenue, Net 1,906,424              1,508,487              1,853,211                   Transfers 2,810,111              2,406,167              1,221,145                 Total Governmental Activities General Revenues 24,311,371$         22,513,580$         21,422,520$          Table 2  (continued) Changes in Net Position (accrual basis of accounting) City of Brookings  Statistics (Unaudited) Comprehensive Annual Financial Report December 31, 2016 Last Ten Fiscal Years 136 2013 2012 2011 2010 2009 2008 2007 23,946,694$         22,536,286$          21,971,749$          20,843,620$     18,961,413$     17,450,757$   16,198,651$    37,829,424            37,778,186            33,206,801            30,634,289       30,768,105       29,132,073     27,306,264      35,519,726            33,721,116            31,795,176            31,308,878       28,811,968       31,710,534     34,693,699      ‐                          ‐                          ‐                          ‐                     ‐                     ‐                    1,273,886         10,593,780            9,971,319              9,524,345              9,102,921         8,833,238         8,518,713        7,953,519         4,077,955              4,026,895              3,345,211              2,931,954         2,912,247         2,764,407        2,536,785         3,418,736              3,238,910              2,937,624              2,733,661         2,627,272         2,475,986        2,350,354         20,025                    70,845                    38,577                    50,292               29,685               28,774             45,436              334,640                 377,663                  324,398                  330,926             318,158             ‐                    ‐                     3,248,335              3,057,700              2,893,545              3,034,242         2,954,547         2,742,602        2,792,048         148,490                 99,363                    181,972                  195,616             196,776             203,700           188,596            34,994                    105,083                  84,057                    38,753               78,557               172,380           81,997              7,680,056              2,516,752              902,745                  679,348             1,350,487         1,523,419        735,885            126,852,855         117,500,118          107,206,200          101,884,500     97,842,453       96,723,345     96,157,120      135,134,637         122,702,695          114,038,676          107,468,633     103,057,519     101,179,605   99,630,510      (17,877,037)          (16,314,295)           (12,142,773)           (13,758,003)      (13,494,124)      (11,957,580)    (10,807,874)     17,893,031            13,598,606            10,130,379            7,521,972         5,756,554         9,572,460        9,760,478         15,994                    (2,715,689)             (2,012,394)             (6,236,031)        (7,737,570)        (2,385,120)      (1,047,396)       3,848,367              3,666,358              3,466,805              3,208,774         2,743,170         2,529,446        2,346,486         12,806,189            11,423,187            10,869,687            10,516,247       10,405,659       10,675,328     10,574,365      355,141                 311,280                  362,092                  491,212             170,218             170,816           150,000            189,336                 173,383                  154,794                  174,797             184,959             174,655           187,654            (13,967)                  201,966                  417,244                  133,621             230,000             353,647           565,739            12,233                    (67,947)                   175,188                  153,249             (277,447)           (42,581)            (193,468)           645,650                 717,957                  504,890                  731,405             707,411             1,919,560        620,650            2,552,122              2,938,647              2,984,124              1,543,322         2,550,138         2,739,139        2,839,500         20,395,071$         19,364,831$          18,934,824$          16,952,627$     16,714,108$     18,520,010$   17,090,926$    Statistics (Unaudited) City of Brookings  Comprehensive Annual Financial Report December 31, 2016 137 2016 2015 2014     Other Tax ‐$                        ‐$                        ‐$                             Unrestricted Investment Earnings 473,140                 550,280                 705,244                      Gain on Disposition of Capital Assets 12,397                    175,464                 5,047                           Minority Interest Payment ‐                          ‐                          ‐                               Miscellaneous Revenue, Net 770,855                 192,028                 174,770                      Transfers (2,810,111)             (2,406,167)             (1,221,145)                Total Business‐type Activities General Revenues (1,553,719)             (1,488,395)             (336,084)                   Total Primary Government General Revenues 22,757,652            21,025,185            21,086,436             5,079,457              10,155,880            358,011                  12,638,649            19,913,868            24,148,264             17,718,106$         30,069,748$         24,506,275$         Total Primary Government   Governmental Activities   Business‐type Activities City of Brookings  Comprehensive Annual Financial Report December 31, 2016 Last Ten Fiscal Years Statistics (Unaudited) Table 2 (continued) Changes in Net Position (accrual basis of accounting)   Business‐type Activities Change in Net Position 138 2013 2012 2011 2010 2009 2008 2007 ‐$                        ‐$                        ‐$                        ‐$                   8,544$               5,303$             ‐$                  344,479                 687,850                  1,004,282              761,254             1,151,930         2,032,135        2,669,261         ‐                          (102,132)                (121,605)                (115,988)           31,046               (12,290)            (694)                  ‐                          (573,316)                (332,836)                (345,268)           (184,022)           (304,943)          (2,828,288)       168,312                 138,458                  1,344,008              84,045               125,333             128,231           84,883              (2,552,122)             (2,938,647)             (2,984,124)             (1,543,322)        (2,550,138)        (2,739,139)      (2,839,500)       (2,039,331)             (2,787,787)             (1,090,275)             (1,159,279)        (1,417,307)        (890,703)          (2,914,338)       18,355,740            16,577,044            17,844,549            15,793,348       15,296,801       17,629,307     14,176,588      2,518,034              3,050,536              6,792,051              3,194,624         3,219,984         6,562,430        6,283,052         15,853,700            10,810,819            9,040,104              6,362,693         4,339,247         8,681,757        6,846,140         18,371,734$         13,861,355$          15,832,155$          9,557,317$       7,559,231$       15,244,187$   13,129,192$    City of Brookings  Comprehensive Annual Financial Report December 31, 2016 Statistics (Unaudited) 139 Last Ten Fiscal Years 2016 2015 2014 General Fund Reserved ‐$                      ‐$                      ‐$                       Unreserved, Designated ‐                        ‐                        ‐                         Unreserved ‐                        ‐                        ‐                         Nonspendable 3,220,395            3,606,784            3,907,467             Restricted 83,215                  849,383               68,104                   Committed 3,918,640            3,609,682            3,609,682             Assigned 1,629,181            1,528,508            1,328,102             Unassigned 5,820,728            5,242,679            7,391,078             Total General Fund 14,672,159          14,837,036          16,304,433           All Other Governmental Funds Reserved ‐                        ‐                        ‐                         Unreserved, Designated ‐                        ‐                        ‐                         ‐                        ‐                        ‐                         ‐                        ‐                        ‐                         Nonspendable 37,709                  42,111                  114,912                Restricted 2,880,425            1,786,616            2,732,901             Committed 6,590,061            5,574,697            4,549,043             Assigned 664,484               2,726,334            1,834,118             Unassigned (2,559,229)           (1,495,895)           (2,633,850)            7,613,450$          8,633,863$          6,597,124$           Note: In 2011, reporting of fund balance was changed to meet the requirements of GASB 54. Unreserved, reported in   Special Revenue Funds   Capital Projects Funds Total All Other Governmental Funds Statistics (Unaudited) Table 3 Fund Balances of Governmental Funds (modified accrual basis of accounting) City of Brookings  Comprehensive Annual Financial Report December 31, 2016 140 2013 2012 2011 2010 2009 2008 2007 ‐$                      ‐$                      ‐$                      2,450,478$          870,836$             503,209$             852,087$              ‐                        ‐                        ‐                        667,158               2,779,067            2,319,265            4,650,025             ‐                        ‐                        ‐                        5,373,043            4,115,965            4,568,066            2,394,795             2,528,342            2,634,912            2,616,277            ‐                        ‐                        ‐                        ‐                         70,892                  58,954                  66,553                  ‐                        ‐                        ‐                        ‐                         3,496,014            3,445,058            4,498,922            ‐                        ‐                        ‐                        ‐                         1,237,505            1,542,554            1,509,153            ‐                        ‐                        ‐                        ‐                         5,387,268            3,662,265            2,509,943            ‐                        ‐                        ‐                        ‐                         12,720,021          11,343,743          11,200,848          8,490,679            7,765,868            7,390,540            7,896,907             ‐                         ‐                         ‐                        1,625,518            3,699,446            4,215,796            3,515,069             ‐                         ‐                         ‐                         ‐                        3,720,000            4,410,374            3,325,500             ‐                         ‐                         ‐                         ‐                         ‐                        7,089,328            3,069,328            2,139,063            4,002,508             ‐                         ‐                         ‐                        4,090,906            164,784               1,103,407             ‐                         69,673                  57,008                  56,944                   ‐                         ‐                         ‐                         ‐                         2,442,979            3,398,017            6,305,790             ‐                         ‐                         ‐                         ‐                         7,330,753            5,857,965            6,102,802             ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         (3,322,382)           (2,159,902)           (1,800,429)           ‐                        ‐                        ‐                        ‐                         6,521,023$          7,153,088$          10,665,107$        12,805,752$        10,653,558$        11,868,640$        10,843,077$         Statistics (Unaudited) City of Brookings  Comprehensive Annual Financial Report December 31, 2016 141 Table 4 Changes in Fund Balances of Governmental Funds (modified accrual basis of accounting) Last Ten Fiscal Years 2016 2015 2014 Revenues Taxes   General Property Taxes 3,866,409$                3,543,269$                 3,376,885$              Storm Drainage Taxes 859,563                     854,955                       854,150                    General Sales and Use Tax 14,160,915                13,475,972                 13,163,848              Other Taxes 358,927                     356,459                       352,603                  Licenses and Permits 303,644                     278,742                       239,343                  Intergovernmental 945,470                     1,763,471                   1,418,147              Charges for Goods and Services 2,515,301                  2,381,029                   2,148,309              Fines and Forfeitures 117,509                     114,370                       119,012                  Miscellaneous Revenue 2,302,836                2,410,762                 2,068,555              Total Revenue 25,430,574                25,179,029                 23,740,852            Expenditures General Government 2,700,095                  2,597,446                   2,589,569              Public Safety 4,590,036                  4,368,472                   4,145,744              Public Works 4,660,597                  3,535,346                   3,662,177              Health and Welfare 96,325                       93,827                         97,919                    Culture and Recreation 6,020,065                  5,861,992                   5,869,280              Conservation and Development 901,572                     1,238,578                   1,951,862              Debt Service     Principal 2,232,399                  1,892,589                   6,602,213                  Interest 753,345                     808,782                       750,036                  Capital Outlay 7,538,729                6,832,674                 8,585,567              29,493,163                27,229,706                 34,254,367            (4,062,589)                 (2,050,677)                  (10,513,515)           Other Financing Sources (Uses) Transfers In 10,044,081                14,486,415                 4,319,909              Transfers Out (7,233,970)                 (12,080,248)                (3,098,764)             32,515                       187,274                       12,118,405            Refunding Bonds Issued ‐                              ‐                                ‐                          Premium (Discount) on Bonds Issued ‐                              ‐                                ‐                          Payment to Refunded Bond Escrow Agent ‐                              ‐                                ‐                          Sale of Capital Assets 34,673                       26,578                         144,667                  Insurance Recoveries ‐                            ‐                               689,811                  2,877,299                  2,620,019                   14,174,028            (1,185,290)$              569,342$                     3,660,513$            13.36% 12.36% 25.79% City of Brookings  Comprehensive Annual Financial Report December 31, 2016 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  142 2013 2012 2011 2010 2009 2008 2007 3,016,469$            2,841,272$         2,652,942$         2,386,777$        2,195,782$      2,014,817$      1,852,440$              829,337                 824,933               828,081              811,791              544,121           522,267           485,253                   12,806,189            11,423,187         10,869,687         10,516,247        10,405,658      10,675,328      10,574,365              356,617                 312,756               362,092              491,212              173,839           172,496           151,824                   278,460                 415,398               221,132              158,086              226,109           258,130           221,929                   2,264,557              1,158,203           924,513              1,349,720          628,583           897,928           995,230                   1,966,908              1,660,204           2,018,029           1,585,429          1,740,750        1,900,111        2,135,782                131,109                 125,436               127,095              90,867                97,690              106,023           96,235                     868,679                 1,151,440           4,355,357           1,511,361        1,802,263      2,561,074      1,200,440                22,518,325            19,912,829         22,358,928         18,901,490        17,814,795      19,108,174      17,713,498              2,028,213              1,912,768           1,812,771           1,678,891          1,677,392        1,642,248        1,587,536                4,010,385              3,766,245           3,580,331           3,459,678          3,307,418        3,206,549        2,995,551                8,053,705              3,969,147           3,171,773           3,018,999          2,707,472        2,537,756        2,382,443                145,749                 83,015                 87,768                85,601                85,436              83,448              81,045                     5,144,313              5,128,429           5,752,280           5,065,207          4,725,144        4,908,885        4,923,233                990,262                 1,916,933           870,748              696,405              1,275,895        654,175           789,464                   1,709,729              2,104,628           2,067,011           610,019              1,823,340        1,901,308        1,774,883                551,795                 701,867               574,969              933,626              734,131           805,499           861,970                   4,955,184              9,131,820           7,190,357           6,414,053        6,188,877      6,689,546      2,788,326                27,589,335            28,714,852         25,108,008         21,962,479        22,525,105      22,429,414      18,184,451              (5,071,010)             (8,802,023)          (2,749,080)         (3,060,989)         (4,710,310)       (3,321,240)       (470,953)                  9,361,323              7,385,314           7,738,544           6,046,458          5,396,083        7,354,896        4,473,911                (6,809,201)             (4,446,667)          (4,754,420)         (4,117,803)         (2,845,945)       (4,615,757)       (1,634,411)              3,081,110              2,362,261           128,394              6,922,220          1,244,986        399,073            ‐                            ‐                           ‐                        ‐                       10,735,000         ‐                     ‐                    ‐                            ‐                          ‐                       ‐                       143,820              ‐                    ‐                    ‐                            ‐                          ‐                       ‐                       (13,967,350)       ‐                    ‐                    ‐                            181,991                 131,991               206,086              175,649              75,432              25,000              800                           ‐                          ‐                       ‐                       ‐                    ‐                  ‐                  ‐                           5,815,223              5,432,899           3,318,604           5,937,994          3,870,556        3,163,212        2,840,300                744,213$               (3,369,124)$        569,524$            2,877,005$        (839,754)$        (158,028)$        2,369,347$              9.69% 13.61% 14.75% 9.93% 15.66% 17.20% 17.13% City of Brookings  Comprehensive Annual Financial Report December 31, 2016 Statistics (Unaudited) 143 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  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% 2007 1,034,120          438,906,975 337,813,791 777,754,886         2.57                  837,500,441         93% Fiscal City Direct  Year  Rate (3)County Rate Operating Debt Service Total School 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                      2007(2)2.57                    4.83                       n/a n/a 10.77                18.17                      (2)  Separate operating rate and debt service rate not available for 2006‐2008. (3)  The City's direct rate is a single component. (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 City of Brookings  Comprehensive Annual Financial Report December 31, 2016 Table 6 Last Ten Fiscal Years Direct and Overlapping Property Tax Rates  Statistics (Unaudited) 144 Comprehensive Annual Financial Report December 31, 2016  Taxable  Assessed Value Rank  Percentage  of Total  Taxable  Assessed  Value   Taxable  Assessed Value Rank  Percentage  of Total  Taxable  Assessed  Value  30,477,200$          1 2.58% 6,798,580$          5 0.87% Bel Brands USA Inc 19,946,900             2 1.69%‐                         18,136,400             3 1.54% 10,184,615         2 1.31% Innovation Village I LLC 15,145,800             4 1.28%‐                         13,261,400             5 1.12% 9,752,630            3 1.25% 11,904,300             6 1.01%‐                         9,932,500               7 0.84% 6,214,725            7 0.80% 9,870,900               8 0.84% 5,119,650            9 0.66% 9,146,700               9 0.78% 5,597,105            8 0.72% Prarieland Partners Comm 8,147,500               10 0.69%‐                         ‐                           ‐                  14,767,280         1 1.90% Northern Border Pipeline ‐                            ‐                  6,695,451            6 0.86% ‐                            ‐                  4,482,415            10 0.58% Lowe's Co Inc ‐                           ‐                  6,851,405            4 0.88% 145,969,600$        12.38%76,463,856$        9.83%  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  2016 3,010,404$                  (see note below) 2015 2,933,514                     2,930,670$             99.90%‐$                2,930,670$          99.90% 2014 2,829,351                     2,827,356               99.93% 1,284             2,828,640            99.97% 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% 2007 1,998,830                     1,992,120               99.66% 6,710             1,998,830            100.00% Note :   The year shown on this table indicates the year of the levy for collection in the next year, the 2016 tax levy will               be collected in the year 2017, so such information is not available at the time of preparing this table.  Last Ten Fiscal Years Total Collection to Date 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 3M City of Brookings  Statistics (Unaudited) Table 7 Principal Taxpayers Current Year and Ten Years Ago 2016 2007 Taxpayer  Dakotronics Individual 145 Historical Sales and Use Tax Receipts Year  General Sales Tax   Second Penny  Sales Tax  Bed and Booze  Tax (1)  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                2007 4,953,567                     4,944,944               675,854                Note 1:  This sales tax is generated on revenue from lodging, alcoholic beverages, prepared food,  Table 10 2016 2015 2014 2013 5,854,829$             4,817,812$           4,774,773$       3,162,548$         Construction 17,709,994             23,198,279          49,954,176      18,793,981         Manufacturing 65,649,247             68,317,602          66,460,875      45,156,711         64,423,894             63,736,072          61,757,973      58,710,762         Wholesale Trade 39,311,898             32,972,756          35,228,991      36,436,419         Retail Trade 424,518,776           403,696,421        388,986,776    374,772,056       8,777,732               7,289,425            7,037,098        8,502,522           Services 110,379,441           103,652,639        98,365,125      94,689,688         Other 30,827                     31,605                  243,507            1,748,854           736,656,638$          707,712,611$       712,809,294$   641,973,541$    City of Brookings  Comprehensive Annual Financial Report December 31, 2016 Statistics (Unaudited)                  and admission.  Table 9 Last Ten Fiscal Years Source: South Dakota Department of Revenue & Regulation Agriculture, Forestry, Fishing, And Mining Finance, Insurance, and Real Estate Transportation and Public Utilities Taxable Sales by Category Last Ten Fiscal Years 146 Table 10 (continued) 2012 2011 2010 2009 2008 2007 3,091,160$             3,087,586$        3,181,788$        3,039,659$       3,440,586$       3,638,773$        10,474,771             8,618,867          18,999,179        13,245,268      177,826            164,528             41,645,668             38,728,774        39,870,007        44,800,267      51,595,198      54,333,786       53,122,067             55,683,634        57,591,566        56,626,863      67,311,733      97,167,667       29,170,715             28,177,927        28,070,480        28,379,271      17,383,415      17,746,050       353,040,255          341,146,735      337,595,550      325,909,561    279,837,198    264,591,551     7,617,294               7,383,082          7,198,463          7,975,351        6,457,586        7,000,195         87,868,632             93,746,109        73,790,455        73,659,678      62,530,126      47,416,809       343,496                  299,735              62,855                156,915            ‐                    ‐                      586,374,058$        576,872,449$   566,360,343$   553,792,833$   488,733,668$   492,059,359$    City of Brookings  Comprehensive Annual Financial Report December 31, 2016 Statistics (Unaudited) Taxable Sales by Category Last Ten Fiscal Years 147 Table 11 Direct and Overlapping Sales Tax Rates  Fiscal Year   City Direct Rate  (1)   City Direct Rate  (2) State Rate  Total Tax Rate  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% 2007 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  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                 2007 16,145,000                 492,059,359         3.28% 829.52                 (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, 2016 Statistics (Unaudited)        and admission.  Table 12 Ratio of Net General Bonded Debt Last Ten Fiscal Years Source: South Dakota Department of Revenue and Regulations 148 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)  2016 ‐$              21,795,220$       ‐$                  6,185,336$          29,143,534$      26,696,924$      83,821,014$      6.08% 3,609$          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             2007 1,372,143     16,145,000         1,232,000        9,030,488             208,639              28,775,000         56,763,270         5.52% 2,916             Source: Direct and Overlapping Governmental Activities Debt As of December 31, 2016 Debt repaid with property taxes:     School District Subtotal, overlapping debt City of Brookings direct debt Total direct and overlapping debt Statistics (Unaudited) City of Brookings  December 31, 2016 1) See Table 17 Demographic and Economic Statistics, for income and population data. Table 14  Estimated Percentage  Applicable  Governmental Activities Business‐type Activities  Estimated Share of  Overlapping Debt (1) Debt OutstandingGovernmental Unit 27,690,000$                               75% 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.  20,767,500$                      20,767,500                        24,006,034                        44,773,534$                      149 2016 2015 2014 2013 2012 58,966,584$     56,182,402$         53,549,666$          50,928,781$           49,163,730$         21,723,310       23,922,139           25,399,103            20,111,263             18,649,493           37,243,274$     32,260,263$         28,150,563$          30,817,518$           30,514,237$         36.8% 42.6% 47.4% 39.5% 37.9% 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.  City of Brookings  Comprehensive Annual Financial Report December 31, 2016 Statistics (Unaudited) 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 150 Statistics (Unaudited) 2011 2010 2009 2008 2007 48,958,250$   47,523,026$   46,230,688$   42,685,016$         38,887,744$            17,829,673     19,609,279     15,705,058     16,208,485           17,585,639              31,128,577$   27,913,747$   30,525,630$   26,476,531$         21,302,105$            36.4% 41.3% 34.0% 38.0% 45.2%  "No Limit"  Debt  Debt Capacity  at 5%  (unrestricted)   Additional 10%  Debt Capacity  (Water/Sewer)  1,179,331,678$     58,966,584$      117,933,168$       2014A Sales Tax Revenue Bonds (3.15%)‐                  7,955,000          ‐                          ‐                  9,582,019          ‐                          ‐                  459,529              ‐                          ‐                  538,058              ‐                          ‐                  317,699              ‐                          SRF Loan No. 4 Bond (3%)‐                  290,113              ‐                          SRF Loan No. 5 Bond (3%)‐                  193,337              ‐                          SRF Loan No. 6 Bond (3%)‐                  1,766,139          ‐                          SRF Loan No. 7 Bond (3.25)29,143,534   ‐                       ‐                          SRF Loan No. 9 Bond (3%)439,892               Revenue Note TIF 4 (7.5%)‐                  181,524              ‐                          945,336         ‐                       ‐                          2011 Series electric Utility Revenue Bonds (.65% to 339%)5,240,000     ‐                       ‐                          35,328,870   21,723,310         Other Debt: 4,920,000      ‐                        ‐                          9,287,745      ‐                        ‐                          Seried 2015A Capital Lease ‐ Hospital Renovatino/addition 8,000,000     ‐                       ‐                          Seried 2015B Capital Lease ‐ Hospital Rennovation/addition 4,489,179   ‐                      ‐                         26,696,924 ‐                      ‐                         Total Debt 62,025,794 21,723,310       ‐                         N/A 37,243,274$      117,933,168$      City of Brookings  Comprehensive Annual Financial Report December 31, 2016 Table 15 (cont) Legal Debt Margin Information Last Ten Fiscal Years Fiscal year Legal Debt Margin Calculation for Fiscal Year 2015 2016 Assessed Value Maximum Debt Capacity Existing Bonds: 2010A Sales Tax Revenue Bonds (1.25% to 3.15%) 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 151 Comprehensive Annual Financial Report Fiscal Sales Tax Utility Service Less Operating Net Available Year Revenue Principal Interest Coverage Charge Expense Revenue Principal Interest Coverage 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         ‐                       ‐                     ‐                    ‐             ‐                ‐             2007 4,944,944      1,270,000       725,389       2.48         ‐                       ‐                     ‐                    ‐             ‐                ‐             Debt Service Sales Tax Revenue Bonds State Revolving Fund Bond #3 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 City of Brookings  December 31, 2016 Statistics (Unaudited) Table 16 152 City of Brookings  Comprehensive Annual Financial Report December 31, 2016 Statistics (Unaudited) Table 16  (continued) Pledged‐Revenue Coverage Last Ten Years Utility Service Less Operating Net Available Charge Expense Revenue Principal Interest Coverage 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             271,009              56,263                214,746           33,068            81,429           1.88             Debt Service 2005 Utility Revenue Bonds 153 City of Brookings  Comprehensive Annual Financial Report December 31, 2016 Statistics (Unaudited) Table 16  (continued) Pledged‐Revenue Coverage Last Ten Years Utility Service Less Operating Net Available Charge Expense Revenue Principal Interest Coverage 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 154 Statistics (Unaudited)  Fiscal Year Population (1)  Per Capita  Income (2)   Total Personal  Income  (thousands of   dollars)  (2)   School  Enrollment (3)   Unemploy‐ ment Rate  (4)  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% 2006 18,802                  29,790             903,311                2,676                  2.4% 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, 2016 Table 17 Demographic and Economic Statistics Last Ten Fiscal Years 1) U.S. Census Bureau  155 Current Year and Five Years Ago Employees Rank Percentage  of Total City  Employed Employees Rank  Percentage of  Total City  Employed  4,463            1                   18.87% 2,121            1 11.28% 1,600            2                   6.76% 1,655            2 8.80% 1,008            3                   4.26% 796               3 4.23% 690               4                   2.92% 443               6 2.36% 516               5                   2.18% 551               4 2.93% 502               6                   2.12% 405               8 2.15% 425               7                   1.80% 425               7 2.26% Aramark 405               8                   1.71% 400               9                   1.69% 316               9 1.68% 299               10                 1.26% 257               10 1.37% Fishback Financial Corp.‐                455               5 2.42% Total 10,308         43.57%7,424            39.49% 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 Principal Employers Employer 2016 Larson Manufacturing City of Brookings  Comprehensive Annual Financial Report December 31, 2016 Statistics (Unaudited) Table 18 156 Full‐Time Equivalent City Government Employees by Function/Program 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Mayor/City Council 7777777777 City Clerk 3333333332 City Manager 2111111111 Human Resources 2222222222 Finance 4454444444 Information Technology 2211111111 Community Development 4.4 4.8 4.8 4.8 4444‐        ‐        Engineering 4.6 5.2 5.2 5.2 666698 Police 35 36 35 34 33 33 32 30 30 30 Fire 3333333333 E‐911 9998777776 Streets 14 14 14 14 14 14 14 14 13 13 Animal Control 1111111111 Aquatic Center 00111‐        ‐        ‐        ‐        ‐        Recreation 2311144444 Park 11 10 98888111111 Ice Arena 11222‐        ‐        ‐        ‐        ‐        Forestry 4455555444 Library 10 10 10 10 10 10 10 10 10 9 1111111111 5556666666 Water 10 10 10 10 16 16 16 16 16 17 Electric 35 36 35 36 37 37 37 39 39 40 12 12 12 12 16 16 16 17 16 16 Telephone 98 100 102 102 94 93 94 95 95 93 Hospital 236 220 225 234 228 223 234 264 250 210 Golf Course 2333333‐        ‐        ‐        2222222222 6666666666 6666777777 City of Brookings  Comprehensive Annual Financial Report December 31, 2016 Wastewater Solid Waste Collection Solid Waste Disposal Storm Drainage Airport Liquor Public Safety Public Works Health and Welfare Culture and Recreation General Government Function/Program Full‐Time Equivalent Employees as of December 31 Table 19 Last Ten Fiscal Years Statistics (Unaudited) 157 Table 20 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Public Safety Dispatch 8,043 9,962 9,265 8,069 7,528 7,859 7,115 6,948 7,112 7,231 455             390            434             426             483 420             459             455             533             648              Fire 231             202            237             203             178            180             198             185             145             190              6:02 6:47 5:53 6:08 4:33 6:05 6:20 6:03 6:03 5:36 Public Works Community Development Number of code enforcement          investigations 1,648          936            1,262         1,685         1,325         1,349         1,774          1,565         800             225              Percent of rental units inspected       & Licensed 36% 29% 19% 35% 23% 24% 19% 37% 35% 18% Engineering Number of building permits issued: Single family 78                88              79               70               71              60               75               114             89                113              Townhomes 4                  7                 5                 3                 6                 2                 2                  10               9                  12                Duplexes ‐              ‐             2                  ‐             3                  ‐             1                  2                 5                  9                  Apartments 6                  8                 3                 10               16              4                  ‐              7                 8                  7                  5,060          4,939         4,901         4,758         4,703         4,677         4,655          4580 4,521          4,390          837             827            822             712             584            565             575             544             517             429              Tons of refuse collected 4,738          4,553         4,464         4,406         4,427         4,440         4,577          4,431         4,549          4,622          Tons of yard waste collected 752             710            589             598             519            514             566             518             397             410              Street 246.31        244.13       ‐             231.44       208.00       208.00       208.00       208 197.7 197.70        Total miles swept 2,500.00    2,500.00* 2,500.00* ** ** ** ** ** ** ** Culture and Recreation Park & Recreation Number of season passes sold for pool 1,420          1,559         1,559         1,410         1,828         1,721         1,861          1659 1,405          1,567          Number of season passes sold for golf 318             233            198             271             329            313             329             332 282             298              Number of paid golf rounds played  9‐holes 6,214          4,729         2,783         3,884         4,735         4,179         4,673          5295 4,903          4,792          18‐holes 1,908          2,673         2,403         2,190         2,600         2,266         2,593          2427 2,125          2,212          Library Participants in children's programs 15,679        37,838       22,216       21,033       20,940       20,695       20,084       22,384       13,355        14,861        Use of electronic databases 8,891          8,713         5,184         5,120         3,219         2,849         3,636          1,711         2,865          1,759          Total circulation 208,255      274,733    278,588     286,892     286,548    297,798     301,802     297940 275,418      254,618      Swiftel  Events Held at Swiftel Center 262 213 256 249 225 240 208 200 209 276 Source:  City Departments Notes: * adjusted method of measuring  **Indicates information not available Fire calls Solid Waste Average response time (min:sec) Total lane miles swept  Tons of recycling collected City of Brookings  Comprehensive Annual Financial Repor December 31, 2016 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 158 Statistics (Unaudited) 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 General Government General Government Buildings 1 1 11111111 Stations 1 1 11111111 4 4 44444444 7 7 77766666 246.31   244.13   236.90   231.44 229.89 228.8 227.97 227.34 227.21 226.93 3,165     3,025      3,025     3,004   2,990   2,933   2,881   2,746   2,664   2,645    122 118 130 126 126 126 126 118 118 118 Acreage 665.55 664.8 664.8 664.8 664.8 664.8 664.8 664.8 664.8 664.8 15 14 13 13 13 13 13 13 12 12 21 21 21 21 21 21 21 21 20 20 11 11 11 11 11 11 11 11 11 11 1 1 11111111 Runways 2 2 22222222 Water Miles of water mains 126.96 124.02 124.02 122.2 121.87 121.33 121.18 119.51 118.3 114.21 City of Brookings  December 31, 2016 Comprehensive Annual Financial Report Playgrounds Table 21 Last Ten Fiscal Years Function/Program Police Fire Stations Refuse Collection Capital Asset Statistics by Function/Program Baseball/Softball Fields Recreation Centers Soccer/Football Fields Airport Collection Trucks Other Public Works Paved Streets (miles) Street lights Traffic signals Parks and Recreation 159                     160 Independent Auditor's 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 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, 2016, 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 3, 2017, 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 Management of the City is responsible for establishing and maintaining effective internal control over financial reporting (internal control). In planning and performing our audit of the financial statements, we considered the City’s 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. 161 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free of 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 3, 2017 162 The Honorable Mayor, Members of the City Council and Management City of Brookings, South Dakota As part of our audit of the financial statements of the City of Brookings, South Dakota as of and for the year ended December 31, 2016, 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 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 is designed to obtain reasonable, rather than absolute, assurance about the financial statements. 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 audit 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. An audit of the financial statements does 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 the other auditors. 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 2 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 • Health insurance claims incurred • 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 • Tax abatements 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: • Capital assets and culture and recreation expenses for governmental activities • Capital assets and capital grants and contributions for governmental activities • Accounts payable and culture and recreation expenses for governmental activities • Unavailable revenues and miscellaneous revenues for the general fund • Retainage payable and capital outlay expenditures for the Swiftel center fund 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, 2016: • GASB Statement No. 72 – Fair Value Measurement and Application 3 • GASB Statement No. 73 – Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68 • GASB Statement No. 76 – The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments • GASB Statement No. 77 – Tax Abatement Disclosures • GASB Statement No. 79 – Certain External Investment Pools and Pool Participants • GASB Statement No. 82 – Pension Issues, an amendment of GASB Statements No. 67, 68, and 73 Disagreements with Management No matters are reportable. Difficulties Encountered in Performing the Audit No matters are reportable. Other Material Written Communication Listed below is another material written communication between management and us related to the audit: • Management representation letter (attached) 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. This statement will be effective for the City’s fiscal year ending December 31, 2018. 4 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. Accounting Standards Currently Being Proposed by GASB Leases Like their business counterparts, governments routinely enter into leases for vehicles, heavy equipment, buildings and other items. Similar to the Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB) wants to change the financial reporting for operating leases. GASB proposes all lease agreements should represent financings and use a single accounting approach. GASB’s proposed standard, Leases, would require government lessees to recognize a lease liability and an intangible asset representing their right to use the leased asset, with limited exception. Lessees would amortize the leased asset over the term of the lease and recognize interest expense related to the lease liability. GASB recently concluded the initial re-deliberations on the proposed exposure draft in February 2017. GASB expects to continue reviewing a draft of the final statement, with final statement approval expected in June 2017. The requirements of the proposed statement would be effective for reporting periods beginning after December 15, 2019, with earlier application permitted. ***** 5 This communication is intended solely for the information and use of management, the Mayor, Members of the City Council and other within the organization and is not intended to be and should not be used by anyone other than these specified parties. May 3, 2017 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 17-052,Version:1 Action on Resolution 17-052, a Resolution Awarding the Contract on 2017-08STI Street Maintenance and Overlay Project. Summary: This resolution will award a contract for 2017-08STI, Street Maintenance and Overlay Project to Bowes Construction Inc. in the amount of $384,690.00. Background: This project is the annual street maintenance project which includes asphalt milling, digouts and overlays on various streets in Brookings that are in need of repair. The streets identified for repair this year include: ·Alley Paving from 1st Street S. to 2nd Street S. between 5th Avenue S. and 6th Avenue S. This is an assessment project to pave the alley that was approved by the City Council. The assessment cost based on the bid prices is approximately $40 per front foot which is lower than the proposed cost of $55 per front foot listed in the Resolution of Necessity. ·David Cove: The work on this street will entail milling along the curb and gutter and paving with two inch asphalt overlay. Drain tile work was completed last year to improve the subsurface drainage. ·Onaka Trail, south of 8th Street South: The work on this street will digouts, milling along the curb and a two-inch asphalt overlay. ·Crystal Ridge Road between Indian Hills Road and Trail Ridge Road: The work on this street will entail digouts, milling along the curb and a two-inch asphalt overlay. ·Bike Trail: The bike trail work includes a two-inch asphalt overlay on the bike trails along 22nd Avenue and along 8th Street South near the airport. The project also includes additional paving near the bridge drainage structure that was constructed last year east of the 3M property. ·Brookings Regional Airport: The project includes asphalt repair and paving on the taxilanes in the hangar area. The bid letting for this project was held on Tuesday, May 2, 2017 and the City received the following bids: Bowes Construction Co., Inc., Brookings, SD:$384,690.00 Duininck, Inc., Prinsburg, MN:$486,522.44 The low bid is approximately 18 % lower than the engineer’s estimate of $472,430.00. Fiscal Impact: The City will enter into a contract with Bowes Construction Co., Inc. for the low bid amount of City of Brookings Printed on 5/5/2017Page 1 of 2 powered by Legistar™ File #:RES 17-052,Version:1 $384,690.00. Recommendation: Staff recommends approval. Attachments: Resolution City of Brookings Printed on 5/5/2017Page 2 of 2 powered by Legistar™ Resolution 17-052 Resolution Awarding Bids on Project 2017-08STI Street Maintenance and Overlay Project Whereas, the City of Brookings opened bids for Project 2017-08STI Street Maintenance and Overlay Project on Tuesday, May 2, 2017 at 1:30 pm at the Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids for Project 2017-08STI Street Maintenance and Overlay project: Bowes Construction Co., Inc.: $384,690.00, and Duininck Inc.: $486,522.44. Now Therefore, Be It Resolved that the total low bid of $384,690.00 for Bowes Construction Co., Inc. be accepted. Passed and approved this 9th day of May, 2017. 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 #:RES 17-059,Version:1 Action on Resolution 17-059, a Resolution authorizing Change Order No. 3 (Final) for 2016-09STI, LeFevre Drive Storm Sewer Project; Timmons Construction, Inc. Summary: This resolution will approve Change Order No. 3 (Final) for 2016-09STI, LeFevre Drive Storm Sewer Project, for an increase of $15,196.14 and extend the contract time by one working day to close out the contract. Background: This project is located on LeFevre Drive from the south side of 6th Street to the intersection of the LeFevre Drive cul-de-sac and was designed by the City Engineering staff. The project included new storm sewer pipes and inlets, concrete pavement, striping, erosion control and miscellaneous items. This project was constructed in advance of the 6th Street reconstruction project to allow for storm sewer improvements and wider intersection pavement for truck traffic turning movements. The project has been completed and is ready to be closed out. This change order will adjust bid quantities to as-constructed quantities for an increase of $15,196.14 to the contract. The extra cost was related to extra pavement and excavation removals to perform a more uniform tie-in to the existing pavement. The change order also extends the final completion date by one working day since the ground was frozen before their final completion date last fall and seeding could not be completed before the deadline. A project summary is as follows: Original Contract Price:$271,765.50 Increase from Previously Approved Change Orders (No.1 & 2):$8,729.56 Contract Price Prior to this Change Order:$280,495.06 Increase of this Change Order (No. 3 Final):$15,196.14 Contract Price incorporating this Change Order:$295,691.20 Fiscal Impact: There will be an increase of $15,196.14 to the contract, and the increase is within the budgeted amount for this project. Recommendation: Staff recommends approval. Attachments: Resolution City of Brookings Printed on 5/5/2017Page 1 of 1 powered by Legistar™ Resolution 17-059 Resolution Authorizing Change Order No. 3 (Final) for 2016-09STI LeFevre Drive Storm Sewer Project, Timmons Construction, Inc. Be It Resolved by the City Council that the following change order be allowed for 2016- 09STI, LeFevre Drive Storm Sewer Project: Construction Change Order Number 3: Adjust bid quantities to as-constructed quantities for an increase of $15,196.14 to the contract and extend the final completion date by one working day to close out the project. Passed and approved this 9 th day of May, 2017. 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 17-008,Version:3 Introduction and First Reading on Ordinance 17-008, an Ordinance amending the Zoning Ordinance of the City of Brookings and pertaining to Section 94-396 Wireless Communication Facilities for the purpose of administration of the Zoning Ordinance. (Ordinance has changed from First Reading held March 28, 2017). Public Hearing: May 23, 2017. Summary: The City of Brookings is proposing an amendment to the Zoning Ordinance primarily to include definitions and regulations for Distributed Antenna Systems (DAS) and Small Cell Facilities. Council Action History: A First Reading was held on March 28, 2017, with a Second Reading was held on April 25, 2017 where it was tabled to May 9, 2017. Due to significant changes, the process for this Ordinance restart with a First Reading on May 9, 2017. Background: The current ordinance pertaining to wireless communication facilities was most recently revised in 2005. Due to new technology and changes within the industry an amendment is necessary. The ordinance amendment allows for smaller wireless facilities, such as those needed for cell phone service. New telecommunication facility poles may be built to a maximum of 35 feet in height when located within the public right-of-way or to a height consistent with adjacent utility or street light poles. New facilities may be co-located on existing poles without a height restriction. The ordinance requires a permit issued by City staff for any new wireless communication facility to ensure the requirements are met. SDN Communications provided some information that is included in the attachments. There is additional information at the following website:<https://sdncommunications.com/landing/small-cells/> Planning Commission Recommendation: The Planning Commission voted 7-0 to recommend approval of the ordinance. Attachments: Ordinance - clean - posted 5.4.2017 Ordinance - marked - posted 5.4.2017 Letter from Moss & Barnett - posted 4.19.2017 Notice PC Minutes 3-14-2017 SDN Presentation SDN Small Cell Brochure City of Brookings Printed on 5/5/2017Page 1 of 2 powered by Legistar™ File #:ORD 17-008,Version:3 Small Cell Permit Application Ordinance - marked version - posted 4.19.2017 Ordinance - clean - posted 3.23.2017 Ordinance - marked version - posted 3.23.2017 City of Brookings Printed on 5/5/2017Page 2 of 2 powered by Legistar™ Posted 5.4.2017 (This Ordinance has changed since 3/28/2017 First Reading) Ordinance 17-008 An Ordinance Amending the Zoning Ordinance of the City of Brookings to Include Provisions Pertaining to Small Cell Facilities and Distributed Antenna Systems in the City of Brookings. BE IT ORDAINED AND ENACTED BY THE COUNCIL OF THE CITY OF BROOKINGS, STATE OF SOUTH DAKOTA, AS FOLLOWS: I. That Section 94-396 of the Ordinances of the City of Brookings be amended to read as follows: Sec. 94-396. - Wireless communication facilities. The purpose of this section is to establish regulations and performance standards for the siting of wireless communication facilities (WCFs) in a manner that will protect the public's health, safety, and welfare and maintain the aesthetic integrity of the community (1)Permit required. An application for a building permit is required prior to the construction of any WCF. Compliance with all applicable building codes, navigation hazard requirements, Federal Aviation Administration Regulations and section 94-164 must be achieved before a permit will be issued. (2)Definitions. The following definitions shall apply: Amateur radio operator tower: A structure used for the transmission, broadcast or reception of amateur radio or citizen band signals. Antenna: Any device that radiates or captures electromagnetic wave signals including digital and analog voice and data signals or video or microwave signals. Antenna support structure: An existing building or structure such as, but not limited to, utility poles, light poles, signs, elevated water tanks and steeples upon which an applicant proposes to install wireless communications facilities. Broadcast tower: A structure for the transmission of radio or television broadcast communications. This term does not include offices or studios. Co-location/site sharing: Use of an antenna support structure or telecommunications tower by two or more wireless license holders or by one wireless license holder for more than one type of communication. This includes the placement of a WCF on a structure owned and operated by a municipal or public utility. Distributed Antenna System (DAS):A system consisting of: (1) a number of remote communications nodes deployed throughout the desired coverage area, with each node including at least one antenna, but not more than three antennas per provider, for transmission and reception; (2) a high capacity signal transport medium (typically fiber optic cable) connecting each node to a central communications hub site; and (3) radio transceivers located at the hub site (rather than at each individual node as is the case for small cells) to process or control the communications signals transmitted and received through the antennas. Equipment facility: A structure used to contain ancillary equipment for a WCF, such as cabinets, pedestals and similar devices. Posted 5.4.2017 (This Ordinance has changed since 3/28/2017 First Reading) Height: The distance measured from the original grade to the highest point on the WCF, including the antenna(s). Small Cell Facility:A wireless service facility that either meets both of the following qualifications or is within a stealth design that is consistent with the design guidelines: 1. Each antenna is located inside an enclosure of no more than five (5) cubic feet in volume or, in the case of an antenna that has exposed elements, the antenna and all of its exposed elements could fit within an enclosure of no more than five (5) cubic feet, however, the maximum dimensions of the antenna shall not exceed 36” in height and 16” in diameter; and 2. Each provider’s equipment enclosures shall be no larger than seventeen (17) cubic feet in volume. The following associated equipment may be located outside of the primary equipment enclosure and, if so located, is not included in the calculation of equipment volume: electric meter, concealment, telecommunications demarcation box, underground enclosures, back-up power systems, grounding equipment, power transfer switch, and cut-off switch. Stealth: The ability of freestanding telecommunication towers to blend into the neighborhood environment at a given location and the ability to camouflage or conceal the presence of wireless communication facilities when attached to antenna support structures. Telecommunications tower: Any pole, spire, structure or combination thereof, including supporting lines, cables, wires, braces and mast, designed and constructed primarily for the purpose of supporting one (1) or more antennas, including self supporting lattice towers, guyed towers or monopole towers. A communication tower may include, but not be limited to, radio and television towers, microwave towers, common carrier towers, cellular telephone towers and personal communication service towers. Temporary WCF: A WCF that is placed in service for less than 180 days. Wireless communications facilities: One or more antenna, tower, base station, antenna support structure, mechanical and/or electronic equipment, conduit, cable, fiber, wire, and associated structures, enclosures, assemblages, devices and supporting elements that generate, transmit or produce a signal used for communication that is proposed by an entity other than the City, including but not limited to radio/tv/satellite and broadcast towers, telephone service, including new microwave or cellular towers, personal wireless service facilities, DAS, small cell facilities and Temporary WCF. (3) Siting and co-location criteria. The siting and co-location of all WCFs shall be subject to the following criteria before consideration will be given to a new site: a.WCFs shall be located on existing antenna support structures, such as utility poles, light poles, signs, elevated water tanks, buildings and other WCFs; or b.WCFs shall co-locate or site share upon existing telecommunication towers; or c.WCFs shall consider the use of public property and structures. d.If an applicant has shown a good faith effort to co-locate but has found it not to be feasible, a written statement indicating the reasons why co-location is not feasible shall be provided Posted 5.4.2017 (This Ordinance has changed since 3/28/2017 First Reading) (4) Application requirements. The following information is required prior to the siting of all WCFs. Installing antenna(s) on existing WCFs and amateur radio operator towers are exempt from these requirements. a.In business and industrial districts, a scaled drawing or aerial map, showing the subject property and all properties within one and one-half times the height of the proposed tower and the location of all existing buildings and structures, and the exact location of the tower and equipment facility. In residential districts, a WCF on an existing antenna support structure shall be considered through administrative review. A proposed telecommunication tower shall be considered through the conditional use permit process. An application shall be accompanied by a scaled drawing or aerial map showing the subject property and all properties within three times the height of the proposed tower and the location of all existing buildings and structures and the exact location of the tower and equipment facility. b.If applicable, an application must also include written documentation under a licensed engineer's stamp verifying the need for a guyed-lattice tower when no other means of antenna support structure is available due to technical engineering constraints. c.Procedure for Administrative Review for WCFs in the public right of way: (1) The City shall issue a written decision concerning the application within sixty (60) days of submission of the initial application unless (a) the City notified the applicant that its application was incomplete within thirty (30) days of filing. If so, the remaining time from the sixty (60) day total review time is suspended until the applicant provides the missing information, (b) extension of time is agreed to by the applicant, or (c) additional time required by processes of the Federal Aviation Administration (FAA), the State Historic Preservation Office or the Historic Preservation Commission, if applicable to the proposed installation, and to the extent that the same are beyond the control of the City. The running of the aforementioned sixty (60) day period shall not otherwise be tolled. (2) Failure to issue a written decision within sixty (60) days shall constitute an approval of the application. (3) The provisions of this subsection (c) do not apply to applications for facilities outside of the public rights of way in the municipality. (5)Development standards. a.Location and setback 1.Antenna: Antenna(s) that are attached to support structures are exempt from the setback requirements in the district in which they are located. The antenna(s) may extend up to five feet horizontally beyond the edge of the support structure provided it does not encroach over the property line. 2.Telecommunication towers: A telecommunication tower shall meet the setback requirements for the district in which it is located. A telecommunication tower shall also be constructed on a lot so that it is as far away as possible from existing off-site buildings, and in no event nearer to any residential building than a distance of one hundred percent Posted 5.4.2017 (This Ordinance has changed since 3/28/2017 First Reading) of the height of the tower. A telecommunications tower shall not be closer to a residential district boundary line than one hundred percent of its height. Where telecommunication towers are required to meet FAA paint and/or lighting regulations, the distance between them shall not be less than one-half mile. 3.Equipment facilities: All equipment facilities shall meet the setback requirements for the district in which they are located. 4.Amateur radio operator tower: All amateur radio operator towers shall meet the setback requirements for the district in which they are located. b.Height. 1.Antenna(s) attached to antenna support structures may not add more than 20 feet in height to the existing building or structure to which it is attached. In residential districts, the maximum height including the antenna support structure and the antenna(s) is 100 feet. 2.Telecommunication towers: (i)In all industrial districts, the tower structure shall not exceed the maximum height of 200 feet. (ii)In all business districts, except the RB-4, B-2A and B-5 districts, the maximum height is 100 feet. (iii)In the agricultural/conservation district, as depicted on the adopted future land use plan, the maximum height is 200 feet. (iv)In residential districts, the maximum height shall be determined through the conditional use permit process. 3.Amateur radio operator towers shall have a maximum height of 35 feet. Exceptions: Antennas co-located upon existing structures. In addition, for every one additional foot in from the side or rear building setback lines, one additional foot in height may be added, to a maximum height of 60 feet. 4.Broadcast towers may be erected to a height as approved by the city council upon conditional use review. c.Screening and landscaping. Telecommunication tower sites and equipment facilities shall be screened when there exists a clear view from adjacent residential uses. A fence, wall, berm, shrubbery or tree plantings shall be installed to a sufficient height along the perimeter or in appropriate areas in order to reduce the visual impact of the tower base and buildings. Existing mature tree growth and natural landforms shall be preserved to the maximum extent possible and may be a sufficient buffer. If a chainlink fence is erected, the fence shall have wood or plastic slats woven into the fence, open mesh windscreens installed or additional shrubbery or tree plantings located outside the fence. d.Illumination. Towers shall not be artificially lighted unless required by the FAA or other governing authority. Security or safety lighting for equipment facilities is permitted. e.Design. Towers shall be of a neutral color unless otherwise required by the FAA. Antenna(s) installed on support structures shall be of a neutral color that is the same as or compatible with the support structure. Buildings and other structures shall be Posted 5.4.2017 (This Ordinance has changed since 3/28/2017 First Reading) made of exterior materials and colors that will blend the facilities to the natural setting and built environment. In residential districts, aesthetics is a high priority. Therefore, only a monopole design shall be permitted unless otherwise approved during the administrative review or conditional use process. In addition, incorporating stealth design into the tower and equipment facilities whenever possible will be an important factor in the review of any conditional use permit application. f.Maintenance. Telecommunication towers, antenna support structures, and WCFs shall be maintained in compliance with Electronic Industries Association/Telecommunications Industries Association Standard (EIA/TIA) 222 Revision G Standard entitled "Structural Standards for Steel Antenna Towers and Antenna Supporting Structures" as it may be updated or amended. g.Abandonment. Any wireless communication facility that is no longer in use shall be reported to the city by the facility owner. If a WCF is not operated for a continuous period of 12 months, it shall be considered abandoned and the owner shall remove the WCF within six months. h.Development Standards for Small Cell Facilities and Distributed Antenna Systems (DAS): 1. The applicant shall demonstrate that through location, construction, or stealthing, the proposed facility or network of facilities will have minimum visual impact upon the appearance of adjacent properties and the views from adjacent residential neighborhoods and the pedestrian environment, while retaining viable opportunities for future collocation, provided applications for designs consistent with the design guidelines provided for in subsection 5.e of this section shall be deemed to have met the requirement of this subsection. 2. Documentation of the number of other entities desiring to use the telecommunications facility that can be accommodated within the design parameters of the telecommunications facility as proposed. 3. A statement indicating the owner's commitment to allow feasible shared use of the facility within its design capacity for collocation. 4. The proposed site plan and design plans meet or exceed all applicable standards, including without limitation those of the FAA, Federal Communications Commission (FCC), American National Standards Institute (ANSI), and Institute of Electrical and Electronics Engineers (IEEE) standards for power density levels and structural integrity, American Concrete Institute (ACI), American Standards Testing and Materials Institute (ASTM), the National Electrical Code, and the American Steel Institute. The telecommunications facility must comply with building codes and other federal, state, and local regulations, Applicant must also comply with applicable Historic Preservation ordinances of the City. 5. With respect to telecommunication facilities within public rights-of-way. Posted 5.4.2017 (This Ordinance has changed since 3/28/2017 First Reading) a. Support structures and above-ground transmission equipment shall be located outside the pedestrian portion of any sidewalk. b. New telecommunication facility support structures may not be erected to a height greater than the height surrounding utility poles or street lights, whichever is greater. If no utility poles are present, the total height shall be built to a maximum height of 35’, including antennas, lightning rods or other extensions. All new proposed structures, or a stealth telecommunications support structure replacing an existing support structure or alternative structure, within the right-of-way shall be designed for a minimum of two wireless communication facility providers. c. Telecommunication facilities shall be constructed consistent with the design requirements of the Community Development Department, and, where applicable, the Historic Preservation Commission II. Any or all ordinances in conflict herewith are hereby repealed. First Reading:May 9, 2017 Second Reading:May 23, 2017 Published:May 26, 2017 CITY OF BROOKINGS, SD __________________________________ Keith W. Corbett, Mayor ATTEST: _____________________________ Shari Thornes, City Clerk Disregard Posted 3.28.2017 Ordinance 17-008 An Ordinance Amending the Zoning Ordinance of the City of Brookings to Include Provisions Pertaining to Small Cell Facilities and Distributed Antenna Systems in the City of Brookings. Be It Ordained and Enacted by the Council of the City of Brookings, State of South Dakota, as follows: I. That Section 94-396 of the Ordinances of the City of Brookings be amended to read as follows: Sec. 94-396. - Wireless communication facilities. The purpose of this section is to establish regulations and performance standards for the siting of wireless communication facilities (WCFs) in a manner that will protect the public's health, safety, and welfare and maintain the aesthetic integrity of the community. (1)Permit required.An application for a building permit is required prior to the construction of any WCF. Compliance with all applicable building codes, navigation hazard requirements, Federal Aviation Administration Regulations and section 94-164 must be achieved before a permit will be issued. (2)Definitions.The following definitions shall apply: Amateur radio operator tower:A structure used for the transmission, broadcast or reception of amateur radio or citizen band signals. Antenna:Any device that radiates or captures electromagnetic wave signals including digital and analog voice and data signals or video or microwave signals. Antenna support structure:An existing building or structure such as, but not limited to, utility poles, signs, elevated water tanks and steeples that support wireless communications facilities. Broadcast tower:A structure for the transmission of radio or television broadcast communications. This term does not include offices or studios. Co-location/site sharing:Use of an antenna support structure or telecommunications tower by two or more wireless license holders or by one wireless license holder for more than one type of communication. This includes the placement of a WCF on a structure owned and operated by a municipal or public utility. Distributed Antenna System (DAS): A system consisting of: (1) a number of remote communications nodes deployed throughout the desired coverage area, each including at least one antenna for transmission and reception; (2) a high capacity signal transport medium (typically fiber optic cable) connecting each node to a central communications hub site; and (3) radio transceivers located at the hub Disregard Posted 3.28.2017 site (rather than at each individual node as is the case for small cells) to process or control the communications signals transmitted and received through the antennas. Equipment facility:A structure used to contain ancillary equipment for a WCF, such as cables, wires, lines, cabinets, pedestals and similar devices. Height:The distance measured from the original grade to the highest point on the WCF, including the antenna(s). Small Cell Facility:A wireless service facility that either meets both of the following qualifications or is within a stealth design that is consistent with the design guidelines: 1. Each antenna is located inside an enclosure of no more than five (5) cubic feet in volume or, in the case of an antenna that has exposed elements, the antenna and all of its exposed elements could fit within an enclosure of no more than five (5) cubic feet, however, the maximum dimensions of the antenna shall not exceed 36” in height and 16” in diameter; and 2. Primary equipment enclosures are no larger than seventeen (17) cubic feet in volume. The following associated equipment may be located outside of the primary equipment enclosure and, if so located, is not included in the calculation of equipment volume: electric meter, concealment, telecommunications demarcation box, underground enclosures, back-up power systems, grounding equipment, power transfer switch, and cut-off switch. Small Cell Network: A collection of interrelated small cell facilities designed to deliver wireless service. Stealth:The ability of freestanding telecommunication towers to blend into the neighborhood environment at a given location and the ability to camouflage or conceal the presence of wireless communication facilities when attached to antenna support structures. Telecommunications tower:Any pole, spire, structure or combination thereof, including supporting lines, cables, wires, braces and mast, designed and constructed primarily for the purpose of supporting one (1) or more antennas, including self supporting lattice towers, guyed towers or monopole towers. A communication tower may include, but not be limited to, radio and television transmission towers, microwave towers, common carrier towers, cellular telephone towers and personal communication service towers. Temporary WCF:A WCF that is placed in service for less than 180 days. Wireless communications facilities:One or more antenna, tower, base station, mechanical and/or electronic equipment, conduit, cable, fiber, wire, and associated structures, enclosures, assemblages, devices and supporting elements that Disregard Posted 3.28.2017 generate, transmit or produce a signal used for communication that is proposed by an entity other than the Metropolitan Government, including but not limited to radio/tv/satellite and broadcast towers, telephone service, including new microwave or cellular towers, PWSF, DAS, small cell facilities and COW’s. (3)Siting and co-location criteria.The siting and co-location of all WCFs shall be subject to the following criteria before consideration will be given to a new site: a. WCFs shall be located on existing antenna support structures, such as utility poles, light poles, signs, elevated water tanks, buildings and other WCFs; or b. WCFs shall co-locate or site share upon existing telecommunication towers; or c.WCFs shall consider the use of public property and structures. d. If an applicant has shown a good faith effort to co-locate but has found it not to be feasible, a written statement indicating the reasons why co-location is not feasible shall be provided. (4)Application requirements.The following information is required prior to the siting of all WCFs. Installing antenna(s) on existing WCFs and amateur radio operator towers are exempt from these requirements. a. In business and industrial districts, a scaled drawing or aerial map, showing the subject property and all properties within one and one-half times the height of the proposed tower and the location of all existing buildings and structures, and the exact location of the tower and equipment facility. In residential districts, a WCF on an existing antenna support structure shall be considered through administrative review. A proposed telecommunication tower shall be considered through the conditional use permit process. An application shall be accompanied by a scaled drawing or aerial map showing the subject property and all properties within three times the height of the proposed tower and the location of all existing buildings and structures and the exact location of the tower and equipment facility. b. Written documentation under a licensed engineer's stamp verifying the need for a guyed-lattice tower when no other means of antenna support structure is available due to technical engineering constraints. (5)Development standards. a.Location and setback. 1.Antenna:Antenna(s) that are attached to support structures are exempt from the setback requirements in the district in which they are located. The antenna(s) may extend up to five feet horizontally beyond the edge of the support structure provided it does not encroach over the property line. Disregard Posted 3.28.2017 2.Telecommunication towers:A telecommunication tower shall meet the setback requirements for the district in which it is located. A telecommunication tower shall also be constructed on a lot so that it is as far away as possible from existing off-site buildings, and in no event nearer to any residential building than a distance of one hundred percent of the height of the tower. A telecommunications tower shall not be closer to a residential district boundary line than one hundred percent of its height. Where telecommunication towers are required to meet FAA paint and/or lighting regulations, the distance between them shall not be less than one-half mile. 3.Equipment facilities:All equipment facilities shall meet the setback requirements for the district in which they are located. 4.Amateur radio operator tower:All amateur radio operator towers shall meet the setback requirements for the district in which they are located. b.Height. 1. Antenna(s) attached to antenna support structures may not add more than 20 feet in height to the existing building or structure to which it is attached. In residential districts, the maximum height including the antenna support structure and the antenna(s) is 100 feet. 2. Telecommunication towers: (i) In all industrial districts the maximum height is 200 feet. (ii) In all business districts, except the RB-4, B-2A and B-5 districts, the maximum height is 100 feet. (iii) In the agricultural/conservation district, as depicted on the adopted future land use plan, the maximum height is 200 feet. (iv) In residential districts, the maximum height shall be determined through the conditional use permit process. 3. Amateur radio operator towers shall have a maximum height of 35 feet. Exception: For every one additional foot in from the side or rear building setback lines, one additional foot in height may be added, to a maximum height of 60 feet. 4. Broadcast towers may be erected to a height as approved by the city council upon conditional use review. c.Screening and landscaping.Telecommunication tower sites and equipment facilities shall be screened when there exists a clear view from adjacent residential uses. A fence, wall, berm, shrubbery or tree plantings shall be installed to a sufficient height along the perimeter or in appropriate areas in order to reduce the visual impact of the tower base and buildings. Existing mature tree growth and natural landforms shall be preserved to the maximum extent possible and may be a sufficient buffer. If a chainlink fence is erected, the fence shall have wood or plastic slats woven into the fence, Disregard Posted 3.28.2017 open mesh windscreens installed or additional shrubbery or tree plantings located outside the fence. d.Illumination.Towers shall not be artificially lighted unless required by the FAA or other governing authority. Security or safety lighting for equipment facilities is permitted. e.Design.Towers shall be of a neutral color unless otherwise required by the FAA. Antenna(s) installed on support structures shall be of a neutral color that is the same as or compatible with the support structure. Buildings and other structures shall be made of exterior materials and colors that will blend the facilities to the natural setting and built environment. In residential districts, aesthetics is a high priority. Therefore, only a monopole design shall be permitted. In addition, incorporating stealth design into the tower and equipment facilities whenever possible will be an important factor in the review of any conditional use permit application. f.Maintenance.Telecommunication towers, antenna support structures, and WCFs shall be maintained in compliance with Electronic Industries Association/Telecommunications Industries Association Standard (EIA/TIA) 222 Revision F Standard entitled "Structural Standards for Steel Antenna Towers and Antenna Supporting Structures" as it may be updated or amended. g.Abandonment.Any wireless communication facility that is no longer in use shall be reported to the city by the facility owner. If a WCF is not operated for a continuous period of 12 months, it shall be considered abandoned and the owner shall remove the WCF within six months. h.Development Standards for Small Cell Facilities and Distributed Antenna Systems (DAS): 1. The applicant shall demonstrate that through location, construction, or stealthing, the proposed facility or network of facilities will have minimum visual impact upon the appearance of adjacent properties and the views from adjacent residential neighborhoods and the pedestrian environment, while retaining viable opportunities for future collocation, provided applications for designs consistent with the design guidelines provided for in subsection 5.e of this section shall be deemed to have met the requirement of this subsection. 2.Documentation of the number of other users that can be accommodated within the design parameters of the telecommunications facility as proposed. 3.A statement indicating the owner's commitment to allow feasible shared use of the facility within its design capacity for collocation. 4.The proposed site plan and design plans meet or exceed all applicable standards, including without limitation those of the Federal Disregard Posted 3.28.2017 Communications Commission (FCC), American National Standards Institute (ANSI), and Institute of Electrical and Electronics Engineers (IEEE) standards for power density levels and structural integrity, American Concrete Institute (ACI), American Standards Testing and Materials Institute (ASTM), the National Electrical Code, and the American Steel Institute. The telecommunications facility must comply with building codes and other federal, state, and local regulations, Applicant must also comply with applicable Historic Preservation ordinances of the City. 5. With respect to telecommunication facilities within public rights-of-way. a. Support structures and above-ground transmission equipment shall be located outside the pedestrian portion of any sidewalk. b. New telecommunication facility support structures may not be erected to a height greater than the height surrounding utility poles or street lights, whichever is greater. If no utility poles are present, the total height shall be built to a maximum height of 35’, including antennas, lightning rods or other extensions. All new proposed structures, or a stealth telecommunications support structure replacing an existing support structure or alternative structure, within the right-of-way shall be designed for a minimum of two wireless communication facility providers. c. Telecommunication facilities shall be constructed consistent with the design requirements of the Community Development Department, and, where applicable, the Historic Preservation Commission. II. Any or all ordinances in conflict herewith are hereby repealed. First Reading:March 28, 2017 Second Reading:April 25, 2017 Published: CITY OF BROOKINGS, SD Scott Munsterman, Mayor ATTEST: Shari Thornes, City Clerk Disregard Posted 3.28.2017 Ordinance 17-008 An Ordinance Amending the Zoning Ordinance of the City of Brookings to Include Provisions Pertaining to Small Cell Facilities and Distributed Antenna Systems in the City of Brookings. Be It Ordained and Enacted by the Council of the City of Brookings, State of South Dakota, as follows: I. That Section 94-396 of the Ordinances of the City of Brookings be amended to read as follows: Sec. 94-396. - Wireless communication facilities. The purpose of this section is to establish regulations and performance standards for the siting of wireless communication facilities (WCFs) in a manner that will protect the public's health, safety, and welfare and maintain the aesthetic integrity of the community. (1)Permit required.An application for a building permit is required prior to the construction of any WCF. Compliance with all applicable building codes, navigation hazard requirements, Federal Aviation Administration Regulations and section 94-164 must be achieved before a permit will be issued. (2)Definitions.The following definitions shall apply: Amateur radio operator tower:A structure used for the transmission, broadcast or reception of amateur radio or citizen band signals. Antenna:Any device that radiates or captures electromagnetic wave signals including digital and analog voice and data signals or video or microwave signals. Antenna support structure:An existing building or structure such as, but not limited to, utility poles, signs, elevated water tanks and steeples that support wireless communications facilities. Broadcast tower:A structure for the transmission of radio or television broadcast communications. This term does not include offices or studios. Co-location/site sharing:Use of an antenna support structure or telecommunications tower by two or more wireless license holders or by one wireless license holder for more than one type of communication. This includes the placement of a WCF on a structure owned and operated by a municipal or public utility. Distributed Antenna System (DAS): A system consisting of: (1) a number of remote communications nodes deployed throughout the desired coverage area, each including at least one antenna for transmission and reception; (2) a high capacity signal transport medium (typically fiber optic cable) connecting each node to a central communications hub site; and (3) radio transceivers located at the hub site (rather than at each individual node as is the case for small cells) to process or control the communications signals transmitted and received through the antennas. Disregard Posted 3.28.2017 Equipment facility:A structure used to contain ancillary equipment for a WCF, such as cables, wires, lines, cabinets, pedestals and similar devices. Height:The distance measured from the original grade to the highest point on the WCF, including the antenna(s). Small Cell Facility:A wireless service facility that either meets both of the following qualifications or is within a stealth design that is consistent with the design guidelines: 1. Each antenna is located inside an enclosure of no more than five (5) cubic feet in volume or, in the case of an antenna that has exposed elements, the antenna and all of its exposed elements could fit within an enclosure of no more than five (5) cubic feet, however, the maximum dimensions of the antenna shall not exceed 36” in height and 16” in diameter; and 2. Primary equipment enclosures are no larger than seventeen (17) cubic feet in volume. The following associated equipment may be located outside of the primary equipment enclosure and, if so located, is not included in the calculation of equipment volume: electric meter, concealment, telecommunications demarcation box, underground enclosures, back-up power systems, grounding equipment, power transfer switch, and cut-off switch. Small Cell Network: A collection of interrelated small cell facilities designed to deliver wireless service. Stealth:The ability of freestanding telecommunication towers to blend into the neighborhood environment at a given location and the ability to camouflage or conceal the presence of wireless communication facilities when attached to antenna support structures. Telecommunications tower:A self-supporting structure designed and constructed specifically to support antenna(s) and may include a lattice, guyed- lattice, monopole or similar structure. This term does not include towers attached to existing buildings or structures. Any pole, spire, structure or combination thereof, including supporting lines, cables, wires, braces and mast, designed and constructed primarily for the purpose of supporting one (1) or more antennas, including self supporting lattice towers, guyed towers or monopole towers. A communication tower may include, but not be limited to, radio and television transmission towers, microwave towers, common carrier towers, cellular telephone towers and personal communication service towers. Temporary WCF:A WCF that is placed in service for less than 180 days. Wireless communications facilities:Any cables, wires, lines, antennas, antenna arrays, shelters, towers or other equipment associated with the transmission or reception of telecommunication signals. One or more antenna, tower, base station, mechanical and/or electronic equipment, conduit, cable, fiber, wire, and associated Disregard Posted 3.28.2017 structures, enclosures, assemblages, devices and supporting elements that generate, transmit or produce a signal used for communication that is proposed by an entity other than the Metropolitan Government, including but not limited to radio/tv/satellite and broadcast towers, telephone service, including new microwave or cellular towers, PWSF, DAS, small cell facilities and COW’s. (3)Siting and co-location criteria.The siting and co-location of all WCFs shall be subject to the following criteria before consideration will be given to a new site: a. WCFs shall be located on existing antenna support structures, such as utility poles, light poles, signs, elevated water tanks, buildings and other WCFs; or b. WCFs shall co-locate or site share upon existing telecommunication towers; or c.WCFs shall consider the use of public property and structures. d. If an applicant has shown a good faith effort to co-locate but has found it not to be infeasible, a written statement indicating the reasons why co-location is not feasible shall be provided. (4)Application requirements.The following information is required prior to the siting of all WCFs. Installing antenna(s) on existing WCFs and amateur radio operator towers are exempt from these requirements. a. In business and industrial districts, a scaled drawing or aerial map, showing the subject property and all properties within one and one-half times the height of the proposed tower and the location of all existing buildings and structures, and the exact location of the tower and equipment facility. In residential districts, a WCF on an existing antenna support structure shall be considered through administrative review. A proposed telecommunication tower shall be considered through the conditional use permit process. An application shall be accompanied by a scaled drawing or aerial map showing the subject property and all properties within three times the height of the proposed tower and the location of all existing buildings and structures and the exact location of the tower and equipment facility. b. Written documentation under a licensed engineer's stamp verifying the need for a guyed-lattice tower when no other means of antenna support structure is available due to technical engineering constraints. (5)Development standards. a.Location and setback. 1.Antenna:Antenna(s) that are attached to support structures are exempt from the setback requirements in the district in which they are located. The antenna(s) may extend up to five feet horizontally beyond the edge of the support structure provided it does not encroach over the property line. Disregard Posted 3.28.2017 2.Telecommunication towers:A telecommunication tower shall meet the setback requirements for the district in which it is located. A telecommunication tower shall also be constructed on a lot so that it is as far away as possible from existing off-site buildings, and in no event nearer to any residential building than a distance of one hundred percent of the height of the tower. A telecommunications tower shall not be closer to a residential district boundary line than one hundred percent of its height. Where telecommunication towers are required to meet FAA paint and/or lighting regulations, the distance between them shall not be less than one-half mile. 3.Equipment facilities:All equipment facilities shall meet the setback requirements for the district in which they are located. 4.Amateur radio operator tower:All amateur radio operator towers shall meet the setback requirements for the district in which they are located. b.Height. 1. Antenna(s) attached to antenna support structures may not add more than 20 feet in height to the existing building or structure to which it is attached. In residential districts, the maximum height including the antenna support structure and the antenna(s) is 100 feet. 2. Telecommunication towers: (i) In all industrial districts the maximum height is 200 feet. (ii) In all business districts, except the RB-4, B-2A and B-5 districts, the maximum height is 100 feet. (iii) In the agricultural/conservation district, as depicted on the adopted future land use plan, the maximum height is 200 feet. (iv) In residential districts, the maximum height shall be determined through the conditional use permit process. 3. Amateur radio operator towers shall have a maximum height of 35 feet. Exception: For every one additional foot in from the side or rear building setback lines, one additional foot in height may be added, to a maximum height of 60 feet. 4. Broadcast towers may be erected to a height as approved by the city council upon conditional use review. c.Screening and landscaping.Telecommunication tower sites and equipment facilities shall be screened when there exists a clear view from adjacent residential uses. A fence, wall, berm, shrubbery or tree plantings shall be installed to a sufficient height along the perimeter or in appropriate areas in order to reduce the visual impact of the tower base and buildings. Existing mature tree growth and natural landforms shall be preserved to the maximum extent possible and may be a sufficient buffer. If a chainlink fence is erected, the fence shall have wood or plastic slats woven into the fence, open mesh windscreens installed or additional shrubbery or tree plantings located outside the fence. Disregard Posted 3.28.2017 d.Illumination.Towers shall not be artificially lighted unless required by the FAA or other governing authority. Security or safety lighting for equipment facilities is permitted. e.Design.Towers shall be of a neutral color unless otherwise required by the FAA. Antenna(s) installed on support structures shall be of a neutral color that is the same as or compatible with the support structure. Buildings and other structures shall be made of exterior materials and colors that will blend the facilities to the natural setting and built environment. In residential districts, aesthetics is a high priority. Therefore, only a monopole design shall be permitted. In addition, incorporating stealth design into the tower and equipment facilities whenever possible will be an important factor in the review of any conditional use permit application. f.Maintenance.Telecommunication towers, antenna support structures, and WCFs shall be maintained in compliance with Electronic Industries Association/Telecommunications Industries Association Standard (EIA/TIA) 222 Revision F Standard entitled "Structural Standards for Steel Antenna Towers and Antenna Supporting Structures" as it may be updated or amended. g.Abandonment.Any wireless communication facility that is no longer in use shall be reported to the city by the facility owner. If a WCF is not operated for a continuous period of 12 months, it shall be considered abandoned and the owner shall remove the WCF within six months. h.Development Standards for Small Cell Facilities and Distributed Antenna Systems (DAS): 1. The applicant shall demonstrate that through location, construction, or stealthing, the proposed facility or network of facilities will have minimum visual impact upon the appearance of adjacent properties and the views from adjacent residential neighborhoods and the pedestrian environment, while retaining viable opportunities for future collocation, provided applications for designs consistent with the design guidelines provided for in subsection 5.e of this section shall be deemed to have met the requirement of this subsection. 2.Documentation of the number of other users that can be accommodated within the design parameters of the telecommunications facility as proposed. 3.A statement indicating the owner's commitment to allow feasible shared use of the facility within its design capacity for collocation. 4.The proposed site plan and design plans meet or exceed all applicable standards, including without limitation those of the Federal Communications Commission (FCC), American National Standards Institute (ANSI), and Institute of Electrical and Electronics Engineers (IEEE) standards for power density levels and structural integrity, American Concrete Institute (ACI), American Standards Testing and Disregard Posted 3.28.2017 Materials Institute (ASTM), the National Electrical Code, and the American Steel Institute. The telecommunications facility must comply with building codes and other federal, state, and local regulations, Applicant must also comply with applicable Historic Preservation ordinances of the City. 5. With respect to telecommunication facilities within public rights-of-way. a. Support structures and above-ground transmission equipment shall be located outside the pedestrian portion of any sidewalk. b. New telecommunication facility support structures may not be erected to a height greater than the height surrounding utility poles or street lights, whichever is greater. If no utility poles are present, the total height shall be built to a maximum height of 35’, including antennas, lightning rods or other extensions. All new proposed structures, or a stealth telecommunications support structure replacing an existing support structure or alternative structure, within the right-of-way shall be designed for a minimum of two wireless communication facility providers. c. Telecommunication facilities shall be constructed consistent with the design requirements of the Community Development Department, and, where applicable, the Historic Preservation Commission. II. Any or all ordinances in conflict herewith are hereby repealed. First Reading:March 28, 2017 Second Reading:April 25, 2017 Published: CITY OF BROOKINGS, SD Scott Munsterman, Mayor ATTEST: Shari Thornes, City Clerk Posted 5.4.2017 (This Ordinance has changed since 3/28/2017 First Reading) Ordinance 17-008 An Ordinance Amending the Zoning Ordinance of the City of Brookings to Include Provisions Pertaining to Small Cell Facilities and Distributed Antenna Systems in the City of Brookings. BE IT ORDAINED AND ENACTED BY THE COUNCIL OF THE CITY OF BROOKINGS, STATE OF SOUTH DAKOTA, AS FOLLOWS: I. That Section 94-396 of the Ordinances of the City of Brookings be amended to read as follows: Sec. 94-396. - Wireless communication facilities. The purpose of this section is to establish regulations and performance standards for the siting of wireless communication facilities (WCFs) in a manner that will protect the public's health, safety, and welfare and maintain the aesthetic integrity of the community (1)Permit required. An application for a building permit is required prior to the construction of any WCF. Compliance with all applicable building codes, navigation hazard requirements, Federal Aviation Administration Regulations and section 94-164 must be achieved before a permit will be issued. (2)Definitions. The following definitions shall apply: Amateur radio operator tower: A structure used for the transmission, broadcast or reception of amateur radio or citizen band signals. Antenna: Any device that radiates or captures electromagnetic wave signals including digital and analog voice and data signals or video or microwave signals. Antenna support structure: [All revisions to this definition are proposed by Verizon Wireless. ]An existing building or structure such as, but not limited to, utility poles, light poles, signs, elevated water tanks and steeples upon on which an applicant proposes to install wireless communications facilities. Broadcast tower: A structure for the transmission of radio or television broadcast communications. This term does not include offices or studios. Co-location/site sharing: Use of an antenna support structure or telecommunications tower by two or more wireless license holders or by one wireless license holder for more than one type of communication. This includes the placement of a WCF on a structure owned and operated by a municipal or public utility. Distributed Antenna System (DAS):A system consisting of: (1) a number of remote communications nodes deployed throughout the desired coverage area, with each node including at least one antenna, but not more than three antennas per provider, for transmission and reception; (2) a high capacity signal transport medium (typically fiber optic cable) connecting each node to a central communications hub site; and (3) radio transceivers located at the hub site (rather than at each individual node as is the case for small cells) to process or control the communications signals transmitted and received through the antennas. Equipment facility: A structure used to contain ancillary equipment for a WCF, such as [Verizon Wireless input: ] cabinets, pedestals and similar devices. Posted 5.4.2017 (This Ordinance has changed since 3/28/2017 First Reading) Height: The distance measured from the original grade to the highest point on the WCF, including the antenna(s). Small Cell Facility:A wireless service facility that either meets both of the following qualifications or is within a stealth design that is consistent with the design guidelines: 1. Each antenna is located inside an enclosure of no more than five (5) cubic feet in volume or, in the case of an antenna that has exposed elements, the antenna and all of its exposed elements could fit within an enclosure of no more than five (5) cubic feet, however, the maximum dimensions of the antenna shall not exceed 36” in height and 16” in diameter; and 2. Each provider’s Primary equipment enclosures shall be are no larger than seventeen (17) cubic feet in volume. The following associated equipment may be located outside of the primary equipment enclosure and, if so located, is not included in the calculation of equipment volume: electric meter, concealment, telecommunications demarcation box, underground enclosures, back-up power systems, grounding equipment, power transfer switch, and cut-off switch. Stealth: The ability of freestanding telecommunication towers to blend into the neighborhood environment at a given location and the ability to camouflage or conceal the presence of wireless communication facilities when attached to antenna support structures. Telecommunications tower: Any pole, spire, structure or combination thereof, including supporting lines, cables, wires, braces and mast, designed and constructed primarily for the purpose of supporting one (1) or more antennas, including self supporting lattice towers, guyed towers or monopole towers. A communication tower may include, but not be limited to, radio and television towers, microwave towers, common carrier towers, cellular telephone towers and personal communication service towers. Temporary WCF: A WCF that is placed in service for less than 180 days. Wireless communications facilities: One or more antenna, tower, base station, [Verizon Wireless input: antenna support structure,] mechanical and/or electronic equipment, conduit, cable, fiber, wire, and associated structures, enclosures, assemblages, devices and supporting elements that generate, transmit or produce a signal used for communication that is proposed by an entity other than the City, including but not limited to radio/tv/satellite and broadcast towers, telephone service, including new microwave or cellular towers, personal wireless service facilities, DAS, small cell facilities and Temporary WCF. (3) Siting and co-location criteria. The siting and co-location of all WCFs shall be subject to the following criteria before consideration will be given to a new site: a.WCFs shall be located on existing antenna support structures, such as utility poles, light poles, signs, elevated water tanks, buildings and other WCFs; or b.WCFs shall co-locate or site share upon existing telecommunication towers; or c.WCFs shall consider the use of public property and structures. d.If an applicant has shown a good faith effort to co-locate but has found it not to be feasible, a written statement indicating the reasons why co-location is not feasible shall be provided Posted 5.4.2017 (This Ordinance has changed since 3/28/2017 First Reading) (4) Application requirements. The following information is required prior to the siting of all WCFs. Installing antenna(s) on existing WCFs and amateur radio operator towers are exempt from these requirements. [All revisions to (b) and (c) are proposed by Verizon Wireless.] a.In business and industrial districts, a scaled drawing or aerial map, showing the subject property and all properties within one and one-half times the height of the proposed tower and the location of all existing buildings and structures, and the exact location of the tower and equipment facility. In residential districts, a WCF on an existing antenna support structure shall be considered through administrative review. A proposed telecommunication tower shall be considered through the conditional use permit process. An application shall be accompanied by a scaled drawing or aerial map showing the subject property and all properties within three times the height of the proposed tower and the location of all existing buildings and structures and the exact location of the tower and equipment facility. b.If applicable, an application must also include written documentation under a licensed engineer's stamp verifying the need for a guyed-lattice tower when no other means of antenna support structure is available due to technical engineering constraints. c.Procedure for Administrative Review for WCFs in the public right of way: (1) The City shall issue a written decision concerning granting the application within sixty (60) days of submission of the initial application unless (a) the City notified the applicant that its application was incomplete within thirty (30) days of filing. If so, the remaining time from the sixty (60) day total review time is suspended until the applicant provides the missing information, (b) extension of time is agreed to by the applicant, or (c) additional time required by processes of the Federal Aviation Administration (FAA), the State Historic Preservation Office or the Historic Preservation Commission, if applicable to the proposed installation, and to the extent that the same are beyond the control of the City. The running of the aforementioned sixty (60) day period shall not otherwise be tolled. (2) Failure to issue a written decision within sixty (60) days shall constitute an approval of the application. (3) The provisions of this subsection (c) do not apply to applications for facilities outside of the public rights of way in the municipality. (5)Development standards. a.Location and setback 1.Antenna: Antenna(s) that are attached to support structures are exempt from the setback requirements in the district in which they are located. The antenna(s) may extend up to five feet horizontally beyond the edge of the support structure provided it does not encroach over the property line. 2.Telecommunication towers: A telecommunication tower shall meet the setback requirements for the district in which it is located. A telecommunication tower shall also be constructed on a lot so that it is as far away as possible from existing off-site buildings, and in no event Posted 5.4.2017 (This Ordinance has changed since 3/28/2017 First Reading) nearer to any residential building than a distance of one hundred percent of the height of the tower. A telecommunications tower shall not be closer to a residential district boundary line than one hundred percent of its height. Where telecommunication towers are required to meet FAA paint and/or lighting regulations, the distance between them shall not be less than one-half mile. 3.Equipment facilities: All equipment facilities shall meet the setback requirements for the district in which they are located. 4.Amateur radio operator tower: All amateur radio operator towers shall meet the setback requirements for the district in which they are located. b.Height. 1.Antenna(s) attached to antenna support structures may not add more than 20 feet in height to the existing building or structure to which it is attached. In residential districts, the maximum height including the antenna support structure and the antenna(s) is 100 feet. 2.Telecommunication towers: (i)In all industrial districts, the tower structure shall not exceed the maximum height of is 200 feet. (ii)In all business districts, except the RB-4, B-2A and B-5 districts, the maximum height is 100 feet. (iii)In the agricultural/conservation district, as depicted on the adopted future land use plan, the maximum height is 200 feet. (iv)In residential districts, the maximum height shall be determined through the conditional use permit process. 3.Amateur radio operator towers shall have a maximum height of 35 feet. Exceptions: Antennas co-located upon existing structures. In addition, for every one additional foot in from the side or rear building setback lines, one additional foot in height may be added, to a maximum height of 60 feet. 4.Broadcast towers may be erected to a height as approved by the city council upon conditional use review. c.Screening and landscaping. Telecommunication tower sites and equipment facilities shall be screened when there exists a clear view from adjacent residential uses. A fence, wall, berm, shrubbery or tree plantings shall be installed to a sufficient height along the perimeter or in appropriate areas in order to reduce the visual impact of the tower base and buildings. Existing mature tree growth and natural landforms shall be preserved to the maximum extent possible and may be a sufficient buffer. If a chainlink fence is erected, the fence shall have wood or plastic slats woven into the fence, open mesh windscreens installed or additional shrubbery or tree plantings located outside the fence. d.Illumination. Towers shall not be artificially lighted unless required by the FAA or other governing authority. Security or safety lighting for equipment facilities is permitted. e.Design. Towers shall be of a neutral color unless otherwise required by the FAA. Antenna(s) installed on support structures shall be of a neutral color that is the same Posted 5.4.2017 (This Ordinance has changed since 3/28/2017 First Reading) as or compatible with the support structure. Buildings and other structures shall be made of exterior materials and colors that will blend the facilities to the natural setting and built environment. In residential districts, aesthetics is a high priority. Therefore, only a monopole design shall be permitted [Verizon Wireless input: unless otherwise approved during the administrative review or conditional use process.] In addition, incorporating stealth design into the tower and equipment facilities whenever possible will be an important factor in the review of any conditional use permit application. f.Maintenance. Telecommunication towers, antenna support structures, and WCFs shall be maintained in compliance with Electronic Industries Association/Telecommunications Industries Association Standard (EIA/TIA) 222 Revision G F Standard entitled "Structural Standards for Steel Antenna Towers and Antenna Supporting Structures" as it may be updated or amended. g.Abandonment. Any wireless communication facility that is no longer in use shall be reported to the city by the facility owner. If a WCF is not operated for a continuous period of 12 months, it shall be considered abandoned and the owner shall remove the WCF within six months. h.Development Standards for Small Cell Facilities and Distributed Antenna Systems (DAS): 1. The applicant shall demonstrate that through location, construction, or stealthing, the proposed facility or network of facilities will have minimum visual impact upon the appearance of adjacent properties and the views from adjacent residential neighborhoods and the pedestrian environment, while retaining viable opportunities for future collocation, provided applications for designs consistent with the design guidelines provided for in subsection 5.e of this section shall be deemed to have met the requirement of this subsection. 2. Documentation of the number of other entities desiring to use the telecommunications facility users that can be accommodated within the design parameters of the telecommunications facility as proposed. 3. A statement indicating the owner's commitment to allow feasible shared use of the facility within its design capacity for collocation. 4. The proposed site plan and design plans meet or exceed all applicable standards, including without limitation those of the FAA, Federal Communications Commission (FCC), American National Standards Institute (ANSI), and Institute of Electrical and Electronics Engineers (IEEE) standards for power density levels and structural integrity, American Concrete Institute (ACI), American Standards Testing and Materials Institute (ASTM), the National Electrical Code, and the American Steel Institute. The telecommunications facility must comply with building codes and other federal, state, and local regulations, Applicant must also comply with applicable Historic Preservation ordinances of the City. Posted 5.4.2017 (This Ordinance has changed since 3/28/2017 First Reading) 5. With respect to telecommunication facilities within public rights-of-way. a. Support structures and above-ground transmission equipment shall be located outside the pedestrian portion of any sidewalk. b. New telecommunication facility support structures may not be erected to a height greater than the height surrounding utility poles or street lights, whichever is greater. If no utility poles are present, the total height shall be built to a maximum height of 35’, including antennas, lightning rods or other extensions. All new proposed structures, or a stealth telecommunications support structure replacing an existing support structure or alternative structure, within the right-of-way shall be designed for a minimum of two wireless communication facility providers. c. Telecommunication facilities shall be constructed consistent with the design requirements of the Community Development Department, and, where applicable, the Historic Preservation Commission II. Any or all ordinances in conflict herewith are hereby repealed. First Reading:May 9, 2017 Second Reading: May 23, 2017 Published: May 26, 2017 CITY OF BROOKINGS, SD __________________________________ Keith W. Corbett, Mayor ATTEST: ____________________________________ Shari Thornes, City Clerk +++++ Mo ss & -B arnett April 18, 2017 SENT VIA E-MAIL City Council City of Brookings 520 3rd Street, Suite 230 P.O. Box 270 Brookings, SD 57006 Re: City of Brookings Proposed Ordinance 17-008 Amending Zoning Code Section 94-396 Wireless Communication Facilities Dear Council Members: Our law firm has been retained by Verizon Wireless to represent it in its wireless network development in Brookings and throughout the surrounding area. As part of that work, we have been asked to provide comments regarding a draft ordinance that the City is considering. Recently, the Planning Commission heard a presentation by Verizon Wireless's local fiber provider, SDN. We appreciate the opportunity to provide these comments in preparation for the upcoming public hearing, as our client works to improve wireless service in the City of Brookings. Introduction. Forward thinking cities like Brookings recognize that small cells should be regulated differently from traditional, macro installations. Small cells are an important tool for all carriers to expand critical network capacity to meet consumer's ever-increasing telephone and data demands. Of course, almost everyone has a cellphone, smartphone or tablet device that we rely on every day. In fact, nearly 50% of adults in the United States have only a wireless telephone, with no traditional landline telephone at all. Wireless-Only Households, 2003-20161 Percent 60 50 40 30 20 10 Children with wireless service only 59.4 0 .....__..,__ ........ __.___.__....___..__. ......... _..__,__.....__. ......... __.__.__.....__ ......... __.___.__....___..__. ................ Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun 2003 2006 2008 2010 2012 2014 2016 That percentage will only rise as the next generation moves into adulthood, since nearly 60% of children live in households that have a wireless telephone as the only telephone. Here in the Midwest, 51.7% of 1 See U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, Wireless Substitution: Early Release of Estimates from the National Health Interview Surver, January-June 2016 (Dec. 2016) at p. 1 available at http://www.cdc.gov/nchs/data/nhis/earlyrelease/wireless 201612.pdf. 150 South Fifth Street I Suite 1200 I Minneapolis, MN 55402 P:612-877-5000 F:612-877-5999 W:LawMoss.com City o f Bro o kings Prop os ed O rdin a n ce 1 7-0 08 A p ril 1 8, 2 01 7 Pag e 2 o f 3 +•+•+ Moss & Barn ett adults live in households with no wired phone. 2 Deploying small cell facilities is critical to providing adequate network capacity and fixing coverage gaps. created by topography or surrounding buildings. Only by providing small cell facilities in relatively close proximity to its customers can Verizon Wireless resolve these issues. Wireless devices only work when there are antennas in relatively close proximity to the wireless caller. Wireless voice and data services are in high demand in Brookings. Certainly, emergency responders such as police and fire personnel use their devices when on the scene or traveling to it. But smartphones are just as likely to be used by the average citizen - to check for storms while hunting, golfing or boating, to read e-mail between innings of a little league game or even to get directions while visiting an unfamiliar place. In order to work properly, the antennas need to be wherever the people are. Recently, we received a copy of the proposed amendments to Section 94-396, which outlines how the City intends to regulate small cell installations. Having reviewed the ordinance, we can see how much time and careful thought has been devoted, and we have some additional information, as well as a few suggestions, for your consideration. Light poles are to be included as an antenna support structure, and replacement light poles are not to be treated as new structures. As you can see from the enclosed redline, we have very few revisions to recommend. These revisions stem from our experience with small cell deployment throughout the upper Midwest during the past few years. In most cases small cells are best installed on existing light poles, but standard light poles are not typically engineered to support additional equipment. As a result, small cell installations often involve the replacement of streetlight poles in the right-of-way. The City has defined "antenna support structure" as "an existing building or structure such as, but not limited to utility poles, signs, elevated water tanks and steeples that support wireless communications facilities." Our suggested revisions clarify that light poles would also qualify as an antenna support structure, and that structures need not have existing antennas installed on them in order to qualify as an antenna support structure under the ordinance. Also, because small cell installations often involve replacement of an existing utility pole, sign, etc. we suggest language to further clarify that such a replacement did not render the light pole as necessarily being classified as a "new" support structure, which have less favorable treatment under the ordinance's siting preferences. In essence, this would leave the city with the ability to take advantage of the size and location of its existing light poles to install small cell antennas, even if the pole must be replaced in order to make this possible. The replacement poles would always remain the property of the City, of course. Sm all cell wires, cables or lines within the rights of w ay are excl uded from setbacks. Because equipment facilities must meet setback requirements elsewhere in the existing code (see subdivision (5)(3)), and since setback is often measured in terms of the location of the installation from a lot line that borders a public right of way, it makes sense that the concept of setbacks should not apply to small cell installations within the public right of way. Therefore, the enclosed redline includes a provision that exempts wires, cables, and lines, from the definition of equipment facilities. This is consistent with the intent of the ordinance that small cell installations be allowed in the public rights of way, rather than being setback from them. See subdivision (S)(a)(l). Application requirements should apply throughout the City. The proposed ordinance specifies the process for approving a new WCF on an existing antenna support structure in a residential district, but does not explain the process for any other district. In an effort to clarify the standards for other districts, we propose that small cell installations on new or existing antenna support structures in all zones be subject to administrative review. While there were discussions before the Planning Commission 2 Id. at Table 2, p. 7. City of Brookings Proposed Ordinance 17-008 Aprill~ 2017 Page3of 3 +++++ Moss & Barnett to the effect that small cells might not be permitted in the public right of way in the central business district, our review of the City Code revealed no provision that would ban these installations in that location. Even so, we propose including language that clarifies that compliance with this Section satisfies other City Code provisions regarding the City Engineer's approval of awnings and poles in the public right of way in the central business district. With respect to the mapping requirement, we have also suggested language to clarify that any application for a WCF must accompany a scaled drawing or aerial map depicting existing buildings and structures as well as the proposed installation. Other design possibili ties in residential districts. The proposed ordinance provides that "[i]n residential districts, aesthetics is a high priority. Therefore, only a monopole design shall be permitted." See subdivision (5)(e). Many cities we have worked with are concerned about the aesthetics of these installations, and Verizon Wireless is willing to work with City Staff to achieve designs that meet this important goal. However, our experience has shown that codes that mandate one design type do not allow the flexibility necessary to meet this important goal. For example, the City might achieve a better aesthetic result by approving a small cell facility as part of a church steeple, an emergency call box, a school scoreboard, or on top of a firehouse. Therefore, we propose giving the City greater flexibility to approve alternative designs during the administrative review or conditional use process. Conclusion. Enclosed is a redline reflecting these preliminary suggestions. Please let us know if you would like more detailed suggestions to the proposed ordinance. We plan to attend the City Council meeting on April 25, 2017, to answer any questions related to our suggestions or more general questions regarding the development of the Verizon Wireless network. If any reader of this letter has questions, please do not hesitate to contact us. We look forward to working with you to continue improving Verizon Wireless service in Brookings. Sincerely, J /1 ---~ y.., l:L l Jaym es D. Litt lejohn Attorney at Law P: (612) 877-5274 F: (612) 877-5047 Jay.Littlejohn@lawmoss.com Enclosure cc: Michael Cogar (via e-mail) 3556426v2 Katherine D. Pasker Attorney P: (612) 877-5312 F: (612) 877-5027 Katherine.Pasker@lawmoss.com 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 A CHANGE IN ZONE REGULATIONS NOTICE IS HEREBY GIVEN That the City of Brookings has submitted ordinance amendments to Section 94-396, pertaining to Wireless Communication Facilities. NOTICE IS FURTHER GIVEN That said request will be acted on by the City Planning Commission at 4:30 PM on Tuesday, March 14, 2017, in the Chambers Room on the third floor of the Brookings City and 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 24th day of February, 2017. ____________________________ Staci Bungard City Planner Planning Commission Brookings, South Dakota March 14, 2017 OFFICIAL MINUTES Chairperson Al Heuton called the regular meeting of the City Planning Commission to order on Tuesday, February 7, 2017, at 5:30 PM in the Chambers Room #310 on the third floor of the City & County Government Center. Members present were James Drew, Greg Fargen, Alan Gregg, Alan Johnson, Ryan Murphy, Lee Ann Pierce, Kristi Tornquist and Al Heuton. Absent was Tanner Aiken. Also present were City Planner Staci Bungard, Community Development Director Mike Struck, City Engineer Jackie Lanning, Vernon Brown and Jerry Anderson from SDN Communications and others. Item #6 – The City of Brookings has submitted ordinance amendments to Section 94-396, pertaining to Wireless Communication Facilities. (Gregg/Fargen) Motion to approve the zoning ordinance amendments. All present voted aye. MOTION CARRIED. (Tornquist /Drew) Amendment to the motion with a change to Section 5h.1 to reference “5.e” and not 5.f. The motion as amended was voted on. All present voted aye, Johnson absent. MOTION CARRIED. OFFICIAL SUMMARY Item #6–This amendment is to include definitions for administration of the Zoning Ordinance. Definitions and regulations for Distributed Antenna Systems and Small Cell Facilities, specifically wireless communication facilities placed on private property. Due to new technology and changes within the industry an amendment is necessary. The amendment allows for smaller wireless facilities, such as those needed for cell phone towers. City Staff would need to issue a permit to ensure the requirements are met. Vernon Brown explained that this change is important especially in this part of the world where “cell phone only” users are high in numbers with the student base we have here. Vernon explained where these poles would be placed in the City and on Campus. Fargen wondered who would control who would be allowed to utilize the poles. Vernon explained that SDN would own the poles and would lease the pole to other providers. Jerry Anderson explained that the devices on the poles will only measure about 18 inches and the devices will provide additional coverage for about a 750 foot circumference around the pole. Gregg wondered if these towers would improve cell usage in other parts of town. Jerry stated that it would be a benefit to everyone, but not inside places like the Swiftel Center. But there are other options available for those buildings. Heuton wondered if they would ever anticipate more than two providers on a pole. At this time, SDN is focusing on Verizon and they would like to have a five foot area between each device on a pole. And with this in mind, a third device would be too close to the ground. It has been asked if the downtown poles could be 50 feet and located in the alleys. Jerry explained that due to the recent upgrades downtown, it has been suggested that the poles be located in the alley’s, but for this to happen it would be best if the poles could be 50 feet in height to be above the buildings. Vernon noted that the proposed amendment only allows for 35 foot poles and he noted that the downtown poles would exceed this. Tornquist asked if maybe a 50 foot pole would be a better route to go in the ordinance. Jerry stated that 35 foot poles fit best in the residential areas. They blend in with the height of street lights at this height. Tornquist asked what the process would be if someone wanted to go higher than the 35 feet. Struck stated that the City Attorney stated that a variance would need to be applied for if the pole were to be in the right-of-way. Pierce wondered how we would monitor other companies coming in and placing these towers in town. Struck explained that the City has to permit these poles and the City isn’t going to limit another company from coming in. The poles will typically be placed in the public right-of-way, so the City will have control over where these will be placed. In addition, everyone will be required to go through all the same processes. Drew wondered if BMU would have any say in the permitting process. Lanning explained that BMU would have to complete a portion of the application. Enjoy the Uptime. SDN offers Internet, connectivity, IP phone systems, networking equipment, and managed services over its 30,000 miles of fiber optics. The network touches 300+ South Dakota communities, plus connects to other regional and national networks. How We Use Smartphones •Calls •Texts •Data Time Spent on Smartphones Cord cutting Mobile data traffic growth Industry preparing for 1000x data traffic growth Qualcomm Layers of Cell Technology Short Range Mobile Cell Sites Small Cell Deployed Small Cell Technology Citizen Benefits 1.Improved public safety •Text notifications to 911 –photos/video •Extend coverage to hard-to-reach areas •Internet of Things –medical device example 2.Fulfilling consumer demand & expectations •Consumers value their wireless devices •They take their devices wherever they go 3.Improved speed, reliability, and coverage Small Cell Where The People Are Brookings Small Cell Deployment Small Cell Deployed How NOT to do them •Wooden poles •Equipment on top and sides Small Cell Deployed SDN’s proposed poles •Mono pole, metal construction •32 feet tall Small Cell Deployed Small Cell Deployed Small Cell Deployed Small Cell Deployed SDN’s proposed poles •Support multiple providers www.sdncommunications.com www.sdncommunications.com • 2900 W. 10th Street, Sioux Falls, SD 57104 • 1.800.247.1442 FREQUENTLY ASKED QUESTIONS SMALL CELL POLES www.sdncommunications.com Necessary infrastructure for cellular technology 22 to 40 miles: the typical coverage of a macrotower MACROCELL TOWER Towers vary in height, but are often 200' to 300' tall. SMALL CELL POLE MACROCELL TOWER SWITCHING OFFICE From the switching oce, the data or calls are directed to the tower nearest the destination cell phone. ROUTER DATA CALL CALLDATA DATA CALL CALL CALL CALL CALLCALL CALL CALL CALL CALL Small cell poles ooad large volumes of data from traditional cell towers. Small cell poles improve data trac for better phone service in locations with heavy trac such as college campuses, fairgrounds and downtown shopping venues. CALLDATA CALL From the tower or pole, data or calls travel via ber or copper to the service provider’s switching oce. Calls travel by airwaves to the nearest tower. From there they travel on the network. DATA DATA DATA DATA DATA DATA DATA DATA DATA DATA Data also travels by airwaves to the nearest tower or small cell pole 1,500 feet: the typical coverage of a small cell pole CALL DATACALL CALL CALL CALL CALL DATA SMALL CELL POLE Small cell poles are 32' tall. Q: What is a small cell, and how will it bene t me? A: Many of us have experienced the frustration of trying to text a photo or pull up a website when we’re at a crowded event or in an area with a weak mobile data signal. While that’s a momentary frustration, lack of data capacity could become a matter of public safety as 911 systems begin to accept emergency text messages and videos. That’s why SDN Communications is deploying small cells for Verizon Wireless in many communities. The new tech- nology will improve data coverage in areas where crowds gather or there is a geographic gap in service. Unlike the large macro cell towers that deliver service coverage for up to 40 miles, small cells enhance data capacity in targeted areas up to 1,500 feet. They’re most often used in areas crowded with many cell phone users, such as schools, colleges, fair grounds, downtown shopping districts, or hospital campuses. This technology improves capacity for users in high-density areas and can have far-reaching bene ts for a community by relieving data congestion on a macro tower. Q: What do small cells look like? A: SDN Communications is working with Verizon Wireless to deploy small cell technology. The equipment is mounted on 32-foot, metal poles. The majority are being placed along the public right of way, which is where other public utilities, such as street lights, electricity, telephone, broadband, water, and sewer are placed. The small cell poles are similar to light poles lining city streets. Q: What is the bene t of small cell technology? A: Small cells improve the speed and reliability of mobile wireless coverage. Increasingly, people rely on their mobile devices to surf the Internet, watch video and access data-rich applications. By 2019, the wireless industry expects mobile data tra c to be six times greater than 2014, according to the Cellular Telephone Industries Association (CTIA). More wireless infrastructure is needed to meet this explosive growth. Small cells are an essential layer of wireless infrastructure and are needed to deploy 4G wireless technology, which can o er speeds up to 30 Mbps. That’s faster than most public Wi-Fi. 4G LTE can even top the speeds many people receive at home. Q: What do small cells look like? A: 22 to 40 miles: the typical coverage of a macrotower MACROCELL TOWER Towers vary in height, but are often 200' to 300' tall. SMALL CELL POLE MACROCELL TOWER SWITCHING OFFICE From the switching oce, the data or calls are directed to the tower nearest the destination cell phone. ROUTER DATACALLCALLDATA DATA CALL CALL CALL CALL CALLCALL CALL CALL CALL CALL Small cell poles ooad large volumes of data from traditional cell towers. Small cell poles improve data trac for better phone service in locations with heavy trac such as college campuses, fairgrounds and downtown shopping venues. CALLDATA CALL From the tower or pole, data or calls travel via ber or copper to the service provider’s switching oce. Calls travel by airwaves to the nearest tower. From there they travel on the network. DATA DATA DATA DATA DATA DATA DATA DATA DATA DATA Data also travels by airwaves to the nearest tower or small cell pole 1,500 feet: the typical coverage of a small cell pole CALLDATACALL CALL CALL CALL CALL DATA SMALL CELL POLE Small cell poles are 32' tall. Q: How does small cell technology support emergency communication? A: Americans rely on their mobile devices for emergency communication. Small cells are essential to support Next Generation 911, which will enable users to text and send photos and videos to rst responders. In addition, many schools and employers use texts or emails to send emergency noti cations. Small cells are necessary to support the delivery of vital, lifesaving mobile communication. Q: What is a public right of way? A: Typically, the public right of way is a narrow strip of land next to the street including the sidewalk. Sometimes it’s called the boulevard. That land is maintained by the homeowner but technically owned by the public and reserved for utilities, such as street lights, electricity, telephone, broadband, water, and sewer infrastructure. Local governments, not the homeowner, decide which utilities are allowed in that public right of way. Most of the small cell poles SDN will deploy will be in that public right of way. SDN is an existing broadband provider in these communities and will leverage existing, underground ber optic cable to support the small cell deployment. Q: Will my boulevard landscaping be damaged during the small cell install? A: Small cell pole installs should have minimal impact on the landscape. SDN’s professional contractor has a good reputation and xes any damage done. For more information about small cells and public right of way, check out this video: https://sdncommunications.com/small-cells/ The boulevard or narrow strip of land between the sidewalk and street is the public right of way, which is where most small cells will be deployed. www.sdncommunications.com • 2900 W. 10th Street, Sioux Falls, SD 57104 • 1.800.247.1442 www.sdncommunications.com Q: Why is it necessary to erect new poles? Why can’t the small cell equipment be mounted to existing light or telephone poles? A: The small cell equipment is heavy and requires a structurally sound pole and foundation. The base and pole of existing structures would likely need to be replaced to support the heavy equipment. Small cells support essential 911 service and require immediate response if the equipment is damaged or needs repair. SDN selected a uniform, 32-foot monopole design to provide consistency and direct power access to enable quick and e cient service, repair and maintenance. Q: Can the small cell poles support multiple wireless carriers? A: Yes, SDN’s small cell poles can accommodate up to two wireless carriers. Colocation of small cell equipment can reduce the need for additional poles, while simultaneously meeting the data coverage needs of mobile users. Q: Is small cell technology coming to my community? A: SDN is currently working with the communities of Sioux Falls, Yankton, Brookings, Aberdeen, Sturgis, and Sioux City to deploy small cell technology. If your community isn’t on this list, it could be in the future. As mobile data tra c continues to grow, it is likely more communities in the Northern Plains will be selected to receive this next layer of wireless infrastructure. About SDN Communications SDN Communications is based in Sioux Falls, SD. The company is the premier business-to-business broadband service provider in the region, with more than 30,000 miles of ber optic cable that extends into eight states of the Northern Plains. SDN also provides the managed cybersecurity products and remote network monitoring to build a more secure business network. SDN is owned by the independent telephone companies in the region. If you have further questions, please contact SDN Communications at 1-800-247-1442. 1 Small Cell, DAS, and Wi-Fi Facilities Permit City of Brookings 520 3rd Street, Suite 140, Brookings, SD 57006 (p) 605-692-6629 (f) 605-697-8624 Name of Applicant (Owner): Name of Contractor performing work: Contact Person: Office Phone: Cell: 1. Pole Location(s) (Street Segment/Pole Number [if applicable]) and GPS Coordinates ☐ Pole 1 ☐ Pole 2 ☐ Pole 3 ☐ Pole 4 2. Antenna(s) Number of antenna(s): Dimensions of antenna(s): Location of antenna(s) (identify pole and location on pole): Make, model and technical specifications: 3. Equipment (answer all that apply) A. Primary equipment enclosure location and dimensions (identify pole and location on pole): Make, model and technical specifications for each piece of equipment: 1: 2: B. Secondary equipment enclosure locations and dimensions (identify pole and location on pole: Make, model and technical specifications for each piece of equipment: 1: 2: 2 C. Other equipment location and dimensions (identify pole and location on pole): Make, model and technical specifications for each piece of equipment: 1: 2: 4. Right-of-Way Approval (check one) ☐ The proposed personal wireless service facility is in the public right-of-way ☐ The proposed personal wireless service facility is not in the public right-of-way The proposed personal wireless service facility is in the following public right-of-way location (identify and explain): 5. Use of Utility, Transit, or Street Light Pole (check one) ☐ The Applicant is using a pole owned by Brookings Municipal Utilities (BMU) and has obtained BMU’s permission to use the pole. ☐ No permission of the utility, transit, or street light pole owner is required for the following reason(s) 1: 2: 6. Required Documents (check as appropriate) ☐ Attached is a location drawing of the proposed Personal Wireless Service Facility in twenty feet (20’) to one inch (1”) scale (20:1 scale) showing each of the following: (a) Street name; (b) Names of cross streets; (c) The utility, transit, or street light pole to be used; (d) All existing facilities on the utility, transit, or street light pole (if applicable); and (e) All proposed facilities on the utility or street light pole. ☐ Attached are the following documents (check (1) and either (2) or (3)): ☐ (1) A photographic simulation of the proposed Personal Wireless Service Facility at the proposed location; and ☐ (2) A photograph of any existing Personal Wireless Service Facilities located in the public rights-of-way that are within a one hundred and fifty foot (150’) radius of the proposed Personal Wireless Service Facility; or ☐ (3) A site drawing in a twenty feet (20’) to one inch (1”) scale (20:1 scale) showing the location of any existing Personal Wireless Service Facilities located in the public rights-of-way that are within a one hundred and fifty foot (150’) radius of the proposed Personal Wireless Service Facility. 3 ☐ Attached is a certificate of insurance in a form acceptable to the City’s Risk Manager ☐ Attached is a verified statement from a registered engineer attesting that the installation of the proposed Personal Wireless Service Facility: (1) would not compromise the structural integrity of the Utility or Street Light Pole and will be in compliance with any standards imposed by City Ordinance. ☐ Attached a list of all of Applicant’s permitted Personal Wireless Service Facilities. 7. Historic Preservation ☐ Pursuant to Section 106 of the National Historic Preservation Act of 1966 (NHPA), conduct required historic preservation review process as mandated by Federal law. The historic preservation review process mandated by Section 106 is outlined in regulations issued by ACHP, "Protection of Historic Properties" (36 CFR Part 800). ☐ Historic preservation review process is not required because the proposed Personal Wireless Service Facility is not located in a historic district designated by the Historic Preservation Commission under Chapter 46, Article IV of the City Code of Ordinances. 8. Application Fees (check all required fees) ☐ City Engineering Department application fee ($100.00/wireless communication facility location) I certify that the information contained in the application is correct. As an applicant, I also certify:  Proper locates for all utilities near the communication facility locations will be acquired before construction;  I have duly notified adjacent property owners within 100 feet of this wireless communication facility location;  I attest this wireless communication facility is in compliance with FCC guidelines and interference standards; and  I understand falsifying any information contained in this application may result in denial of the permit request. Signature/Authorized Agent Date STAFF USE ONLY ☐ Notified Community Development Department Ordinance No. -17 An Ordinance Amending the Zoning Ordinance of the City of Brookings to Include Provisions Pertaining to Small Cell Facilities and Distributed Antenna Systems in the City of Brookings. BE IT ORDAINED AND ENACTED BY THE COUNCIL OF THE CITY OF BROOKINGS, STATE OF SOUTH DAKOTA, AS FOLLOWS: I. That Section 94-396 of the Ordinances of the City of Brookings be amended to read as follows: Sec. 94-396. - Wireless communication facilities. The purpose of this section is to establish regulations and performance standards for the siting of wireless communication facilities (WCFs) in a manner that will protect the public's health, safety, and welfare and maintain the aesthetic integrity of the community (1)Permit required. An application for a building permit is required prior to the construction of any WCF. Compliance with all applicable building codes, navigation hazard requirements, Federal Aviation Administration Regulations and section 94-164 must be achieved before a permit will be issued. (2)Definitions. The following definitions shall apply: Amateur radio operator tower: A structure used for the transmission, broadcast or reception of amateur radio or citizen band signals. Antenna: Any device that radiates or captures electromagnetic wave signals including digital and analog voice and data signals or video or microwave signals. Antenna support structure: [All revisions to this definition by Verizon Wireless. ]An existing building or structure such as, but not limited to, utility poles, light poles, signs, elevated water tanks and steeples on which an applicant proposes to install wireless communications facilities. Replacing an existing structure with a structure of similar height and design shall not constitute a new support structure. Broadcast tower: A structure for the transmission of radio or television broadcast communications. This term does not include offices or studios. Co-location/site sharing: Use of an antenna support structure or telecommunications tower by two or more wireless license holders or by one wireless license holder for more than one type of communication. This includes the placement of a WCF on a structure owned and operated by a municipal or public utility. Distributed Antenna System (DAS): A system consisting of: (1) a number of remote communications nodes deployed throughout the desired coverage area, each including at least one antenna for transmission and reception; (2) a high capacity signal transport medium (typically fiber optic cable) connecting each node to a central communications hub Deleted: that Deleted: support Disregard this Ordinance Posted 4.19.2017 site; and (3) radio transceivers located at the hub site (rather than at each individual node as is the case for small cells) to process or control the communications signals transmitted and received through the antennas. Equipment facility: A structure used to contain ancillary equipment for a WCF, such as [Verizon Wireless input: ] cabinets, pedestals and similar devices. Height: The distance measured from the original grade to the highest point on the WCF, including the antenna(s). Small Cell Facility: A wireless service facility that either meets both of the following qualifications or is within a stealth design that is consistent with the design guidelines: 1. Each antenna is located inside an enclosure of no more than five (5) cubic feet in volume or, in the case of an antenna that has exposed elements, the antenna and all of its exposed elements could fit within an enclosure of no more than five (5) cubic feet, however, the maximum dimensions of the antenna shall not exceed 36” in height and 16” in diameter; and 2. Primary equipment enclosures are no larger than seventeen (17) cubic feet in volume. The following associated equipment may be located outside of the primary equipment enclosure and, if so located, is not included in the calculation of equipment volume: electric meter, concealment, telecommunications demarcation box, underground enclosures, back-up power systems, grounding equipment, power transfer switch, and cut-off switch. Stealth: The ability of freestanding telecommunication towers to blend into the neighborhood environment at a given location and the ability to camouflage or conceal the presence of wireless communication facilities when attached to antenna support structures. Telecommunications tower: Any pole, spire, structure or combination thereof, including supporting lines, cables, wires, braces and mast, designed and constructed primarily for the purpose of supporting one (1) or more antennas, including self supporting lattice towers, guyed towers or monopole towers. A communication tower may include, but not be limited to, radio and television towers, microwave towers, common carrier towers, cellular telephone towers and personal communication service towers. Temporary WCF: A WCF that is placed in service for less than 180 days. Wireless communications facilities: One or more antenna, tower, base station, [Verizon Wireless input: antenna support structure,] mechanical and/or electronic equipment, conduit, cable, fiber, wire, and associated structures, enclosures, assemblages, devices and supporting elements that generate, transmit or produce a signal used for communication that is proposed by an entity other than the Metropolitan Government, including but not limited to radio/tv/satellite and broadcast towers, telephone service, including new microwave or cellular towers, PWSF, DAS, small cell facilities and COW’s. Deleted: cables, wires, lines, Deleted: A self- supporting structure designed and constructed specifically to support antenna(s) and may include a lattice, guyed lattice, monopole or similar structure. This term does not include towers attached to existing buildings or structures. Deleted: Any cables, wires, lines, antennas, antenna arrays, shelters, towers or other equipment associated with the transmission or reception of telecommunication signals. Disregard this Ordinance Posted 4.19.2017 (3) Siting and co-location criteria. The siting and co-location of all WCFs shall be subject to the following criteria before consideration will be given to a new site: a.WCFs shall be located on existing antenna support structures, such as utility poles, light poles, signs, elevated water tanks, buildings and other WCFs; or b.WCFs shall co-locate or site share upon existing telecommunication towers; or c.WCFs shall consider the use of public property and structures. d.If an applicant has shown a good faith effort to co-locate but has found it not to be feasible, a written statement indicating the reasons why co-location is not feasible shall be provided (4) Application requirements. The following information is required prior to the siting of all WCFs. Installing antenna(s) on existing WCFs and amateur radio operator towers are exempt from these requirements. [All revisions to (a) and (b) are by Verizon Wireless.] a.In business and industrial districts, a scaled drawing or aerial map, showing the subject property and all properties within one and one-half times the height of the proposed tower and the location of all existing buildings and structures, and the exact location of the tower and equipment facility. In residential business and industrial districts, a new WCF on an existing antenna support structure or support structure such as utility pole, light pole, or sign shall be considered through administrative review. For applications for WCFs in the Central Business District, compliance with this Section shall satisfy the requirements of Section 74-102 and 103. A proposed telecommunication tower shall be considered through the conditional use permit process. An application shall be accompanied by a scaled drawing or aerial map showing the subject property and all properties within three times the height of the proposed tower, proposed support structure, or antenna support structure and the location of all existing buildings and structures and the exact location of the antenna support structure, proposed support structure, new telecommunications tower, existing telecommunications tower and equipment facility. b.If applicable, an application must also include written documentation under a licensed engineer's stamp verifying the need for a guyed-lattice tower when no other means of antenna support structure is available due to technical engineering constraints. (5) Development standards. a.Location and setback 1.Antenna: Antenna(s) that are attached to support structures are exempt from the setback requirements in the district in which they are located. The antenna(s) may extend up to five feet horizontally beyond the edge of the support structure provided it does not encroach over the property line. 2.Telecommunication towers: A telecommunication tower shall meet the setback requirements for the district in which it is located. A telecommunication tower shall also be constructed on a lot so that it is as far away as possible from Deleted: in Deleted: . Deleted: W Disregard this Ordinance Posted 4.19.2017 existing off-site buildings, and in no event nearer to any residential building than a distance of one hundred percent of the height of the tower. A telecommunications tower shall not be closer to a residential district boundary line than one hundred percent of its height. Where telecommunication towers are required to meet FAA paint and/or lighting regulations, the distance between them shall not be less than one-half mile. 3.Equipment facilities: All equipment facilities shall meet the setback requirements for the district in which they are located. 4.Amateur radio operator tower: All amateur radio operator towers shall meet the setback requirements for the district in which they are located. b.Height. 1.Antenna(s) attached to antenna support structures may not add more than 20 feet in height to the existing building or structure to which it is attached. In residential districts, the maximum height including the antenna support structure and the antenna(s) is 100 feet. 2.Telecommunication towers: (i)In all industrial districts the maximum height is 200 feet. (ii)In all business districts, except the RB-4, B-2A and B-5 districts, the maximum height is 100 feet. (iii)In the agricultural/conservation district, as depicted on the adopted future land use plan, the maximum height is 200 feet. (iv)In residential districts, the maximum height shall be determined through the conditional use permit process. 3.Amateur radio operator towers shall have a maximum height of 35 feet. Exception: For every one additional foot in from the side or rear building setback lines, one additional foot in height may be added, to a maximum height of 60 feet. 4.Broadcast towers may be erected to a height as approved by the city council upon conditional use review. c.Screening and landscaping. Telecommunication tower sites and equipment facilities shall be screened when there exists a clear view from adjacent residential uses. A fence, wall, berm, shrubbery or tree plantings shall be installed to a sufficient height along the perimeter or in appropriate areas in order to reduce the visual impact of the tower base and buildings. Existing mature tree growth and natural landforms shall be preserved to the maximum extent possible and may be a sufficient buffer. If a chainlink fence is erected, the fence shall have wood or plastic slats woven into the fence, open mesh windscreens installed or additional shrubbery or tree plantings located outside the fence. d.Illumination. Towers shall not be artificially lighted unless required by the FAA or other governing authority. Security or safety lighting for equipment facilities is permitted. e.Design. Towers shall be of a neutral color unless otherwise required by the FAA. Antenna(s) installed on support structures shall be of a neutral color that is the same as or Disregard this Ordinance Posted 4.19.2017 compatible with the support structure. Buildings and other structures shall be made of exterior materials and colors that will blend the facilities to the natural setting and built environment. In residential districts, aesthetics is a high priority. Therefore, only a monopole design shall be permitted [Verizon Wireless input: unless otherwise approved during the administrative review or conditional use process.] In addition, incorporating stealth design into the tower and equipment facilities whenever possible will be an important factor in the review of any conditional use permit application. f.Maintenance. Telecommunication towers, antenna support structures, and WCFs shall be maintained in compliance with Electronic Industries Association/Telecommunications Industries Association Standard (EIA/TIA) 222 Revision F Standard entitled "Structural Standards for Steel Antenna Towers and Antenna Supporting Structures" as it may be updated or amended. g.Abandonment. Any wireless communication facility that is no longer in use shall be reported to the city by the facility owner. If a WCF is not operated for a continuous period of 12 months, it shall be considered abandoned and the owner shall remove the WCF within six months. h.Development Standards for Small Cell Facilities and Distributed Antenna Systems (DAS): 1.The applicant shall demonstrate that through location, construction, or stealthing, the proposed facility or network of facilities will have minimum visual impact upon the appearance of adjacent properties and the views from adjacent residential neighborhoods and the pedestrian environment, while retaining viable opportunities for future collocation, provided applications for designs consistent with the design guidelines provided for in subsection 5.e of this section shall be deemed to have met the requirement of this subsection. 2.Documentation of the number of other users that can be accommodated within the design parameters of the telecommunications facility as proposed. 3.A statement indicating the owner's commitment to allow feasible shared use of the facility within its design capacity for collocation. 4.The proposed site plan and design plans meet or exceed all applicable standards, including without limitation those of the Federal Communications Commission (FCC), American National Standards Institute (ANSI), and Institute of Electrical and Electronics Engineers (IEEE) standards for power density levels and structural integrity, American Concrete Institute (ACI), American Standards Testing and Materials Institute (ASTM), the National Electrical Code, and the American Steel Institute. The telecommunications facility must comply with building codes and other federal, state, and local regulations, Applicant must also comply with applicable Historic Preservation ordinances of the City. 5.With respect to telecommunication facilities within public rights-of-way. a.Support structures and above-ground transmission equipment shall be located outside the pedestrian portion of any sidewalk. Disregard this Ordinance Posted 4.19.2017 b.New telecommunication facility support structures may not be erected to a height greater than the height surrounding utility poles or street lights, whichever is greater. If no utility poles are present, the total height shall be built to a maximum height of 35’, including antennas, lightning rods or other extensions. All new proposed structures, or a stealth telecommunications support structure replacing an existing support structure or alternative structure, within the right-of-way shall be designed for a minimum of two wireless communication facility providers. c.Telecommunication facilities shall be constructed consistent with the design requirements of the Community Development Department, and, where applicable, the Historic Preservation Commission II. Any or all ordinances in conflict herewith are hereby repealed. FIRST READING: SECOND READING: PUBLISHED: CITY OF BROOKINGS, SOUTH DAKOTA __________________________________________ Scott Munsterman, Mayor ATTEST: ____________________________________ Shari L. Thornes, City Clerk 3556626v3 Disregard this Ordinance Posted 4.19.2017 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 17-009,Version:2 Public Hearing and Action on Ordinance 17-009, an Ordinance rezoning Lots 4, 5, & 6, Block 17, Prairie Hills Addition and the SW 1/4 of the SE 1/4, excluding platted areas in Section 2-T109N- R50W. Summary: The applicants are requesting to rezone several lots in Prairie Hills and some adjacent un-platted property from Business B-2 District to Business B-3 Heavy District. Background: The vacant property is located at the intersection of Main Avenue South and 32 nd Street South of the northeast side. The land was zoned B-2 in 2011 and the lots were platted in 2015. The B-2 District allows for a moderate variety of retail and personal services uses. Due to current market demands, the owners would like to rezone the property to allow for both retail based services and heavier business uses. Findings of Fact: 1.The current Comprehensive Plan shows this area designated for future business uses. 2.The property has adequate street access and is located at the corner of two (2) arterial streets. 3.The general area is a mix of business and residential property. The rezoning area is not directly adjacent to any residentially zoned property. 4.City utilities are available to serve the property. 5.The property is not located in the floodplain. Planning Commission Recommendation: The Planning Commission voted 8-1 to recommend approval of the rezoning request. Attachments: Ordinance Hearing Notice 04/04/2017 Planning Commission Minutes Current Zoning Map Proposed Zoning Map Exhibit City of Brookings Printed on 5/5/2017Page 1 of 1 powered by Legistar™ Ordinance 17-009 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: Lots 4, 5, & 6, Block 17, Prairie Hills Addition and the SW ¼ of the SE ¼, excluding platted areas in Section 2-T109N-R50W, be and the same is hereby reclassified from a Business B-2 District to a Business B-3 Heavy District. 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 No. 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 No. 17-13 of the City of Brookings, South Dakota. Section 3. All sections and ordinances in conflict herewith are hereby repealed. First Reading:April 25, 2017 Second Reading and Adoption:May 9, 2017 Published: May 12, 2017 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 David Jones, Jason Merkley, Foerster Testing Limited, LLC and Prairie Hills, LLC submitted a petition to rezone the following described real estate in the City of Brookings and Brookings County, South Dakota: Lots 4, 5, & 6, Block 17, Prairie Hills Addition and the SW ¼ of the SE ¼ excluding platted area, in Section 2-T109N-R50W from a Business B-2 District to a Business B-3 Heavy District. NOTICE IS FURTHER GIVEN That said request will be acted on by the City Planning Commission at 5:30 PM on April 4, 2017, 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 24th day of March, 2017. ____________________________ Staci Bungard City Planner Planning Commission Brookings, South Dakota April 4, 2017 OFFICIAL MINUTES Chairperson Al Heuton called the regular meeting of the City Planning Commission to order on Tuesday, April 4, 2017, at 5:30 PM in the Chambers Room #310 on the third floor of the City & County Government Center. Members present were Tanner Aiken, James Drew, Greg Fargen, Alan Gregg, Alan Johnson, Ryan Murphy, Lee Ann Pierce, Kristi Tornquist and Al Heuton. Also present were City Planner Staci Bungard, Community Development Director Mike Struck, City Engineer Jackie Lanning, John Mills, Dustin Beringer, Branch Supervisor at Graybar, and others. Item #5a –David Jones, Jason Merkley, Foerster Testing Limited, LLC and Prairie Hills, LLC has submitted a petition to rezone Lots 4, 5, & 6, Block 17, Prairie Hills Addition and the SW1/4 of the SE1/4 excluding platted area, in Section 2-T109N-r50W from a Business B-2 District to a Business B-3 Heavy District. (Pierce/Fargen) Motion to approve the rezone request. Tornquist voted no. All others voted aye. MOTION CARRIED. OFFICIAL SUMMARY Item #5a–John Mills explained that this request is to coincide with a request for a use that wasn’t allowed in the current B-2 zoning. Pierce wondered what other heavy business uses could be allowed if the rezone request is approved. John explained that the B-3 zoning would allow retail use that might have a lot of inventory outside or equipment sales. Bungard stated that temporary storage facilities would be allowed, a contractor shop, a lumber yard, and a motor vehicle and repair shop. Tornquist wondered if a better option would be to keep the zoning as a B-2, but allow certain Conditional Uses? Heuton doesn’t feel that there will be much development to the South or East and that protecting this area with zoning probably isn’t necessary. Struck explained that all the B-2 Zoning uses are still allowed in the B-3 Zoning, with some additional uses. In addition, there have been people looking for land which is zoned B- 3. 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 17-010,Version:2 Public Hearing and Action on Ordinance 17-010, an Ordinance pertaining to a Conditional Use Permit for outdoor storage, on Lot 3 Le Fevre Addition, also known as 3100 6th Street. Summary: The applicant is requesting a conditional use permit to establish a storage yard for Graybar in a Business B-3 Heavy District. Background: The property is located along Lefevre Drive south of 6th Street. Graybar is an existing business that sells electrical materials to contractors and it is classified as a wholesale business in the B-3 District. The B-3 District allows for an outdoor storage yard as a conditional use with the following standards: Such uses shall screen all outdoor storage from adjacent properties. Outdoor storage shall not be located in the front yard or stacked higher than the fence height. Any lighting of the storage yard shall not cause a glare onto residential properties. Internal circulation shall be provided for loading and unloading areas. The site plan shows the outdoor storage area in the rear yard with a six (6) foot high fence surrounding the storage area. All truck delivering supplies will be using an internal circulation pattern. A conditional use is defined as a use which, because of its unique or varying characteristics, cannot be properly classified as a permitted use in a particular district. After due consideration, as provided in this chapter, of the impacts of such use upon neighboring land and of the public need for the particular use at a particular location, such conditional use may or may not be granted. Planning Commission Recommendation: The Planning Commission voted 9-0 to recommend approval of the conditional use with the following condition: An eight (8) foot high chain link fence with slats shall be constructed around the outdoor storage area. Attachments: Ordinance 04/04/2017 Planning Commission Minutes Hearing Notice Application & Letter Area Map Site Map Site Plan City of Brookings Printed on 5/5/2017Page 1 of 1 powered by Legistar™ Ordinance 17-010 An Ordinance pertaining to an Application for a Conditional Use for Outdoor Storage in the Business B-3 Heavy District. Be It Ordained by the governing body of the City of Brookings, South Dakota that said Conditional Use shall be approved for Outdoor Storage on Lot 3, Le Fevre Addition, also known as 3100 6th Street, with the following conditions: 1. An eight (8) foot high chain link fence with slats shall be constructed around the outdoor storage area. All sections and ordinances in conflict herewith are hereby repealed. First Reading:April 25, 2017 Second Reading:May 9, 2017 Published:May 12, 2017 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 APPLICATION FOR CONDITIONAL USE NOTICE IS HEREBY GIVEN THAT John Mills submitted an application for a Conditional Use on the following described real estate: Lot 3, Le Fevre Addition, also known as 3100 6th Street The request is to establish an outdoor storage yard as part of a wholesale trade business. NOTICE IS FURTHER GIVEN that said request will be acted on by the City Planning Commission at 5:30 PM on Tuesday, April 4, 2017, in the Chambers Room on the third floor of the Brookings City and 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 24th day of March, 2017. ____________________________ Staci Bungard City Planner Planning Commission Brookings, South Dakota April 4, 2017 OFFICIAL MINUTES Chairperson Al Heuton called the regular meeting of the City Planning Commission to order on Tuesday, April 4, 2017, at 5:30 PM in the Chambers Room #310 on the third floor of the City & County Government Center. Members present were Tanner Aiken, James Drew, Greg Fargen, Alan Gregg, Alan Johnson, Ryan Murphy, Lee Ann Pierce, Kristi Tornquist and Al Heuton. Also present were City Planner Staci Bungard, Community Development Director Mike Struck, City Engineer Jackie Lanning, John Mills, Dustin Beringer, Branch Supervisor at Graybar, and others. Item #6a – John Mills has submitted an application for Conditional Use on Lot 3, LeFevre Addition, also known as 3100 6th Street. The request is to establish an outdoor storage yard as part of a wholesale trade business. (Pierce/Fargen) Motion to approve the Conditional Use application. All present voted aye. MOTION CARRIED. (Tornquist/Pierce) Amendment to the motion to require that the fencing be slat fencing and 8’ in height. The motion as amended was voted on. All present voted aye. MOTION CARRIED. OFFICIAL SUMMARY Item #6a–John Mills explained that due to the construction work that the SDDOT is completing, the service road to Graybar is going to be removed. With the removal of this service road, Graybar needed to complete some changes to their current building and a loading dock had to be moved to the west side of their building on the southwest corner to allow for proper ingress and egress. Jon explained that during the remodel/construction phase, Graybar decided to explore some other business options and one of those was to store a variety of pipe and conduit on racks, outdoors. With this, they are needing to establish a storage yard for Graybar in a Business B-3 District. A storage yard is allowed with a Conditional Use permit. Heuton wondered what type of fencing will be utilized. John explained that they planned for an 8 foot high, chain link fence. Tornquist is concerned that the storage will not be screened from the public with a 6 foot chain link fence. And she feels that the storage area should be completely screened with a slat fence. Jon noted that the neighbors have fences that do not block the view 100%. PDD B-4 B-3 B-3 B-3 B-3 B-4 B-3 B-4 B-4 B-3 B-3 B-3 B-3 B-3 B-3 B-3 6 T H S T 32ND AVERAMPLEFEVRE DRL E F E V R E D R 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 17-011,Version:2 Second Reading and Action on Ordinance 17-011, an Ordinance Establishing What Hours Public Parks and Playgrounds are open to the Public in the City of Brookings, South Dakota. Summary: This is an ordinance which establishes what hours public parks and playgrounds are open to the public in the City of Brookings, South Dakota. This ordinance will allow the Brookings Police Department the ability to cite violators accordingly as it pertains to the hours a person shall be in any public park or playground. Background: The City of Brookings has many public parks that are utilized by the public on a daily basis. There have been prior incidences of vandalism and unlawful behavior that have occurred in the parks system primarily during the hours of 11:00 p.m. and 6:00 a.m. The ordinance addresses the following: It establishes that no person shall be in any public park or playground in the City of Brookings between 11:00 p.m. and 6:00 a.m., with the following exceptions: a)When camping in an area designated for such purposes; and b)Persons attending scheduled events may be in a park or playground beyond the closing time for a park or playground as approved by the director. Fiscal Impact: No fiscal impact to the city. Recommendation: Staff recommends approval. Attachments: Ordinance City of Brookings Printed on 5/5/2017Page 1 of 1 powered by Legistar™ Ordinance 17-011 An Ordinance Establishing What Hours Public Parks and Playgrounds Are Open to the Public in the City of Brookings, South Dakota. Be It Ordained by the Governing Body of the City of Brookings, South Dakota, as follows: I. Chapter 62, Division 4. Park and Playground Regulations Sec. 62-180. Hours parks open to the public. No person shall be in any public park or playground in the City of Brookings between 11:00 p.m. and 6:00 a.m., with the following exceptions: a) When camping in an area designated for such purposes; and b) Persons attending scheduled events may be in a park or playground beyond the closing time for a park or playground as approved by the director. II. Any or all ordinances in conflict herewith are hereby repealed. First Reading:April 25, 2017 Second Reading:May 9, 2017 Published:May 12, 2017 CITY OF BROOKINGS, SD 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 17-012,Version:2 Public Hearing and Action on Ordinance 17-012, an Ordinance amending the Zoning Ordinance of the City of Brookings pertaining to Section 94-1 Definition of Yard, Primary Front, for the purposes of administration of the Zoning Ordinance. Summary: The City of Brookings is requesting an amendment to the Zoning Ordinance to allow greater flexibility in establishing the primary front yard in a corner lot situation. Background: Currently the ordinance states the primary front yard is the narrower front yard on a corner lot and the rear yard is opposite from and most nearly parallel to the primary front yard. Recently, a contractor presented a case to the Board of Adjustment due to the primary front yard definition. After the meeting, several board members recommended staff research other zoning ordinances to see if some flexibility could be permitted in determining the primary front yard, which in turn determines the rear yard. The rear yard setback is typically greater than the side yard setback distance. The proposed ordinance amendment would allow the owner to determine the primary front yard, with the consent of the Community Development Department, at the time the primary structure is permitted. The primary front yard would be documented in the building file and would remain for the life of the primary structure. Any subsequent accessory structures or additions to the primary structure would need to comply with the primary front yard established with the original permit for the primary structure. The ordinance amendment is designed to allow some flexibility for the placement of structures on corner lots while maintaining the general character for the neighborhood. Planning Commission Recommendation: The Planning Commission voted 9-0 to recommend approval of the zoning ordinance amendment. Attachments: Ordinance- Marked Up Ordinance- Clean Copy Hearing Notice 04/04/2017 Planning Commission Minutes Comparison Chart Exhibit City of Brookings Printed on 5/5/2017Page 1 of 1 powered by Legistar™ Ordinance 17-012 An Ordinance Amending the Zoning Ordinance of the City of Brookings pertaining to Section 94-1 Definition of Yard, Primary Front, for the purposes of administration of the zoning ordinance Be It Ordained and Enacted by the Council of the City of Brookings, State of South Dakota, as follows: I. That Section 94-1 of the Ordinances of the City of Brookings be amended to read as follows: Sec. 94-1. - Definitions. Yard, primary front:In the case of a corner lot, the owner may choose the primary front yard abutting a street at the time of building permit for the primary structure, with the consent of the Community Development Director or designee, based on the effects of such choice on development of the lot itself or on adjacent properties. II. Any or all ordinances in conflict herewith are hereby repealed. First Reading:April 25, 2017 Second Reading:May 9, 2017 Published:May 12, 2017 CITY OF BROOKINGS, SD Keith W. Corbett, Mayor ATTEST: Shari Thornes, City Clerk Ordinance 17-012 An Ordinance Amending the Zoning Ordinance of the City of Brookings pertaining to Section 94-1 Definition of Yard, Primary Front, for the purposes of administration of the zoning ordinance Be It Ordained and Enacted by the Council of the City of Brookings, State of South Dakota, as follows: I. That Section 94-1 of the Ordinances of the City of Brookings be amended to read as follows: Sec. 94-1. - Definitions. Yard, primary front:The narrower of two front yards on a corner lot. In the case of a corner lot, the owner may choose the primary front yard abutting a street at the time of building permit for the primary structure, with the consent of the Community Development Director or designee, based on the effects of such choice on development of the lot itself or on adjacent properties. II. Any or all ordinances in conflict herewith are hereby repealed. First Reading: April 25, 2017 Second Reading:May 9, 2017 Published:May 12, 2017 CITY OF BROOKINGS, SD 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 A CHANGE IN ZONE REGULATIONS NOTICE IS HEREBY GIVEN That the City of Brookings has submitted ordinance amendments to Section 94-1, pertaining to Definitions. NOTICE IS FURTHER GIVEN That said request will be acted on by the City Planning Commission at 5:30 PM on Tuesday, April 4, 2017, in the Chambers Room on the third floor of the Brookings City and 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 24th day of March, 2017. ____________________________ Staci Bungard City Planner Planning Commission Brookings, South Dakota April 4, 2017 OFFICIAL MINUTES Chairperson Al Heuton called the regular meeting of the City Planning Commission to order on Tuesday, April 4, 2017, at 5:30 PM in the Chambers Room #310 on the third floor of the City & County Government Center. Members present were Tanner Aiken, James Drew, Greg Fargen, Alan Gregg, Alan Johnson, Ryan Murphy, Lee Ann Pierce, Kristi Tornquist and Al Heuton. Also present were City Planner Staci Bungard, Community Development Director Mike Struck, City Engineer Jackie Lanning, John Mills, Dustin Beringer, Branch Supervisor at Graybar, and others. Item #6b – The City of Brookings has submitted an ordinance amendment to Section 94-1, pertaining to Definitions. (Johnson/Drew) Motion to approve the amendments as presented. All present voted aye. MOTION CARRIED. OFFICIAL SUMMARY Item #6b–Bungard explained that this amendment would apply to new construction only. And the applicant would be allowed to determine their front yard. Staff would then note in the file, what the front yard of the property is. Struck explained, a recent situation, of a request where our ordinance didn’t allow the applicant to switch their front yard. Had the applicant been allowed to change the front yard, the house would have still fit into the development properly and aligned with the other houses on the street. Tornquist wondered if it needs to be noted “what the rear yard is?” Bungard explained that the ordinance already defines what a rear yard is. Current Regulations Primary Front Yard- narrower frontage Rear Yard opposite of primary front Proposed Regulations Choice of primary front Rear Yard opposite primary front yard- other is a side yard City Corner Lot Regulations Sioux Falls, SD On corner lots, the REQUIRED REAR YARD may be to the rear of either street. On interior lots, the REQUIRED REAR YARD shall, in all cases, be at the opposite end of the lot from the front yard. Spearfish, SD Corner lots shall have 2 front yards and two side yards Watertown, SD Corner lots shall have two (2) required front yards, zero (0) required rear yard, and two (2) required side yards. Rapid City, SD In the case of a corner or double-frontage lot, the line separating the lot from that street which is designated as the front street in the request for building permit. The lot boundary opposite and most distant from the front lot line. Vermillion, SD On corner lots, the required rear yard may be to the rear of either street. On interior lots, the required rear yard shall, in all cases, be at the opposite end of the lot from the front yard. Aberdeen, SD On corner lots, the side yard on that side of the lot abutting the side street shall not be less than 15 feet. Mitchell, SD For the purposes of calculating the rear yard area for double frontage lots or lots with more than two (2) frontages, the rear yard area shall be opposite the assigned street address. Madison, WI In the case of a lot abutting more than one street, the owner may choose any street lot line as the front lot line with consent of the Zoning Administrator, based on the effects of such choice on development of the lot itself or on adjacent properties. The rear lot line is opposite and most distant the front lot line. 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 17-053,Version:1 Public Hearing and Action on Resolution 17-053, a Resolution Levying Assessment for Project No. 2016-01SWR, 2016 Sidewalk Repair Sites. Summary: This resolution will levy the sidewalk assessment for project No. 2016-01SWR, 2016 Sidewalk Repairs. Background: This project was the annual concrete project and entailed construction of miscellaneous concrete work including curb and gutter repair, fillets, valley gutters, curb ramps, and sidewalk along City property. This project also included homeowner trip hazards that weren’t repaired in the 2015 sidewalk area which is east of Medary Avenue South and south of Orchard Drive, and the 2016 sidewalk area which is east of Medary Avenue South and between 6th Street and Orchard Drive. The project was completed and the final change order was approved. The City is proceeding with the assessment process to bill the property owners for their sidewalk construction costs. Resolution 16-045 adopted on June 14, 2016 authorized the sidewalk assessment project for the trip hazard sidewalks. The assessment cost for each landowner is calculated by using their specific sidewalk cost plus a 6% fee for engineering and administration. The City mailed each property owner a notice of the hearing and a copy of the assessment roll which details the cost of the sidewalk repairs. Approval of this resolution will levy the assessment for the 2016-01SWR, 2016 Sidewalk Repairs. Upon approval, the Finance Office will send each property owner a bill for the repairs and the payments will be recovered into the assessment fund. Fiscal Impact: The city will collect the sidewalk assessment revenue for the sidewalk repairs. Recommendation: Staff recommends approval. Attachments: Resolution Assessment Roll City of Brookings Printed on 5/5/2017Page 1 of 1 powered by Legistar™ Resolution 17-053 A Resolution Levying Assessment for Project No. 2016-01SWR 2016 Sidewalk Repair Sites Whereas, the City Council has provided for sidewalk repair work to be completed under Project No. 2016-01SWR, 2016 Sidewalk Repair Sites. Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows: 1. The City Council has made all investigation and authorized by Resolution 16- 045, which deems the work necessary and has found and determined that the amount which each lot or tract will be benefited by the construction of the sidewalk improvement heretofore designated as Concrete Maintenance Project No. 2016-01SWR is the amount stated in the proposed assessment roll. 2. The assessment for Sidewalk Assessment Project No. 2016-01SWR is hereby approved and the assessment thereby specified are levied against each and every lot, piece or parcel of land thereby described. 3. Such assessments, unless paid within thirty (30) days after the date of mailing of a statement of account by the City, shall be collected by the City in accordance with the procedure for Plan One in Sections 9-43, South Dakota Compiled Laws of 1967, as amended with interest of 10% on the unpaid balance. 4. Assessments amounting to less than $300.00 shall be paid in one payment. Passed and approved this 9th day of May, 2017. CITY OF BROOKINGS ________________________________ Keith W. Corbett, Mayor ATTEST: _________________________________ Shari Thornes, City Clerk 2016-01SWR ASSESSMENT ROLLCONCRETE MAINTENANCE PROJECT1 of 5Filed: 4/19/17 2016 Prices:Remove 4" PCC Sidewalk: $2.92Install 4" PCC Sidewalk:$7.16Adjust Water Curb Stop: $185.50 (per square foot)(per square foot)PARCEL NUMBER LEGAL DESCRIPTION OWNER SIDEWALK ADDRESSSIDEWALK REMOVED (SQ FT)REMOVAL COSTSIDEWALK INSTALLED (SQ FT)INSTALL COSTADJUST CURB STOPADJUST CURB STOP COSTTOTAL COST402000020000200 Lot 2, Blk 2 Gilley AdditionVernon & Cathrene Voelzke1331 Wahpeton PassBrookings, SD 57006105 Gilley Ave S 157.79 $460.75 157.79 $1,129.78 0 $0.00$1,590.52404650040000800Sublot A of Lot 8, Block 4 Pleasant Hill AdditionBrash LLC822 3rd AveBrookings, SD 57006109 12th Ave 62.10 $181.33 62.10 $444.64 0 $0.00$625.97400800020000100Lot 1, Exc the North 20', Block 2 Brown and Kron AdditionJoseph & Mary Schulte110 16th AveBrookings, SD 57006110 16th Ave 19.11 $55.80 19.11 $136.83 0 $0.00$192.63402000030000300Lot 3, Block 3 Gilley AdditionRobert & Donna Flint907 6th StBrookings, SD 57006114 Gilley Ave S 45.00 $131.40 45.00 $322.20 0 $0.00$453.60403850050000600Lot 6, Block 5 Morningside AdditionRobert & Linda Oines117 Jefferson Ave SBrookings, SD 57006117 Jefferson Ave S 20.50 $59.86 20.50 $146.78 0 $0.00$206.64403850020000200S 65' Lot 2, N 10' Lot 3, Block 2 Morningside AdditionAlan & Diana Sanderson21149 476th AveAurora, SD 57002120 17th Ave 44.78 $130.76 44.78 $320.62 0 $0.00$451.38404650060000100Lot 1, Block 6 Pleasant Hill AdditionRobert & Mary Deblonk122 12th AveBrookings, SD 57006122 12th Ave 45.23 $132.07 45.23 $323.85 0 $0.00$455.92402000020000500S 2' Lot 4, N 66' Lot 5, Block 2 Gilley AdditionMichele Sage125 Gilley Ave SBrookings, SD 57006125 Gilley Ave S 22.47 $65.61 22.47 $160.89 0 $0.00$226.50403850020000500N 80' Lot 5, Block 2 Morningside AdditionDiego & Camila Diel131 Jefferson AveBrookings, SD 57006131 Jefferson Ave 111.47 $325.49 111.47 $798.13 0 $0.00$1,123.62404650020000800N 65' Lots 8-9 Block 2 Pleasant Hill AdditionJayne Longhurst2450 Agate LnBoulder, CO 80304211 12th Ave 67.73 $197.77 67.73 $484.95 0 $0.00$682.72401350040000105N 70' Lot 1, W 10' of N 70' Lot 2, Block 4 East Acres Second AdditionDavid Roe215 Lincoln Ln SBrookings, SD 57006215 Lincoln Ln S 37.96 $110.84 37.96 $271.79 0 $0.00$382.64404030020000200N 52.36' Lot 2, S 8' Lot 1, Block 2 Orchard Drive AdditionRichard Howey1807 Oriole TrlBrookings, SD 57006215 Medary Ave S 43.78 $127.84 43.78 $313.46 0 $0.00$441.30409601105026405 OL 'M' Sec. 26-110-50Channel Properties LLCPO Box 282 Bryant, SD 57221300 Medary Ave S 14.96 $43.68 14.96 $107.11 0 $0.00$150.80401400040000200Lot 2, Block 4 East Medary AdditionMatthew Douglas301 Birch AveBrookings, SD 57006301 Birch Ave 20.93 $61.12 20.93 $149.86 0 $0.00$210.97401350090000100Lot 1, Block 9 East Acres Second AdditionTodd Loban222 Pine Ridge RdBrookings, SD 57006305 Lincoln Ln S 74.58 $217.77 74.58 $533.99 0 $0.00$751.77400450040000700Lot 7, Block 4 Bane and Poole AdditionTrevor Radtke312 State AveBrookings, SD 57006312 State Ave 36.00 $105.12 36.00 $257.76 0 $0.00$362.88S:\City Engrs\_All Projects\Sidewalk Projects\2016\Council Items - assessment\2016-01 ROLL.xls 2016-01SWR ASSESSMENT ROLLCONCRETE MAINTENANCE PROJECT2 of 5Filed: 4/19/17 2016 Prices:Remove 4" PCC Sidewalk: $2.92Install 4" PCC Sidewalk:$7.16Adjust Water Curb Stop: $185.50 (per square foot)(per square foot)PARCEL NUMBER LEGAL DESCRIPTION OWNER SIDEWALK ADDRESSSIDEWALK REMOVED (SQ FT)REMOVAL COSTSIDEWALK INSTALLED (SQ FT)INSTALL COSTADJUST CURB STOPADJUST CURB STOP COSTTOTAL COST400450020000700Lot 7, Block 2 Bane and Poole AddionLarry & Janice Fjeldos677 Park AveBrookings, SD 57006326 17th Ave 45.00 $131.40 45.00 $322.20 0 $0.00$453.60401350070000900Lot 9, Block 7 East Acres Second AdditionMatthew & Jamie Tonjum327 18th Ave SBrookings, SD 57006327 18th Ave S 22.70 $66.28 22.70 $162.53 0 $0.00$228.82401350090001300Lot 13, Block 9 East Acres Second AdditionTimothy Ruggles Liv Trust343 Lincoln Ln SBrookings, SD 57006343 Lincoln Ln S 47.74 $139.40 47.74 $341.82 0 $0.00$481.22401350100001600Lot 16, Block 10 East Acres Second AdditionRoger & Lois Teal356 21st Ave SBrookings, SD 57006356 21st Ave S 115.50 $337.26 115.50 $826.98 0 $0.00$1,164.24400450110000200Lot 2, Block 11 Bane and Poole AdditionJoseph & Christine Santos 408 21st AveBrookings, SD 57006408 21st Ave 45.50 $132.86 45.50 $325.78 0 $0.00$458.64400450040000200Lot 2, Block 4 Bane and Poole AdditionLynnette Iden424 State AveBrookings, SD 57006424 State Ave 60.97 $178.03 60.97 $436.55 0 $0.00$614.58400700030000300N 75' of Lot 3, Block 3 Brookdale AdditionAnthony & Katie Carlson518 17th Ave SBrookings, SD 57006518 17th Ave S 27.60 $80.59 27.60 $197.62 0 $0.00$278.21400700030000500S 8' Lot 4, N 74' Lot 5, Block 3 Brookdale Addition Steven & Anita Ust530 17th Ave SBrookings, SD 57006530 17th Ave S 22.07 $64.44 22.07 $158.02 0 $0.00$222.47405350020000200W 230' of Lot 2, Block 2 Sexauer AdditionAdee Properties LTD PartnerPO Box 368 Bruce, SD 57220629 Heritage Dr 22.30 $65.12 22.30 $159.67 0 $0.00$224.78400700120001600Lot 16, Block 12 Brookdale AdditionDavid & Priscilla Strom645 Park AveBrookings, SD 57006645 Park Ave 31.01 $90.55 31.01 $222.03 0 $0.00$312.58400700130000700Lot 7 & 7A, Block 13 Brookdale AdditionRichard & Mary Helpser708 Park AveBrookings, SD 57006708 Park Ave 32.98 $96.30 32.98 $236.14 0 $0.00$332.44405850000000305Tract E of Tract C of Lot 3, Southbrook AdditionLegacy Equity Group LLCC/O Brookings Property Management Inc518 Main AveBrookings, SD 57006950 22nd Ave S 19.95 $58.25 19.95 $142.84 0 $0.00$201.10402300000000100Lot 1, Hendrics Second AdditionRabbit Rentals LLC928 7th AveBrookings, SD 570061010 Forest St 35.55 $103.81 35.55 $254.54 0 $0.00$358.34401550030000200Lot 2, Block 3 Fairgrounds AdditionWood Family Trust1011 Horner AveBrookings, SD 570061011 Horner Ave 40.88 $119.37 40.88 $292.70 0 $0.00$412.07400900070000300Lot 3, Block 7 Camelot Square AdditionTB Partnership611 6th StBrookings, SD 570061020 Castlewood Dr 21.73 $63.45 21.73 $155.59 0 $0.00$219.04400650010003700Lot 37, Block 1 Boulevard Park AdditionBenoit & Nadeen St. Pierre1023 Yosemite LnBrookings, SD 570061023 Yosemite Ln 32.00 $93.44 32.00 $229.12 0 $0.00$322.56S:\City Engrs\_All Projects\Sidewalk Projects\2016\Council Items - assessment\2016-01 ROLL.xls 2016-01SWR ASSESSMENT ROLLCONCRETE MAINTENANCE PROJECT3 of 5Filed: 4/19/17 2016 Prices:Remove 4" PCC Sidewalk: $2.92Install 4" PCC Sidewalk:$7.16Adjust Water Curb Stop: $185.50 (per square foot)(per square foot)PARCEL NUMBER LEGAL DESCRIPTION OWNER SIDEWALK ADDRESSSIDEWALK REMOVED (SQ FT)REMOVAL COSTSIDEWALK INSTALLED (SQ FT)INSTALL COSTADJUST CURB STOPADJUST CURB STOP COSTTOTAL COST400650010003600Lot 36, Block 1 Boulevard Park AdditionRichard & Patricia Turnerz1029 Yosemite LNBrookings, SD 570061029 Yosemite Ln 15.41 $45.00 15.41 $110.34 0 $0.00$155.33400900060001300E 4' Lot 12, Lot 13 Exc E 8', Block 6 Camelot Square AdditionAaron & Kayla Hovelson1033 Castlewood DrBrookings, SD 570061033 Castlewood Dr 11.60 $33.87 11.60 $83.06 0 $0.00$116.93403400040000200Lot 2, Block 4 Meadowwood AdditionKathleen Peterson812 17th Ave SBrookings, SD 570061037 10th St S 53.46 $156.10 53.46 $382.77 0 $0.00$538.88404650040000100Lot 1 Exc. S 63', W 1/2 Lot 2 Exc. S 63', Block 4 Pleasant Hill AdditionJohn & Leah Walker1102 2nd StBrookings, SD 570061102 2nd St 80.30 $234.48 80.30 $574.95 0 $0.00$809.42400900020000700Lot 7, Block 2 Camelot Square AdditionAndrea Gullickson1105 12th St SBrookings, SD 570061105 12th St S 60.75 $177.39 60.75 $434.97 0 $0.00$612.36402450050001500S 115' of Lot 16, S 115' of E 25' of Lot 15, Block 5 Hill Park AdditionLance & Pennie Malenke 1227 4th StBrookings, SD 570061227 4th St 53.50 $156.22 53.50 $383.06 0 $0.00$539.28400900040002800Lot 28, Block 4 Camelot Square AdditionLarry & Kimberly Knox1305 12th St SBrookings, SD 570061305 12th St S 32.80 $95.78 32.80 $234.85 0 $0.00$330.62400900090000300Lot 3, Block 9 Camelot Square AdditionScott & Sheerene Minor1314 Westminster DrBrookings, SD 57006 1314 Westminster Dr 18.25 $53.29 18.25 $130.67 0 $0.00$183.96401400050000800Lot 8, Block 5 East Medary AdditionRobert & Jill Burke1315 Forest StBrookings, SD 57006 1315 Forest St 19.14 $55.89 19.14 $137.04 0 $0.00$192.93403350010000020W 63' of Lot B, Replat of OL E, Block 1 Maynes AdditionKK4 LLC 46094 243rd StChester, SD 570161319 5th St 54.54 $159.26 54.54 $390.51 0 $0.00$549.76401250020000400Lot 5, E 20' Lot 5, Block 2 Dawes AdditionChristopher & Debra Stover 1332 4th StBrookings1332 4th St 55.65 $162.50 55.65 $398.45 0 $0.00$560.95400900110002200Lot 22, Block 11 Camelot Square AdditionMarilyn Haugen1341 Westmister DrBrookings, SD 570061341 Westminster Dr 17.02 $49.70 17.02 $121.86 0 $0.00$171.56400650010002700Lot 27, Block 1 Boulevard Park AdditionLorie Cuperus 1400 Yosemite LnBrookings, SD 570061400 Yosemite Ln 19.20 $56.06 19.20 $137.47 0 $0.00$193.54401400120001505E 34' of W 56' Lot 15, Block 12 East Medary AdditonKent Miller1403 Orchard DrBrookings, SD 570061403 Orchard Dr 234.26 $684.04 234.26 $1,677.30 0 $0.00$2,361.34403000020001900W 50.6' Lot 19, Lot 20, Block 2 Le Geros AdditionColburn Family Rev Liv Trust1705 N Deer Hallow CirSioux Falls, SD 571101405 2nd St 108.00 $315.36 108.00 $773.28 0 $0.00$1,088.64406850010000400Lot 4, Block 1 Yellowstone AdditionChristine Larson & Mary Kleinjan1414 Yellowstone DrBrookings, SD 570061414 Yelowstone Dr 20.00 $58.40 20.00 $143.20 0 $0.00$201.60S:\City Engrs\_All Projects\Sidewalk Projects\2016\Council Items - assessment\2016-01 ROLL.xls 2016-01SWR ASSESSMENT ROLLCONCRETE MAINTENANCE PROJECT4 of 5Filed: 4/19/17 2016 Prices:Remove 4" PCC Sidewalk: $2.92Install 4" PCC Sidewalk:$7.16Adjust Water Curb Stop: $185.50 (per square foot)(per square foot)PARCEL NUMBER LEGAL DESCRIPTION OWNER SIDEWALK ADDRESSSIDEWALK REMOVED (SQ FT)REMOVAL COSTSIDEWALK INSTALLED (SQ FT)INSTALL COSTADJUST CURB STOPADJUST CURB STOP COSTTOTAL COST403100010000400Lot 4, Block 1 Le Gros 2nd AdditionBillie Jo McFarland 1424 Wisconsin StBrookings, SD 570061424 Wisconsin St 43.43 $126.82 43.43 $310.96 0 $0.00$437.77403050020001200Lot 12, Block 2 Le Geros and Amidon Addition Henry & Dianne Kayongo-Male1443 Wisconsin StBrookings, SD 570061443 Wisconsin St 124.82 $364.47 124.82 $893.71 0 $0.00$1,258.19401400120001905E 1/2 of Lot 19, Block 12 East Medary AdditionShawn Erp1509 Orchard DrBrookings, SD 570061509 Orchard Dr 22.44 $65.52 22.44 $160.67 0 $0.00$226.20400900030001500Lot 15, Block 3 Camelot square AddtionDanielle & Caleb Svartoien1523 King Arthur CtBrookings, SD 570061523 King Arthur Ct 42.32 $123.57 42.32 $303.01 0 $0.00$426.59400900030001800Lot 18, Block 3 Camelot Square AdditionJohn & Tami Stuart1539 King Arthur CtBrookings, SD 570061539 King Arthur Ct 29.00 $84.68 29.00 $207.64 0 $0.00$292.32400900030001900Lot 19, Block 3 Camelot Square AdditionRoger Brown1605 12th St SBrookings, SD 570061605 12th St S 16.00 $46.72 16.00 $114.56 0 $0.00$161.28405150000000300 Lot 3, Robsons AdditionDavid Cartrette 1613 1st StBrookings, SD 570061613 1st St 19.14 $55.89 19.14 $137.04 0 $0.00$192.93401350010000500Lot 5, Block 1, East Acres Second AdditionKeith & Karen Skogstad1633 Elmwood Dr Brookings, SD 570061633 Elmwood Dr 65.98 $192.66 65.98 $472.42 0 $0.00$665.08401350060001000Lot 10, Block 6 East Acres Second AdditionDustin Gibbons & Lisa Krogstad1705 Derdall DrBrookings, SD 570061705 Derdall Dr 12.24 $35.74 12.24 $87.64 0 $0.00$123.38401350060000200Lot 2, Block 6 East Acres Second AdditionEdward & Joan Hogan1714 Elmwood DrBrookings, SD 570061714 Elmwood Dr 64.38 $187.99 64.38 $460.96 1 $185.50$834.45403850060001000Lots 9 & 10, Block 6 Morningside AdditionDelores Kospel1725 Olwein StBrookings, SD 570061725 Olwein St 44.50 $129.94 44.50 $318.62 0 $0.00$448.56400700060000400Lot 4, Block 6 Brookdale AdditionCasey & Gwen McCausland1734 Orchard DrBrookings, SD 570061734 Orchard Dr 62.33 $182.00 62.33 $446.28 0 $0.00$628.29401350030000200Lot 2, Block 3 East Acres Second AdditionWayne & Karen Vanderwal1811 Elmwood DrBrookings, SD 570061811 Elmwood Dr 78.53 $229.31 78.53 $562.27 1 $185.50$977.08401350030000300Lot 3, Block 3 East Acres Second AdditionBrent Thor (bill to JD Ackman)John Ackman2008 Rhonda RdBrookings, SD 570061817 Elmwood Dr 40.50 $118.26 40.50 $289.98 0 $0.00$408.24401350030000600Lot 6, Block 6 East Acres Second AdditionGeorge & Wanda West1911 Elmwood DrBrookings, SD 570061911 Elmwood Dr 56.07 $163.72 56.07 $401.46 1 $185.50$750.69401350140000100 Lot 1 & E 1' Lot 2 Blk 14 Marian Volker1918 Derdall DrBrookings, SD 570061918 Derdall Dr 30.80 $89.94 30.80 $220.53 0 $0.00$310.46S:\City Engrs\_All Projects\Sidewalk Projects\2016\Council Items - assessment\2016-01 ROLL.xls 2016-01SWR ASSESSMENT ROLLCONCRETE MAINTENANCE PROJECT5 of 5Filed: 4/19/17 2016 Prices:Remove 4" PCC Sidewalk: $2.92Install 4" PCC Sidewalk:$7.16Adjust Water Curb Stop: $185.50 (per square foot)(per square foot)PARCEL NUMBER LEGAL DESCRIPTION OWNER SIDEWALK ADDRESSSIDEWALK REMOVED (SQ FT)REMOVAL COSTSIDEWALK INSTALLED (SQ FT)INSTALL COSTADJUST CURB STOPADJUST CURB STOP COSTTOTAL COST401300010000100Replat of Lots 1-2, Block 1 East Acres AdditionMaggie Owens 2005 1st StBrookings, SD 570062005 1st St 67.73 $197.77 67.73 $484.95 0 $0.00$682.72400450090000300Lot 3, Block 9 Bane and Poole AdditionLarry & Barbara Hull2005 Iowa St Brookings, SD 570062005 Iowa St 71.78 $209.60 71.78 $513.94 0 $0.00$723.54401300030000300Lot 3, Block 3 East Acres AdditionDonna Arter2010 Olwein StBrookings, SD 570062010 Olwein St 79.86 $233.19 79.86 $571.80 0 $0.00$804.99403850030001700Lot 17, Block 3 Morningside AdditionKenneth & Barbara Ahartz2013 Morningside DrBrookings, SD 570062013 Morningside Dr 44.06 $128.66 44.06 $315.47 1 $185.50$629.62401470050001100Lot 11, Block 5, Esther Heights AdditionTabitha Edge, Samuel Clementt & Russel Clement, Bill to: George & Diane Reiken, 2017 Elmwood Drive, Brookings, SD 570062017 Elmwood Drive 55.28 $161.42 55.28 $395.80 0 $0.00$557.22401300020000500E 72' Lot 5, W 8' Lot 6, Block 2 East Acres AdditionLeonard & Norita Henneman Trust2044 Olwein St Brookings, SD 570062024 1st St 40.05 $116.95 40.05 $286.76 0 $0.00$403.70401300030000500E 72' Lot 5, W 8' Lot 6, Block 3 East Acres AdditionChristopher & Kristin Heismeyer2024 Olwein StBrookings, SD 570062024 Olwein St 167.20 $488.22 167.20 $1,197.15 1 $185.50$1,870.88403850110000100Lots 1-16, Block 11, Morningside AdditionAscension Lutheran Church2030 3rd St Brookings, SD 570062030 3rd St 243.00 $709.56 243.00 $1,739.88 0 $0.00$2,449.44401300010001000Lot 10, Block 1 East Acres AdditionHoward & Cheryl Jorenby2049 1st StBrookings, SD 570062049 1st St 44.72 $130.58 44.72 $320.20 0 $0.00$450.78401300020001800Lot 18, Block 2 East Acres AdditionIvan Palmer2049 Olwein St Brookings, SD 570062049 Olwein St 44.10 $128.77 44.10 $315.76 0 $0.00$444.533912.01 $11,423.07 3912.01 $28,009.99 5 $927.50 $40,360.56S:\City Engrs\_All Projects\Sidewalk Projects\2016\Council Items - assessment\2016-01 ROLL.xls 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 17-050,Version:1 Action on Resolution 17-050, a Resolution setting forth a schedule of Proposed Fines for Violations of the Ordinances of the City of Brookings, South Dakota. Summary: A recommendation to the council that sets forth a fine of $60 and $60 in court costs for a total of $120 for the violation of the Ordinance 62-180 regarding the hours parks are open to the public. Background: The City of Brookings has many public parks that are utilized by the public on a daily basis. There have been prior incidences of vandalism and unlawful behavior that have occurred in the parks system primarily during the hours of 11:00 p.m. and 6:00 a.m. The proposed fine would be for the following Ordinance. No person shall be in any public park or playground in the City of Brookings between 11:00 p.m. and 6:00 a.m., with the following exceptions: a)When camping in an area designated for such purposes; and b)Persons attending scheduled events may be in a park or playground beyond the closing time for a park or playground as approved by the director. Fiscal Impact: No fiscal impact to the city. Recommendation: Staff recommends approval. Attachments: Resolution City of Brookings Printed on 5/5/2017Page 1 of 1 powered by Legistar™ Resolution 17-050 A Resolution Setting Forth a Schedule of Proposed Fines for Violations of the Ordinances of the City of Brookings, South Dakota. Be It Resolved by the Governing Body of the City of Brookings, South Dakota, that the following Schedule of Proposed Fines shall be effective as prescribed by law for all violations of Ordinances set forth herein. SCHEDULE OF PROPOSED FINES WITH COURT COSTS Section Offense Fine Costs Total Miscellaneous Offenses 62-180 Hours parks open to the public 60.00 60.00 120.00 Passed and approved this 9th day of May, 2017. 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 #:RES 17-054,Version:1 Action on Resolution 17-054, a Resolution authorizing the City Manager to Sign an Agreement for Federal Aviation Administration Grant for Airport Paint Striper (Fuel Tax Funds). Summary: This resolution will authorize the City Manager to sign an agreement to for a Federal Aviation Administration Grant to use fuel tax funds from the Brookings account for an airport paint striper. Background: The City budgeted to purchase a paint striper this year for the Brookings Regional Airport. The budget includes using $5,000 of City funds along with a grant from the Federal Aviation Administration for $13,845 from the Brookings fuel tax fund balance. A percentage of all fuel sales from the Brookings Regional Airport is deposited into a fuel tax fund which can be used on local projects. The fuel tax fund is managed by the SDDOT and the SD Aeronautics Commission has approved the grant. Fiscal Impact: The City will receive a grant in the amount of $13,845 to be used for toward the purchase of the airport paint striper. Recommendation: Staff recommends approval. Attachments: Resolution City of Brookings Printed on 5/5/2017Page 1 of 1 powered by Legistar™ Resolution 17-054 Resolution Authorizing the City Manager to Sign an Agreement for Federal Aviation Administration Grant for Airport Paint Striper (Fuel Tax Funds) Whereas, the City of Brookings desires funding to purchase a paint striper for the Brookings Regional Airport; and Whereas, The State of South Dakota Department of Transportation Office of Aeronautics has approved the use of allocated fuel tax funds for this project No. AP0005-2017; and Whereas, the Federal Aviation Administration is hereby requested to authorize the project in accordance with the approved state financial assistance agreement. Now, Therefore, Be Resolved, that the City Manager is hereby authorized to sign all documents related to an agreement for an Airport Paint Striper, Federal Aviation Administration Project No AP0005-2017. Passed and approved this 9th day of May, 2017. 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 2017-0288,Version:1 Action to appoint City Council Member, effective 5/9/2017-4/30/2018. Summary: The City Council will take action to appoint a City Council Member for a term effective May 9, 2017 and ending April 30, 2018. The following five Brookings residents have applied for the vacant Brookings City council member position: ·Edward Ballou ·Nick Schmeichel ·Cory Ann Ellis ·George Hamer ·Holly Tilton Byrne The applicants attended a special meeting on May 3rd to provide additional information and respond to questions. Background: A City Council member vacancy was created with the election of Council Member Keith Corbett to the office of Mayor. Following the April 11, 2017 Election, the city issued a press release seeking applicants for the vacant City Council seat. The appointed City Council member would serve until the next regular municipal election, with the term expiring on April 30, 2018. Applicants must be a Brookings resident for a minimum of six months and registered to vote in Brookings. Any vacancy occurring in the office of Mayor or City Council must be filled pursuant to City Charter, Section 2.06 - Vacancies; Forfeiture of Office; Filling of Vacancies: City Charter Reference - Filling of Vacancy. (d)Filling of Vacancies. Except as provided below, a vacancy in the office of Mayor or of a City Council Member shall be filled for the remainder of the unexpired term at the next regular City Election. The Council by a majority vote of all its remaining members shall appoint a qualified person to fill the vacancy until the person elected to serve the remainder of the unexpired term takes office. However, if the vacancy occurs less than sixty days prior to the next regular City Election, then the person appointed to fill the vacancy shall continue to serve and the vacancy shall be filled at the regular City Election immediately following the next regular City Election. Notwithstanding the requirement in Section 2.11, if at any time the membership of the Council is reduced to less than 6, the remaining members shall, within sixty days, fill the vacancies by appointment or call for a special election to fill the vacancies. The appointment process is further defined in City Resolution 90-10. City of Brookings Printed on 5/5/2017Page 1 of 2 powered by Legistar™ File #:ID 2017-0288,Version:1 Attachments: Application - Edward Ballou Application - Nick Schmeichel Application - Cory Ann Ellis Application - George Hamer Application - Holly Tilton Byrne City Charter Excerpt: Vacancies Resolution 90-10 Press Release - Application for City Council Member City of Brookings Printed on 5/5/2017Page 2 of 2 powered by Legistar™ Applicant Information Name: First Middle Last Address: Street City State ZIP Code Phone: (work)(cell)(home) Email: Employer: Occupation: Is your residence located within the city limits of Brookings?□ YES □ NO Are you a registered voter in the City of Brookings?□ YES □ NO How long have you been a resident of Brookings? 1.Please list relevant education or training: Application for Appointment for Brookings City Council City Clerk’s Office 520 3rd Street, Suite 230 / PO Box 270 Brookings, SD 57006 (605) 692-6281 phone; (605) 692-6907 fax sthornes@cityofbrookings.org 2.Work experience: 3.Community Volunteer Service: 4.I would like to serve as a City Council Member because: 5.Any other information you feel is important to the City Council Members as it considers your appointment for City Council: Please return your application to the City Clerk’s Office: 520 3rd Street, Suite 230 / PO Box 270 Brookings, SD 57006 (605) 692-6281 phone, (605) 692-6907 fax sthornes@cityofbrookings.org www.cityofbrookings.org Advertising Policy – The City of Brookings will notify the public of the City Council vacancy. Notification of vacancies will consist of a press release to local media at least two weeks prior to the appointment. Appointment Process – Applications will be accepted until Friday, April 28, 2017 at 12:00 pm. All applicants will be invited to attend a special May 3, 2017 City Council Meeting at 5:00 pm to provide additional information and respond to questions. City Council action is required to approve the appointment and is scheduled to occur on May 9, 2017. Thank you for applying! Applicant Information Name: First Middle Last Address: Street City State ZIP Code Phone: (work)(cell)(home) Email: Employer: Occupation: Is your residence located within the city limits of Brookings?□YES □ NO Are you a registered voter in the City of Brookings?□YES □ NO How long have you been a resident of Brookings? 1.Please list relevant education or training: Application for Appointment for Brookings City Council City Clerk’s Office 520 3rd Street, Suite 230 / PO Box 270 Brookings, SD 57006 (605) 692-6281 phone; (605) 692-6907 fax sthornes@cityofbrookings.org Nick Gerald Schmeichel 1313 Yorktown Circle Brookings SD 57006 605.695.3478 nick.schmeichel@gmail.com Sideline Productions Owner x x Since August of 2003 I have a minor in political science from South Dakota State and have been active in politics for over 15 years. 2.Work experience: 3.Community Volunteer Service: 4.I would like to serve as a City Council Member because: 5.Any other information you feel is important to the City Council Members as it considers your appointment for City Council: Please return your application to the City Clerk’s Office: 520 3rd Street, Suite 230 / PO Box 270 Brookings, SD 57006 (605) 692-6281 phone, (605) 692-6907 fax sthornes@cityofbrookings.org www.cityofbrookings.org Advertising Policy – The City of Brookings will notify the public of the City Council vacancy. Notification of vacancies will consist of a press release to local media at least two weeks prior to the appointment. Appointment Process – Applications will be accepted until Friday, April 28, 2017 at 12:00 pm. All applicants will be invited to attend a special May 3, 2017 City Council Meeting at 5:00 pm to provide additional information and respond to questions. City Council action is required to approve the appointment and is scheduled to occur on May 9, 2017. Thank you for applying! I feel that running my own business has given me a vast amount of knowledge that is applicable to the operation of a city. Being a small business owner I have to wear a lot of different hats. I am in charge of the financing in my business, as well as sales, and customer service. The most valuable skill I have learned, which I think is most applicable, is listening. A council person must listen to not only the citizens in town, but also be able to listen to the cities recommendations, and then weigh both sides when making a decision. Started a program through my company to donate books to first graders in the Brookings school system to promote sustainability. Because I am a citizen in this city and care about the community. I have a young son that I want to grow up loving the place he is from. I feel my business experience can be a valuable asset to the council, and I am ready to serve our community. After the election, I received numerous calls, texts, and emails urging me to apply for this open seat. I want to honor those who supported me through the election by getting to work for them and the rest of the city. Applicant Information Application for Appointment for Brookings City Council City Clerk’s Office 520 3rd Street, Suite 230 / PO Box 270 Brookings, SD 57006 (605) 692-6281 phone; (605) 692-6907 fax sthornes@cityofbrookings.org Name: First Middle Last Cory Ann Harbour Ellis Address: Street 1610 Derdall Drive City State Zip Brookings SD 57006 Phone: (work) (cell) (home) See Cell 605-610-9770 None Email:acellis@mac.com Employer:Montgomery’s and AC Ellis Inc. Occupation:Marketing Professional Is your residence located within the city limits of Brookings? Are you a registered voter in the City of Brookings? How long have you been a resident of Brookings?13 Years √ √ YES YES NO NO Cory Ann H. Ellis Application for Appointment for Brookings City Council 1 of 6 1. Please list relevant education or training: Master of Science Indiana State University As a Graduate Coaching Assistant at DePauw University, I was able to gain valuable work experience while earning my MS in Physical Education with extended study in the field of Recreation and Sport Management. Bachelor of Arts University of Sioux Falls As a student at USF I obtained my BA in Wellness as well as participating as a goalkeeper on the soccer team. Associate of Arts Cosumnes River College As the first in my family to attend college, the California Community College system was the perfect place for me to start and to learn the demands of college. I had an excellent mentor and support staff who were influential in my development as a student, athlete, and person. I am fortunate enough to have many of these people in my life today. 2. Work experience: Brand & Marketing Manager 2014 - present Montgomery’s Lead collaborative brand and marketing operations across all departments of a multi- channel home fashions retail company. Identify and prioritize areas for marketing growth potential while developing the processes and infrastructure for execution. Recruit, build, and coach the marketing team to become an in-house agency that produces and leads all initiatives. Create a yearly strategic plan and budget that is adaptable and regularly reported to the executive team. Built and launched new company website in 2015 and currently working toward the launch of an eCommerce system in 2017. Accomplishments: • Built department and brought on new employees • Research, design, and built company website. (Launched in 2015) • Developed Employer’s first strategic marketing plan • Implement infrastructure for project management and accountability tracking • Design and publish company magazine in 2014 • Created social media accounts and guidelines • Established media buying plan and procedures Cory Ann H. Ellis Application for Appointment for Brookings City Council 2 of 6 National C License US Soccer Federation The US Soccer Federation governs soccer in the United States and provides coaches training licensing. Through a scholarship I was able to attend, complete, and pass the training and testing to be awarded my National C license. 2. Work experience: Founder & Director 2004 - present AC Ellis Inc. Establish, evaluate, and evolve the brand, products, and services through research and development. Direct all operations and employees. Create strategic brand and marketing plans that implement traditional and digital marketing options for clients. Provide the goods and services for all marketing initiatives, which closely involves each customer. Develop content through photography, graphic design, and website design and management. Accomplishments: • Built a successful marketing and photography business from the ground up • Recruited and trained three additional photographers • Recruited and trained one marketing assistant • Created recognizable brands for clients • Guided rebranding efforts for five clients • Created and launched over ten small business websites • Trademarked logos Head Women’s Soccer Coach & Physical Education Instructor 2002-2003 Central College Coordinated game schedule, travel, pre-season, and development for the soccer program. Developed and advised team goal-setting and evaluation processes. Created a team atmosphere and sense of belonging for student-athletes. Researched and purchased equipment and services to maintain the program budget. Conducted player evaluations. Accomplishments: • Created and executed Methods of Teaching Health & Elementary Education • Created and executed Sports Psychology course syllabus • Successfully recruited student-athletes • Doubled the number of students participating in the program in one year • Incrementally increased winning record each season • Developed junior varsity team • Recruited the most diverse team on campus • Coached teams that broke ten school records • Coached individuals that were awarded three IIAC All-Conference honors • Coached individuals that were awarded six IIAC Academic All-Conference honors • Created recruitment tracking process • Created summer training manual Soldier 1997 - 2005 United States Army Reserve Upon entering the US Army Reserve, I was first trained as a light-wheel mechanic. This included routine maintenance and inspections of 2.5-ton, Humvee, and 5-ton vehicles. After some years, I also became trained as an administrative specialist. I was tasked with preparing, proofing and submitting documents for soldier support and tracking. Accomplishments: • Voluntarily completed additional training • Received multiple promotions; reaching the rank of Sergeant • Was honorably discharged after serving eight years rather than my contracted six Cory Ann H. Ellis Application for Appointment for Brookings City Council 3 0f 6 3. Community Volunteer Service: Grassroots Effort Hidden Figures Field Trip 2017 Organizer In an effort to expose students to examples of successful strong women and people of color I organized a fundraiser, negotiated scheduling and pricing, and worked with our school administrators to offer the entire eighth-grade class the opportunity to view “Hidden Figures” at our local movie theater. Brookings Makers Market 2013 - present Creator & Organizer As a local maker who is active in the community, I identified a need for makers without a retail outlet to sell their goods. The Makers Market brings together dozens of area makers every December at a temporary location to sell their products to the public. I worked with other makers to secure the location(s), create sign-up forms and market the event. LEAD South Dakota Brookings Chapter 2017 Co-Founder Leaders Engaged and Determined (LEAD), Brookings, SD is a chapter of LEAD South Dakota that mobilizes people to advocate for women and girls and organize for change in Brookings and throughout South Dakota. Various Organizations Over the years Guest Speaker/Educator I have had the opportunity to engage with many members of our community through guest speaking and educator experience. These have included some of the following. • South Dakota State University Marketing Course, Honors Course, Entrepreneur Club, Journalism Club, and Education Course • Great Plains Writers Conference • Brookings High School • Mickelson Middle School • Camelot Intermediate School • Prairie Elementary School • Hillcrest Elementary School • Dress for Success • 1 Million Cups Various Events & Organizations Over the years Community Involvement as an Active Citizen Engaging and supporting my fellow citizens is important and I do my best to attend a wide variety of events while also donating my time, talents, and financial support when possible. Some of these include: • South Dakota Poets Society -Graphic Design • SDSU Armed Forces Association -Volunteer • SDSU Veterans Club -Volunteer • Brookings Softball Association -Player Rep • Domestic Abuse Shelter -Food Drive Organizer • Feeding South Dakota -Food Drive Organizer • Breast Cancer Fundraising -Organizer • CASA Fire & Ice -Donor, Volunteer, & Attendee • Ducks Unlimited -Donor & Attendee Cory Ann H. Ellis Application for Appointment for Brookings City Council 4 of 6 4. I would like to serve as a City Council Member because: Cory Ann H. Ellis Application for Appointment for Brookings City Council 5 of 6 Serving on the Brookings City Council and therefore serving the citizens of Brookings would be an honor and great responsibility that I would fill with devotion. As an interim council member, I would work to bring energy, stability, and a diverse perspective to the team. I look forward to working with my peers to find creative solutions and inclusive initiatives in our efforts for the community. If granted the position, I would strive to bridge the generational gap with respect and understanding for the young and young at heart. If on council I would address concerns while advocating equally for gender, faith, sexual orientation, and socio-economic groups. My personal goal would be to serve the citizens as a member of a team who solicits input, remains accessible, conducts her actions with transparency, and embraces accountability while working for them and not myself. I would seek to continue the ground work already laid before us to make Brookings the best place to call home in South Dakota and to set an example that other communities will look up to and seek to accomplish. 5. Any other information you feel is important to the City Council Members as it considers your appointment for City Council: While work experience, volunteer activities, and education play a part in qualifying a candidate for this position, I would feel that other areas such as my intrinsic values, soft skills, and management skills make me uniquely qualified to work on a broad range of topics and challenges. I hope that you will consider me as an individual who embraces her faults and leverages them to become a better person, willing and able to serve her fellow citizens for the betterment of our community. Thank you very much for your time and consideration. Intrinsic values: • Caring • Open-minded • Desire to learn • Diverse experiences • Desire to advocate equally • Perseverance • No personal agenda • No conflict of interest or ulterior motives Soft Skills: • Strategic & Compound Thinker • Challenge the status quo • Analyze and interpret data • Research and ask questions • Strive to be accountable, accessible, and transparent • Collaboration within team, organization, and outside partners • Problem Solving: Seeks out long-term solutions to current problems • Communicate through a variety of methods to best work with others • Adaptability: Ability to learn new processes and skills quickly and execute proficiently Please return your application to the City Clerk’s Office: 520 3rd Street, Suite 230 / PO Box 270 Brookings, SD 57006 (605) 692-6281 phone, (605) 692-6907 fax sthornes@cityofbrookings.org www.cityofbrookings.org Advertising Policy - The City of Brookings will notify the public of the City Council vacancy. Notification of vacancies will consist of a press release to local media at least two weeks prior to the appointment. Appointment Process - Applications will be accepted until Friday, April 28, 2017 at 12:00 pm. All applicants will be invited to attend a special May 3, 2017 City Council Meeting at 6:00 pm to provide additional information and respond to questions. City Council action is required to approve the appointment and is scheduled to occur on May 9, 2017. Thank you for applying! Cory Ann H. Ellis Application for Appointment for Brookings City Council 6 of 6 Management Skills: • Challenge, motivate and inspire employees • Strategic planning • Project management • Work force recruitment • Budget development and reporting • Provide coaching, direction, and leadership to employees • Process research, development and implementation • Introduce efficiency processes and initiatives • Improve communication systems • Develop and deliver educational training to employees and co-workers 5. Any other information you feel is important to the City Council Members as it considers your appointment for City Council: For additional information and to learn more about me professionally and personally please visit: www.coryannellis.com Applicant Information    Name: George Hamilton Hamer   First Middle Last  Address:  321 8th St.   Brookings    SD 57006   City State ZIP Code  Phone: 605-688-5721 605-690-9660   605-690-9660  (work) (cell) (home) Email: hamerg@mchsi.com  Employer: South Dakota State University  Occupation: Assoc. Prof. and Asst. Dept. Head EE and CS  Is your residence located within the city limits of Brookings? □X YES  □ NO Are you a registered voter in the City of Brookings? □ X YES  □ NO How long have you been a resident of Brookings? 28+ years     1. Please list relevant education or training:    Ph. D.  Computer Science  North Dakota State University    Fargo ND 2006  MS Computer Science  Moorhead State University  Moorhead MN 1992  BS Construction Mgmt. North Dakota State University  Fargo ND 1980                Application for Appointment for Brookings City Council City Clerk’s Office  520 3rd Street, Suite 230 / PO Box 270  Brookings, SD 57006  (605) 692‐6281 phone; (605) 692‐6907 fax  sthornes@cityofbrookings.org        2. Work experience:  Jan2011 to present South Dakota State University Assoc. Prof. and Asst. Dept. Head EE & CS  Aug 1997 to Jan 2011 South Dakota State University Assoc. Prof. of Computer Science  Aug 1989 to July 1997 South Dakota State University Asst. Prof. of Computer Science        3. Community Volunteer Service:  Member Brookings Human Rights Committee/Commission 2006 – present (Past chair of the Committee  and current Vice‐Chair)          4. I would like to serve as a City Council member because:  I would be honored to serve the city of Brookings as a council member. I feel I can give back to the city I  have called home for almost 28 years. Brookings is a wonderful place to live and being on the city  council will give me the opportunity to ensure that it continues to grow, thrive and stay the welcoming  community it is. I believe I have the ability to listen to all sides of an issue and carefully weigh all facts  brought forward. I would rely heavily on all inputs and not make quick judgements. I know I serve the  people first and know I can put aside any bias and be part of the discussion and ultimately the decision. I  am a gracious loser and a humble winner as I know that I am representing others at all times.      5. Any other information you feel is important to the City Council Members as it considers your  appointment for City Council:  In my current position as Asst. Dept. Head I believe I have gained the needed leadership experience that  will be invaluable as a member of the city council. I have been recognized as the Academic Advisor of  the Year, College of Engineering, in 2005 and Teacher of the Year in the college in 2015. I was also  recognized in the Electrical Engineering and Computer Science Department with an Outstanding  Teaching Award in 2011.        Please return your application to the City Clerk’s Office: 520 3rd Street, Suite 230 / PO Box 270 Brookings, SD 57006 (605) 692-6281 phone, (605) 692-6907 fax sthornes@cityofbrookings.org www.cityofbrookings.org Advertising Policy – The City of Brookings will notify the public of the City Council  vacancy. Notification  of vacancies will consist of a press release to local media at least two weeks prior to the appointment.    Appointment Process – Applications will be accepted until Tuesday, May 2, 2017 at 5:00 pm.  All  applications for appointment will be provided to the City Council for consideration. City Council action is  required to approve the appointment and is scheduled to occur on May 23, 2017.  Thank you for  applying!  Applicant Information Name: First Holly Middle Marie Last Tilton Byrne Address: Street 104 5Th St City Brookings State SD ZIP Code 57006 Phone: (work) (cell) 605-690-4757 (home) Email: hmtilton@gmail.com Employer: Dakota Rural Action Occupation: Community Organizer Is your residence located within the city limits of Brookings? □ YES □ NO Are you a registered voter in the City of Brookings? □ YES □ NO How long have you been a resident of Brookings? 21 years 1. Please list relevant education or training: • High School Diploma – 2004 – Brookings High School • B.S. degree in Interdisciplinary Studies, Minor in History – 2009 – South Dakota State University Application for Appointment for Brookings City Council City Clerk’s Office 520 3rd Street, Suite 230 / PO Box 270 Brookings, SD 57006 (605) 692-6281 phone; (605) 692-6907 fax sthornes@cityofbrookings.org • Advanced Campaign Management Training – 2010 – Wellstone, Billings, MT This in-depth, multi-day training hosted by the Wellstone organization teaches individuals how to effectively impact political campaigns. Attendees are taught leadership and management techniques, message development, campaign budgeting, and how to directly contact voters. • Principles of Community Organizing (POCO) Training – 2010 – Western Organization of Resource Councils, Billings, MT The POCO training hosed by the Western Organization of Resource Councils (WORC) is a leadership development workshop dedicated to training community leaders how to build strong organizations and develop winning issue campaigns. The course covers topics such as how to strategically plan campaigns, basics of leadership, fundraising, and other organizing techniques. • Continuing Education for Organizers (CEO) Training – Annually 2011-2014 – Western Organization of Resource Councils, Billings, MT This training is targeted for individuals who have taken POCO, and have been working as Community Organizers for less than five years. The class digs deeper into techniques taught at POCO and offers a more advanced look at issue campaign development. 2. Work experience: Dakota Rural Action (DRA), Brookings, SD Lead Organizer, Apr. 2016 – present; Organizer, May 2010 – Apr. 2016; Intern, Feb. 2009 – May 2010 Dakota Rural Action is a 501(c)3 non-profit community organizing group. As Community Organizer my duties include: • Event Planning o Serve on Planning Committee for the annual statewide South Dakota Local Foods Conference o Coordinate and procure speakers, foods to be served, and other logistics for various events throughout the year including local meetings, educational workshops, and other events • Fundraisings and membership outreach o Develop and execute annual giving plans o Help write and execute grant proposals and develop grant reports • Training community leaders, new staff, and offer ongoing support o Help individuals develop their leadership skills • Serving as the Farm to School State Lead for South Dakota o Lead the SD Farm to School Taskforce, a group made up of representatives from various state agencies, SDSU Extension, non-profit groups, school food service directors, farmers, and more dedicated to advancing Farm to School in South Dakota o Connect food producers with schools to facilitate local food procurement, farm tours, presentations and hands-on learning o Give Farm to School presentations to schools, food service directors, the School Nutrition Association, and the National Farm to School Network o Serve as the South Dakota Core Partner for the National Farm to School Network • Participating in the development of the SD Local Foods Directory • Managing and operating the SD Local Foods Co-op o Train and manage volunteer staff o Coordinate delivery logistics o Work with a leadership committee to help plan for long-term co-op success • Working collaboratively with the Western Organization of Resource Councils (WORC) o Work on national issue campaigns through a seven state network • Organizing and facilitating meetings with various chapters and committees • Working with a Board of Directors • Writing and publishing stories, fact sheets, informational materials for Dakota Rural Action • Working with various SD state agencies on the writing, development, interpretation, and implementation of state level laws and regulations SDSU International Affairs Office, Brookings, SD Peer Advisor/Student Sustainability Coordinator, August 2008 – August 2009 Duties included: • Informing students about study abroad options • Organizing events dealing with environmental sustainability • Researching advertising options and developing outreach materials • Filing, scheduling appointments, and other general office work • Evaluating study abroad programs 3. Community Volunteer Service: City of Brookings Sustainability Council, Brookings, SD Chair, 2015 – Present; Committee Member 2014-2015 As a member of the Sustainability Council I participate in Sustainability Council meetings, help organize the City of Brookings annual Earth Day event, help coordinate and host the monthly Green Drinks presentation, provide recommendations to the Brookings City Council on issues relating to sustainability, and serve on sub-committees focusing on urban agriculture and renewable energy. I have served as Chair since 2015, for which the duties include working with City staff, leading Sustainability Council meetings, and representing the Sustainability Council when necessary. 4. I would like to serve as a City Council Member because: I have been proud to call Brookings my home since I was a young child. I deeply value being involved in this community and offering my time and energy to making Brookings a thriving, vibrant, sustainable, and welcoming place. I believe that Brookings is a leading example for the state and the region. I would love to help continue to grow that leadership and help make Brookings the community that others strive to be like. I also believe I have the skills necessary to work with other members of the City Council to collectively achieve any goals that are set. I would consider it an honor to have the opportunity to serve the people of Brookings by acting as a City Council Member. Thank you for considering me for the position. 5. Any other information you feel is important to the City Council Members as it considers your appointment for City Council: Please return your application to the City Clerk’s Office: 520 3rd Street, Suite 230 / PO Box 270 Brookings, SD 57006 (605) 692-6281 phone, (605) 692-6907 fax sthornes@cityofbrookings.org www.cityofbrookings.org Advertising Policy – The City of Brookings will notify the public of the City Council vacancy. Notification of vacancies will consist of a press release to local media at least two weeks prior to the appointment. Appointment Process – Applications will be accepted until Friday, April 28, 2017 at 12:00 pm. All applicants will be invited to attend a special May 3, 2017 City Council Meeting at 5:00 pm to provide additional information and respond to questions. City Council action is required to approve the appointment and is scheduled to occur on May 9, 2017. Thank you for applying! Shari Thornes City Clerk 520 3rd Street, Suite 230 Brookings, SD 57006 605.692.6281 sthornes@cityofbrookings.org April 12, 2017 FOR IMMEDIATE RELEASE For more information contact: Shari Thornes, City Clerk Phone: (605) 697-8641 APPLICATIONS FOR BROOKINGS CITY COUNCIL MEMBER The City of Brookings is now accepting applications for the City Council Member position that will be vacated by Council Member Keith Corbett, who was elected as Mayor. The appointment term would be from May 9, 2017 – April 30, 2018. Applicants must be a Brookings resident for a minimum of six months and registered to vote in Brookings. Applications are available on the city website (www.cityofbrookings.org) or at the City Clerk’s Office, 520 3rd Street, Suite 230, Brookings, SD 57006, (605) 692-6281. The completed application and other required documents must be submitted to the City Clerk no later than Friday, April 28, at 12:00 pm. All applicants will be invited to attend a special May 3, 2017 City Council Meeting at 5:00 pm to provide additional information and respond to questions. The City Council is scheduled to vote on the appointment on May 9, 2017 at 6:00 pm. Applicant Information Name: First Middle Last Address: Street City State ZIP Code Phone: (work)(cell)(home) Email: Employer: Occupation: Is your residence located within the city limits of Brookings?□ YES □ NO Are you a registered voter in the City of Brookings?□ YES □ NO How long have you been a resident of Brookings? 1. Please list relevant education or training: Application for Appointment for Brookings City Council City Clerk’s Office 520 3rd Street, Suite 230 / PO Box 270 Brookings, SD 57006 (605) 692-6281 phone; (605) 692-6907 fax sthornes@cityofbrookings.org 2. Work experience: 3. Community Volunteer Service: 4. I would like to serve as a City Council Member because: 5. Any other information you feel is important to the City Council Members as it considers your appointment for City Council: Please return your application to the City Clerk’s Office: 520 3rd Street, Suite 230 / PO Box 270 Brookings, SD 57006 (605) 692-6281 phone, (605) 692-6907 fax sthornes@cityofbrookings.org www.cityofbrookings.org Advertising Policy – The City of Brookings will notify the public of the City Council vacancy. Notification of vacancies will consist of a press release to local media at least two weeks prior to the appointment. Appointment Process – Applications will be accepted until Friday, April 28, 2017 at 12:00 pm. All applicants will be invited to attend a special May 3, 2017 City Council Meeting at 5:00 pm to provide additional information and respond to questions. City Council action is required to approve the appointment and is scheduled to occur on May 9, 2017. Thank you for applying! Brookings City Charter Excerpt Section 2.06 – Vacancies; Forfeiture of Office; Filling of Vacancies. (a) Vacancies. The office of a Council Member or Mayor shall become vacant upon the person’s death, resignation, removal from office or forfeiture of office in any manner authorized by law. (b) Recall. The power of recall of the Mayor or Council Members shall be allowed as set forth in SDCL Title 9. (c) Forfeiture of Office. The Mayor or a Council Member shall forfeit that office if the Mayor or Council Member: 1. Lacks at any time during the term of office for which elected any qualification for the office prescribed by this Charter or by law. 2. Violates any expressed prohibition in Section 7.02 of this Charter. 3. Fails to maintain residency within the city limits. 4. Is convicted of a felony. 5. Fails to attend at least fifty percent (50%) of the regular meetings of the Council during a fiscal year, or three consecutive regular meetings of the Council, without being excused by the Council. (d) Filling of Vacancies. Filling of Vacancies. Except as provided below, a vacancy in the office of Mayor or of a City Council Member shall be filled for the remainder of the unexpired term at the next regular City election. The Council by a majority vote of all its remaining members shall appoint a qualified person to fill the vacancy until the person elected to serve the remainder of the unexpired term takes office. However, if the vacancy occurs less than sixty days prior to the next regular City election, then the person appointed to fill the vacancy shall continue to serve and the vacancy shall be filled at the regular City election immediately following the next regular City election. Notwithstanding the requirement in Section 2.11, if at any time the membership of the Council is reduced to less than 6, the remaining members shall, within sixty (60) days, fill the vacancies by appointment or call for a special election to fill the vacancies.