The URL can be used to link to this page

Home My WebLink About2015_05_26 CC PKT - revisedCity 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 Council Chambers6:00 PMTuesday, May 26, 2015 The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal management. 6:00 PM REGULAR MEETING 1. Call to Order / Pledge of Allegiance. 2. Record of Council Attendance. 2.A.ID 2015-0409 Mayoral Proclamation for Bobcat Baseball 2015 State Champions Day. 2015 Bobcat Baseball Championship DayAttachments: 3. Consent Agenda: Action: Motion to Approve, Request Public Comment, Roll Call Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation. 3.A. Action to approve the agenda. 3.B.ID 2015-0393 Action to approve the May 12 Council Minutes. 5/12 MinutesAttachments: 3.C.ID 2015-0331 Action on Abatement for Parcel 40999-00011-107-00; Mobile Home on Leased Site Normandy Village #107. Abatement InformationAttachments: 3.D.RES 15-060 Action on Resolution 15-060, a Resolution authorizing the City Manager Page 1 City of Brookings May 26, 2015City Council Meeting Agenda of the City of Brookings, SD to sign the Cooperative Fire Agreement with the State of South Dakota. Resolution Wildland Contract Letter Wildland Fire Agreement Attachments: 4. Items removed from Consent Agenda. Action: Motion to Approve, Request Public Comment, Roll Call 5. Open Forum/Presentations/Reports: 5.A. Open Forum. At this time, any member of the public may request time on the agenda for an item not listed. Items are typically scheduled for the end of the meeting; however, very brief announcements or invitations will be allowed at this time. 5.B. SDSU Student Association Report. 5.C.ID 2015-0384 Presentation of City of Brookings 2014 Annual Financial Report. Presentation Annual Financial Report Attachments: 5.D.ID 2015-0397 Presentation on Brookings Health System Hospital Expansion and Renovation. PresentationAttachments: 5.E.ID 2015-0406 Mayor’s Annual State of the City Message. 6. Contracts/Change Orders: 6.A.RES 15-058 Action on Resolution 15-058, a Resolution awarding the contract for the purchase of a 1200 Gallon Con Cover All-Purpose Spraying Machine. ResolutionAttachments: Action: Motion to Approve, Request Public Comment, Roll Call 6.B.RES 15-059 Action on Resolution 15-059, a Resolution awarding the contract for the Street Department Maintenance Facility Demolition Project. Resolution Bid Tab Final Specs Prussman Bid VJ Ahlers Bid Attachments: Action: Motion to Approve, Request Public Comment, Roll Call Page 2 City of Brookings May 26, 2015City Council Meeting Agenda 6.C.RES 15-057 Action on Resolution 15-057, a Resolution to purchase an 11’ Toro Mower from the State Contract List. Resolution Price Quote Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 6.D.RES 15-064 Action on Resolution 15-064, a Resolution authorizing the City Manager to sign an agreement for professional services for a 20th Street South Interstate Access Evaluation. Resolution HDR Agreement Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 7. Ordinance First Readings: No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read and the date for the public hearing is announced. 7.A.ORD 15-008 Introduction and First Reading on Ordinance 15-008, an Ordinance rezoning Outlots A, B, and C in the S ½ of the N ½ of the SE ¼ of Section 22-T110N-R50W from a Residence R-1A District to a Residence R-3 District. Public Hearing: June 9, 2015. Ordinance Public Notice Planning Commission Minutes and Summary Zoning Map Aerial Map Attachments: 7.B.ORD 15-009 Introduction and First Reading on Ordinance 15-009, an Ordinance for a Conditional Use Request for a Group Home on Lot B, Block 1, Hunter’s Ridge Addition. Public Hearing: June 9, 2015. Ordinance Hearing Notice Planning Commission Minutes and Summary Site Plan Aerial Map Aerial Map with Site Plan Building Elevations Attachments: 7.C.ORD 15-010 Introduction and First Reading of Ordinance 15-010, an Ordinance authorizing a Supplemental Appropriation to the 2015 Budget for the purpose of providing for Additional Funds for the Operation of the City. Public Hearing: June 9, 2015. Page 3 City of Brookings May 26, 2015City Council Meeting Agenda Ordinance Budget Adjustments Attachments: 8. Public Hearings and Second Readings: 8.A.RES 15-065 Public Hearing and Action on Resolution 15-065, a Resolution of Intent to Lease Real Property to Brookings Economic Development Corporation. ResolutionAttachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call 8.B.RES 15-062 Public Hearing and Action on Resolution 15-062, a Resolution of Intent to Lease Real Property to Private Person (City Hay). Resolution 15-062 - Intent to Lease Resolution 15-053 - Bid Award Map Attachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call 8.C.RES 15-063 Public Hearing and Action on Resolution 15-063, a Resolution of Intent to Lease Real Property to Private Person (Airport Hay). Resolution 15-063 - Intent to Lease Resolution 15-054 - Bid Award Map Attachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call 8.D.ORD 15-005 Second Reading and Action Ordinance 15-005, an Ordinance amending Article V of Chapter 2 of the Code of Ordinances of the City of Brookings, SD and pertaining to the Human Rights Committee of the City of Brookings. Ordinance - clean Ordinance (with Amendments) (dated 5/21/2015) Why Become A Commission Draft Commission Roles & Responsibilities Complaint Process Flowchart Draft Intake Forms & Instructions Draft Supplemental Intake Information Attachments: Action: Motion to Approve, Request Public Comment, Roll Call Legislative History 3/24/15 City Council read into the record 9. Other Business: 9.A.ID 2015-0389 Action to approve the Brookings Economic Development Corporation Page 4 City of Brookings May 26, 2015City Council Meeting Agenda proposal to purchase industrial land in the Foster Industrial Park. Exhibit A - Restrictive Covenant Sample Property Layout Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 9.B.ID 2015-0400 Action to appoint Deputy Mayor. Action: Motion to Approve, Request Public Comment, Roll Call 10. City Council member introduction of topics for future discussion. Any Council Member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required stating the issue, requested outcome, and time. A majority vote is required. 11. Adjourn. Brookings City Council: Tim Reed, Mayor, Keith Corbett, Deputy Mayor & Council Member Council Members Patty Bacon, Dan Hansen, Scott Meyer, Ope Niemeyer, Jael Thorpe 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. Engage Brookings is an online tool where citizens can engage, communicate and collaborate with community decision makers and other residents. Where these ideas overlap is the future of Brookings. www.engagebrookings.org Page 5 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 2015-0409,Version:1 Mayoral Proclamation for Bobcat Baseball 2015 State Champions Day. Attachments: Proclamation City of Brookings Printed on 5/26/2015Page 1 of 1 powered by Legistar™ MAYORAL PROCLAMATION CITY OF BROOKINGS, SOUTH DAKOTA WHEREAS: The Bobcats last state baseball championship was in 2002; and WHEREAS: The 2015 Bobcat’s Baseball season broke the school record with 26 wins and 7 losses; and WHEREAS: The Bobcats beat the Pierre Governors 9-0 to earn their trip to the 2015 State Championship Final at the Bird Cage in Sioux Falls; and WHEREAS: The Brookings community showed their spirit and cheered on their Bobcats to a victory at the State Championship Final; and WHEREAS: The Bobcat’s Baseball team beat the Mitchell Kernels 4-1 to become the 2015 State A Champions. NOW, THEREFORE, BE IT RESOLVED, that I, Tim Reed, Mayor of the City of Brookings, do hereby proclaim Tuesday, May 26th, 2015 as: BOBCAT BASEBALL 2015 STATE CHAMPIONS DAY and call upon all of Brookings to celebrate the Bobcat’s victory. IN WITNESS WHEREOF, I have placed the Seal of the City of Brookings, State of South Dakota, this of 26th day of May, 2015. Tim Reed, 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 2015-0393,Version:1 Action to approve the May 12 Council Minutes. Attachments: May 12 Minutes City of Brookings Printed on 5/21/2015Page 1 of 1 powered by Legistar™ Brookings City Council May 12, 2015 (unapproved) The Brookings City Council held a meeting on Tuesday, May 12, 2015 at 6:00 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members Keith Corbett, Dan Hansen, Ope Niemeyer, Patty Bacon, Scott Meyer, and Jael Thorpe. City Attorney Steve Britzman, City Manager Jeffrey Weldon, and Communications Specialist Laurie Carruthers were also present. Consent Agenda.Mayor Reed added item 5A, Action on Ex-Officio Appointments, to the agenda. A motion was made by Council Member Hansen, seconded by Council Member Corbett, to approve the consent agenda as amended. The motion carried by the following vote: 4.A. Action to approve the agenda as amended. 4.B. Action to approve the April 21 and April 28 City Council Minutes. 4.C. Action to cancel the May 19 City Council Study Session. 4.D. Action to schedule a July 7 Special City Council Meeting. 4.E. Action on appointments to Brookings Historic Preservation Commission: appoint Jessica Garcia Fritz (term 5/12/2015-1/1/2019). 4.F. Action on Resolution 15-056, a Resolution declaring items as surplus property. Resolution No. 15-056 - Appraising and Authorizing Sale of Surplus Property Whereas, the City of Brookings has surplus items as listed in a Notice of Sale that are no longer necessary or useful for City purposes, and it is the desire of the City to dispose of same as surplus property; Now, Therefore Be It Resolved, that all the attached listed property be declared surplus by the City Council. Further Be It Resolved by the City Council that the property be offered for sale. 2015 CITY GENERAL & ENTERPRISE FUND DEPARTMENTS Street Dept.: Large Grinder, Tire Changer, Tire Balancer, 1999 Whirlpool Window Air Conditioner (Serial #QJ2209640), 2012 GE Window Air Conditioner (Serial #DZ410480), 2010 Whirlpool 38 Gallon Electric Water Heater (Serial #1038T412163), 2011 Coleman Natural Gas Furnace with Central Air Conditioner, 2010 Lanthem 1500E Time Clock & Time Cards (Serial #1E5075228), 2008 Wayne Fuel Pump-Diesel (Serial #42681B), 2008 Wayne Fuel Pump-Gas (Serial #42680B), 2012 OPW 1500TLM Fuel Tank Monitoring System, Chemical Gloves & Liners, Overhead Heat Panels, 2006 Gasboy Key Encoder & Fuel Keys, Leer Pickup Topper for 2006 Ford, 1987 Sierra Classic 1500 GMC Pickup (Serial #1GTDR14K8HJ500471), Assorted Blower Motors for Overhead Radiant Heat, Assorted Heaters for Overhead Radiant Heat. Information Technology: 2 - HP DX2200MP Computers, 3 - Compaq DX2200 Computers, 3 - HP DC 5100 MT Computers, 2 - HP DC5100mc Computer, HP D330 Workstation, Compaq EVO D310M Computer, HP Compaq DL5000MT Computer, Compaq D5D Computer, Compaq Armada E700 Computer, Compaq DeskproEN Computer, HP 9100 Laptop w/ accessories, Compaq NX9010 Computer, HP Pavilion ZV600 Computer, HP DC100mc Computer, HP Touchsmart 9300 Elite, Compaq NC6120 Computer, Whitebox Workstation, Lenovo AG79702 Computer, Lenovo A7U 9851 Computer, 14 - Lathem Time Clocks, HP Laserjet 2600 N Printer, HP Laserjet 1000 Series Printer, HP Scanjet N6310 Printer, HP Laserjet 2200D Printer, 3M Visual System 900AJB Overhead Scanner, Token Ring UTP MAU oC-3626, IBM 8228 TR Switch, Compaq iPAQ H3630 32MB, 3 – Nortel NT4X42AA Phones, 1 Meridian NT 4X35 Phone, 1 Panasonic KX- T3170 Phone, 3 – Sony CD/DVD Players, 4 Transact Receipt Printers, 3 Cash Drawers Model EP-127. Police Dept.: copy machine 4.G. Action on Abatement of Property Taxes, Interest, Drainage Fees and Street Special Assessment for Parcel 40090-01300-019-00, Lot 19, Block 13, Camelot Square Addition in the City of Brookings: 2010 Abatement Amount:$302.08 for Tax, Interest and Drainage Fees and $14,361.63 for Street Special Assessment; 2011 Abatement Amount:$541.40 for Tax, Interest and Drainage Fees and $12,722.60 for Street Special Assessment; 2012 Abatement Amount:$736.85 for Tax, Interest and Drainage Fees and $12,722.60 for Street Special Assessment; 2013 Abatement Amount:$1009.12 for Tax, Interest and Drainage Fees; and, 2014 Abatement Amount: $1201.96 for Tax, Interest and Drainage Fees. Ex-Officio Appointments. A motion was made by Council Member Corbett, seconded by Council Member Niemeyer, that the following Ex-Officio Appointments be approved: Brookings Health System Board of Trustees - Council Member Dan Hansen; Brookings Municipal Utilities - Council Member Scott Meyer; Joint Powers Board – Council Members Patty Bacon and Keith Corbett. The motion carried by the following vote: Yes: 7 - Reed, Corbett, Hansen, Niemeyer, Thorpe, Meyer, and Bacon. Allyn Frerichs Trail Sign Program. A motion was made by Council Member Corbett, seconded by Council Member Hansen, that the Leadership Brookings Class Historical Sign Program for Allyn Frerichs Trail System be approved. The motion carried by the following vote: Yes: 7 - Reed, Corbett, Hansen, Niemeyer, Thorpe, Meyer, and Bacon. Resolution 15-053. A motion was made by Council Member Niemeyer, seconded by Council Member Meyer, that Resolution No. 15-053, a Resolution awarding the contract for 2015-2016 City Hay Land Lease (approximately 60 acres), be approved. The motion carried by the following vote: Yes: 7 - Reed, Corbett, Hansen, Niemeyer, Thorpe, Meyer, and Bacon. Resolution No. 15-053 - Resolution Awarding Bids on City Hay Lease Whereas, the City of Brookings opened bids for approximately 60 acres of City Hay Land for the City-owned parcel located in Section 21-T110-R50W on Tuesday, May 5, 2015 at 1:30 PM at the Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids for City Hay Lease: Scott Werre, Brookings, SD - $132.00 per acre, Jason Voss, Bruce, SD - $125.00 per acre, David Rochel, Aurora, SD - $108.55 per acre, Lyle Johnson, Brookings, SD - $85.00 per acre, Joe Mendel, Brookings, SD - $70.00 per acre and Brian Fett, Dell Rapids, SD - $52.75 per acre. Now Therefore, Be It Resolved that the high bid of $132.00 per acre from Scott Werre, Brookings, SD be accepted. Resolution 15-054. A motion was made by Council Member Hansen, seconded by Council Member Niemeyer, that Resolution No. 15-054, a Resolution awarding the contract for 2015-2016 Airport Hay Land Lease (approximately 236 acres), be approved. The motion carried by the following vote: Yes: 7 - Reed, Corbett, Hansen, Niemeyer, Thorpe, Meyer, and Bacon. Resolution No. 15-054 - Resolution Awarding Bids on Airport Hay Lease Whereas, the City of Brookings opened bids for approximately 236 acres of Airport Hay Land at the Brookings Regional Airport located in Sections 26, 27 and 28, T110, R50W, on Tuesday, May 5, 2015 at 1:30 PM at the Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids for Airport Hay Lease: Jason Voss, Bruce, SD - $75.00 per acre and Brian Fett, Dell Rapids, SD - $56.80 per acre. Now Therefore, Be It Resolved that the high bid of Jason Voss, Bruce, SD for $75.00 per acre be accepted. Ordinance 15-003. A public hearing was held on Ordinance 15-003, an Ordinance rezoning for an Animal Research Facility as a Permitted Special Use in the I-1 and I-1R Industrial Districts, be approved. No public comment. A was motion was made by Council Member Niemeyer, seconded by Council Member Meyer, that Ordinance 15- 003 be approved. The motion carried by the following vote: Yes: 7 - Reed, Corbett, Hansen, Niemeyer, Thorpe, Meyer, and Bacon. Ordinance 15-006. A public hearing was held on Ordinance 15-006, an Ordinance to change the zoning on Lots 1, 2, and 3, Block 4, Folsom Addition from a Business B-3 District to a PDD Planned Development District. A motion was made by Council Member Hansen, seconded by Council Member Thorpe, that Ordinance 15-006 be approved. No public comment. The motion carried by the following vote: Yes: 6 - Corbett, Hansen, Niemeyer, Thorpe, Meyer, and Bacon; Absent: 1 – Reed. Ordinance 15-007. A public hearing was held on Ordinance 15-007, an Ordinance Revising Section 46-22 of Article II and pertaining to the Appointment of Members to the Brookings Historic Preservation Commission in the City of Brookings, SD. A motion was made by Council Member Hansen, seconded by Council Member Niemeyer, that Ordinance 15-007 be approved. No public comment. The motion carried by the following vote: Yes: 6 - Corbett, Hansen, Niemeyer, Thorpe, Meyer, and Bacon; Absent: 1 – Reed. Resolution 15-052. A motion was made by Council Member Niemeyer, seconded by Council Member Hansen, that Resolution 15-052, a Resolution authorizing the Construction and Equipping of Certain Improvements to the Brookings Health System pursuant to a Lease Agreement; Approving the Execution of an Irrevocable Declaration of Trust by Trustee; Providing for the Execution, Sale and Delivery of not to exceed $35,000,000 Aggregate original amount of Certificates of Participation in the Lease Agreement pursuant to a Certificate Purchase Agreement and the Application of the proceeds thereof to Construct and Equip Improvements to the Brookings Health System and approving and authorizing a Ground Lease of the Brookings Health System to the Trustee; and authorizing and approving other Actions and Agreements necessary to consummate the contemplated improvement and financing, be approved. The motion carried by the following vote: Yes: 6 - Corbett, Hansen, Niemeyer, Thorpe, Meyer, and Bacon; Absent: 1 – Reed. Resolution 15-052 - Authorizing the Construction and Equipping of Certain Improvements to the Brookings Health System Pursuant to a Lease Agreement; Approving the execution of an Irrevocable Declaration of Trust by Trustee; Providing for the execution, sale and delivery of not to exceed $35,000,000 Aggregate original amount of Certificates of Participation in the Lease Agreement pursuant to a Certificate Purchase Agreement and the Application of the proceeds thereof to construct and equip improvements to the Brookings Health System and approving and authorizing a Ground Lease of the Brookings Health System to the Trustee; and authorizing and approving other actions and Agreements necessary to consummate the Contemplated Improvement and Financing. Whereas, the City of Brookings (the “City”) is a duly organized South Dakota municipality with the power to establish, construct, purchase, and maintain hospitals, medical clinics, nursing facilities and homes for the aged (collectively the “Brookings Health System”); and Whereas, the City has the power pursuant to SDCL Chapters 34-9 and 9-12 to lease and lease-purchase real and personal property; and Whereas, it is the opinion of the City Council that the City would be best served by entering into a Ground Lease and Lease Agreement; and Whereas, it is declared necessary that a Declaration of Trust (the “Declaration of Trust”) be executed by a Trustee (the “Trustee”) for the purpose of financing the expansion and renovation of the hospital and related facilities of the Brookings Health System and equipping the same. Whereas, the City desires to improve the Brookings Health System and for such purpose intends to enter into a Ground Lease with the City as lessor and the Trustee as lessee (the “Ground Lease”), Lease Agreement with the Trustee as lessor and the City as lessee (“the Lease Agreement”) and Certificates of Participation, Series 2015 (the “Certificates”) payable as to principal in the aggregate original amount not to exceed $35,000,000 evidencing proportionate interests of the owners in the Lease Agreement; Whereas, the proceeds of the Certificates will be used to (i) construct and equip improvements to the Brookings Health System, including approximately 86,500 square feet of new construction and approximately 17,550 square feet of renovation within the existing Brookings Health System, (ii) fund necessary reserve accounts, and (iii) pay costs of issuance, including Bond Insurer premiums, if any. Now, Therefore, Be It Resolved by the City Council of the City of Brookings as follows: Section 1. Definitions. In addition to the words and terms elsewhere defined in this Resolution, the following words and terms as used herein, whether or not the words have initial capitals, shall have the following meanings, unless the context or use indicates another or different meaning or intent, and such definitions shall be equally applicable to both the singular and plural forms of any of the words and terms herein defined: “Act” means collectively SDCL Title 34-9 and 9-12, as amended. “Authorized Officer “ means the Mayor, City Clerk, Finance Manager, or, in the case of any act to be performed or duty to be discharged, any other member, officer, or employee of the City then authorized to perform such act or discharge such duty. “Bond Counsel/Certificate Counsel” means Meierhenry Sargent LLP, a firm of attorneys recognized as having experience in matters relating to the issuance of state or local governmental obligations. “Bond Insurer” means one of the following bond insurers, Build America Mutual Assurance Company, Municipal Assurance Corp and Assured Guaranty Corp. “Certificate Purchase Agreement” means the Certificate Purchase Agreement authorized pursuant to and described in Section 12 hereof by and between the City and the Underwriter. “Certificates” means the Certificates of Participation in the Lease Agreement. “City” means the City of Brookings, South Dakota. “Declaration of Trust” means the trust agreement entered into by the Trustee and the City. “Ground Lease” means the ground lease agreement between the City, as lessor, and the Trustee, as lessee, and any amendment thereof or supplement thereto. “Improvements” mean the construction of approximately 86,500 square feet of new construction and approximately 17,550 square feet of renovation within the existing Brookings Health System and the equipping of the same. “Lease Agreement” means the lease purchase agreement between the Trustee, as lessor, and the City, as lessee, and any amendment thereof or supplement thereto “Property” means the real property upon which the Improvements will be made. “Rating Agency” means one or more of the following rating agencies: Standard & Poor's Credit Rating Services, Moody's Investors Service Inc. and Fitch IBCA, Inc. “Underwriter” means Dougherty & Company, Inc., Pierre, South Dakota acting for and on behalf of itself and such securities dealers as it may designate. Section 2. Declaration of Necessity and Approval of Improvements. The governing body of the City in accordance with the Act does hereby declare a necessity to enter into the Ground Lease, Lease Agreement and Trust Indenture; and approves the construction of the Improvements. Section 3. Authorization and Approval of Transactions. Subject to the terms and conditions set forth herein, the City hereby (i) authorizes the lease of the Property to the Trustee for a period not to exceed 40 years pursuant to the Ground Lease, (ii) authorizes the lease of the Property from the Trustee pursuant to the Lease Agreement on an annual appropriation basis for an initial lease term and renewal terms not to exceed in the aggregate 30 years, (iii) approves the Trustee's execution of the Declaration of Trust, (iv) approves the Trustee's execution and delivery of the Certificates, payable as to principal in an aggregate original amount not exceeding $35,000,000 pursuant to the Declaration of Trust and a Certificate Purchase Agreement between the City and the Underwriter (the “Certificate Purchase Agreement”) and the use of the proceeds thereof to finance the construction and equipping of the Improvements, and to pay the expenses incurred in connection with the execution and delivery of the Certificates. Section 4. Approval of Documents and Legal Description. The Authorized Officers of the City are hereby authorized and empowered for and on behalf of the City to approve and execute (i) the Declaration of Trust, (ii) the Ground Lease, (iii) the Lease Agreement, (iv) the Certificate Purchase Agreement, and (v) a Continuing Disclosure Certificate in substantially the respective forms to be filed with the City Clerk and open to public inspection during regular business hours. The Authorized Officers are authorized and directed to approve the entire legal description or a partial legal description of the Property to be included in the Ground Lease and Lease Agreement. Section 5. Certificates of Participation. The Certificates shall be executed and delivered in fully-registered form, shall be dated and numbered, shall be payable as to principal in the denominations of $5,000 and integral multiples thereof and in such amounts (not exceeding in the aggregate $35,000,000) and on such dates (not later than thirty (30) years), shall be payable as to interest at such rate or rates to be negotiated by the Authorized Officer and shall be subject to prepayment upon such terms and conditions, in such amounts and on such dates as may be specified in the Declaration of Trust and in the executed Certificate Purchase Agreement. The Authorized Officers are hereby authorized and empowered for and on behalf of the City to approve the Certificate Purchase Agreement, his or her execution and delivery thereof to evidence conclusively the City’s approval thereof. Section 6. Annual Appropriation and Opt Out. The Lease Agreement is an annual appropriation lease subject to an annual appropriation by the City for each fiscal year. The City has passed an opt out resolution which authorizes the City to spread, in any fiscal year, for 30 years a $2,500,000 tax levy if the governing body of the City deems it necessary to be used to pay the annual lease payment. Section 7. Bond Counsel. The Authorized Officers are authorized to retain the Bond Counsel upon such terms as they approve. Section 8. Bond Insurer. The Authorized Officers are authorized to retain the Bond Insurer upon such terms as they approve. Section 9. Rating Agency. The Authorized Officers are authorized to retain the Rating Agency upon such terms as they approve. Section 10. Trustee.The Authorized Officers are authorized to retain the Trustee upon such terms as they approve. Section 11. Underwriter. The Authorized Officers are authorized to retain the Underwriter upon such terms as they approve. Section 12. Certificate Purchase Agreement. The Certificates shall be sold to the Underwriter at a price to be set forth in the Certificate Purchase Agreement. The Authorized Officers in consultation with the Underwriter, are authorized to make such changes in the structuring of the terms and sale of the Certificates as they shall deem necessary. In this regard, they, or either of them, in consultation with the Underwriter, are authorized to cause to be sold an aggregate principal amount of the Certificates less than that authorized herein, to sell any or all of the Certificates as term Certificates with annual mandatory redemption requirements which will produce substantially the same annual principal reductions as authorized herein, to change the dated date of the, and to adjust principal and interest payment dates and redemption dates of the Certificates. The form of the Certificate shall be conformed to reflect any changes, if any, as hereinbefore mentioned. The Mayor is hereby authorized to execute and the City Clerk is authorized to attest the Certificate Purchase Agreement with the Underwriter providing for the purchase and sale of the Certificates. The Certificate Purchase Agreement shall be in form and content acceptable to the Mayor and City Clerk, the execution thereof by either of them to constitute conclusive evidence thereof, and approved as to form and legality by the District’s attorney; provided the Certificate Purchase Agreement effects the sale of the Certificates in accordance with the provisions of this Resolution, and is not inconsistent with the terms hereof. The Mayor and City Clerk are authorized to cause the Certificates to be authenticated and delivered by the Trustee to the Underwriter and to execute, publish, and deliver all certificates and documents, including the Official Statement, and closing certificates and documents, as they shall deem necessary in connection with the sale and delivery of the Certificates. Section 13. Official Statement. The Authorized Officers and the Underwriter are hereby authorized and directed to provide for the preparation and distribution of a Preliminary Official Statement describing the Certificates (the “Preliminary Official Statement”). After the Certificates have been sold, the Authorized Officers shall make such completions, omissions, insertions and changes in the Preliminary Official Statement not inconsistent with this Resolution as are necessary or desirable to complete it as a final Official Statement for purposes of Rule 15c2-12(e)(3) of the Securities and Exchange Commission. To comply with paragraph (b) (3) of Rule 15c2 12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the “Rule”) and with Rule G 32 and all other applicable rules of the Municipal Securities Rulemaking Board, the City agrees to deliver to the Underwriter, the Official Statement (which shall be a final official statement, as such term is defined in the Rule, as of its date) in an electronic format as prescribed by the MSRB. Section 14. Tax Matters. The City covenants and agrees with the registered owners from time to time of the Certificates that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest component or interest on the Lease Agreement and Certificates to become includable in gross income for federal income tax purposes under the Code and applicable Treasury Regulations (the “Regulations”), and covenants to take any and all actions within its powers to ensure that the basic interest on the Certificates will not become includable in gross income for federal income tax purposes under the Code and the Regulations. The Authorized Officers charged with the responsibility for issuing the Certificates pursuant to this Resolution are hereby authorized and directed to execute and deliver to the Underwriter thereof a certificate in accordance with the provisions of Section 148 of the Code, and Section 1.148-2(b) of the Regulations, stating that on the basis of facts, estimates and circumstances in existence on the date of issue and delivery of the Certificates, it is reasonably expected that the proceeds of the Certificates will be used in a manner that would not cause the Certificates to be “arbitrage bonds” within the meaning of Section 148 of the Code and the Regulations. Section 15. Miscellaneous. Each Authorized Officer and any other agent or employee of the City is hereby authorized and empowered to take such other actions and execute and deliver such other instruments and agreements, including appropriate tax certifications and other closing certificates, as may be necessary or appropriate for the purposes of consummating the transactions contemplated herein, the necessity therefor and the appropriateness thereof to be evidenced conclusively by any such Authorized Officer's taking any such action or executing and delivering any such instrument, agreement or certificate and all actions taken heretofore and hereafter pursuant to the authority hereof are hereby authorized, ratified and approved for and as the actions of the City. Section 16. Invalidity. If any one or more of the provisions of this Resolution, or of any exhibit or attachment thereto, shall be held invalid, illegal, or unenforceable in any respect, by final decree of any court of lawful jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other provision hereof, or of any exhibit or attachment thereto, but this Resolution, and the exhibits and attachments thereto, shall be construed the same as if such invalid, illegal, or unenforceable provision had never been contained herein, or therein, as the case may be. Section 17. Continuing Disclosure. The City hereby covenants and agrees that it will provide financial information and material event notices as required by Rule 15c2-12 of the Securities Exchange Commission for the Certificates. The Mayor is authorized to execute at the Closing of the sale of the Certificates, an agreement for the benefit of and enforceable by the owners of the Certificates specifying the details of the financial information and material event notices to be provided and its obligations relating thereto. Failure of the City to comply with the undertaking herein described and to be detailed in said closing agreement, shall not be a default hereunder, but any such failure shall entitle the owner or owners of any of the Certificates to take such actions and to initiate such proceedings as shall be necessary and appropriate to cause the City to comply with its undertaking as set forth herein and in said agreement, including the remedies of mandamus and specific performance. Section 18. Post Issuance Compliance. The City does hereby adopt Meierhenry Sargent Post-Issuance Compliance Policy and Tax-Advantaged Obligations and Continuing Disclosure with regard to the Certificates attached hereto. The City appoints the Finance Manager as the chief compliance officer. Section 19. Conflicting Resolutions Repealed. All resolutions or parts thereof in conflict herewith are, to the extent of such conflict, hereby repealed. Topics for future discussion. A motion was made by Council Member Thorpe, seconded by Council Member Bacon, to have a discussion on Residency Requirements for the Various Boards, Committees and Commissions at a future meeting. The motion carried by the following vote: Yes: 6 - Corbett, Hansen, Niemeyer, Thorpe, Meyer, and Bacon; Absent: 1 – Reed. A motion was made by Council Member Thorpe, seconded by Council Member Meyer, to have a discussion regarding parking requirements for residential development in core business districts at a June City Council Meeting Agenda. The motion carried by the following vote: Yes: 6 - Corbett, Hansen, Niemeyer, Thorpe, Meyer, and Bacon; Absent: 1 – Reed. Executive Session. A motion was made by Council Member Hansen, seconded by Council Member Niemeyer, to enter into Executive Session at 7:12 p.m. for purposes of consulting with legal counsel regarding proposed or pending contractual matters with the City Manager, City Attorney, and Communications Specialist also present. The motion carried by a unanimous vote. A motion was made by Council Member Niemeyer, seconded by Council Member Hansen, to exit Executive Session at 8:17 p.m. The motion carried by a unanimous vote. Adjourn. A motion was made by Council Member Hansen, seconded by Council Member Niemeyer, to adjourn the meeting at 8:18 p.m. The motion carried by a unanimous vote. CITY OF BROOKINGS Tim Reed, 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 2015-0331,Version:1 Action on Abatement for Parcel 40999-00011-107-00; Mobile Home on Leased Site Normandy Village #107. Summary: This will authorize Brookings County to identify this property for tax exempt status. Background: This Mobile Home qualifies for tax exemption as per government program. When Mobile Home was registered, the computer program added value in error. Fiscal Impact: Should have no taxes due for 2015. Amount to be abated $44.93. Recommendation: Staff recommends approval. Attachments: Abatement Information City of Brookings Printed on 5/21/2015Page 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 #:RES 15-060,Version:1 Action on Resolution 15-060, a Resolution authorizing the City Manager of the City of Brookings, SD to sign the Cooperative Fire Agreement with the State of South Dakota. Summary: Resolution authorizing the City Manager of the City of Brookings, South Dakota to sign the Cooperative Fire Agreement with the State of South Dakota. Recommendation: Staff recommends approval. Attachments: Letter requesting signatures Wildland Fire Agreement Resolution City of Brookings Printed on 5/21/2015Page 1 of 1 powered by Legistar™ Resolution No. 15-060 Resolution authorizing the City Manager of the City of Brookings, South Dakota to sign the Cooperative Fire Agreement with the State of South Dakota. Be It Resolved by the City Council of the City of Brookings, South Dakota (the “City”), as follows: The City Manager of the City of Brookings is hereby authorized to sign the Cooperative Fire Agreement between the State of South Dakota, by and through the South Dakota Department of Agriculture, Division of Wildland Fire Suppression, and the City of Brookings, South Dakota, and This Resolution shall constitute Proof of Authority of the City Manager of the City Brookings to sign the above-described Agreement on behalf of the City of Brookings, South Dakota. Passed and approved this 26th day of May, 2015. City of Brookings, SD Tim Reed, 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 2015-0384,Version:1 Presentation of City of Brookings 2014 Annual Financial Report. Summary: Chris Lindner, CPA, CGMA, Manager, BKD, LLP will be present to discuss the 2014 Financial Audit and the City of Brookings Comprehensive Financial Report. Attachments: Presentation 2014 Comprehensive Annual Financial Report City of Brookings Printed on 5/21/2015Page 1 of 1 powered by Legistar™ experience responsiveness // CPAs & ADVISORS City of Brookings, South Dakota 2014 Audit Presentation Chris Lindner, CPA, CGFM TESTING APPROACH & TIMELINE Audit Interim/Planning, Internal Control Walkthroughs Coordination with Other Auditors OMB Circular A-133 (“Single Audit”) federal compliance audit Final Audit Fieldwork Audit Wrap-up / Concurring Review Audit Results and Communication 2 // 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 127 of the City’s CAFR) 3 // experience responsiveness RESERVES – COMPARISON TO PEER CITIES “Unrestricted” Fund Balance as a % of Annual Expenditures – General Fund 4 // experience responsiveness 2014 2013 2012 City of Brookings 55%49%34% Peer Group 31%32%34% LONG-TERM DEBT LEVELS – COMPARISON TO PEER CITIES Governmental Debt Principal Outstanding to Assessed Valuation 5 // experience responsiveness 2014 2013 2012 City of Brookings $2.40 $1.99 $1.92 Peer Group $2.02 $2.02 $1.84 LONG-TERM DEBT LEVELS – COMPARISON TO PEER CITIES Governmental Debt Principal Outstanding to Population 6 // experience responsiveness 2014 2013 2012 City of Brookings $1,121 $895 $848 Peer Group $1,085 $940 $878 LONG-TERM DEBT LEVELS – COMPARISON TO PEER CITIES Total Debt (Governmental and Business-Type) Principal Outstanding to Population 7 // experience responsiveness Note: City of Brookings figure excludes debt principal for the Telephone Fund and Health System for comparability purposes. 2014 2013 2012 City of Brookings $2,537 $1,597 $1,411 Peer Group $2,399 $2,149 $2,097 AUDIT COMMUNICATION LETTER Significant accounting policies Significant accounting estimates Financial statement disclosures Audit adjustments Disagreements with management or difficulties encountered in performing the audit –None Upcoming accounting pronouncements 8 // experience responsiveness Questions? Thank You!!! 9 // experience responsiveness FISCAL YEAR ENDED DECEMBER 31, 2014 2014 COMPREHENSIVE ANNUALFINANCIAL REPORT CITY OF BROOKINGS, SOUTH DAKOTA About the Cover: The village of Brookings was incorporated as a city in 1881, with approval for the status granted by the legislature in 1883. Historic records indicate 70 firms were in business on Main Avenue in 1881. Main Avenue became the single axis that dominated the town, symbolizing one of the most vital elements in the development of small towns. The Brookings Commercial Historic District (pictured on the cover) is currently comprised of 59 buildings. Predominantly exhibiting early twentieth century vernacular brick-front commercial construction, the district also has examples of late nineteenth century vernacular commercial construction, and is influenced by the Romanesque, Beaux-Arts, Classical Revival, and Art Deco styles. The district provides commercial goods and services for residents of the community. 2014 COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF BROOKINGS, SOUTH DAKOTA _________________________________________ January 1, 2014 – December 31, 2014 _________________________________________ Prepared by: THE CITY FINANCE OFFICE Rita Thompson, Finance Manager _________________________________________ 1 City of Brookings December 31, 2014 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 75 Budgetary Comparison Schedule General Fund 76 Notes to Required Supplementary Information - Budgetary Reporting 77 Supplementary Information and Combining Financial Statements Nonmajor Governmental Funds Balance Sheet 79 Statement of Revenues, Expenditures, and Changes in Fund Balances 80 Nonmajor Special Revenue Funds 81 Balance Sheet 82 Statement of Revenues, Expenditures, and Changes in Fund Balances 84 Budgetary Comparison Schedules 86 Nonmajor Debt Service Funds 95 Balance Sheet 96 Statement of Revenues, Expenditures, and Changes in Fund Balances 97 Budgetary Comparison Schedules 98 Nonmajor Capital Project Funds 103 Balance Sheet 104 Statement of Revenues, Expenditures, and Changes in Fund Balances 105 Budgetary Comparison Schedules 106 2 City of Brookings December 31, 2014 Table of Contents (Continued) Nonmajor Enterprise - Type Funds 110 Statement of Net Position 112 Statement of Revenues, Expenses, and Changes in Net Position 114 Statement of Cash Flows 116 Nonmajor Internal Service Funds 120 Statement of Net Position 121 Statement of Revenues, Expenses, and Changes in Net Position 122 Statement of Cash Flows 123 Fiduciary Funds 124 Statement of Net Position 125 Statement of Changes in Assets and Liabilities 126 PART III - STATISTICAL SECTION 127 Table 1 Net Position by Component 128 Table 2 Changes in Net Position 130 Table 3 Fund Balances of Governmental Funds 136 Table 4 Changes in Fund Balances of Governmental Funds 138 Table 5 Assessed Value and Actual Value of Taxable Property 140 Table 6 Direct and Overlapping Property Tax Rates 140 Table 7 Principal Taxpayers 141 Table 8 Property Tax Levies and Collections 141 Table 9 Historical Sales and Use Tax Receipts 142 Table 10 Taxable Sales by Category 142 Table 11 Direct and Overlapping Sales Tax Rates 144 Table 12 Ratio of Net General Bonded Debt 144 Table 13 Ratio of Outstanding Debt by Type 145 Table 14 Direct and Overlapping Governmental Activities Debt 145 Table 15 Legal Debt Margin Information 146 Table 16 Pledged-Revenue Coverage 148 Table 17 Demographic and Economic Statistics 151 Table 18 Principal Employers 152 Table 19 Full-Time Equivalent City Government Employees by Function/Program 153 Table 20 Operating Indicators by Function/Program 154 Table 21 Capital Asset Statistics by Function/Program 155 PART IV - SINGLE AUDIT SECTION Schedule of Expenditures of Federal Awards 157 Independent Auditor's Report on Internal Control Over Financial Reporting and 159 on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards Report on Compliance For Each Major Federal Program and on Internal Control Over 161 Compliance - Independent Auditor's Report Schedule of Findings and Questioned Costs 163 Summary Schedule of Prior Audit Findings 165 3 May 13, 2015 The Honorable Mayor Tim Reed 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, 2014. 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, 2014, 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, 2014 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. The independent audit of the financial statements of the City of Brookings was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report on not only the fair presentation of the financial statements, but also on the audited government’s internal controls and legal requirements involving the administration of federal awards. These requirements are included in 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 22,000 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 4 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 over 12,500 students in 2014, making it the largest university in the state. 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. 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. Most recently, Brookings welcomed a new state-of-the-art cheese plant, Bel Brands, USA, with international headquarters in Paris, France. 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 22,900, the City has attracted various new retail and food establishments. The labor force increased from 13,375 to 13,770 from December 31, 2013 to December 31, 2014 and the total employment increased from 12,990 to 13,415 individuals for those dates, respectively. Unemployment for Brookings was at 2.6 percent, well below the national average of 6.2 percent and down .3 percent from the 2013 rate of 2.9 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 2014, the city approved 448 building permits which was a slight increase from the 440 approved in 2013. The estimated construction value of residential and nonresidential construction was $48.3 million in 2014; down 18 percent from the $58.6 in 2013. Nonresidential construction accounted for 57 percent of the estimated construction value in 2014 compared to 60.7 percent in 2013. The largest nonresidential projects included a remodel of the water park at Days Inn, and the building of a new elementary school. 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 2015 Strategic Plan includes the following: • Investigate and develop a plan for future indoor/outdoor recreational facilities • Identify/assist partners with developing entrepreneurship opportunities • Identify and implement additional Lean measures and High-Performance Government practices for improved service delivery • Complete update of Vision 2020 Comprehensive Plan with projections to 2035 • Develop implementation plan for improved stewardship of our assets • Key strategic initiatives - construction • Street maintenance facility • Airport runway re-alignment completion • Division Ave. and Derdall Ave. drainage projects • Main Ave. S./26th St. completion • Main Ave.; 8th St. S. to 20th St. S. (Urban project) • 22nd Ave. railroad crossing improvement (DOT project) • Sunrise Ridge Road extension (DOT project) • Highway 14 bypass improvement project (DOT project) • 34th St. S.; Prince Dr. to 8th St. S improvement project (County-City project) • Annual streets and parks maintenance/improvement projects • Key strategic initiative - programming & planning • 20th St. S. overpass/interchange • 20th St. S.; Main Ave. to Rio Grande Ave. • Western Ave.; 20th St. South to 32nd St. S. • Gateway entrances ROW upgrades of 6th St.; 20th Ave. to 34th Ave. & Main Ave. to Medary Ave. • Workforce development with BEDC • Economic development (industrial, retail, visitor, research) with BEDC, CVB, GP Major Initiatives Some major capital initiatives planned or ongoing are listed below: Infrastructure: Street system improvements: • Main Avenue Upgrade - This project will upgrade a previous county road from 20th Street South to 26nd Street South to City standards with major utility installation. This project will open up approximately 600 acres for new commercial, residential, institutional, and parkland development and is the City’s next major growth corridor. Included in this growth corridor is construction of a new elementary (K-3) school by the school district. The District is planning for classroom expansion at other schools in the near future to accommodate growing enrollment. • 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 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 first of four phases to the main, central traffic corridor through the center of Brookings was completed last year by the South Dakota Department of Transportation. The subsequent three phases are slated over the next five-year period to replace an aging road system while also improving safety and capacity. The total project cost is estimated at $17.5 million and includes interstate bridge replacement and the addition of pedestrian bicycle lanes and extensive landscape enhancements. Storm Drainage - Brookings continues incremental, annual work on a comprehensive ten-project multi-year master plan for storm drainage improvements: • Folsom Street/Division Avenue detention pond. • Municipal Golf course storm drainage improvements. • Sixth Street storm sewer upgrade. • Main Avenue South storm sewer pipe project. 6 • 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 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 Runway realignment - The multi-year project will realign the current runway to comply with FAA standards. The project is expected to run through 2015. The $21.2 million project is eligible for Federal funding through the Airport Improvement Program of the Federal Aviation Administration. In addition to the new main runway, the project includes a new cross-wind runway, aprons, taxiways, navigational aids, and safety zone improvements. Brookings has the third busiest airport in the State for landings and take-offs. Street Department Building - The new street department building was moved up on the schedule due to a fire in 2014 that destroyed one of the main storage buildings. This project will include removing the old street shop/office buildings and replacing them with one multi-function building. The project is expected to be completed by summer 2016 and estimated to cost $4 million. Electrical, Water and Wastewater Plant Improvements-Brookings Municipal Utilities is currently undertaking a $30 million upgrade and expansion of the wastewater treatment plant and pumping facilities to respond to new environmental regulations and community growth. Shortly thereafter, similar upgrades and expansions are slated for the water treatment plant. 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 will soon make a $10 million investment in its PCS services under the Spring cellular brand for 4G capabilities. Health Care Brookings Health System -The Brookings Health System Expansion and Renovation Project will consist 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 Nature Park – The multi year project started in 2012 converts 120-acres of the old City landfill into a nature park with trails, recreational areas, several small lakes, and a Nature Interpretive Classroom Center. In 2015, a pump park will be added as the final component of the Nature Center Master Plan. The pump park is designed to help riders develop mountain biking skills. The park will have rookie, novice and expert level courses. Other 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, 2014 Tim Reed…………………………………………………………………………………………………Mayor Keith Corbett…………………………………………………………………………………………Deputy Mayor Thomas Bezdichek…………………………………………………………………………………Council Member Dan Hansen……………………………………………………………………………………………Council Member John Kubal………………………………………………………………………………………………Council Member Ope Neimeyer…………………………………………………………………………………………Council Member Jael Thorpe……………………………………………………………………………………………Council Member Jeffery W. Weldon…………………………………………………………………………………City Manager Steven Britzman……………………………………………………………………………………City Attorney Shari Thornes…………………………………………………………………………………………City Clerk Jacki Lanning…………………………………………………………………………………………City Engineer Mike Struck……………………………………………………………………………………………Commnity Development Director Rita Thompson………………………………………………………………………………………Finance Manager Darrell Hartman………………………………………………………………………………………Fire Chief Donna Langland………………………………………………………………………………………Human Resources Director Elvita Landau…………………………………………………………………………………………Library Director Janet Coplan……………………………………………………………………………………………Liquor Store Manager Pete Colson……………………………………………………………………………………………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……………………………………………………………………………………………Utiltites 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 City ClerkBrookings Health System Finance/ IT 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, 2014 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, 2014, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements 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 85%, 79% and 87%, 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, a 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, 2014, and the respective changes in financial position and cash flows, where applicable, 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, 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. Supplementary 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 information, consisting of combining financial statements and the schedule of expenditures of federal awards required by OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 information is fairly stated in all material respects in relation to the basic financial statements as a whole. 14 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 information in the introductory and statistical sections listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has 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 it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 13, 2015, 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 13, 2015 15 City of Brookings December 31, 2014 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, 2014. 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 outflow of resources exceeded its liabilities by $279,104,286 (net position) for the calendar year reported. • Total net position is comprised of the following: 1. Net investment in capital assets, of $161,403,141 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 $7,874,148 is restricted by constraints imposed from outside the City such as debt covenants, grantors, laws, or regulations. 3. Unrestricted net position of $109,826,997 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 $80,092,497 this year. This compares to the prior year ending net position of $79,734,486 showing a increase of $358,011 during the calendar year. Unrestricted net position of $20,309,859 at December 31, 2014 shows a $5,534,080 increase from the prior year. • At the end of the current calendar year, unassigned fund balance for the General Fund was $7,391,078, or 47.5% of total General Fund expenditures. • The City’s business-type activities reported increased net position of $24,148,264 ending the current year at $199,011,789. This increase in business-type activities is somewhat similar to what a private business might report as net profit and most of this increase reflects the significant Federal grant revenue for the Airport runway realignment project. • The City’s total outstanding long-term liabilities increased by $17,869,388 ending the current fiscal year at $88,661,157 outstanding. 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 over time may serve as a useful indicator of whether the City’s financial position is improving or deteriorating. 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. 16 City of Brookings December 31, 2014 Management's Discussion and Analysis 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 19 individual governmental funds for 2014. 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 18 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 and unemployment compensation funds (closed in 2014). Because the self-insurance and unemployment compensation funds predominately benefit the business-type functions, they have been included with the business-type activities portion of the presentation of the government-wide statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is included in the combining and individual fund section of this report. 17 City of Brookings December 31, 2014 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, 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 2014, assets and deferred outflows exceeded liabilities by $279,104,286. This reflects an increase in the City’s combined net position of 9.6% between fiscal year 2013 and 2014. 2013 2014 2013 2014 2013 2014 Current and Other Assets $23,325,333 $27,440,425 $97,708,817 $112,408,858 $121,034,150 $139,849,283 Capital Assets 79,791,551 82,211,515 135,897,917 162,776,672 215,689,468 244,988,187 Total Assets 103,116,884 109,651,940 233,606,734 275,185,530 336,723,618 384,837,470 Deferred Outflows of Resources 722,246 641,997 - - 722,246 641,997 Total Assets and Deferred Outflows of Resources 103,839,130 110,293,937 233,606,734 275,185,530 337,445,864 385,479,467 Other Liabilities 2,138,677 2,414,763 9,917,407 15,299,261 12,056,084 17,714,024 Long-Term Liabilities 21,965,967 27,786,677 48,825,802 60,874,480 70,791,769 88,661,157 Total Liabilities 24,104,644 30,201,440 58,743,209 76,173,741 82,847,853 106,375,181 Net Investment in Capital Assets 62,699,489 56,625,781 95,258,237 104,777,360 157,957,726 161,403,141 Restricted 2,259,218 3,156,857 4,525,348 4,717,291 6,784,566 7,874,148 Unrestricted 14,775,779 20,309,859 75,079,940 89,517,138 89,855,719 109,826,997 Total Net Position 79,734,486 80,092,497 174,863,525 199,011,789 254,598,011 279,104,286 Beg. Net Position 77,216,452 79,734,486 159,009,825 174,863,525 236,226,277 254,598,011 Change in Net Position $2,518,034 $358,011 $15,853,700 $24,148,264 $18,371,734 $24,506,275 Percentage Change 3.3% 0.4% 10.0% 13.8% 7.8% 9.6% Condensed Statements of Net Position Governmental Activities Business-Type Activities Total 18 City of Brookings December 31, 2014 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 (when applicable) 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 (57.8%) of the City’s net position is represented by $161.4 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 2.9% of the total net position. These assets are subject to external restriction on how they may be used. The remaining unrestricted balance of $109.8 million (39.3%) 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, 2014 Management's Discussion and Analysis Changes in net position. The increase in net position for 2014 was $24,506,275. The Governmental Activities Net Position increased $358,011 and the Business-Type Activities Net Position increased $24,148,264. The Governmental Activities net position increased slightly in 2014 due to a controlled spending. The Business-Type Activities significantly increased their net position in large part due to an increase in Federal grant revenue. 2013 2014 2013 2014 2013 2014 Revenues Program Revenues Charges for Services $3,327,866 $3,326,760 $119,137,805 $132,418,963 $122,465,671 $135,745,723 Operating Grants 217,529 881,030 34,994 405,059 252,523 1,286,089 Capital Grants 4,736,387 221,332 7,680,056 11,935,303 12,416,443 12,156,635 General Revenues Taxes 17,009,697 17,745,463 - - 17,009,697 17,745,463 State Shared Revenues 189,336 210,750 - - 189,336 210,750 Investment Earnings (loss)(13,967) 287,430 344,479 705,244 330,512 992,674 Miscellaneous 657,883 1,957,732 168,312 179,817 826,195 2,137,549 Total Revenues 26,124,731 24,630,497 127,365,646 145,644,386 153,490,377 170,274,883 Expenses General Government 2,358,748 3,017,290 2,358,748 3,017,290 Public Safety 4,764,759 5,036,493 4,764,759 5,036,493 Public Works 10,914,820 7,410,926 10,914,820 7,410,926 Health and Welfare 158,918 112,621 158,918 112,621 Culture and Recreation 6,295,703 7,168,741 6,295,703 7,168,741 Conservation and Development 990,262 1,939,064 990,262 1,939,064 Interest charges 675,609 808,496 675,609 808,496 Electric Fund 20,251,826 21,175,715 20,251,826 21,175,715 Health System Fund 36,080,349 52,211,048 36,080,349 52,211,048 Telephone Fund 33,816,035 33,929,866 33,816,035 33,929,866 Liquor Fund 9,680,751 3,664,576 9,680,751 3,664,576 Water Fund 2,692,785 2,641,459 2,692,785 2,641,459 Wastewater Fund 2,698,766 3,124,572 2,698,766 3,124,572 Airport Fund 442,346 383,714 442,346 383,714 Golf Fund 546,691 552,028 546,691 552,028 Solid Waste Fund 2,580,584 2,410,877 2,580,584 2,410,877 Research and Technology Fund 169,691 181,122 169,691 181,122 Total Expenses 26,158,819 25,493,631 108,959,824 120,274,977 135,118,643 145,768,608 Excess Before Transfers (34,088) (863,134) 18,405,822 25,369,409 18,371,734 24,506,275 Transfers 2,552,122 1,221,145 (2,552,122) (1,221,145) - - Change in Net Position 2,518,034 358,011 15,853,700 24,148,264 18,371,734 24,506,275 Beginning Net Position 77,216,452 79,734,486 159,009,825 174,863,525 236,226,277 254,598,011 Ending Net Position 79,734,486$ 80,092,497$ 174,863,525$ 199,011,789$ 254,598,011$ 279,104,286$ Condensed Statements of Activities Governmental Business-Type Activities Activities Total Governmental activities. Revenues for the City’s governmental activities were $24,630,497. Taxes accounted for 72% of the overall revenues generated in 2014 compared to 65% in 2013. Capital grants and contributions decreased by 95.3% due to a reduction in the number of Federal and State grants for capital projects. Other revenue sources reflected a combination of increases and decreases with a minimal net effect. Charges for delivered services remained constant at 13.5% of the overall revenues generated. Governmental Activities expenses decreased by 2.5% from 2013. The decrease is a combination of overall increases and decreases, with the largest decrease in public works due to the near completion of the digester the City is building to accommodate the new Bel Brands Cheese plant. 20 City of Brookings December 31, 2014 Management's Discussion and Analysis Business-type activities. Revenues of the City’s Business-Type Activities increased 14.4% in 2014 compared to a 9.5% increase in 2013. The telephone charges for services increased by approximately $1.5 million due to increased usage of the telecommunications facilities and additional sales volumes. The electric fund charges for services increase by approximately $1.3 million due to a 3.4% increase in kilowatt-hour sales and an overall 3.5% increase to user charges. The wastewater charges for services increased by approximately $.7 million in 2014 due to a 7.5% overall increase to user charge as well as the addition of a large commercial customer in 2014. Operating expenses increased by approximately $11 million or 10%. The largest increase in expenses was the health system fund which increased by $16.1 million or 44.7% over 2013, due to the Professional Services Agreement with the Brookings Medical Clinic that began January 1, 2014. The telephone fund expenses increased by approximately $.4 million or 1.4% , a modest increase due to expenditure control. The electric fund expenses increased by $1.0 million or 5.1% primarily due to the cost of power purchased from power suppliers. 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-one funds – general fund, nine special revenue funds, five debt service funds, four capital project funds, ten business-type funds and two internal service funds (one closed in 2014). 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. 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 2.8% increase or $357,659 in sales tax revenue compared to the prior year. The City’s Ends policy takes a conservative approach to budgeting and provides that the City average the last five years tax revenues and budget a 2.5% increase above that average. The net increase in sales & use tax revenue was reflected as follows: 2.5% or $149,853 increase in 1st penny sales and use tax, 2.5% or $37,145 increase in the 25% portion of the 2nd penny sales and use tax, 2.5% or $112,283 increase in the 75% portion of the 2nd penny sales and use tax, and a 7.5% or $58,378 increase in the 3rd penny Bed and Booze tax. A contributing factor to the increase, however, is 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 the construction phases of the Bel Brands cheese plant. During phase I and phase II the City will reimburse the cheese plant an amount equal to the Brookings City sales and use tax paid on equipment purchases up to $2,520,000. In addition, the City has provided a reimbursement equal to all Brookings City sales and use tax paid by the cheese plant on the purchase of construction materials for the facility of $390,000. In addition, 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. General Fund. The General Fund is the primary operating fund of the City. The fund balance increased by $3,584,412 from 2013. General Fund revenues increased overall by $1,487,165 or 13.8%. Over one third of this increase, $548,559, is due to reporting liquor operating agreement override revenue directly into the General Fund rather than being reported in the Liquor fund and transferred to the General Fund. Other General Fund changes in revenue included increased property tax revenue of $119,765, or 4.6%. This increase was comprised of the statutorily provided 3.0 % inflationary adjustment and a 2.33% increase in taxable valuation due to new properties added. 21 City of Brookings December 31, 2014 Management's Discussion and Analysis Proprietary (business-type) Funds Electric Fund. In 2014, the Electric fund net position increased by $2,297,722, compared to an increase of $2,048,903 in 2013. Operating transfers totaling $1,855,000 were made from the Electric Fund to the General Fund in 2014. Telephone Fund. The Telephone fund net position increased by $2,883,559 in 2014 and $1,853,535 in 2013. Operating transfers totaling $250,000 were made from the Telephone Fund to the General Fund in 2014. Wastewater Fund. The Wastewater fund net position increased by $2,230,536 in 2014 and $1,812,034 in 2013. Capital contributions of $1,232,643 were responsible for 55.3% of the increase in net position. Health System Fund. Brookings Health System increased its net position by $2,355,678 in 2014 and $2,379,704 in 2013. The increase in net position is primarily related to a 25.6% increase in sleep studies, 19.3% increase in imaging procedures, 18.2% increase in swing bed days, 17% increase in ambulance runs, 7.8% increase in outpatient surgeries, 6.1% increase in ER visits, 3.1% increase in nursing home resident days and a 2.5% increase births. In addition, Brookings Health System received $869,515 in Electronic Health Records payments from Medicare and Medicaid in 2014. General fund budgetary highlights Over the course of the year, the City Council revised the City budget two 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 $3,362,759, or about 20.8%. Budget amendments were made to increase funds mainly for capital outlay which included the following: additional expenses to complete the Main Avenue south project, unexpected equipment purchases to replace equipment lost in the fire at the street department, and additional expenses to purchase land for future retail development. Increases were also necessary to account for the liquor operating agreement override activity now accounted for in the General Fund. Actual General Fund expenditures were $3,674,727 less than the adjusted budget. Some departments didn’t complete all scheduled projects or purchases in 2014 and therefore were under budget as follows: police was $173,278 under budget, fire was $138,631 under budget; highways and streets $3,162,581 under budget; parks was $453,657 under budget. Overall, the departments held their spending in line with the budget for 2014. Actual General Fund revenues were $402,198 more than the adjusted budget due to following the conservative Governance and Ends Policy relating to budgeted revenues. Capital Asset Administration Total Total Dollar Percentage Change Change Capital Assets (Net of Depreciation)2013 2014 2013-2014 2013-2014 Land 8,858,545$ 9,496,603$ 638,058$ 7.2% Construction in Progress 2,417,968 2,956,531 538,563 22.3% Buildings and Other Improvements 27,672,160 29,366,530 1,694,370 6.1% Machinery and Equipment 6,479,639 6,713,193 233,554 3.6% Infrastructure 34,363,239 33,678,658 (684,581) -2.0% Total Capital Assets (Net)79,791,551$ 82,211,515$ 2,419,964$ 3.0% Governmental Activities 22 City of Brookings December 31, 2014 Management's Discussion and Analysis Major activity within the Governmental Activities in 2014 included the following: Land was purchased for $619,958 that will be used for a storm drainage project. Buildings and other improvements increased 6.1% as a result of completion of the Nature Center located at the Dakota Nature Park. Infrastructure projects included 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 infrastructure in 2014 was $793,147 of which $183,148 was donated. In addition, other projects included storm drainage, street overlays, and replacement of various underground pipe. Major equipment purchased or replaced included replacement of records management software for the police department, 1 replacement police vehicle; a digital training trailer for the fire department to teach children how to escape from fires, a variety of machinery and equipment destroyed in the street shop fire (insurance proceeds covered expense), replacement tractors, mowers, and hydro rake for the Parks department, additional security equipment, and replacement ice resurfacer for the ice arena, and outdoor exhibits for the Dakota Nature Park. Dollar Percentage Change Change Capital Assets (Net of Depreciation)2013 2014 2013-2014 2013-2014 Land 4,750,283$ 4,770,567$ 20,284$ 0.4% Construction in Progress 17,700,484 43,036,020 25,335,536 143.1% Buildings and Other Improvements 101,953,989 104,399,757 2,445,768 2.4% Machinery and Equipment 11,493,161 10,570,328 (922,833) -8.0% Total Capital Assets (Net)135,897,917$ 162,776,672$ 26,878,755$ 19.8% Total Total Business-type Activities Major activity in the Business-Type Activities in 2014 included the following: In 2014, the Electric fund increased capital assets by approximately $5,182,000. Of that total $3,714,000 was spent in the reconstruction of three substations and related improvements in the ongoing effort to convert the distribution system to higher voltage. The Telephone fund increased capital assets by approximately $1,925,000 in 2014. Upgrades included the continuing effort to convert customers from a copper to fiber facility, a variety of electronics and infrastructure improvements, an increase in wireless capacities, and the continued deployment of broadband services. The Wastewater fund increased capital assets by approximately $14,760,000 due to the construction in progress for the improvement of the Wastewater treatment facilities and collection system which began in 2012. The estimated cost to complete this project is $30,600,000 and is being funded through a Wastewater revenue bond through the State Revolving Fund. The improvements are being done through four projects. Project A is the upgrade of the Wastewater Treatment Plant. Progress continues with approximately 80% of the project completed to date. Construction is expected to be completed in 2015. In 2014 the Brookings Health System capital assets decreased by $2,492,078 primarily due to the increase in depreciation costs on the skilled nursing facility that was added to capital assets in 2013. The Solid Waste fund had equipment purchases of $464,618 including a replacement of a dozer and replacement of a mower. The Airport capital asset additions totaled $10,816,116. Of this, $25,000 was land purchases necessary for the airport realignment project and $10,752,732 for construction of the runway relocation project. Most of the cost for these projects was paid for with Federal Airport Improvement Project funds. 23 City of Brookings December 31, 2014 Management's Discussion and Analysis See note 7 for additional information regarding capital assets. Long-Term Liabilities At December 31, 2014, the City had the following long-term liabilities: Dollar Percentage 2013 2014 2013 2014 Amount Amount Revenue Bonds 17,012,869$ 25,571,694$ 11,750,015$ 10,809,915$ 7,618,725$ 26.5% Bond Anticipation Note 2,909,217 - - - (2,909,217) -100.0% Loans - - 4,120,364 20,593,606 16,473,242 399.8% Capital leases 297,042 151,640 27,737,866 24,784,739 (3,098,529) -11.1% OPEB 987,377 1,169,395 825,627 929,108 285,499 15.7% Amount Due Under Joint Agreements - - 2,136,661 1,534,477 (602,184) -28.2% Landfill Closure/Postclosure - - 676,802 723,374 46,572 6.9% Compensated Absences 759,462 893,948 1,578,467 1,499,261 55,280 2.4% Total Long-Term Liabilities 21,965,967$ 27,786,677$ 48,825,802$ 60,874,480$ 17,869,388$ 25.2% Total Change Activities Activities Governmental Business-Type The City has outstanding Sales Tax Revenue Bonds in the amount of $10,750,000 at the end of 2014. 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 $10,000,000 at the end of 2014. 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. In December 2014, Moody's Investor Service upgraded the City's sales tax rating from A2 to A1, citing the broad base of the City's sales tax, strong debt service coverage levels, positive sales tax trends, and relatively weak legal structures as rationale for the rating. Concurrently, Moody's affirmed the City's Aa3 issuer rating. The report from Moody's cited the City's moderately- sized growing tax base, maintenance of ample reserves, and manageable debt burdens as rationale for the decision. The City has an outstanding State Revolving Fund Bond in the amount of $593,250. 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 $349,624, $316,519, $211,279, $1,918,052, and $228,351. 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. 24 City of Brookings December 31, 2014 Management's Discussion and Analysis The City has an outstanding bond from South Dakota SDHDA in the amount of $793,290. 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 $315,449. 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. A Wastewater revenue bond in the principal amount of $30,600,000 was issued December 28, 2012 through a loan between the City and the South Dakota State Revolving Fund. The proceeds will be used for the improvement of the Wastewater treatment facilities and collection system. The rates and charges relating to the improvements will be in the form of a surcharge for wastewater utility service. The initial surcharge for the loan agreement will be effective January 2014. The bonds are secured by gross revenues derived solely from the revenues of the wastewater surcharge and are not a general obligation of the City of Brookings. The interest rate for the loan is 3.25% with final maturity due October 15, 2044. As of December 31, 2014 advances of $20,593,606 have been made from the principal amount. This loan is interest only through 2014. The Electric Revenue Bonds, Series 2011 were issued by the City of Brookings for $6,500,000 with interest rates of .65% to 4.0%. The proceeds will be used to provide financing for all or a portion of the cost of acquiring and constructing improvements to the electrical facilities of the Utility, consisting of the construction of a 115KV transmission line, reconstruction of three substations, and the installation of four 115/12.5kV transformers and related improvements. The rates and charges relating to the improvements will be in the form of a surcharge for electric utility service. The bonds are secured by gross revenues derived from the operation of the Improvements and are irrevocably set aside, pledged, and appropriated to a special fund within the Utility as received and do not constitute a general obligation of the City of Brookings, SD. Interest is payable semiannually on June 1, and December 1, commencing on June 1, 2012. Principal is due annually on December 1 commencing on December 1, 2012, with final maturity on December 1, 2031. Outstanding principal is $5,750,000. The City has additional outstanding Utility Revenue Bonds in the amount of $5,059,915. The bonds are secured by revenue generated from the Telephone Fund (formerly PCS) and Electric Fund. These bonds will be retired in December 2019 and July 2028. 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 $15,060,000. The City has Certificates of Participation for the construction of the skilled nursing facility in the amount of $9,724,739. The City has a lease purchase agreement for four fire trucks with one payment left in the amount of $151,640 outstanding to be paid utilizing 2nd Penny Sales and Use Tax Funds. The City is liable for the accrued compensated absences of $893,948 within the Governmental Funds and $1,499,261 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 2014 Sales & Use Tax revenues were up 2.8% from the 2013 revenue which included the effects of the construction of a $4.7 million cheese manufacturing plant. The 2015 tax revenue was budgeted with a projected 7.3% growth from the 2014 budget. The 2014 property tax levy (payable in 2015) decreased .033 per thousand in valuation. In the last year the taxable valuation for the City of Brookings has increased $52.4 million. 25 City of Brookings December 31, 2014 Management's Discussion and Analysis For 2015 the City budgeted a 2.5% overall salary increase plus movement through steps for employees. At the time the budget was completed, health insurance premiums were budgeted to increase 2%; however through negotiation and plan changes, the premium remained the same as that of 2013. Vision premiums remained virtually the same as 2013 as did dental coverage. The 2015 budget added two new full-time positions. An Information Technology Specialist was added for the full year, and an additional Police Officer was added for one-half of the year beginning July 1. The chart at right shows the comparison of the 2015 budget with the 2014 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 for new facilities such as the Dakota Nature Park, necessary maintenance, and rent of temporary facilities while the new street department is being built. The slight increase in capital outlay reflects the continued development of multi-year projects such as the Dakota Nature Park, storm water projects and the development of the infrastructure and major street repairs on Main Avenue south. Debt service increased significantly as scheduled payments for the $10,000,000 2014A bonds. The enterprise funds did not budget an increase in staff numbers for 2015. The decrease in personnel expenses is due to turnover of three long term employees. Capital expenses decreased because of completion of construction of the airport runway realignment. Most of the funds for the construction will come from Federal Airport Improvement Project 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. 2014 2015 % BUDGET BUDGET CHANGE Personnel $10,672,353 $ 10,899,083 2.1% Current Operating 6,014,912 6,665,976 10.8% Subsidies to Other 1,296,700 1,366,830 5.4% Capital Outlay 10,398,864 10,470,826 0.7% Debt Service 2,389,797 4,060,114 69.9% Transfers 10,017,010 4,393,838 -56.1% ALL GOVERNMENTAL FUNDS (Liquor-Airport-SWC-2014 2015 % SWD-Golf -R&T Center)BUDGET BUDGET CHANGE Personnel $1,737,714 $1,726,816 -0.6% Current Operating 1,548,352 1,555,929 0.5% Capital 13,254,133 2,118,659 -84.0% Transfers 1,415,000 1,025,000 -27.6% ENTERPRISE FUNDS 26 City of Brookings December 31, 2014 Statement of Net Position Component Primary Government Unit Governmental Business-Type Health System Activities Activities Total Foundation ASSETS Cash and cash equivalents 7,579,590$ 65,970,257$ 73,549,847$ 111,732$ Investments 7,764,480 16,834,236 24,598,716 - Receivables, net 1,526,631 17,737,395 19,264,026 169,516 Due from other governments 1,322,198 2,712,105 4,034,303 - Internal balances 3,052,067 (3,052,067) - - Land held for resale 3,322,442 - 3,322,442 - Inventories 83,831 4,847,946 4,931,777 - Deposit 355,852 - 355,852 - Prepaid expenses 529,561 1,153,305 1,682,866 - Prepaid bond insurance 71,252 - 71,252 - Restricted cash and cash equivalents 1,832,521 5,311,017 7,143,538 214,161 Other investments - 775,577 775,577 - Other assets - 12,613 12,613 - Personal communication services licenses - 106,474 106,474 - Capital assets: Capital assets not being depreciated 12,453,134 47,806,587 60,259,721 - Capital assets being depreciated, net 69,758,381 114,970,085 184,728,466 - Total capital assets 82,211,515 162,776,672 244,988,187 - Total assets 109,651,940 275,185,530 384,837,470 495,409 DEFERRED OUTFLOW OF RESOURCES Loss on debt refunding 641,997 - 641,997 - Total assets and deferred outflow of resources 110,293,937 275,185,530 385,479,467 495,409 LIABILITIES Accounts payable 1,420,066 12,510,339 13,930,405 476,479 Accrued expenses 201,309 1,793,499 1,994,808 2,035 Accrued interest 80,578 294,076 374,654 - Other current liabilities - 30,606 30,606 - Due to other governments 11,257 - 11,257 - Amount held for others 88,570 - 88,570 - Customer deposits - 137,190 137,190 - Unearned revenue 612,983 - 612,983 - Advance payments - 533,551 533,551 - Noncurrent liabilities: Portion due or payable within one year: Bonds payable 1,608,359 993,164 2,601,523 - Loans payable - 365,299 365,299 - Capital leases 151,640 2,579,896 2,731,536 - Compensated absences 300,000 1,084,189 1,384,189 - Portion due or payable after one year: Bonds payable 23,963,335 9,816,751 33,780,086 - Loans payable - 20,228,307 20,228,307 - Capital leases - 22,204,843 22,204,843 - OPEB payable 1,169,395 929,108 2,098,503 - Amount due under joint operating agreement - 1,534,477 1,534,477 - Accrued landfill closure and postclosure costs - 723,374 723,374 - Compensated absences 593,948 415,072 1,009,020 - Total liabilities 30,201,440 76,173,741 106,375,181 478,514 NET POSITION Net investment in capital assets 56,625,781 104,777,360 161,403,141 - Restricted for: Debt service and covenants 123,280 4,292,554 4,415,834 - Insurance deposit 355,852 - 355,852 - Other purposes (by donations)68,104 - 68,104 214,161 Capital assets (by donations)1,599,698 - 1,599,698 - Enabling legislation 1,009,923 - 1,009,923 - Landfill closure and post closure - 424,737 424,737 - Unrestricted 20,309,859 89,517,138 109,826,997 (197,266) Total net position 80,092,497$ 199,011,789$ 279,104,286$ 16,895$ The notes to the financial statements are an integral part of this statement 27 City of Brookings Year Ended December 31, 2014 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 3,017,290$ 103,908$ 157,261$ - $ (2,756,121)$ - $ (2,756,121)$ - $ Public safety 5,036,493 97,099 141,913 15,000 (4,782,481) - (4,782,481) - Public works 7,410,926 927,311 218,749 206,332 (6,058,534) - (6,058,534) - Health and welfare 112,621 11,848 - - (100,773) - (100,773) - Culture and recreation 7,168,741 2,186,594 363,107 - (4,619,040) - (4,619,040) - Conservation and development 1,939,064 - - - (1,939,064) - (1,939,064) - Interest and fiscal charges 808,496 - - - (808,496) - (808,496) - Total governmental activities 25,493,631 3,326,760 881,030 221,332 (21,064,509) - (21,064,509) - Business-type activities: Electric 21,175,715 25,314,931 - - - 4,139,216 4,139,216 - Health System 52,211,048 53,809,700 405,059 9,375 - 2,013,086 2,013,086 - Telephone 33,929,866 37,007,090 - - - 3,077,224 3,077,224 - Liquor 3,664,576 3,986,650 - - - 322,074 322,074 - Water 2,641,459 4,188,992 - 438,547 - 1,986,080 1,986,080 - Wastewater 3,124,572 4,102,822 - 1,232,643 - 2,210,893 2,210,893 - Airport 383,714 25,669 - 10,254,738 - 9,896,693 9,896,693 - Golf 552,028 304,314 - - - (247,714) (247,714) - Solid Waste 2,410,877 3,485,365 - - - 1,074,488 1,074,488 - Research and Technology 181,122 193,430 - - - 12,308 12,308 - Total business-type activities 120,274,977 132,418,963 405,059 11,935,303 - 24,484,348 24,484,348 - Total primary government 145,768,608$ 135,745,723$ 1,286,089$ 12,156,635$ (21,064,509) 24,484,348 3,419,839 - Component unit: Health System Foundation 145,682$ 20,752$ 115,666$ -$ (9,264) General revenues: Taxes: Property taxes 4,230,428 - 4,230,428 - Sales taxes 13,163,848 - 13,163,848 - Other taxes 351,187 - 351,187 - State shared revenues 210,750 - 210,750 - Unrestricted investment earnings 287,430 705,244 992,674 - Gain on disposition of capital assets 104,521 5,047 109,568 - Insurance recoveries 583,471 - 583,471 Miscellaneous 1,269,740 174,770 1,444,510 - Transfers 1,221,145 (1,221,145) - - Total general revenues and transfers 21,422,520 (336,084) 21,086,436 - Change in net position 358,011 24,148,264 24,506,275 (9,264) Net position - beginning 79,734,486 174,863,525 254,598,011 26,159 Net position - ending 80,092,497$ 199,011,789$ 279,104,286$ 16,895$ 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 4,868,572$ 2,711,018$ 7,579,590$ Investments 5,509,037 2,255,443 7,764,480 Restricted cash and cash equivalents 64,487 1,768,034 1,832,521 Receivables, (net of allowances for uncollectibles, if any): Property taxes 4,508 - 4,508 Accounts 330,054 563,245 893,299 Storm drainage fees - 855 855 Special assessments - 604,475 604,475 Interest 17,553 5,941 23,494 Due from other funds 74,157 3,782,124 3,856,281 Due from other governments 659,897 662,301 1,322,198 Land held for resale 3,322,442 - 3,322,442 Inventories: Supplies 53,155 - 53,155 Stores - 30,676 30,676 Deposits 355,852 - 355,852 Advance to other funds 1,453,135 - 1,453,135 Prepaid items 445,325 84,236 529,561 Total assets 17,158,174$ 12,468,348$ 29,626,522$ LIABILITIES Accounts payable 631,550$ 759,425$ 1,390,975$ Retainage payable - 29,091 29,091 Due to other funds 74,963 2,256,015 2,330,978 Due to other governments 3,246 8,011 11,257 Amount held for others - 88,570 88,570 Accrued wages payable 139,474 61,835 201,309 Advance from other funds - 1,453,135 1,453,135 Unearned revenue - 612,983 612,983 Total liabilities 849,233 5,269,065 6,118,298 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 4,508 602,159 606,667 Total deferred inflows of resources 4,508 602,159 606,667 FUND BALANCES Nonspendable 3,907,467 114,912 4,022,379 Restricted 68,104 2,732,901 2,801,005 Committed 3,609,682 4,549,043 8,158,725 Assigned 1,328,102 1,834,118 3,162,220 Unassigned 7,391,078 (2,633,850) 4,757,228 Total fund balances 16,304,433 6,597,124 22,901,557 Total liabilities, deferred inflows of resources, and fund balances 17,158,174$ 12,468,348$ 29,626,522$ City of Brookings December 31, 2014 The notes to the financial statements are an integral part of this statement 29 City of Brookings December 31, 2014 Reconciliation of Balance Sheet of Governmental Funds to the Statement of Net Position Total fund balances for governmental funds 22,901,557$ 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 9,496,603 Construction in progress 2,956,531 Building and improvements, net of $11,853,278 accumulated depreciation 29,366,530 Equipment, net of $8,688,621 accumulated depreciation 6,713,193 Infrastructure, net of $27,801,297 accumulated depreciation 33,678,658 Total capital assets 82,211,515 Assets such as taxes receivable and special assessment receivables are not available to pay for current period expenditures and therefore are deferred in the funds.606,667 Bond insurance costs are recorded as an expenditure in the fund statements, whereas in the statement of net position they are shown as deferred charges and amortized.71,252 The deferred loss on refunding is not a current period item and therefore, is not reported in the fund financial statement 641,997 Internal service funds are used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of certain internal service funds are included in governmental activities in the statement of net position.1,526,764 Long-term liabilities, including bonds payable and accrued leave payable are not due and payable in current period and therefore are not reported in the funds. Balances at December 31, 2014 are: Bonds payable (25,571,694) Capital leases (151,640) OPEB payable (1,169,395) Compensated absences (893,948) Accrued interest (80,578) Total long-term liabilities (27,867,255) Total net position of governmental activities 80,092,497$ The notes to the financial statements are an integral part of this statement 30 City of Brookings Year Ended December 31, 2014 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Other Total General Governmental Governmental Fund Funds Funds REVENUES Taxes: General property taxes 2,731,160$ 645,725$ 3,376,885$ Storm drainage taxes - 854,150 854,150 General sales and use taxes 6,180,988 6,982,860 13,163,848 Other taxes 1,416 351,187 352,603 Licenses and permits 239,343 - 239,343 Intergovernmental revenue 1,101,058 317,089 1,418,147 Charges for goods and services 397,799 1,750,510 2,148,309 Fines and forfeits 91,223 27,789 119,012 Miscellaneous revenue 1,520,814 547,741 2,068,555 Total revenues 12,263,801 11,477,051 23,740,852 EXPENDITURES Current: General government 2,585,426 4,143 2,589,569 Public safety 3,538,991 606,753 4,145,744 Public works 3,136,858 525,319 3,662,177 Health and welfare 97,919 - 97,919 Culture and recreation 3,735,470 2,133,810 5,869,280 Conservation and development - 1,951,862 1,951,862 Debt service: Principal 145,402 6,456,811 6,602,213 Interest and other charges 12,743 737,293 750,036 Capital outlay 2,599,421 5,986,146 8,585,567 Total expenditures 15,852,230 18,402,137 34,254,367 Expenditures in excess of revenues (3,588,429) (6,925,086) (10,513,515) OTHER FINANCING SOURCES (USES) Transfers in 2,846,400 1,473,509 4,319,909 Transfers out (447,893) (2,650,871) (3,098,764) Issuance of long term debt 3,939,856 8,178,549 12,118,405 Insurance recoveries 689,811 - 689,811 Sale of capital assets 144,667 - 144,667 Total other financing sources 7,172,841 7,001,187 14,174,028 Net change in fund balances 3,584,412 76,101 3,660,513 Fund balances - beginning 12,720,021 6,521,023 19,241,044 Fund balances - ending 16,304,433$ 6,597,124$ 22,901,557$ The notes to the financial statements are an integral part of this statement 31 City of Brookings Year Ended December 31, 2014 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 $3,660,513 The change in net position reported for governmental activities in the statement of activities is different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays ($5,750,364) exceeded depreciation ($3,435,500) in the current period.2,314,864 The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase net position.105,100 Governmental funds recognize property taxes and special assessments 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.(19,679) 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 (10,228,351) Bond anticipation note (1,890,054) (12,118,405) Repayments: Bonds 1,657,541 Bond anticipation note 4,799,271 Capital leases 145,402 6,602,214 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 (134,486) OPEB liability (182,018) Amortization of bond insurance costs (8,906) Amortization of bond premium and deferred amount on refunding (68,264) Accrued interest 31,508 Combined adjustment (362,166) 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 with governmental activities.175,570 Change in net position of governmental activities 358,011$ The notes to the financial statements are an integral part of this statement 32 City of Brookings December 31, 2014 Statement of Net Position - Proprietary Funds Enterprise Funds Other Waste-Health Enterprise Internal Electric Water System Telephone Funds Total Service Funds ASSETS Current assets: Cash and cash equivalents 12,098,894$ 5,521,445$ 11,065,219$ 18,282,674$ 14,178,829$ 61,147,061$ 4,823,196$ Investments - - 15,839,556 - 994,680 16,834,236 - Receivables, (net of allowances for uncollectibles, if any): Accounts 2,072,432 423,814 9,452,456 2,737,794 772,926 15,459,422 1,301 Unbilled accounts 1,135,706 255,488 - 608,547 238,881 2,238,622 - Interest 13 - 37,843 - 194 38,050 - Due from other funds 130,892 2,981 - 109,129 60,050 303,052 - Due from other governments - - - - 2,712,105 2,712,105 - Current portion of advances to other funds - 49,262 - - - 49,262 - Inventories: Supplies 1,120,654 55,043 985,899 325,373 411,516 2,898,485 - Stores - - - 1,325,026 624,435 1,949,461 - Prepaid expenses 71,089 20,387 312,542 715,189 34,098 1,153,305 - Total current assets 16,629,680 6,328,420 37,693,515 24,103,732 20,027,714 104,783,061 4,824,497 Noncurrent assets: Restricted cash and cash equivalents 805,436 159,314 - 3,141,914 1,204,353 5,311,017 - Other assets - - - 12,613 - 12,613 - Advances to other funds - 570,350 - - - 570,350 - Investments - other - 8,752 145,664 620,521 640 775,577 - Personal communication services licenses - - - 106,474 - 106,474 - Capital assets: Land 74,983 73,604 1,617,996 331,267 2,672,717 4,770,567 - Buildings and other improvements 43,090,178 32,134,195 40,013,770 70,609,685 33,777,477 219,625,305 - Machinery and equipment 2,027,857 965,446 23,094,283 4,187,799 6,525,189 36,800,574 - Construction in progress 5,354,196 18,689,903 85,117 685,469 18,221,335 43,036,020 - Less accumulated depreciation (18,013,204) (14,873,792) (33,165,533) (52,734,105) (22,669,160) (141,455,794) - Total noncurrent assets 33,339,446 37,727,772 31,791,297 26,961,637 39,732,551 169,552,703 - Total assets 49,969,126$ 44,056,192$ 69,484,812$ 51,065,369$ 59,760,265$ 274,335,764$ 4,824,497$ LIABILITIES Current liabilities: Accounts payable 1,659,110$ 2,465,222$ 6,190,378$ 1,434,399$ 252,060$ 12,001,169$ 286,886$ Retainage payable - - - - 222,284 222,284 - Due to other funds 4,295 67,169 25,219 102,096 1,629,576 1,828,355 - Accrued interest payable 27,299 112,346 80,472 71,630 2,329 294,076 - Accrued wages payable 3,169 2,506 1,087,617 37,711 30,355 1,161,358 - Accrued taxes payable 107,261 136 266,639 222,665 35,440 632,141 - Other current liabilities - - 30,606 - - 30,606 - Customer deposits 55,035 - 33,527 39,598 9,030 137,190 - Current portion of advances from other funds - - - 49,262 - 49,262 - Loans payable - 365,299 - - - 365,299 - Revenue bonds payable 308,164 - - 685,000 - 993,164 - Capital lease obligations 305,071 94,064 214,896 1,898,323 67,542 2,579,896 - Compensated absences 62,913 20,056 795,699 163,830 41,691 1,084,189 - Advance payments - - - 528,991 4,560 533,551 - Total current liabilities 2,532,317 3,126,798 8,725,053 5,233,505 2,294,867 21,912,540 286,886 Noncurrent liabilities: Advances from other funds - - - 570,350 - 570,350 - Loans payable - 20,228,307 - - - 20,228,307 - Revenue bonds payable 6,496,751 - - 3,320,000 - 9,816,751 - Capital lease obligations 2,665,600 541,739 9,509,843 8,980,435 507,226 22,204,843 - Compensated absences - - 305,000 - 110,072 415,072 - OPEB liability 91,750 40,022 398,975 262,201 136,160 929,108 - Amount due under joint operating agreements - - 1,534,477 - - 1,534,477 - Accrued landfill closure and postclosure costs - - - - 723,374 723,374 - Total noncurrent liabilities 9,254,101 20,810,068 11,748,295 13,132,986 1,476,832 56,422,282 - Total liabilities 11,786,418 23,936,866 20,473,348 18,366,491 3,771,699 78,334,822 286,886 33 City of Brookings December 31, 2014 Statement of Net Position - Proprietary Funds (continued) Enterprise Funds Other Waste-Health Enterprise Internal Electric Water System Telephone Funds Total Service Funds NET POSITION Net investment in capital assets 22,758,424 15,759,947 21,920,894 8,196,357 36,141,738 104,777,360 - Restricted for: Debt service 805,436 159,314 133,534 3,141,914 52,356 4,292,554 - Landfill closure and postclosure - - - - 424,737 424,737 - Unrestricted 14,618,848 4,200,065 26,957,036 21,360,607 19,369,735 86,506,291 4,537,611 Total net position 38,182,708$ 20,119,326$ 49,011,464$ 32,698,878$ 55,988,566$ 196,000,942 4,537,611$ 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.3,010,847 Net position of business-type activities 199,011,789$ The notes to the financial statements are an integral part of this statement 34 City of Brookings Year Ended December 31, 2014 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds Enterprise Funds Other Waste-Health Enterprise Internal Electric Water System Telephone Funds Total Service Funds OPERATING REVENUES Charges for goods and services 24,392,761$ 3,926,678$ 52,879,902$ 33,904,352$ 12,010,065$ 127,113,758$ 2,797,180$ Miscellaneous 922,170 176,144 872,129 3,102,738 174,355 5,247,536 - Total operating revenues 25,314,931 4,102,822 53,752,031 37,007,090 12,184,420 132,361,294 2,797,180 OPERATING EXPENSES Personal services 2,085,410 1,175,270 29,177,272 6,799,261 2,842,438 42,079,651 - Other current expenses 17,397,951 1,067,085 18,799,214 18,029,752 2,662,596 57,956,598 337,129 Cost of goods sold - - - 4,694,741 3,026,010 7,720,751 - Insurance claims and expenses - - - - - - 2,010,214 Amortization - - 2,667 252,576 - 255,243 - Depreciation 1,330,904 740,815 3,534,512 3,234,085 1,325,875 10,166,191 - Total operating expenses 20,814,265 2,983,170 51,513,665 33,010,415 9,856,919 118,178,434 2,347,343 Operating income 4,500,666 1,119,652 2,238,366 3,996,675 2,327,501 14,182,860 449,837 NONOPERATING REVENUES (EXPENSES) Interest income 26,458 40,977 342,592 208,675 76,492 695,194 10,050 Miscellaneous income (loss)31,634 - - (7,268) 150,404 174,770 - Contributions and donations - - 115,192 - - 115,192 - Gain (loss) on disposition of capital assets 1,794 2,058 (83,029) (40,569) (3,086) (122,832) - Payments under joint operating agreement - - 57,669 - - 57,669 - Interest expense and fiscal charges (407,830) (164,794) (324,487) (1,023,954) (31,999) (1,953,064) - Total nonoperating revenues (expenses)(347,944) (121,759) 107,937 (863,116) 191,811 (1,033,071) 10,050 Income before contributions and transfers 4,152,722 997,893 2,346,303 3,133,559 2,519,312 13,149,789 459,887 Capital contributions - 1,232,643 9,375 - 10,693,285 11,935,303 - Transfers in - - - - 2,475,298 2,475,298 - Transfers out (1,855,000) - - (250,000) (1,591,443) (3,696,443) - Change in net position 2,297,722 2,230,536 2,355,678 2,883,559 14,096,452 23,863,947 459,887 Net position - beginning 35,884,986 17,888,790 46,655,786 29,815,319 41,892,114 4,077,724 Net position - ending 38,182,708$ 20,119,326$ 49,011,464$ 32,698,878$ 55,988,566$ 4,537,611$ 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.284,317 Change in net position of business-type activities 24,148,264$ The notes to the financial statements are an integral part of this statement 35 City of Brookings Year Ended December 31, 2014 Statement of Cash Flows - Proprietary Funds Enterprise Funds Other Waste-Health Enterprise Internal Electric Water System Telephone Funds Total Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 24,468,788$ 1,978,146$ 53,016,568$ 29,287,416$ 12,115,648$ 120,866,566$ - $ Internal activity-payments from other funds 1,436,622 86,711 - 1,194,542 395,721 3,113,596 2,841,776 Receipts from customers pledged for debt retirement 933,468 1,914,784 - 7,821,328 - 10,669,580 - Other receipts - - 716,575 - - 716,575 - Payments to suppliers (18,952,055) (1,075,592) (14,244,755) (24,485,522) (6,000,578) (64,758,502) (2,306,885) Payments to employees (2,083,364) (1,174,044) (28,885,103) (6,765,164) (2,854,558) (41,762,233) - Internal activity-payments to other funds - - - - (343,340) (343,340) - Net cash provided by operating activities 5,803,459 1,730,005 10,603,285 7,052,600 3,312,893 28,502,242 534,891 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in - - - - 2,475,298 2,475,298 - Transfers out (1,855,000) - - (250,000) (1,591,443) (3,696,443) - Interfund payments - - - - 1,329,024 1,329,024 - Principal receipts (payments) on interfund advances/loans 61,669 46,916 - (108,585) 37,100 37,100 - Interest receipts (payments) on interfund advances/loans 3,083 33,326 - (36,409) 1,113 1,113 - Contributions from donors - - 117,092 - - 117,092 - Net cash provided by (used in) noncapital financing activities (1,790,248) 80,242 117,092 (394,994) 2,251,092 263,184 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (5,182,030) (14,759,226) (1,210,974) (1,925,479) (11,746,721) (34,824,430) - Proceeds from long-term debt - 16,473,242 - - - 16,473,242 - Proceeds from sale of capital assets 19,151 2,058 - 529 1,195 22,933 - Capital grants - - 9,375 - 8,659,442 8,668,817 - Principal payments on debt (591,358) (89,793) (698,127) (2,449,425) (64,524) (3,893,227) - Interest payments on debt (408,582) (357,439) (326,208) (998,844) (31,148) (2,122,221) - Principal payments on interfund advances/loans - - - - (37,099) (37,099) - Interest payments on interfund advances/loans - - - - (1,113) (1,113) - Net cash provided by (used in) capital and related financing activities (6,162,819) 1,268,842 (2,225,934) (5,373,219) (3,219,968) (15,713,098) - CASH FLOWS FROM INVESTING ACTIVITIES Sale of investments and certificates of deposit 119,753 - 1,996,300 - - 2,116,053 - Purchase of investments and certificates of deposit (115,032) - (1,997,500) - - (2,112,532) - Cash paid for acquisition of clinic practice - - (962,522) - - (962,522) - Cash payment to joint venture partner - - (602,184) (90,000) - (692,184) - Investment income 22,681 7,642 161,276 295,868 60,283 547,750 10,050 Net cash provided by (used in) investing activities 27,402 7,642 (1,404,630) 205,868 60,283 (1,103,435) 10,050 Net increase (decrease) in cash and cash equivalents (2,122,206) 3,086,731 7,089,813 1,490,255 2,404,300 11,948,893 544,941 Balances - beginning of the year 15,026,536 2,594,028 3,975,406 19,934,333 12,978,882 54,509,185 4,278,255 Balances - end of the year 12,904,330 5,680,759 11,065,219 21,424,588 15,383,182 66,458,078 4,823,196 Less restricted cash and cash equivalents (805,436) (159,314) - (3,141,914) (1,204,353) (5,311,017) - Cash and cash equivalents (current) per statement of net position 12,098,894$ 5,521,445$ 11,065,219$ 18,282,674$ 14,178,829$ 61,147,061$ 4,823,196$ The notes to the financial statements are an integral part of this statement 36 City of Brookings Year Ended December 31, 2014 Statement of Cash Flows - Proprietary Funds (continued) Enterprise Funds Other Waste-Health Enterprise Internal Electric Water System Telephone Funds Total Service Funds Reconciliation of operating income to net cash provided by operating activities: Operating income 4,500,666$ 1,119,652$ 2,238,366$ 3,996,675$ 2,327,501$ 14,182,860$ 449,837$ Miscellaneous income (loss)31,632 - - (7,268) 102,835 127,199 - Adjustments to reconcile operating income to net cash provided by (used in) operating activities: Depreciation 1,330,904 740,815 3,534,512 3,234,085 1,325,875 10,166,191 - Amortization - - 2,667 252,576 - 255,243 - Impairment of investment - - - 100,000 - 100,000 - Landfill postclosure cost - - - - 46,572 46,572 - (Increase) decrease in: Receivables 37,877 (156,696) (778,176) (560,408) 173,582 (1,283,821) 44,596 Inventories (137,574) 1,211 9,984 328,225 157,553 359,399 - Prepaid expenses (694) 5,131 (28,581) (183,632) 13,369 (194,407) - Increase (decrease) in: Accounts and other payables 34,353 15,878 5,333,379 (112,535) (827,079) 4,443,996 40,458 Accrued wages payable (681) 872 261,391 (11,993) 24,974 274,563 - Accrued leave liabilities 3,377 645 (41,260) (33) (41,935) (79,206) - Accrued OPEB payable 5,777 2,497 71,003 14,558 9,646 103,481 - Other payables (2,178) - - 2,350 - 172 - Net cash provided by (used in) operating activities 5,803,459$ 1,730,005$ 10,603,285$ 7,052,600$ 3,312,893$ 28,502,242$ 534,891$ NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Capital asset additions from contributed capital -$ 1,232,643$ 9,375$ -$ 10,693,285$ 11,935,303$ -$ Accounts payable for capital assets 14,997 2,459,968 - 151,067 (674,925) 1,951,107 - The notes to the financial statements are an integral part of this statement 37 City of Brookings December 31, 2014 Statement of Net Position - Fiduciary Funds Agency Funds ASSETS Cash and cash equivalents 84,597$ Total assets 84,597 LIABILITIES Amount held for others 84,597 Total liabilities 84,597 NET POSITION -$ The notes to the financial statements are an integral part of this statement 38 City of Brookings December 31, 2014 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, 2014, the Foundation distributed approximately $57,000 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 Foundation'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, 2014 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, 2014 Notes to the Financial Statements TIF-6 Digester Fund – to account for the financial resources accumulated for repayment of a Bond Anticipation Note. 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). 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. 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. 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. 41 City of Brookings December 31, 2014 Notes to the Financial Statements 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 two internal service funds, the self insurance fund and unemployment compensation fund (closed out in 2014), which administer 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. 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). 42 City of Brookings December 31, 2014 Notes to the Financial Statements 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, 2014 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. Reported deferred revenues, deferred inflows of resources, 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 (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. 43 City of Brookings December 31, 2014 Notes to the Financial Statements 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. 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. 44 City of Brookings December 31, 2014 Notes to the Financial Statements 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 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 and compensated absences. 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. 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 a period. The only item applicable to the City, 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. In addition to liabilities, the governmental funds balance sheet reports 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 only 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, 2014 Notes to the Financial Statements item applicable to the City, unavailable revenues, represent certain receivables recorded by the City which are deferred as they are not received with the City's measurable period of 45 days, and are not considered measurable and available under the modified accrual basis of accounting. j. 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. j. 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. k. 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, 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. 46 City of Brookings December 31, 2014 Notes to the Financial Statements 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 10 percent of the 2012 General Fund beginning adopted appropriations should be established as committed fund balance and maintained for use in meeting unanticipated needs and or emergencies, such as an urgent event that affects the safety of the Citizens of the City of Brookings, City of Brookings employees, and Brookings Students. 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. Specific unanticipated needs and/or emergencies are determined by the City’s highest level of decision-making authority as use of this fund balance must be approved by a two-thirds vote of the City Council. Additionally, the City’s policy prohibits the use of this fund balance for more than two consecutive years. 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 and equipment, and debt retirement related thereto. o Ordinance No. 03-10 commits use of 75% Sales tax for construction and financing of public improvements. 47 City of Brookings December 31, 2014 Notes to the Financial Statements 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. l. 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. m. 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. All 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. n. 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 and liabilities 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. o. 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: 48 City of Brookings December 31, 2014 Notes to the Financial Statements 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. Prior to 2009, inpatient acute care 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 fiscal intermediary. The Health System's Medicare cost reports have been audited by the Medicare fiscal intermediary through the year ended December 31, 2012. 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 is made on a prospectively determined per diem rate which varies based on a case-mix resident classification system. The Health System has also entered into payments with certain commercial insurance carriers and other organizations. The basis for payment to the Health System under these agreements includes prospectively determined rates per discharge and discounts from established charges. Concentration of gross revenues by major payor accounted for the following percentages of the Health System's patient and resident service revenues for the year ended 2014: 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, 2014 increased by approximately $224,000 due to removal of allowances previously estimated that are no longer necessary as a result of final settlements and year 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 Medicare 41% Medicaid 8% Blue Cross 23% Other 28% Total 100% 49 City of Brookings December 31, 2014 Notes to the Financial Statements collection of amounts determined to qualify as charity care, they are not reported as patient and resident service revenue. 2. DEFICIT FUND BALANCE The following funds had a fund balance deficit as of December 31, 2014: Swiftel Center Fund (Special Revenue Fund) had a negative balance of $141,612 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. Special Assessment Fund (Special Revenue Fund) had a negative balance of $895,830 because of large projects done in 2014 that were assessed to property owners and will be collected in future years. The TIF-1 Innovation Campus Fund (Debt Service Fund) had a negative balance of $1,377,700 because of a large advance to the capital project fund which will be paid off with future tax increment tax 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. 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. As of December 31, 2014, the City had the following investments and maturities. Credit Fair Investment Type Rating Value Less than 1 1 to 5 Money Market Fund - U.S. Agencies Not Rated 38,018,069$ 38,018,068$ -$ Money Market Fund - U.S. Agencies AAAm 2,635,988 2,635,988 - U.S. Treasuries AAA 1,968,360 988,670 979,690 U.S. Agencies Obligations AAA 22,624,608 - 22,624,608 Total Investments 65,247,025$ 41,642,726$ 23,604,298$ Maturities in Years 50 City of Brookings December 31, 2014 Notes to the Financial Statements 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, 2014, 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 $24,592,968, 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 $38,018,069, 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 $2,635,988, 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 $100,000 may be cash. Additional protection has been obtained, at no cost to the City of Brookings, SD, for the remaining net equity balance of the cash and securities in the City’s account. This coverage does not protect against losses from any change in market values of investments. Concentration of Credit Risk – The City places no limit on the amount that may be invested in any one issuer. As of December 31, 2014, the City had investments in excess of 5% of the total investment portfolio: 58.27% of the City's investments are in money markets at First Bank & Trust Wealth Management Services, 11.50% are in Federal Home Loan Bank securities (FHLB), 12.13% are in Federal Home Loan Mortgage Corporation securities (FHLMC),and 7.60% are in Federal Farm Credit Bank securities (FFCB). Interest Rate Risk – The City has a formal investment policy that limits investment maturities to less than five <5> years from the date of purchase as a means of managing its exposure to fair value losses arising from increasing interest rates. Assignment of Investment Income – State law allows income from deposits and investments to be credited to either the General Fund or the fund making the investment. The City’s policy is to credit all income from investments to the fund making the investment. Summary of Deposit and Investment Balances Following is a reconciliation of the City’s deposit and investment balances as of December 31, 2014: Totals Investments 65,247,025$ Certificates of deposits 2,039,485 Deposits and cash on hand 38,090,188 105,376,698$ Government-wide Fiduciary Funds Statement of Statement of Net Position Net Position Totals Cash and cash equivalents 73,549,847$ 84,597$ 73,634,444$ Investments 24,598,716 - 24,598,716 Restricted assets: Cash and cash equivalents 7,143,538 - 7,143,538 105,292,101$ 84,597$ 105,376,698$ 51 City of Brookings December 31, 2014 Notes to the Financial Statements 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, 2014: The City expects all receivables to be collected within one year, except for $604,475 in deferred Special Assessments in the Special Revenue Special Assessments Fund. Allowances for uncollectible accounts receivable in the Enterprise Funds are calculated based on historical trend data. The other funds receivables are stated at face value. As of December 31, 2014, the allowance for doubtful accounts in the Enterprise Funds were as follows: The total of Due from Other Governments of $4,034,303 includes the following significant items: Special Unbilled Interest Taxes Accounts Assessments Accounts Total General Fund 17,553$ 4,508$ 330,054$ -$ -$ 352,115$ Electric Fund 13 - 2,072,432 - 1,135,706 3,208,151 Wastewater Fund - - 423,814 - 255,488 679,302 Health System Fund 37,843 - 9,452,456 - - 9,490,299 Telephone Fund - - 2,737,794 - 608,547 3,346,341 Nonmajor and Other Funds 6,135 855 1,337,472 604,475 238,881 2,187,818 61,544$ 5,363$ 16,354,022$ 604,475$ 2,238,622$ 19,264,026$ Electric Fund 22,600$ Health System Fund 3,292,000 Telephone Fund 738,794 Wastewater Fund 5,800 Water Fund 7,000 4,066,194$ Fund/Fund Type Amount Service General Fund/Major Governmental 508,785$ State of South Dakota, December Sales and Use Tax 31,532 Brookings County, Property Tax Collected by Brookings County 4,866 Brookings County, County Highway Bridge Tax 2,248 Brookings County, Wheel Tax 1,923 Brookings County, Billings 312 State of South Dakota, Fire Training Grant 34,948 State of South Dakota, December Liquor Tax 71,274 State of South Dakota, State Highway and Bridge Tax 3,668 Federal Government Hwy Safety Grant 341 Federal Government Bullet Proof Vest Grant 25% Sales & Use Tax/Special Revenue Fund 125,203 State of South Dakota, December Sales and Use Tax 75% Sales & Use Tax/Special Revenue Fund 380,923 State of South Dakota, December Sales and Use Tax Enhanced 911/Special Revenue Fund 76,130 Brookings County, Billings 4,408 State of South Dakota, 911 Surcharge Storm Drainage/Special Revenue Fund 7,545 Brookings County, Storm Drainage Tax Collected by County Bed an Booze Tax/Special Revenue Fund 62,631 State of South Dakota, December Sales and Use Tax TIF 1 Innovation/ Debt Service Fund 5,461 Brookings County, Property Tax Collected by Brookings County Airport/Enterprise Fund 2,712,105 Federal Government, Airport Improvement Project Grant Funds Total 4,034,303$ 52 City of Brookings December 31, 2014 Notes to the Financial Statements 5. OTHER INVESTMENTS Other Investments at December 31, 2014 were as follows: Telephone Fund South Dakota Network, LLC $330,357 Express Communications, Inc. 11,895 DHE, LLC 180,000 Capital credits 98,269 Total Telephone Fund 620,521 Wastewater Fund – capital credits 8,752 Water Fund – capital credits 640 Health System Fund – investment in joint venture 145,664 Total Investments – Other – Enterprise Funds $775,577 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. 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 12.5% of this company. Capital credits represent each respective Fund’s patronage capital allocation resulting from their relationships with cooperative associations. 6. PCS LICENSES The license agreement for Personal Communication Services (PCS) in Sioux Falls and Watertown costing $2,254,964 expires in June 2015 and is being amortized equally over an estimated economic useful life of 15 years. Service began in July 1999. Accumulated amortization as of December 31, 2014 was $2,184,496. The license agreement for Personal Communication Services (PCS) in Sioux City, Iowa costing $1,296,239 expires in June 2015 and is being amortized equally over an estimated economic useful life of 15 years. Accumulated amortization as of December 31, 2014 was $1,260,233. Although the FCC licenses were issued with a stated term, they can be renewed routinely, and renewal of the licenses is expected without substantial cost and no legal, regulatory, or 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. 53 City of Brookings December 31, 2014 Notes to the Financial Statements The Telephone fund has FCC licenses to operate a PCS network between Watertown, South Dakota and Sioux City, Iowa. The income related to the PCS system consisted of the following: The Telephone Fund is operating under an agreement with Sprint PCS expiring in June 2018. Under this agreement, Sprint provides the Fund significant support services such as billing, collection, long-distance, customer care and national advertising. The Fund is also required to make affiliation fee payments based on estimated annual revenues. The actual cost for the year ended December 31, 2014 was $1,207,727. REVENUES PCS service and activation $ 22,522,102 Handsets and accessories 1,946,554 Tower sublease 358,307 Uncollectibles (950,563) Total Revenues 23,876,400 EXPENSES Plant specific 3,733,079 Customer 8,335,698 Administrative and general 558,603 Sales 3,573,752 Cost of goods sold 3,661,812 Depreciation 1,365,206 Amortization 253,580 Total expenses 21,481,730 NET OPERATING INCOME 2,394,670 OTHER INCOME (EXPENSES) Interest income 261 Interest expense (690,961) Miscellaneous 2,272 Net other expenses (688,428) PCS NET INCOME 1,706,242$ 54 City of Brookings December 31, 2014 Notes to the Financial Statements 7. CHANGES IN CAPITAL ASSETS A summary of changes in capital assets for the year ended December 31, 2014 is as follows: Depreciation expense was charged to functions as follows: Governmental Activities: General government $ 215,294 Public safety 452,716 Public works 1, 672,099 Culture and recreation 1,088,772 Health and welfare 6,619 Total depreciation expense Governmental Activities $ 3,435,500 Beginning Ending Balances Increases Decreases Balances Governmental Activities Capital assets not being depreciated Land 8,858,545$ 638,058$ -$ 9,496,603$ Construction in progress 2,417,968 2,599,731 (2,061,168) 2,956,531 Total capital assets not being depreciated 11,276,513 3,237,789 (2,061,168) 12,453,134 Capital assets being depreciated Infrastructure 60,686,808 793,147 - 61,479,955 Buildings and improvements 38,679,077 2,610,101 (69,370) 41,219,808 Equipment 14,646,137 1,391,828 (636,151) 15,401,814 Total capital assets being depreciated 114,012,022 4,795,076 (705,521) 118,101,577 Less accumulated depreciation for: Infrastructure 26,323,569 1,477,728 - 27,801,297 Buildings and improvements 11,006,917 911,882 (65,521) 11,853,278 Equipment 8,166,498 1,045,890 (523,767) 8,688,621 Total accumulated depreciation 45,496,984 3,435,500 (589,288) 48,343,196 Total capital assets being dep. net 68,515,038 1,359,576 (116,233) 69,758,381 Governmental Activities capital assets, net 79,791,551$ 4,597,365$ (2,177,401)$ 82,211,515$ 55 City of Brookings December 31, 2014 Notes to the Financial Statements Depreciation expense was charged to functions as follows: Business-Type Activities: Electric $1,330,904 Hospital 3,534,512 Telephone 3,234,085 Liquor 40,153 Water 321,457 Wastewater 740,815 Airport 178,968 Golf 73,814 Solid Waste 658,345 Research and Technology Center 53,138 Total depreciation expense Business-Type Activities $10,166,191 Beginning Ending Balances Increases Decreases Balances Business-Type Activities: Capital assets not being depreciated: Land 4,750,283$ 25,000$ (4,716)$ 4,770,567$ Construction in progress 17,700,484 31,878,631 (6,543,095) 43,036,020 Total capital assets not being depreciated 22,450,767 31,903,631 (6,547,811) 47,806,587 Capital assets being depreciated: Buildings and improvements 213,622,546 10,013,587 (4,010,828) 219,625,305 Equipment 36,848,080 2,173,457 (2,220,963) 36,800,574 Total capital assets being depreciated 250,470,626 12,187,044 (6,231,791) 256,425,879 Less accumulated depreciation for: Buildings and improvements 111,668,557 7,194,542 (3,637,551) 115,225,548 Equipment 25,354,919 2,971,649 (2,096,322) 26,230,246 Total accumulated depreciation 137,023,476 10,166,191 (5,733,873) 141,455,794 Total capital assets being depreciated, net 113,447,150 2,020,853 (497,918) 114,970,085 Business-Type Activities capital assets, net 135,897,917$ 33,924,484$ (7,045,729)$ 162,776,672$ 56 City of Brookings December 31, 2014 Notes to the Financial Statements Significant projects included in construction in progress for the primary government are as follows: Expended as of Project Description Authorized 12/31/2014 Committed Governmental Activities: Swiftel Hoop Building 89,264$ 9,264$ 80,000$ Main Ave S. & 26th St S. Project 4,720,000 2,552,527 2,167,473 - 4,809,264$ 2,561,791$ 2,247,473$ Expended as of Project Description Authorized 12/31/2014 Committed Business-Type Activities: Airport – Runway Realignment Project Phase I 21,285,549$ 18,190,571$ 3,094,978$ Electric Fund Information systems software conversion 200,450 192,075 8,375 Telephone Fund Metaswitch networks 625,511 316,315 309,196 Wastewater Fund Wastewater Treatment Plant (WWTP) and Facilities Design 3,914,000 3,571,620 342,380 WWTP Improvements - Project A Plant Upgrade 19,006,956 13,646,441 5,360,515 WWTP Improvements Project C - Consolidated and EQ Pump Station 4,202,628 3,937,794 264,834 49,235,094$ 39,854,816$ 9,380,278$ 57 City of Brookings December 31, 2014 Notes to the Financial Statements Beginning Ending Due Within Balance Additions Reductions Balance One Year Revenue bonds 16,905,004$ 10,228,351$ (1,657,541)$ 25,475,814$ 1,608,359$ Premium on issuance 107,865 - (11,985) 95,880 - Total bonds payable 17,012,869 10,228,351 (1,669,526) 25,571,694 1,608,359 Bond anticipation note 2,909,217 1,890,054 (4,799,271) - - Capital leases 297,042 - (145,402) 151,640 151,640 OPEB General Fund 922,983 169,964 - 1,092,947 - Special Revenue Funds 64,394 12,054 - 76,448 - Compensated absences General Fund 712,880 837,070 (708,535) 841,415 281,600 Special Revenue Funds 46,582 51,198 (45,247) 52,533 18,400 Governmental Activities Long-Term Liabilities 21,965,967$ 13,188,691$ (7,367,981)$ 27,786,677$ 2,059,999$ 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 11,750,015$ -$ (940,100)$ 10,809,915$ 993,164$ Loans payable 4,120,364 16,473,242 - 20,593,606 365,299 Capital leases 27,737,866 - (2,953,127) 24,784,739 2,579,896 OPEB 825,627 103,481 - 929,108 - Landfill closure/ postclosure 676,802 46,572 - 723,374 - Compensated absences 1,578,467 2,961,587 (3,040,793) 1,499,261 1,084,189 Amount due under joint operating agreement 2,136,661 - (602,184) 1,534,477 - Business-Type Activities Long-Term Liabilities 48,825,802$ 19,584,882$ (7,536,204)$ 60,874,480$ 5,022,548$ 58 City of Brookings December 31, 2014 Notes to the Financial Statements 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 $16,735,000.10,750,000$ Plus: Premium on issuance 95,880 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 $10,000,000.10,000,000 City of Brookings, South Dakota SDHDA TIF #3 Bond, (Guaranteed by Developer), final maturity date December 2023; interest rate 5%; payments made from the TIF #3 Fund. Original issue: $1,035,000.793,290 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 $670,000.593,250 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. 349,624 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 $335,314.316,519 City of Brookings, South Dakota State Revolving Fund Bond #5, final maturity date January 2033; interest rate 3%; payments 211,279 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 1,918,052 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 $450,940.315,449 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 $1,570,000.228,351 25,571,694 Financing (Capital Acquisition) Leases: Lease purchase of 4 new fire trucks; final maturity date January 2015; interest rate of 4.27%; annual payments made from the 25% Sales and Use Tax Fund. Original issue $1,779,882. 151,640 Total Leases:151,640 OPEB Liability:1,169,395 Compensated Absences:893,948 Total Governmental Activities Long-Term Liabilities 27,786,677$ Long-term liabilities payable at December 31, 2014 is comprised of the following: 59 City of Brookings December 31, 2014 Notes to the Financial Statements Business-Type Activities: Revenue Bonds: City of Brookings, South Dakota Utility Revenue Bonds Series 2000; final maturity date December 2019; interest rate 6.5% to 7.75% depending on length of time to maturity; payments made from the Telephone Fund. Callable at option of the City in whole or in part at anytime. Original issue $9,450,000. 4,005,000$ 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 $1,353,319.1,054,915 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 $6,500,000.5,750,000 Total Revenue Bonds:10,809,915 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. 20,593,606 Total Loans:20,593,606 Financing (Capital Acquisition) Leases: Lease and purchase of utility plant for the Telephone, Water, Wastewater, and Electric Funds. Series 1998; interest rates 3.9-5.1% due December 1, 2018. Orig. issue $20,155,000.6,040,000 Series 1999; interest rates 4.15-5.25% due December 1, 2019. Orig. issue $9,335,000.3,360,000 Series 2006; interest rates 4.75% due December 1, 2026. Orig. issue $8,000,000.5,660,000 Lease and purchase of Skilled Nursing Facility for Brookings Health System. Series 2012; interest rate 3.98% due October 15, 2042. Original issue $10,000,000.9,724,739 Total Leases:24,784,739 OPEB Liability:929,108 Landfill Closure/Postclosure Costs:723,374 Compensated Absences:1,499,261 Amount Due Under Joint Operating Agreement:1,534,477 Total Business-Type Activities Long-Term Liabilities 60,874,480$ 60 City of Brookings December 31, 2014 Notes to the Financial Statements Assets acquired through capital leases for governmental activities are as follows: Machinery and equipment for $1,788,570, less accumulated depreciation of $1,190,739 for a total net book value of $597,831. The annual requirements to amortize all debt outstanding for Governmental Activities as of December 31, 2014, except for the compensated absences and other postemployment benefits (OPEB) are as follows: Year Ending December 31,Principal Interest 2015 1,608,101$ 440,619$ 2016 2,078,928 720,427 2017 2,133,347 667,709 2018 2,187,809 610,734 2019 2,253,214 548,454 2020-2024 7,577,053 1,769,646 2025-2029 4,028,551 920,494 2030-2034 3,593,867 257,073 2035-2039 14,944 281 25,475,814$ 5,935,437$ Year Ending Capital Acquisition Leases December 31,Principal Interest Principal Interest 2015 151,640$ 6,505$ 1,759,741$ 447,124$ 2016 - - 2,078,928 720,427 2017 - - 2,133,347 667,709 2018 - - 2,187,809 610,734 2019 - - 2,253,214 548,454 2020-2024 - - 7,577,053 1,769,646 2025-2029 - - 4,028,551 920,494 2030-2034 - - 3,593,867 257,073 2035-2039 - - 14,944 281 151,640$ 6,505$ 25,627,454$ 5,941,942$ Total Revenue Bonds 61 City of Brookings December 31, 2014 Notes to the Financial Statements 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, 2014, except for compensated absences, landfill closure/postclosure, OPEB and amounts due under joint operating agreement are as follows: Business-Type Activities: Year Ending December 31,Principal Interest Principal Interest 2015 993,164$ 554,466$ 365,299$ 586,551$ 2016 1,051,415 494,430 427,509 652,245 2017 1,114,865 429,295 441,574 638,181 2018 1,188,525 359,082 456,101 623,654 2019 1,262,410 282,850 471,106 608,649 2020-2024 1,884,160 875,373 2,598,459 2,800,313 2025-2029 2,090,376 483,825 3,054,946 2,343,825 2030-2034 1,225,000 82,600 3,591,627 1,807,144 2035-2039 - - 4,222,590 1,176,181 2040-2044 - - 4,964,395 434,373 10,809,915$ 3,561,921$ 20,593,606$ 11,671,116$ Year Ending December 31,Principal Interest Principal Interest 2015 2,579,896$ 1,072,530$ 3,938,359$ 2,213,547$ 2016 2,707,098 945,065 4,186,022 2,091,740 2017 2,839,541 811,265 4,395,980 1,878,741 2018 2,982,233 670,840 4,626,859 1,653,576 2019 1,425,184 523,289 3,158,700 1,414,788 2020-2024 3,854,820 1,962,095 8,337,439 5,637,781 2025-2029 2,772,576 1,157,414 7,917,898 3,985,064 2030-2034 1,883,829 786,848 6,700,456 2,676,592 2035-2039 2,221,373 449,304 6,443,963 1,625,485 2040-2044 1,518,189 82,831 6,482,584 517,204 24,784,739$ 8,461,481$ 56,188,260$ 23,694,518$ Revenue Bonds Loans Capital Acquisition Leases Total 62 City of Brookings December 31, 2014 Notes to the Financial Statements The Series 2000 Utility Revenue Bonds are secured by a pledge of the revenues of the Telephone Fund, through final maturity of the bonds in 2019. The total principal and interest remaining to be paid on the bonds is $4,982,664, with annual payments expected to require approximately 12 percent of net revenues. The Series 2005 Utility Revenue Bonds are secured by a pledge of the revenues 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 $1,532,700, with annual payments expected to require approximately 37 percent of net revenues. The Series 2011 Utility Revenue Bonds are secured by a pledge of the 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 $7,856,472, with payments expected to require approximately 71 percent of net revenues. 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: 2014 $ 239,892 Commitments: 2015 $ 118,277 2016 98,641 2017 70,444 2018 71,054 2019 71,686 Thereafter 16,132 Total Commitments $ 446,234 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: 2014 $ 899,542 Commitments: 2015 $ 149,532 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 $723,374 reported as landfill closure and postclosure care liability at December 31, 2014, represents the cumulative amount reported to date based on the use of 39.00% of the estimated capacity of the landfill. The Municipality will recognize the remaining estimated cost of closure and postclosure care of $1,131,430 as the remaining estimated capacity is filled. These amounts are based on what it would cost to perform all closure and postclosure care in 2014. The Municipality expects to close the landfill in the year of 2042. 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, 2014, 63 City of Brookings December 31, 2014 Notes to the Financial Statements investments of $1,148,111 are held for these purposes. These are reported as restricted assets on the statement of net position. The Municipality expects that future inflation costs will be paid from interest earnings on these annual contributions. However, if interest earnings are inadequate or additional post closure care requirements are determined (due to changes in technology or applicable laws and regulations, for example), these costs may need to be covered by increased fees to future landfill users or from future tax revenue. 11. SEGMENT INFORMATION FOR ENTERPRISE FUNDS The Electric Fund maintained by the City provides construction and operation of the municipal electric system and related facilities. The City has issued separate revenue bonds to finance its Electric Fund. Investors in those bonds rely solely on the revenue generated by the individual activities for repayment. Segment information for these separately identifiable activities that have bonds or other debt instruments outstanding with a revenue stream pledged in support of that debt, as well as a requirement to account for the activity’s revenues, expenses, gains and losses, assets and liabilities apart from other activities within the same fund or in different funds is as follows: A. Electric Fund Unsecured Series Series Total Operations 2005 Bonds 2011 Bonds Electric Fund Assets Current assets 14,575,639$ 1,478,513$ 444,636$ 16,498,788$ Due from other funds 130,892 - - 130,892 Noncurrent assets, excluding capital assets 215,001 115,032 475,403 805,436 Capital assets 25,784,048 899,134 5,850,828 32,534,010 Total assets 40,705,580 2,492,679 6,770,867 49,969,126 Liabilities Current liabilities 2,204,530 53,263 270,229 2,528,022 Due to other funds 4,295 - - 4,295 Noncurrent liabilities 2,757,350 1,001,751 5,495,000 9,254,101 Total liabilities 4,966,175 1,055,014 5,765,229 11,786,418 Net position Net Investment in capital assets 22,813,377 (155,781) 100,828 22,758,424 Restricted 215,001 115,032 475,403 805,436 Unrestricted 12,711,027 1,478,414 429,407 14,618,848 Total net position 35,739,405$ 1,437,665$ 1,005,638$ 38,182,708$ Electric Fund December 31, 2014 64 City of Brookings December 31, 2014 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 24,381,463$ 313,536$ 619,932$ 25,314,931$ Depreciation/amortization expense (1,247,513) (36,583) (46,808)(1,330,904) Other operating expense (19,477,424) (5,937) - (19,483,361) Operating income 3,656,526 271,016 573,124 4,500,666 Nonoperating revenues (expenses) Investment income 25,794 305 359 26,458 Interest expense (158,167) (64,397) (185,266)(407,830) Other 33,428 - - 33,428 Transfers out (1,855,000) - - (1,855,000) Changes in net position 1,702,581 206,924 388,217 2,297,722 Beginning net position 34,036,824 1,230,741 617,421 35,884,986 Ending net position 35,739,405$ 1,437,665$ 1,005,638$ 38,182,708$ Year Ended December 31, 2014 CONDENSED STATEMENT OF CASH FLOWS Unsecured Series Series Total Net cash provided (used) by:Operations 2005 Bonds 2011 Bonds Electric Fund Operating activities 4,875,925$ 307,603$ 619,931$ 5,803,459$ Noncapital financing activities (1,790,248) - - (1,790,248) Capital and related financing activities 284,808 (114,497) (6,333,130)(6,162,819) Investing activities 26,738 305 359 27,402 Net increase (decrease)3,397,223 193,411 (5,712,840) (2,122,206) Beginning cash and cash equivalents 6,993,523 1,400,134 6,632,879 15,026,536 Ending cash and cash equivalents 10,390,746$ 1,593,545$ 920,039$ 12,904,330$ Electric Fund Year Ended December 31, 2014 Electric Fund CONDENSED STATEMENT OF NET POSITION Unsecured State Revolving Total Operations Fund Loan Wastewater Fund Assets Current assets 5,810,250$ 515,189$ 6,325,439$ Due from other funds 2,981 - 2,981 Noncurrent assets, excluding capital assets 669,737 68,679 738,416 Capital assets 12,083,814 24,905,542 36,989,356 Total assets 18,566,782 25,489,410 44,056,192 Liabilities Current liabilities 445,200 2,614,429 3,059,629 Due to other funds 19,724 47,445 67,169 Noncurrent liabilities 581,761 20,228,307 20,810,068 Total liabilities 1,046,685 22,890,181 23,936,866 Net positions Net Investment in capital assets 11,448,011 4,311,936 15,759,947 Restricted 90,635 68,679 159,314 Unrestricted 5,981,451 (1,781,386) 4,200,065 Total net position 17,520,097$ 2,599,229$ 20,119,326$ Wastewater Fund December 31, 2014 65 City of Brookings December 31, 2014 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 2,188,038$ 1,914,784$ 4,102,822$ Depreciation/amortization expense (579,941) (160,874) (740,815) Other operating expense (2,231,310) (11,045) (2,242,355) Operating income (623,213) 1,742,865 1,119,652 Nonoperating revenues (expenses) Investment income 40,977 - 40,977 Interest expense (35,452) (129,342) (164,794) Other 2,058 - 2,058 Contributed capital 246,937 985,706 1,232,643 Changes in net position (368,693) 2,599,229 2,230,536 Beginning net position 17,888,790 - 17,888,790 Ending net position 17,520,097$ 2,599,229$ 20,119,326$ Wastewater Fund Year Ended December 31, 2014 CONDENSED STATEMENT OF CASH FLOWS Unsecured State Revolving Total Net cash provided (used) by:Operations Fund Loan Wastewater Fund Operating activities (2,360,573)$ 4,090,578$ 1,730,005$ Noncapital financing activities 80,242 - 80,242 Capital and related financing activities 4,775,552 (3,506,710) 1,268,842 Investing activities 7,642 - 7,642 Net increase 2,502,863 583,868 3,086,731 Beginning cash and cash equivalents 2,594,028 - 2,594,028 Ending cash and cash equivalents 5,096,891$ 583,868$ 5,680,759$ Wastewater Fund Year Ended December 31, 2014 66 City of Brookings December 31, 2014 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, 2014 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 Nonmajor Due From Fund Governmental Enterprise General Fund -$ -$ 59,406$ 682$ 7,218$ 7,657$ 74,963$ Nonmajor Governmental 32,053 2,220,389 208 - 3,365 - 2,256,015 Electric - - 1,893 83 2,047 272 4,295 Wastewater - - 17,914 50 838 48,367 67,169 Health System - - 15,000 2,002 6,356 1,861 25,219 Telephone 5,241 - 14,826 114 81,396 519 102,096 Nonmajor Enterprise 36,863 1,561,735 21,645 50 7,909 1,374 1,629,576 Total 74,157$ 3,782,124$ 130,892$ 2,981$ 109,129$ 60,050$ 4,159,333$ Due To Electric Telephone TotalWastewater General Nonmajor Nonmajor Transfer Out Fund Governmental Enterprise General Fund -$ $ 160,481 $ 287,412 $ 447,893 Nonmajor Governmental - 562,985 2,087,886 2,650,871 Electric 1,830,000 25,000 - 1,855,000 Telephone 225,000 25,000 - 250,000 Nonmajor Enterprise 791,400 700,043 100,000 1,591,443 Total $ 2,846,400 $ 1,473,509 $2,475,298 $ 6,795,207 Transfer In Total Owed to Owed from (Receivable)(Payable) Amount General Fund TIF 1 Innov Campus Fund 1,428,135$ General Fund Swiftel Fund 25,000 Wastewater Fund Telephone Fund 619,612 2,072,747$ Interfund Advances 67 City of Brookings December 31, 2014 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 2015 139,888$ 73,825$ 213,713$ 2016 119,320 69,392 188,712 2017 123,934 64,778 188,712 2018 128,739 59,975 188,714 2019 481,150 54,971 536,121 2020-2024 403,914 138,438 542,352 2025-2029 468,247 74,106 542,353 2030-2031 207,555 6,227 213,782 2,072,747$ 541,712$ 2,614,459$ Fund Restricted By Amount General Fund: Library 67,114$ D.A.R.E Donors 990 Insurance Deposit Contract 355,852 Special Revenue Funds: 75% Sales & Use Tax Grantor 610,505 Enhanced 911 Law 191,901 Library Fines Law 33,533 Bed and Booze Tax Law 784,489 Debt Service Funds: TIF 3 Valley View Covenant 2,448 TIF 5 32nd Ave Covenant 17,985 TIF 6 Digester Covenant 102,847 Capital Project Funds: Nature Park Project Donors 720,201 Gateway Project Donors 268,992 Enterprise Funds: Electric Fund – debt service Covenant 805,436 Telephone Fund - debt service Covenant 3,141,914 Water Fund - debt service Covenant 52,356 Wastewater Fund - debt service Covenant 159,314 Health System - debt service Covenant 133,534 Solid Waste Fund – landfill Law 424,737 Total Restricted Net Position 7,874,148$ Donors 68 City of Brookings December 31, 2014 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 53,155$ 30,676$ 83,831$ Inventory land held for resale 1,600,000 -$ 1,600,000 Prepaid items 445,325 84,236 529,561 Insurance deposit 355,852 - 355,852 Advances 1,453,135 - 1,453,135 3,907,467 114,912 4,022,379 Restricted for: Donor purposes 68,104 989,193 1,057,297 Debt service - 123,280 123,280 Library - 33,533 33,533 E-911 - 191,901 191,901 Grant conditions - 610,505 610,505 City promotion - 784,489 784,489 68,104 2,732,901 2,801,005 Committed: Industrial park development 1,965,442 - 1,965,442 Financial stabilization 1,642,367 - 1,642,367 Retail development 1,873 - 1,873 Public safety & other - 2,199,617 2,199,617 Economic development - 855,850 855,850 Promotion/marketing of City - 152,664 152,664 Storm drainage - 1,340,912 1,340,912 3,609,682 4,549,043 8,158,725 Assigned to: Capital project carryover 303,000 1,834,118 2,137,118 Future capital improvement 1,025,102 - 1,025,102 1,328,102 1,834,118 3,162,220 Unassigned 7,391,078 (2,633,850) 4,757,228 16,304,433$ 6,597,124$ 22,901,557$ 69 City of Brookings December 31, 2014 Notes to the Financial Statements 15. RETIREMENT PLAN All employees, except for part-time employees, participate in the South Dakota Retirement System (SDRS), a cost- sharing, multiple employer public employee retirement system established to provide retirement benefits for employees of the State of South Dakota and its political subdivisions. The SDRS provides retirement, disability and survivor benefits. 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. The SDRS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to the SDRS, P. O. Box 1098, Pierre, South Dakota 57501-1098 or by calling (605) 773- 3731. General employees are required by state statute to contribute 6 percent of their salary to the plan, while public safety and judicial employees contribute at 8 percent and 9 percent, respectively. State statute also requires the employer to contribute an amount equal to the employee’s contribution. The City’s share of contributions to the SDRS for the fiscal years ended December 31, 2014, 2013, and 2012, were $2,001,375, $1,968,641, and $1,938,889, respectively, equal to the required contributions each year. 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. 70 City of Brookings December 31, 2014 Notes to the Financial Statements Funding Policy: At this time the City operates all plans on a pay-as-you-go basis. For fiscal year 2014 the City contributed approximately $275,000, all for current premiums (or 57.1% of the total premiums), and plan participants contributed approximately $207,000 (or 42.9% of total premiums) through required contributions ranging from $269.93 to $1,107.58 per month for coverage. Annual OPEB Cost and Net OPEB Obligation: The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. The following table shows the components of the City’s annual OPEB cost for the year, the amount actually paid from the plan, and changes in the City’s net OPEB obligation. The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2014 and the preceding two years were as follows: City BMU Health General Funds System Fund Annual required contribution 344,746$ 123,359$ 102,033$ Interest on net OPEB 32,116 12,435 9,839 Adjustment to annual required contribution (38,064) (14,739) (11,661) Annual OPEB cost (expense)338,798 121,055 100,211 Contributions made (149,674) (95,683) (29,208) Change in net OPEB obligation 189,124 25,372 71,003 OPEB obligation at beginning of year 1,070,522 414,510 327,972 OPEB obligation at end of year 1,259,646$ 439,882$ 398,975$ Percentage Fiscal of Annual Net Year Annual OPEB Cost OBEB Ended OPEB Cost Contributed Obligation City General 12/31/2014 338,798$ 44.18% 1,259,646$ 12/31/2013 362,080 49.83% 1,070,522 12/31/2012 362,975 43.79% 888,883 BMU Funds 12/31/2014 121,055 79.04% 439,882 12/31/2013 129,559 46.85% 414,510 12/31/2012 129,961 29.74% 345,654 Health System Fund 12/31/2014 100,210 29.15% 398,975 12/31/2013 102,654 36.32% 327,972 12/31/2012 102,982 27.46% 262,597 71 City of Brookings December 31, 2014 Notes to the Financial Statements As of January 1, 2014, 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, 2014 actuarial valuation, the Projected Unit Credit Actuarial Cost Method was used. The actuarial assumptions included a discount rate of 3.00% and an annual healthcare cost trend rate of 5.7% initially, with annual healthcare cost trend rates ranging from 5.7% to 4.5%.The rates include a 2.75% 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 -$ 3,143,217$ 3,143,217$ 0% 7,004,859 45% Brookings Municipal Utilities Funds - 1,536,714 1,536,714 0% 9,311,986 17% Brookings Health System Fund - 1,086,409 1,086,409 0% 15,309,660 7% 72 City of Brookings December 31, 2014 Notes to the Financial Statements 18. 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, 2014, 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 2014, $1,987,213 was paid in claims, net of any stop loss reimbursements. Property Insurance The City purchases insurance coverage for its boilers, equipment, and property from a commercial insurance carrier. The deductible for this coverage is $5,000. The City joined the South Dakota Public Assurance Alliance (SDPAA), a public entity risk pool currently operating as a common risk management and insurance program for South Dakota local government entities. The objective of the SDPAA is to administer and provide risk management services and risk sharing facilities to the members and to defend and protect the members against liability, to advise members on loss control guidelines and procedures, and provide them with risk management services, loss control and risk reduction information and to obtain lower costs for that coverage. The City's responsibility is to promptly report to and cooperate with the SDPAA to resolve any incident which could result in a claim being made by or against the City. The City pays an annual premium to the pool to provide coverage for governmental general liability, official’s liability, automobile liability, automobile physical damage, and law enforcement liability . The agreement with the South Dakota Public Assurance Alliance provides that the above coverages will be provided to a $6,000,000 limit for general liability and automobile liability; a $3,000,000 limit for officials 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, 2014, 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. 73 City of Brookings December 31, 2014 Notes to the Financial Statements Liability Insurance The City purchases liability insurance for risks related to airport, fire department, hospital and nursing home liability from a commercial insurance carrier. The City has been unable to obtain other liability coverage at a cost it considered to be economically justifiable. The City joined the South Dakota Public Assurance Alliance, a public entity risk pool currently operating as a common risk management and insurance program for South Dakota local government entities. The agreement with the South Dakota Public Assurance Alliance also provides coverage for general liability, auto liability, physical damage, and errors and omissions of public officials, including law enforcement personnel. The City carries a $1,000 deductible for the auto physical damage (comprehensive and collision). There is no deductible for auto liability. 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, 2014, 2 claims were filed for unemployment benefits. These claims resulted in the payment of benefits in the amount of $2,287. 19. EXCESS OF EXPENDITURES OVER APPROPRIATIONS The following funds had expenditures for which there were no appropriations: Special Assessment Fund $ 1,595,482 *The appropriations were budgeted within the South Main Project (capital project). At year end, the expenditures that were subject to special assessment repayment were moved to the Special Assessment Fund leaving the Special Assessment Fund over budget and the South Main Project Fund under budget. BID Fee Fund $ 143 * This excess is due to the 2% administrative expense required by the Governance and Ends Policy exceeding expectations. TIF #3 Valley View Fund $ 30,363 * All increment money received for this district is to be remitted to the developer’s debt holder. The excess was due to the City remitting the ending fund balance of 2014 of $172,439 to the debt holder. TIF #4 Sieler Fund $ 3,210 * All increment money received for this district is to be remitted to the developer’s debt holder. The excess was due to the City remitting the ending fund balance of 2014 of $39,172 to the debt holder. 74 City of Brookings Year Ended December 31, 2014 Required Supplementary Information - Schedule of Funding Progress for Postemployment Benefit Plans City General Fund Actuarial Unfunded Accrued Actuarial UAAL as a Actuarial Liability Accrued Percentage Actuarial Value of (Unit Credit Liability Funded Covered of Covered Valuation Assets Cost Method)(UAAL)Ratio Payroll Payroll Date (a)(b)(b-a)(a/b)(c)[(b-a)/c] January 1, 2010 -$ 2,292,485$ 2,292,485$ 0%6,157,004$ 37% 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% 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, 2010 -$ 759,104$ 759,104$ 0%8,725,325$ 9% 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% 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, 2010 -$ 468,328$ 468,328$ 0%13,711,402$ 3% January 1, 2012 - 1,088,282 1,088,282 0%13,501,040 8% January 1, 2014 - 1,086,409 1,086,409 0%15,309,660 7% Brookings Health System Fund 75 City of Brookings Year Ended December 31, 2014 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 2,800,000$ 2,800,000$ 2,728,095$ (71,905)$ General sales and use taxes 5,817,244 5,817,244 6,180,988 363,744 Amusement taxes 1,800 1,800 1,416 (384) Penalties and interest on delinquent taxes 2,500 2,500 3,065 565 Licenses and permits 198,300 209,800 239,343 29,543 Intergovernmental revenue: Federal grants 48,357 48,357 335,712 287,355 State grants 15,000 26,414 11,414 (15,000) State shared revenues 478,000 504,000 509,726 5,726 County shared revenues 160,500 216,636 244,206 27,570 Charges for goods and services: Public safety 6,000 6,000 5,806 (194) Public works 225 225 988 763 Health and welfare 10,700 10,700 8,652 (2,048) Culture and recreation 540,600 537,600 382,353 (155,247) Fines and forfeits 92,040 92,040 91,223 (817) Miscellaneous revenue: Interest earned 152,436 152,436 186,687 34,251 Rentals 66,900 81,400 96,590 15,190 Contributions and donations from private sources 38,900 178,900 216,815 37,915 Liquor Operating Agreement - 586,200 548,559 (37,641) Other 568,721 589,351 472,163 (117,188) Total revenues 10,998,223 11,861,603 12,263,801 402,198 EXPENDITURES General government: Legislative 117,018 116,928 100,764 16,164 Contingency 200,000 200,000 - 200,000 Executive 604,262 683,086 607,351 75,735 Financial administration 673,151 755,432 704,568 50,864 Other 1,286,910 4,044,311 1,435,940 2,608,371 Public safety: Police 3,226,694 3,235,870 3,062,592 173,278 Fire 928,397 1,109,191 970,560 138,631 Other protection 86,087 86,087 87,630 (1,543) Public works: Community development 424,743 433,234 3,437,769 (3,004,535) Engineer 502,249 474,524 466,052 8,472 Highways and streets 3,421,126 3,562,662 400,081 3,162,581 Health and welfare: Animal control 105,127 104,963 102,759 2,204 Culture and recreation: Recreation 732,495 738,739 950,924 (212,185) Parks 2,803,974 2,932,276 2,478,619 453,657 Libraries 1,051,965 1,049,654 1,046,621 3,033 Total expenditures 16,164,198 19,526,957 15,852,230 3,674,727 Deficiency of revenues over expenditures (5,165,975) (7,665,354) (3,588,429) 4,076,925 OTHER FINANCING SOURCES (USES) Transfers in 5,151,101 2,846,400 2,846,400 - Transfers out (463,687) (447,893) (447,893) - Issuance of long term debt 477,061 2,939,515 3,939,856 1,000,341 Insurance recoveries 1,000 707,120 689,811 (17,309) Sale of capital assets 6,000 62,922 144,667 81,745 Total other financing sources 5,171,475 6,108,064 7,172,841 1,064,777 Net change in fund balances 5,500 (1,557,290) 3,584,412 5,141,702 Fund balances - beginning 12,720,021 12,720,021 12,720,021 - Fund balances - ending 12,725,521$ 11,162,731$ 16,304,433$ 5,141,702$ 76 City of Brookings December 31, 2014 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 board 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 statue 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. 77 78 Combining Balance Sheet - Nonmajor Governmental Funds Special Debt Capital Revenue Service Project Funds Funds Funds Total ASSETS Cash and cash equivalents 2,711,018$ - $ - $ 2,711,018$ Investments 2,255,443 - - 2,255,443 Restricted cash and cash equivalents 610,505 168,254 989,275 1,768,034 Receivables, (net of allowances for uncollectibles, if any): Accounts 63,683 - 499,562 563,245 Storm drainage fees 855 - - 855 Special assessments 604,475 - - 604,475 Interest 5,941 - - 5,941 Due from other funds 1,828,513 - 1,953,611 3,782,124 Due from other governments 656,840 5,461 - 662,301 Prepaid items 84,236 - - 84,236 Inventories 30,676 - - 30,676 Total assets 8,852,185$ 173,715$ 3,442,448$ 12,468,348$ LIABILITIES Accounts payable 387,143$ -$ 372,282$ 759,425$ Retainage payable 29,091 - - 29,091 Due to other funds 2,009,160 - 246,855 2,256,015 Due to other governments 8,011 - - 8,011 Amount held for others 88,570 - - 88,570 Accrued wages payable 61,835 - - 61,835 Advance from other funds 25,000 1,428,135 - 1,453,135 Unearned revenue 612,983 - - 612,983 Total liabilities 3,221,793 1,428,135 619,137 5,269,065 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 602,159 - - 602,159 Total deferred inflows of resources 602,159 - - 602,159 FUND BALANCES Nonspendable 114,912 - - 114,912 Restricted 1,620,428 123,280 989,193 2,732,901 Committed 4,549,043 - - 4,549,043 Assigned - - 1,834,118 1,834,118 Unassigned (1,256,150) (1,377,700) - (2,633,850) Total fund balances (deficit)5,028,233 (1,254,420) 2,823,311 6,597,124 Total liabilities, deferred inflows of resources and fund balances (deficit)8,852,185$ 173,715$ 3,442,448$ 12,468,348$ City of Brookings December 31, 2014 79 City of Brookings Year Ended December 31, 2014 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 - $ 645,725$ - $ 645,725$ Storm drainage 854,150 - - 854,150 General sales and use 6,982,860 - - 6,982,860 Other 351,187 - - 351,187 Intergovernmental: State grants - - 207,335 207,335 County other 109,754 - - 109,754 Charges for goods and services: Culture and recreation 1,750,510 - - 1,750,510 Fines and forfeits: Fines 27,789 - - 27,789 Miscellaneous revenue: Interest income 75,731 - 25,012 100,743 Special assessments 222,980 - - 222,980 Other 224,018 - - 224,018 Total revenues 10,598,979 645,725 232,347 11,477,051 EXPENDITURES Current: General government 4,143 - - 4,143 Public safety 606,753 - - 606,753 Public works 212,261 - 313,058 525,319 Culture and recreation 2,133,810 - - 2,133,810 Conservation and development 1,951,862 - - 1,951,862 Debt service: Principal 6,245,398 211,413 - 6,456,811 Interest and other charges 529,866 134,658 72,769 737,293 Capital outlay 3,714,649 - 2,271,497 5,986,146 Total expenditures 15,398,742 346,071 2,657,324 18,402,137 Excess (deficiency) of revenues over expenditures (4,799,763) 299,654 (2,424,977) (6,925,086) OTHER FINANCING SOURCES (USES) Transfers in 1,473,509 - - 1,473,509 Transfers out (2,650,871) - - (2,650,871) Debt proceeds 2,333,219 - 5,845,330 8,178,549 Total other financing sources (uses)1,155,857 - 5,845,330 7,001,187 Net change in fund balances (3,643,906) 299,654 3,420,353 76,101 Fund balances (deficit) - beginning 8,672,139 (1,554,074) (597,042) 6,521,023 Fund balances (deficit) - ending 5,028,233$ (1,254,420)$ 2,823,311$ 6,597,124$ 80 City of Brookings December 31, 2014 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 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 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 to maintain and construct storm drainage facilities. Financing is provided by a surcharge to property owners and inter-fund transfers. 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 $2 per night occupancy fee charged to lodging facilities. Revenues are committed by City Council for improvements benefiting the City and its hotels and motels located within the District. 81 City of Brookings December 31, 2014 Combining Balance Sheet - Nonmajor Special Revenue Funds 25% Sales 75% Sales Enhanced Swiftel Library & Use Tax & Use Tax 911 Center Fines ASSETS Cash and cash equivalents 31,986$ - $ 130,819$ 625,478$ 28,547$ Investments 262,281 494,870 - - 10,572 Restricted cash and cash equivalents - 610,505 - - - Receivables, (net of allowances for uncollectibles, if any): Accounts - - - 49,741 - Storm drainage fees - - - - - Special assessments - - - - - Interest 954 588 - - 6 Due from other funds 1,808,589 - - 3,250 - Due from other governments 125,203 380,923 80,538 - - Prepaid items - - - 84,236 - Inventories - - - 30,676 - Total assets 2,229,013$ 1,486,886$ 211,357$ 793,381$ 39,125$ LIABILITIES Accounts payable 29,396$ 88,188$ 1,938$ 223,647$ 527$ Retainage payable - 21,686 - 3,250 - Due to other funds - 14,453 3,573 15,784 5,065 Due to other governments - - - 8,011 - Amount held for others - - - - - Accrued wages payable - - 13,945 46,318 - Advance from other funds - - - 25,000 - Unearned revenue - - - 612,983 - Total liabilities 29,396 124,327 19,456 934,993 5,592 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - - - - - Total deferred inflows of resources - - - - - FUND BALANCES Nonspendable - - - 114,912 - Restricted - 610,505 191,901 - 33,533 Committed 2,199,617 855,850 - - - Unassigned - (103,796) - (256,524) - Total fund balances (deficit)2,199,617 1,362,559 191,901 (141,612) 33,533 Total liabilities, deferred inflows of resources and fund balances (deficit)2,229,013$ 1,486,886$ 211,357$ 793,381$ 39,125$ 82 City of Brookings December 31, 2014 Combining Balance Sheet - Nonmajor Special Revenue Funds (continued) Special Storm Bed and BID Assessment Drainage Booze Tax Fee Total 709,490$ 202,163$ 827,139$ 155,396$ 2,711,018$ - 1,487,720 - - 2,255,443 - - - - 610,505 - - - 13,942 63,683 - 855 - - 855 604,475 - - - 604,475 - 4,393 - - 5,941 - - 16,674 - 1,828,513 - 7,545 62,631 - 656,840 - - - - 84,236 - - - - 30,676 1,313,965$ 1,702,676$ 906,444$ 169,338$ 8,852,185$ -$ 10,062$ 33,385$ -$ 387,143$ - 4,155 - - 29,091 1,608,491 345,120 - 16,674 2,009,160 - - - - 8,011 - - 88,570 - 88,570 - 1,572 - - 61,835 - - - - 25,000 - - - - 612,983 1,608,491 360,909 121,955 16,674 3,221,793 601,304 855 - - 602,159 601,304 855 - - 602,159 - - - - 114,912 - - 784,489 - 1,620,428 1,340,912 - 152,664 4,549,043 (895,830) - - - (1,256,150) (895,830) 1,340,912 784,489 152,664 5,028,233 1,313,965$ 1,702,676$ 906,444$ 169,338$ 8,852,185$ 83 City of Brookings Year Ended December 31, 2014 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 1,520,853 4,627,609 - - - Other - - 351,187 - - Intergovernmental: County other - - 109,754 - - Charges for goods and services: Culture and recreation - - - 1,750,510 - Fines and forfeits: Fines - - - - 27,789 Miscellaneous revenue: Interest income 2,354 45,190 520 - 111 Special assessments - - - - - Other 1,190 - - - - Total revenues 1,524,397 4,672,799 461,461 1,750,510 27,900 EXPENDITURES Current: General government - - - - - Public safety - - 606,753 - - Public works - - - - - Culture and recreation - - 2,109,561 24,249 Conservation and development 106,707 1,059,108 - - - Debt service: Principal - 6,154,271 - - - Interest and other charges - 394,344 - - - Capital outlay - 21,763 58,703 144,906 - Total expenditures 106,707 7,629,486 665,456 2,254,467 24,249 Excess (deficiency) of revenues over expenditures 1,417,690 (2,956,687) (203,995) (503,957) 3,651 OTHER FINANCING SOURCES (USES) Transfers in - 700,043 219,509 503,957 - Transfers out (219,509) (2,232,792) - - - Debt proceeds - 2,087,886 16,982 - - Total other financing sources (uses)(219,509) 555,137 236,491 503,957 - Net change in fund balances 1,198,181 (2,401,550) 32,496 - 3,651 Fund balances (deficit) - beginning 1,001,436 3,764,109 159,405 (141,612) 29,882 Fund balances (deficit) - ending 2,199,617$ 1,362,559$ 191,901$ (141,612)$ 33,533$ 84 City of Brookings Year Ended December 31, 2014 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 -$ 854,150$ -$ -$ 854,150$ - - 834,398 - 6,982,860 - - - - 351,187 - - - - 109,754 - - - - 1,750,510 - - - - 27,789 1,446 24,311 1,502 297 75,731 222,980 - - - 222,980 - 1,744 - 221,084 224,018 224,426 880,205 835,900 221,381 10,598,979 - - - 4,143 4,143 - - - - 606,753 - 212,261 - - 212,261 - - - - 2,133,810 - - 586,047 200,000 1,951,862 - 91,127 - - 6,245,398 - 135,522 - - 529,866 1,620,482 1,868,795 - - 3,714,649 1,620,482 2,307,705 586,047 204,143 15,398,742 (1,396,056) (1,427,500) 249,853 17,238 (4,799,763) - - 50,000 - 1,473,509 - - (198,570) - (2,650,871) - 228,351 - - 2,333,219 - 228,351 (148,570) - 1,155,857 (1,396,056) (1,199,149) 101,283 17,238 (3,643,906) 500,226 2,540,061 683,206 135,426 8,672,139 (895,830)$ 1,340,912$ 784,489$ 152,664$ 5,028,233$ 85 City of Brookings Year Ended December 31, 2014 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 1,556,973$ 1,556,973$ 1,520,853$ (36,120) Miscellaneous revenue: Interest income 6,000 6,000 2,354 (3,646) Other - - 1,190 1,190 Total revenues 1,562,973 1,562,973 1,524,397 (38,576) EXPENDITURES Conservation and development Economic development 15,833 287,296 106,707 180,589 Total expenditures 15,833 287,296 106,707 180,589 Excess of revenues over expenditures 1,547,140 1,275,677 1,417,690 142,013 OTHER FINANCING USES Transfers out (1,305,823) (219,509) (219,509) - Total other financing uses (1,305,823) (219,509) (219,509) - Net change in fund balances 257,150 1,056,168 1,198,181 142,013 Fund balances - beginning 1,001,436 1,001,436 1,001,436 - Fund balances - ending 1,258,586$ 2,057,604$ 2,199,617$ 142,013$ 86 City of Brookings Year Ended December 31, 2014 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 4,355,295$ 4,355,295$ 4,627,609$ 272,314$ Intergovernmental revenue: State grants 100,000 100,000 - (100,000) Miscellaneous revenue: Interest income 115,000 115,000 45,190 (69,810) Total revenues 4,570,295 4,570,295 4,672,799 102,504 EXPENDITURES Public works Highways and streets 50,000 50,000 21,763 28,237 Conservation and development Economic development 822,500 1,750,688 1,059,108 691,580 Debt Service - Principal 1,355,000 6,167,069 6,154,271 12,798 Interest 306,743 306,743 394,344 (87,601) Total expenditures 2,534,243 8,274,500 7,629,486 645,014 Excess (deficiency) of revenues over expenditures 2,036,052 (3,704,205) (2,956,687) 747,518 OTHER FINANCING USES Transfers in - 910,100 700,043 (210,057) Transfers out (8,048,930) (496,000) (2,232,792) (1,736,792) Debt Proceeds 3,850,000 3,850,000 2,087,886 (1,762,114) Total other financing uses (4,198,930) 4,264,100 555,137 (3,708,963) Net change in fund balances (2,162,878) 559,895 (2,401,550) (2,961,445) Fund balances - beginning 3,764,109 3,764,109 3,764,109 - Fund balances - ending 1,601,231$ 4,324,004$ 1,362,559$ (2,961,445)$ 87 City of Brookings Year Ended December 31, 2014 Budgetary Comparison - Enhanced 911 Fund Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis)(Negative) REVENUES Taxes: Other taxes 350,000$ 350,000$ 351,187$ 1,187$ Intergovernmental revenue: County shared revenues 109,754 109,754 109,754 - Miscellaneous revenue: Interest income 1,000 1,000 520 (480) Total revenues 460,754 460,754 461,461 707 EXPENDITURES Public safety: Other protection 711,241 704,825 665,456 39,369 Total expenditures 711,241 704,825 665,456 39,369 Deficiency of revenues over expenditures (250,487) (244,071) (203,995) 40,076 OTHER FINANCING SOURCES Transfers in 219,509 219,509 219,509 - Debt proceeds - - 16,982 16,982 Total other financing sources 219,509 219,509 236,491 16,982 Net change in fund balances (30,978) (24,562) 32,496 57,058 Fund balances - beginning 159,405 159,405 159,405 - Fund balances - ending 128,427$ 134,843$ 191,901$ 57,058$ 88 City of Brookings Year Ended December 31, 2014 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 1,604,300$ 1,973,180$ 1,750,510$ (222,670)$ Total revenues 1,604,300 1,973,180 1,750,510 (222,670) EXPENDITURES Culture and recreation: Auditoriums 2,272,136 2,348,016 2,254,467 93,549 Total expenditures 2,272,136 2,348,016 2,254,467 93,549 Deficiency of revenues over expenditures (667,836) (374,836) (503,957) (129,121) OTHER FINANCING SOURCES Transfers in 667,836 667,836 503,957 (163,879) Total other financing sources 667,836 667,836 503,957 (163,879) Net change in fund balances - 293,000 - (293,000) Fund deficits - beginning (141,612) (141,612) (141,612) - Fund deficits - ending (141,612)$ 151,388$ (141,612)$ (293,000)$ 89 City of Brookings Year Ended December 31, 2014 Budgetary Comparison - Library Fines Fund Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis)(Negative) REVENUES Fines and forfeits 30,000$ 30,000$ 27,789$ (2,211)$ Miscellaneous revenue: Interest income - - 111 111 Total revenues 30,000 30,000 27,900 (2,100) EXPENDITURES Culture and recreation: Libraries 35,000 35,000 24,249 10,751 Total expenditures 35,000 35,000 24,249 10,751 Excess (deficiency) of revenues over expenditures (5,000) (5,000) 3,651 8,651 Net change in fund balances (5,000) (5,000) 3,651 8,651 Fund balances - beginning 29,882 29,882 29,882 - Fund balances - ending 24,882$ 24,882$ 33,533$ 8,651$ 90 City of Brookings Year Ended December 31, 2014 Budgetary Comparison - Special Assessment Fund Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis)(Negative) REVENUES Miscellaneous revenue: Interest income 500$ 500$ 1,446$ 946$ Special assessments 80,000 435,200 222,980 (212,220) Total revenues 80,500 435,700 224,426 (211,274) EXPENDITURES Public works: Highways and streets 1,850,000 25,000 1,620,482 (1,595,482) Total expenditures 1,850,000 25,000 1,620,482 (1,595,482) Excess (deficiency) of revenues over expenditures (1,769,500) 410,700 (1,396,056) (1,806,756) OTHER FINANCING SOURCES Transfers in 1,850,000 - - - Total other financing sources 1,850,000 - - - Net change in fund balances 80,500 410,700 (1,396,056) (1,806,756) Fund balances - beginning 500,226 500,226 500,226 - Fund balances - ending 580,726$ 910,926$ (895,830)$ (1,806,756)$ 91 City of Brookings Year Ended December 31, 2014 Budgetary Comparison - Storm Drainage Fund Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis)(Negative) REVENUES Taxes: Storm drainage tax 818,000$ 816,000$ 853,292$ 37,292$ Penalties and interest on delinquent taxes 300 300 858 558 Miscellaneous revenue: Interest income 3,000 10,800 24,311 13,511 Other - - 1,744 1,744 Total revenues 821,300 827,100 880,205 53,105 EXPENDITURES Public works: Highways and streets 2,358,991 2,122,876 2,081,056 41,820 Debt Service Principal 65,000 91,500 91,127 373 Interest 55,000 136,500 135,522 978 Total expenditures 2,478,991 2,350,876 2,307,705 43,171 Deficiency of revenues over expenditures (1,657,691) (1,523,776) (1,427,500) 96,276 OTHER FINANCING SOURCES Proceeds from long term debt 600,000 200,000 228,351 28,351 Total other financing sources 600,000 200,000 228,351 28,351 Net change in fund balances (1,057,691) (1,323,776) (1,199,149) 124,627 Fund balances - beginning 2,540,061 2,540,061 2,540,061 - Fund balances - ending 1,482,370$ 1,216,285$ 1,340,912$ 124,627$ 92 City of Brookings Year Ended December 31, 2014 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 748,000$ 748,000$ 834,398$ 86,398$ Miscellaneous revenue: Interest income 1,000 1,000 1,502 502 Total revenues 749,000 749,000 835,900 86,900 EXPENDITURES Conservation and development Economic development 600,430 600,430 586,047 14,383 Total expenditures 600,430 600,430 586,047 14,383 Excess of revenues over expenditures 148,570 148,570 249,853 101,283 OTHER FINANCING SOURCES (USES) Transfers in 50,000 50,000 50,000 - Transfers out (198,570) (198,570) (198,570) - Total other financing uses (148,570) (148,570) (148,570) - Net change in fund balances - - 101,283 101,283 Fund balances - beginning 683,206 683,206 683,206 - Fund balances - ending 683,206$ 683,206$ 784,489$ 101,283$ 93 City of Brookings Year Ended December 31, 2014 Budgetary Comparison - BID Fee Fund Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis)(Negative) REVENUES Miscellaneous revenue: Interest income -$ -$ 297$ 297$ Occupancy fee 400,000 400,000 221,084 (178,916) Total revenues 400,000 400,000 221,381 (178,619) EXPENDITURES General government Financial administration 4,000 4,000 4,143 (143) Conservation and development Economic development 200,000 200,000 200,000 - Total expenditures 204,000 204,000 204,143 (143) Excess of revenues over expenditures 196,000 196,000 17,238 (178,762) Net change in fund balances 196,000 196,000 17,238 (178,762) Fund balances - beginning 135,426 135,426 135,426 - Fund balances - ending 331,426$ 331,426$ 152,664$ (178,762)$ 94 City of Brookings December 31, 2014 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. 95 City of Brookings December 31, 2014 Combining Balance Sheet - Nonmajor Debt Service Funds TIF-1 TIF-3 Innovation Valley TIF-4 TIF-5 TIF-6 Campus View Sieler 32nd Ave Digester Total ASSETS Restricted cash and cash equivalents 44,974$ 2,448$ -$ 17,985$ 102,847$ 168,254$ Due from other governments 5,461 - - - - 5,461 Total assets 50,435$ 2,448$ -$ 17,985$ 102,847$ 173,715$ LIABILITIES Liabilities: Advance from other funds 1,428,135$ -$ -$ -$ -$ 1,428,135$ Total liabilities 1,428,135 - - - - 1,428,135 FUND BALANCES (DEFICITS) Restricted - 2,448 - 17,985 102,847 123,280 Unassigned (1,377,700) - - - - (1,377,700) Total fund balances (deficit)(1,377,700) 2,448 - 17,985 102,847 (1,254,420) Total liabilities and fund balances 50,435$ 2,448$ - $ 17,985$ 102,847$ 173,715$ 96 City of Brookings Year Ended December 31, 2014 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 Campus View Sieler 32nd Ave Digester Total REVENUES Taxes: Property 277,381$ 172,261$ 80,710$ 12,526$ 102,847$ 645,725$ Total revenues 277,381 172,261 80,710 12,526 102,847 645,725 EXPENDITURES Debt service: Principal 26,383 130,066 54,964 - - 211,413 Interest and other charges 66,538 42,374 25,746 - - 134,658 Total expenditures 92,921 172,440 80,710 - - 346,071 Net change in fund balances 184,460 (179) - 12,526 102,847 299,654 Fund balances (deficit) - beginning (1,562,160) 2,627 - 5,459 - (1,554,074) Fund balances (deficit) - ending (1,377,700)$ 2,448$ - $ 17,985$ 102,847$ (1,254,420)$ 97 City of Brookings Year Ended December 31, 2014 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 174,000$ 174,000$ 277,381$ 103,381$ Total revenues 174,000 174,000 277,381 103,381 EXPENDITURES Debt service Principal 105,558 105,558 26,383 79,175 Interest and other charges 68,442 68,442 66,538 1,904 Total expenditures 174,000 174,000 92,921 81,079 Excess of revenues over expenditures - - 184,460 184,460 Net change in fund balances - - 184,460 184,460 Fund deficits - beginning (1,562,160) (1,562,160) (1,562,160) - Fund deficits - ending (1,562,160)$ (1,562,160)$ (1,377,700)$ 184,460$ 98 City of Brookings Year Ended December 31, 2014 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 142,077$ 142,077$ 172,261$ 30,184$ Total revenues 142,077 142,077 172,261 30,184 EXPENDITURES Debt service Principal - - 130,066 (130,066) Interest and other charges 142,077 142,077 42,374 99,703 Total expenditures 142,077 142,077 172,440 (30,363) Excess (deficiency) of revenues over expenditures - - (179) (179) Net change in fund balances - - (179) (179) Fund balances - beginning 2,627 2,627 2,627 - Fund balances - ending 2,627$ 2,627$ 2,448$ (179)$ 99 City of Brookings Year Ended December 31, 2014 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 77,500$ 77,500$ 80,710$ 3,210$ Total revenues 77,500 77,500 80,710 3,210 EXPENDITURES Debt service Principal - - 54,964 (54,964) Interest and other charges 77,500 77,500 25,746 51,754 Total expenditures 77,500 77,500 80,710 (3,210) Net change in fund balances - - - - Fund balances - beginning - - - - Fund balances - ending - $ - $ - $ - $ 100 City of Brookings Year Ended December 31, 2014 Budgetary Comparison - TIF 5 32nd Ave Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis)(Negative) REVENUES Taxes: General property taxes 7,000$ 7,000$ 12,526$ 5,526$ Total revenues 7,000 7,000 12,526 5,526 Net change in fund balances 7,000 7,000 12,526 5,526 Fund balances - beginning 5,459 5,459 5,459 - Fund balances - ending 12,459$ 12,459$ 17,985$ 5,526$ 101 City of Brookings Year Ended December 31, 2014 Budgetary Comparison - TIF 6 Digester Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis)(Negative) REVENUES Taxes: General property taxes 57,477$ 57,477$ 102,847$ 45,370$ Total revenues 57,477 57,477 102,847 45,370 EXPENDITURES Debt service Principal 150,000 150,000 - 150,000 Interest and other charges 57,477 57,477 - 57,477 Total expenditures 207,477 207,477 - 207,477 Excess (deficiency) of revenues over expenditures (150,000) (150,000) 102,847 252,847 OTHER FINANCING SOURCES (USES) Transfers in 150,000 150,000 - (150,000) Total other financing uses 150,000 150,000 - (150,000) Net change in fund balances - - 102,847 102,847 Fund balances - beginning - - - - Fund balances - ending - $ - $ 102,847$ 102,847$ 102 City of Brookings December 31, 2014 Combining Statements – Nonmajor Capital Project Funds 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 S Main Fund - to account for the resources and expenditures to design and construct the streets and infrastructure surrounding the new grade school. 103 City of Brookings December 31, 2014 Combining Balance Sheet - Nonmajor Capital Project Funds Dakota Nature Gateway TIF 6 TIF 7 Park Project Digester S Main Total ASSETS Restricted cash and cash equivalents 720,283$ 268,992$ -$ -$ 989,275$ Receivables, (net of allowances for uncollectibles, if any): Accounts - - 499,562 - 499,562 Due from other funds - - - 1,953,611 1,953,611 Total assets 720,283$ 268,992$ 499,562$ 1,953,611$ 3,442,448$ LIABILITIES Accounts payable 82$ -$ 358,804$ 13,396$ 372,282$ Due to other funds - - 13,121 233,734 246,855 Total liabilities 82 - 371,925 247,130 619,137 FUND BALANCES Restricted 720,201 268,992 - 989,193 Assigned - - 127,637 1,706,481 1,834,118 Total fund balances 720,201 268,992 127,637 1,706,481 2,823,311 Total liabilities and fund balances 720,283$ 268,992$ 499,562$ 1,953,611$ 3,442,448$ 104 City of Brookings Year Ended December 31, 2014 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Capital Project Funds Dakota Nature Gateway TIF6 TIF 7 Park Project Bel Digester S Main Total REVENUES Intergovernmental: State grants -$ -$ 207,335$ -$ 207,335$ Miscellaneous revenue: Interest income 1,577 23,423 12 - 25,012 Total revenues 1,577 23,423 207,347 - 232,347 EXPENDITURES Current: Public works - - 313,058 - 313,058 Debt Service: Interest and other charges - - 72,769 - 72,769 Capital outlay 482,988 37,022 - 1,751,487 2,271,497 Total expenditures 482,988 37,022 385,827 1,751,487 2,657,324 Deficiency of revenues over expenditures (481,411) (13,599) (178,480) (1,751,487) (2,424,977) OTHER FINANCING SOURCES Debt proceeds 460,558 36,750 1,890,054 3,457,968 5,845,330 Total other financing sources 460,558 36,750 1,890,054 3,457,968 5,845,330 Net change in fund balances (20,853) 23,151 1,711,574 1,706,481 3,420,353 Fund balances (deficit) - beginning 741,054 245,841 (1,583,937) - (597,042) Fund balances - ending 720,201$ 268,992$ 127,637$ 1,706,481$ 2,823,311$ 105 City of Brookings Year Ended December 31, 2014 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 -$ -$ 1,577$ 1,577$ Total revenues - - 1,577 1,577 EXPENDITURES Culture and recreation: Parks 350,000 500,000 482,988 17,012 Total expenditures 350,000 500,000 482,988 17,012 Deficiency of revenues over expenditures (350,000) (500,000) (481,411) 18,589 OTHER FINANCING SOURCES Transfers in 350,000 - - - Debt proceeds - 350,000 460,558 110,558 Total other financing sources 350,000 350,000 460,558 110,558 Net change in fund balances - (150,000) (20,853) 129,147 Fund balances - beginning 741,054 741,054 741,054 - Fund balances - ending 741,054$ 591,054$ 720,201$ 129,147$ 106 City of Brookings Year Ended December 31, 2014 Budgetary Comparison - Gateway Project Fund Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis)(Negative) REVENUES Miscellaneous revenue: Interest income -$ -$ 23,423$ 23,423$ Total revenues - - 23,423 23,423 EXPENDITURES Culture and recreation: Parks 40,000 67,000 37,022 29,978 Total expenditures 40,000 67,000 37,022 29,978 Deficiency of revenues over expenditures (40,000) (67,000) (13,599) 53,401 OTHER FINANCING SOURCES Debt proceeds - - 36,750 36,750 Total other financing sources - - 36,750 36,750 Net change in fund balances (40,000) (67,000) 23,151 90,151 Fund balances - beginning 245,841 245,841 245,841 - Fund balances - ending 205,841$ 178,841$ 268,992$ 90,151$ 107 City of Brookings Year Ended December 31, 2014 Budgetary Comparison - TIF 6 Digestor Fund Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis)(Negative) REVENUES Intergovernmental revenue: State grants 92,879$ 207,334$ 207,335$ 1$ Miscellaneous revenue: Other - 500,000 - (500,000) Interest income - - 12 12 Total revenues 92,879 707,334 207,347 (499,987) EXPENDITURES Conservation and development Economic development 412,500 858,176 385,827 472,349 Total expenditures 412,500 858,176 385,827 472,349 Deficiency of revenues over expenditures (319,621) (150,842) (178,480) (27,638) OTHER FINANCING SOURCES Debt proceeds 319,621 4,200,000 1,890,054 (2,309,946) Total other financing sources 319,621 4,200,000 1,890,054 (2,309,946) Net change in fund deficit - 4,049,158 1,711,574 (2,337,584) Fund deficit - beginning (1,583,937) (1,583,937) (1,583,937) - Fund balances (deficit) - ending (1,583,937)$ 2,465,221$ 127,637$ (2,337,584)$ 108 City of Brookings Year Ended December 31, 2014 Budgetary Comparison - TIF 7 S Main Variance With Budgeted Amounts Actual Final Budget (Modified Accrual Positive Original Final Basis)(Negative) EXPENDITURES Conservation and development Public works 2,500,000$ 4,100,000$ 1,751,487$ 2,348,513$ Total expenditures 2,500,000 4,100,000 1,751,487 2,348,513 Deficiency of revenues over expenditures (2,500,000) (4,100,000) (1,751,487) 2,348,513 OTHER FINANCING SOURCES Transfers in 2,500,000 - - - Debt proceeds - 4,200,000 3,457,968 (742,032) Total other financing sources 2,500,000 4,200,000 3,457,968 (742,032) Net change in fund deficit - 100,000 1,706,481 1,606,481 Fund balances - beginning - - - - Fund balances - ending - $ 100,000$ 1,706,481$ 1,606,481$ 109 City of Brookings December 31, 2014 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. 110 111 City of Brookings December 31, 2014 Combining Statement of Net Position - Nonmajor Enterprise Funds Liquor Water Airport ASSETS Current assets: Cash and cash equivalents 953,898$ 8,921,324$ - $ Investments 994,680 - - Receivables, (net of allowances for uncollectibles, if any): Accounts 1,119 383,980 692 Unbilled accounts - 187,538 - Interest 194 - - Due from other funds - 11,508 47,445 Due from other governments - - 2,712,105 Inventories: Supplies - 392,576 - Stores 624,435 - - Prepaid expenses - 23,993 - Total current assets 2,574,326 9,920,919 2,760,242 Noncurrent assets: Restricted cash and cash equivalents - 52,356 - Investments - other - 640 - Capital assets: Land - 203,013 1,923,340 Buildings and improvements 281,077 14,082,009 11,185,102 Machinery and equipment 323,685 522,177 938,014 Construction in progress - 30,765 18,190,570 Less accumulated depreciation (357,251) (6,342,223) (9,398,784) Total noncurrent assets 247,511 8,548,737 22,838,242 Total assets 2,821,837$ 18,469,656$ 25,598,484$ LIABILITIES Current liabilities: Accounts payable 94,365$ 68,484$ 25,327$ Retainage payable - - 222,284 Due to other funds 8,909 15,784 1,563,441 Accrued interest payable - 2,329 - Accrued wages payable 6,940 837 1,573 Accrued taxes payable 29,330 192 - Customer deposits 8,400 - 630 Capital lease obligations - 67,542 - Compensated absences 926 14,173 1,241 Advance payments - 4,560 - Total current liabilities 148,870 173,901 1,814,496 Noncurrent liabilities: Capital lease obligations - 507,226 - Compensated absences 3,703 - 4,964 OPEB liability 18,567 45,909 6,964 Accrued landfill closure and postclosure costs - - - Total noncurrent liabilities 22,270 553,135 11,928 Total liabilities 171,140 727,036 1,826,424 NET POSITION Net investment in capital assets 247,511 7,920,973 21,027,190 Restricted for: Debt service - 52,356 - Landfill closure and postclosure - - - Unrestricted 2,403,186 9,769,291 2,744,870 Total net position 2,650,697$ 17,742,620$ 23,772,060$ 112 City of Brookings December 31, 2014 Combining Statement of Net Position - Nonmajor Enterprise Funds Research & Solid Technology Golf Waste Center Total - $ 4,171,509$ 132,098$ 14,178,829$ - - - 994,680 - 310,594 76,541 772,926 - 51,343 - 238,881 - - - 194 - 1,097 - 60,050 - - - 2,712,105 - 18,940 - 411,516 - - - 624,435 - 10,105 - 34,098 - 4,563,588 208,639 20,027,714 - 1,151,997 - 1,204,353 - - - 640 50,000 496,364 - 2,672,717 1,371,855 4,738,822 2,118,612 33,777,477 505,595 4,235,718 - 6,525,189 - - - 18,221,335 (989,032) (4,954,558) (627,312) (22,669,160) 938,418 5,668,343 1,491,300 39,732,551 938,418$ 10,231,931$ 1,699,939$ 59,760,265$ 292$ 60,954$ 2,638$ 252,060$ - - - 222,284 37,946 694 2,802 1,629,576 - - - 2,329 2,742 18,263 - 30,355 14 5,904 - 35,440 - - - 9,030 - - - 67,542 6,390 18,961 - 41,691 - - - 4,560 47,384 104,776 5,440 2,294,867 - - 507,226 25,560 75,845 - 110,072 11,863 52,857 136,160 - 723,374 - 723,374 37,423 852,076 - 1,476,832 84,807 956,852 5,440 3,771,699 938,418 4,516,346 1,491,300 36,141,738 - - - 52,356 - 424,737 - 424,737 (84,807) 4,333,996 203,199 19,369,735 853,611$ 9,275,079$ 1,694,499$ 55,988,566$ 113 City of Brookings Year Ended December 31, 2014 Combining Statement of Revenues, Expenses, and Changes in Net Position - Nonmajor Enterprise Funds Liquor Water Airport OPERATING REVENUES Charges for goods and services 3,986,650$ 4,014,637$ 25,669$ Miscellaneous - 174,355 - Total operating revenues 3,986,650 4,188,992 25,669 OPERATING EXPENSES Personal services 338,540 1,237,067 138,499 Other current expenses 263,959 1,078,274 68,856 Cost of goods sold 3,026,010 - - Depreciation 40,153 321,457 178,968 Total operating expenses 3,668,662 2,636,798 386,323 Operating income (loss)317,988 1,552,194 (360,654) NONOPERATING REVENUES (EXPENSES) Interest income 31,594 19,473 8 Miscellaneous income - 90,673 47,570 Gain (loss) on disposition of capital assets (4,281) 1,195 - Interest expense and fiscal charges - (30,886) - Total nonoperating revenues (expenses)27,313 80,455 47,578 Income (loss) before contributions and transfers 345,301 1,632,649 (313,076) Capital contributions - 438,547 10,254,738 Transfers in 63,421 - 1,675,255 Transfers out (339,821) - - Change in net position 68,901 2,071,196 11,616,917 Net position - beginning 2,581,796 15,671,424 12,155,143 Net position - ending 2,650,697$ 17,742,620$ 23,772,060$ 114 City of Brookings Year Ended December 31, 2014 Combining Statement of Revenues, Expenses, and Changes in Net Position - Nonmajor Enterprise Funds Research & Solid Technology Golf Waste Center Total 304,314$ 3,485,365$ 193,430$ 12,010,065$ - - - 174,355 304,314 3,485,365 193,430 12,184,420 262,575 865,757 - 2,842,438 219,339 904,184 127,984 2,662,596 - - - 3,026,010 73,814 658,345 53,138 1,325,875 555,728 2,428,286 181,122 9,856,919 (251,414) 1,057,079 12,308 2,327,501 102 17,671 7,644 76,492 12,161 - - 150,404 - - - (3,086) (1,113) - - (31,999) 11,150 17,671 7,644 191,811 (240,264) 1,074,750 19,952 2,519,312 - - 10,693,285 145,663 581,014 9,945 2,475,298 (45,663) (1,156,014) (49,945) (1,591,443) (140,264) 499,750 (20,048) 14,096,452 993,875 8,775,329 1,714,547 41,892,114 853,611$ 9,275,079$ 1,694,499$ 55,988,566$ 115 City of Brookings Year Ended December 31, 2014 Combining Statement of Cash Flows - Nonmajor Enterprise Funds Liquor Water Airport CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 4,243,267$ 4,077,154$ 25,201$ Internal activity-payments from other funds - 164,391 - Payments to suppliers (3,246,062) (1,164,037) (720,420) Payments to employees (384,802) (1,239,663) (137,645) Internal activity-payments to other funds (26,688) - (14,749) Net cash provided by (used in) operating activities 585,715 1,837,845 (847,613) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 63,421 - 1,675,255 Transfers out (339,821) - - Interfund payments - - 1,329,024 Principal receipts on interfund advances/loans 37,100 - - Interest receipts on interfund advances/loans 1,113 - - Net cash provided by (used in) noncapital financing activities (238,187) - 3,004,279 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (58,100) (381,518) (10,816,116) Proceeds from sale of capital assets - 1,195 - Capital grants - - 8,659,442 Principal payments on debt (64,524) - Interest payments on debt - (31,148) - Principal payments on interfund advances/loans - - - Interest payments on interfund advances/loans - - - Net cash used in capital and related financing activities (58,100) (475,995) (2,156,674) CASH FLOWS FROM INVESTING ACTIVITIES Interest income 15,391 19,467 8 Net cash provided by investing activities 15,391 19,467 8 Net increase (decrease) in cash and cash equivalents 304,819 1,381,317 - Balances - beginning of the year 649,079 7,592,363 - Balances - end of the year 953,898 8,973,680 - Less restricted cash and cash equivalents - (52,356) - Cash and cash equivalents (current) per statement of net position 953,898$ 8,921,324$ - $ 116 City of Brookings Year Ended December 31, 2014 Combining Statement of Cash Flows - Nonmajor Enterprise Funds Research & Solid Technology Golf Waste Center Total 316,475$ 3,218,230$ 235,321$ 12,115,648$ - 231,330 - 395,721 (159,649) (634,204) (76,206) (6,000,578) (255,827) (836,621) - (2,854,558) (24,012) (222,995) (54,896) (343,340) (123,013) 1,755,740 104,219 3,312,893 145,663 581,014 9,945 2,475,298 (45,663) (1,156,014) (49,945) (1,591,443) - - - 1,329,024 - - - 37,100 - - - 1,113 100,000 (575,000) (40,000) 2,251,092 (26,369) (464,618) - (11,746,721) - - - 1,195 - - - 8,659,442 - - - (64,524) - - - (31,148) (37,099) - - (37,099) (1,113) - - (1,113) (64,581) (464,618) - (3,219,968) 102 17,671 7,644 60,283 102 17,671 7,644 60,283 (87,492) 733,793 71,863 2,404,300 87,492 4,589,713 60,235 12,978,882 - 5,323,506 132,098 15,383,182 - (1,151,997) - (1,204,353) - $ 4,171,509$ 132,098$ 14,178,829$ 117 City of Brookings Year Ended December 31, 2014 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)317,988$ 1,552,194$ (360,654)$ Miscellaneous income - 90,674 - Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 40,153 321,457 178,968 Landfill postclosure cost - - - Change in operating assets and liabilities: (Increase) decrease in: Receivables 256,616 (78,547) (468) Inventories 234,879 (75,403) - Prepaid expenses - 3,265 - Increase (decrease) in: Account and other payables (217,659) 21,997 (666,313) Accrued wages payable 3,391 (445) 1,573 Accrued leave payable (51,758) 113 (1,246) Accrued OPEB payable 2,105 2,540 527 Net cash provided by (used in) operating activities 585,715$ 1,837,845$ (847,613)$ NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Capital asset additions from contributed capital -$ 438,547$ 10,254,738$ Net change in capital assets included in accounts payable - 9,284 (684,209) 118 City of Brookings Year Ended December 31, 2014 Combining Statement of Cash Flows - Nonmajor Enterprise Funds (continued) Research & Solid Technology Golf Waste Center Total (251,414)$ 1,057,079$ 12,308$ 2,327,501$ 12,161 - - 102,835 73,814 658,345 53,138 1,325,875 - 46,572 - 46,572 - (45,909) 41,890 173,582 - (1,923) - 157,553 - 10,104 - 13,369 35,677 2,336 (3,117) (827,079) 2,742 17,713 - 24,974 2,954 8,002 - (41,935) 1,053 3,421 - 9,646 (123,013)$ 1,755,740$ 104,219$ 3,312,893$ -$ -$ -$ 10,693,285$ - - - (674,925) 119 City of Brookings December 31, 2014 Combining Statements – Nonmajor Internal Service Funds Self Insurance Fund – to account for the cost of providing self-insurance program for health insurance. Revenues are derived from billings to operating departments. Unemployment Compensation Fund – to account for the cost of providing self-insurance program for unemployment insurance. Revenues are derived from billings to operating departments. 120 City of Brookings December 31, 2014 Combining Statement of Net Position - Nonmajor Internal Service Funds Self Unemployment Insurance Compensation Total ASSETS Current assets: Cash and cash equivalents 4,823,196$ - $ 4,823,196$ Receivable 1,301 - 1,301 Total current assets 4,824,497 - 4,824,497 Total assets 4,824,497$ -$ 4,824,497$ LIABILITIES Current liabilities: Claims payable 286,886$ -$ 286,886$ Total current liabilities 286,886 - 286,886 NET POSITION Unrestricted 4,537,611 - 4,537,611 Total net position 4,537,611$ - $ 4,537,611$ 121 City of Brookings Year Ended December 31, 2014 Combining Statement of Revenues, Expenses and Changes in Net Position - Nonmajor Internal Service Funds Self Unemployment Insurance Compensation Total OPERATING REVENUES Charges for services 2,796,761$ 419$ 2,797,180$ Total operating revenues 2,796,761 419 2,797,180 OPERATING EXPENSES Insurance claims and expenses 1,987,213 23,001 2,010,214 Other current expenses 337,129 - 337,129 Total operating expenses 2,324,342 23,001 2,347,343 Operating income (loss)472,419 (22,582) 449,837 NONOPERATING REVENUES Interest income 10,050 - 10,050 Change in net position 482,469 (22,582) 459,887 Total net position - beginning 4,055,142 22,582 4,077,724 Total net position - ending 4,537,611$ - $ 4,537,611$ 122 City of Brookings Year Ended December 31, 2014 Combining Statement of Cash Flows - Nonmajor Internal Service Funds Self Unemployment Insurance Compensation Total CASH FLOWS FROM OPERATING ACTIVITIES Internal activity-payments from other funds 2,841,357$ 419$ 2,841,776$ Payments to suppliers (2,283,105) (23,780) (2,306,885) Net cash provided by (used in) operating activities 558,252 (23,361) 534,891 CASH FLOWS FROM INVESTING ACTIVITIES Interest received 10,050 - 10,050 Net cash provided by investing activities 10,050 - 10,050 Net increase (decrease) in cash and cash equivalents 568,302 (23,361) 544,941 Balances - beginning of the year 4,254,894 23,361 4,278,255 Balances - end of year 4,823,196$ - $ 4,823,196$ Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss)472,419$ (22,582)$ 449,837$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Change in operating assets and liabilities: Accounts receivable 44,596 - 44,596 Accounts payable - (779) (779) Claims payable 41,237 - 41,237 Net cash provided by (used in) operating activities 558,252$ (23,361)$ 534,891$ 123 City of Brookings December 31, 2014 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. 124 City of Brookings December 31, 2014 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 1,957$ 43,926$ 38,714$ 84,597$ Total Assets 1,957 43,926 38,714 84,597 LIBILITIES Amounts held for others 1,957 43,926 38,714 84,597 Total Liabilities 1,957$ 43,926$ 38,714$ 84,597$ 125 City of Brookings Year Ended December 31, 2014 Combining Statement of Changes in Assets and Liabilities - Fiduciary Funds Balance Balance January 1,December 31, 2014 Additions Deductions 2014 Section 125 Agency Fund Assets:- Cash and cash equivalents 101$ 53,254$ 51,398$ 1,957$ Liabilities: Due to flex claims 101$ 51,398$ 53,254$ 1,957$ Rural Fire Agency Fund Assets:- Cash and cash equivalents 15,906$ 28,020$ -$ 43,926$ Liabilities: Due to Rural Fire Association 15,906$ -$ 28,020$ 43,926$ 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 54,721$ 81,274$ 51,398$ 84,597$ Total assets 54,721 81,274 51,398 84,597 Liabilities: Due to flex claims 101 51,398 53,254 1,957 Due to Rural Fire Association 15,906 - 28,020 43,926 Due to I-29 Corridor Committee 38,714 - - 38,714 Total liabilities 54,721$ 51,398$ 81,274$ 84,597$ 126 City of Brookings December 31, 2014 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 128 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 140 These schedules contain information to help the reader assess two of the government’s significant local revenue sources: property and sales tax. Debt Capacity 144 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 151 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 153 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. 127 Table 1 2014 2013 2012 Net investment in capital assets 56,625,781$ 62,699,489$ 58,460,116$ Restricted 3,156,857 2,259,218 3,442,323 Unrestricted 20,309,859 14,775,779 15,314,013 Total Governmental Activities Net Position 80,092,497 79,734,486 77,216,452 Net investment in capital assets 104,777,360 95,258,237 80,957,243 Restricted 4,717,291 4,525,348 4,537,278 Unrestricted 89,517,138 75,079,940 73,515,304 Total Business-type Activities Net Position 199,011,789 174,863,525 159,009,825 Net investment in capital assets 161,403,141 157,957,726 139,417,359 Restricted 7,874,148 6,784,566 7,979,601 Unrestricted 109,826,997 89,855,719 88,829,317 Total Primary Government Net Position 279,104,286$ 254,598,011$ 236,226,277$ City of Brookings Comprehensive Annual Financial Report December 31, 2014 Statistics (Unaudited) Governmental Activities Net Position by Component (accrual basis of accounting) Business-type Activities Primary Government Last Ten Fiscal Years 128 Table 1 (continued) 2011 2010 2009 2008 2007 2006 2005 52,072,530$ 45,842,974$ 45,371,397$ 41,597,591$ 35,609,628$ 30,072,329$ 28,634,949$ 6,763,195 2,322,180 12,734,742 13,439,911 12,297,442 10,995,047 8,518,797 15,594,203 19,472,723 6,337,114 6,185,767 6,753,769 5,392,450 5,038,153 74,429,928 67,637,877 64,443,253 61,223,269 54,660,839 46,459,826 42,191,899 73,528,406 70,247,535 65,388,333 58,727,447 52,110,330 49,026,839 50,151,634 5,586,414 5,385,722 7,571,555 7,941,050 7,064,753 14,347,974 6,597,406 69,954,220 64,395,679 60,706,355 62,658,499 61,470,156 50,424,286 46,166,286 149,069,040 140,028,936 133,666,243 129,326,996 120,645,239 113,799,099 102,915,326 125,600,936 116,090,509 110,759,730 100,325,038 87,719,958 79,099,168 78,786,583 12,349,609 7,707,902 20,306,297 21,380,961 19,362,195 25,343,021 15,116,203 85,548,423 83,868,402 67,043,469 68,844,266 68,223,925 55,816,736 51,204,439 223,498,968$ 207,666,813$ 198,109,496$ 190,550,265$ 175,306,078$ 160,258,925$ 145,107,225$ Net Position by Component (accrual basis of accounting) Last Ten Fiscal Years City of Brookings Comprehensive Annual Financial Report December 31, 2014 Statistics (Unaudited) 129 2014 2013 2012 3,017,290$ 2,358,748$ 1,055,817$ Public Safety 5,036,493 4,764,759 4,270,067 Public Works 7,410,926 10,914,820 6,729,324 Health and Welfare 112,621 158,918 92,113 Culture and Recreation 7,168,741 6,295,703 6,436,427 1,939,064 990,262 2,293,814 808,496 675,609 639,310 Total Governmental Activities Expenses 25,493,631 26,158,819 21,516,872 Electric 21,175,715 20,251,826 19,199,183 Hospital 52,211,048 36,080,349 35,296,152 Telephone 33,929,866 33,816,035 32,003,023 PCS - - - Liquor 3,664,576 9,680,751 9,075,437 Water 2,641,459 2,692,785 2,354,964 Wastewater 3,124,572 2,698,766 2,747,422 Airport 383,714 442,346 425,870 Golf 552,028 546,691 548,373 Solid Waster 2,410,877 2,580,584 2,164,105 181,122 169,691 86,983 120,274,977 108,959,824 103,901,512 Total Primary Government Expenses 145,768,608 135,118,643 125,418,384 Program Revenues Governmental Activities: Charges for Services General Government 103,908 105,121 279,334 Public Safety 97,099 113,355 103,308 Public Works 927,311 1,104,225 661,937 Health and Welfare 11,848 10,765 12,986 Culture and Recreation 2,186,594 1,994,400 1,681,932 Conservation and Development - - - Operating Grants and Contributions 881,030 217,529 264,644 Capital Grants and Contributions 221,332 4,736,387 2,198,436 Total Governmental Activities Program Revenues 4,429,122$ 8,281,782$ 5,202,577$ Business-type Activities: Table 2 Changes in Net Position (accrual basis of accounting) Last Ten Fiscal Years City of Brookings Comprehensive Annual Financial Report December 31, 2014 Statistics (Unaudited) Research and Technology Total Business-type Activities Expenses Governmental Activities: General Government Conservation and Development Interest on Long-Term Debt 130 2011 2010 2009 2008 2007 2006 2005 2,020,020$ 2,127,308$ 2,000,014$ 1,737,799$ 1,645,669$ 1,499,615$ 2,117,756$ 4,118,486 3,917,316 3,690,186 3,397,216 3,186,250 2,939,777 3,336,213 4,290,086 5,803,132 5,153,952 3,339,805 835,588 3,667,007 2,898,952 93,423 89,310 93,475 87,399 87,304 77,816 79,198 6,966,088 6,017,894 5,629,096 5,795,387 5,472,577 5,434,517 3,269,377 870,748 692,741 1,362,380 1,181,557 2,185,183 1,102,739 3,480,421 616,398 694,435 780,087 874,677 868,693 669,871 741,929 18,975,249 19,342,136 18,709,190 16,413,840 14,281,264 15,391,342 15,923,846 19,453,708 18,823,598 17,911,760 15,562,676 14,298,942 12,482,504 11,575,983 31,719,055 30,377,015 29,827,107 27,743,482 25,231,796 22,850,330 21,127,403 29,004,409 29,096,920 28,488,641 29,133,641 31,431,991 23,009,163 22,547,080 - - - - 1,325,629 8,113,437 6,719,307 8,683,666 8,290,341 8,063,595 7,835,940 7,464,533 6,743,006 6,296,982 2,523,258 2,478,061 2,425,345 2,184,665 2,151,034 2,029,178 1,940,935 2,477,695 2,347,343 2,397,293 2,327,187 2,180,399 1,991,188 2,158,798 375,364 437,557 419,489 426,354 483,848 434,238 441,850 491,379 478,085 473,086 - - - - 2,240,293 1,948,344 1,984,222 1,846,228 1,742,340 1,679,150 1,615,947 106,994 85,264 95,361 90,712 86,130 69,173 70,951 97,075,821 94,362,528 92,085,899 87,150,885 86,396,642 79,401,367 74,495,236 116,051,070 113,704,664 110,795,089 103,564,725 100,677,906 94,792,709 90,419,082 133,387 67,569 86,767 146,987 97,459 311,910 224,948 106,281 70,169 77,437 84,017 91,106 110,769 75,105 536,813 914,078 1,133,442 496,853 463,042 301,225 - 15,081 13,064 16,527 14,878 15,699 943 16,818 2,035,253 1,603,842 1,755,012 1,680,555 2,053,842 1,942,243 533,945 21,105 17,419 10,064 232,391 55,800 720,334 - 204,509 221,492 164,708 488,979 116,898 97,179 457,955 3,780,047 2,676,500 1,971,109 1,311,600 579,544 702,376 3,329,541 6,832,476$ 5,584,133$ 5,215,066$ 4,456,260$ 3,473,390$ 4,186,979$ 4,638,312$ City of Brookings Comprehensive Annual Financial Report December 31, 2014 Statistics (Unaudited) 131 2014 2013 2012 Business-type Activities Charges for Services Electric 25,314,931$ 23,946,694$ 22,536,286$ Hospital 53,809,700 37,829,424 37,778,186 Telephone 37,007,090 35,519,726 33,721,116 PCS - - - Liquor 3,986,650 10,593,780 9,971,319 Water 4,188,992 4,077,955 4,026,895 Wastewater 4,102,822 3,418,736 3,238,910 Airport 25,669 20,025 70,845 Golf 304,314 334,640 377,663 Solid Waste 3,485,365 3,248,335 3,057,700 Research and Technology 193,430 148,490 99,363 Operating Grants and Contributions 405,059 34,994 105,083 Capital Grants and Contributions 11,935,303 7,680,056 2,516,752 Total Business-type Activities Program Revenues 144,759,325 126,852,855 117,500,118 Total Primary Government Program Revenues 149,188,447 135,134,637 122,702,695 Net (Expense)/Revenue Governmental Activities (21,064,509) (17,877,037) (16,314,295) Business-type Activities 24,484,348 17,893,031 13,598,606 Total Primary Government Net Expense 3,419,839 15,994 (2,715,689) General Revenue and Transfers Governmental Activities: Taxes Property Tax 4,230,428 3,848,367 3,666,358 Sales Tax 13,163,848 12,806,189 11,423,187 Other Tax 351,187 355,141 311,280 State Shared Revenues 210,750 189,336 173,383 Unrestricted Investment Earnings (Loss)287,430 (13,967) 201,966 Gain on Disposition Of Capital Assets 104,521 12,233 (67,947) Miscellaneous Revenue, Net 1,853,211 645,650 717,957 Transfers 1,221,145 2,552,122 2,938,647 Total Governmental Activities General Revenues 21,422,520$ 20,395,071$ 19,364,831$ Statistics (Unaudited) Comprehensive Annual Financial Report December 31, 2014 Last Ten Fiscal Years Table 2 (continued) Changes in Net Position (accrual basis of accounting) City of Brookings 132 2011 2010 2009 2008 2007 2006 2005 21,971,749$ 20,843,620$ 18,961,413$ 17,450,757$ 16,198,651$ 14,584,035$ 13,525,012$ 33,206,801 30,634,289 30,768,105 29,132,073 27,306,264 25,663,614 22,367,869 31,795,176 31,308,878 28,811,968 31,710,534 34,693,699 27,642,945 24,424,009 - - - - 1,273,886 7,468,302 5,746,845 9,524,345 9,102,921 8,833,238 8,518,713 7,953,519 7,238,017 6,841,595 3,345,211 2,931,954 2,912,247 2,764,407 2,536,785 2,270,345 1,960,066 2,937,624 2,733,661 2,627,272 2,475,986 2,350,354 2,201,480 2,100,998 38,577 50,292 29,685 28,774 45,436 69,070 63,277 324,398 330,926 318,158 - - - - 2,893,545 3,034,242 2,954,547 2,742,602 2,792,048 2,608,938 2,230,741 181,972 195,616 196,776 203,700 188,596 177,054 169,101 84,057 38,753 78,557 172,380 81,997 23,695 34,541 902,745 679,348 1,350,487 1,523,419 735,885 2,056,923 1,356,370 107,206,200 101,884,500 97,842,453 96,723,345 96,157,120 92,004,418 80,820,424 114,038,676 107,468,633 103,057,519 101,179,605 99,630,510 96,191,397 85,458,736 (12,142,773) (13,758,003) (13,494,124) (11,957,580) (10,807,874) (11,204,363) (11,285,534) 10,130,379 7,521,972 5,756,554 9,572,460 9,760,478 12,603,051 6,325,188 (2,012,394) (6,236,031) (7,737,570) (2,385,120) (1,047,396) 1,398,688 (4,960,346) 3,466,805 3,208,774 2,743,170 2,529,446 2,346,486 1,973,794 1,826,292 10,869,687 10,516,247 10,405,659 10,675,328 10,574,365 9,560,754 7,686,383 362,092 491,212 170,218 170,816 150,000 141,365 - 154,794 174,797 184,959 174,655 187,654 187,334 128,895 417,244 133,621 230,000 353,647 565,739 467,644 459,457 175,188 153,249 (277,447) (42,581) (193,468) (51,784) - 504,890 731,405 707,411 1,919,560 620,650 301,606 264,126 2,984,124 1,543,322 2,550,138 2,739,139 2,839,500 2,392,000 2,472,000 18,934,824$ 16,952,627$ 16,714,108$ 18,520,010$ 17,090,926$ 14,972,713$ 12,837,153$ City of Brookings Comprehensive Annual Financial Report December 31, 2014 Statistics (Unaudited) 133 2014 2013 2012 Other Tax -$ -$ -$ Unrestricted Investment Earnings 705,244 344,479 687,850 Gain on Disposition of Capital Assets 5,047 - (102,132) Minority Interest Payment - - (573,316) Miscellaneous Revenue, Net 174,770 168,312 138,458 Transfers (1,221,145) (2,552,122) (2,938,647) Total Business-type Activities General Revenues (336,084) (2,039,331) (2,787,787) Total Primary Government General Revenues 21,086,436 18,355,740 16,577,044 358,011 2,518,034 3,050,536 24,148,264 15,853,700 10,810,819 24,506,275$ 18,371,734$ 13,861,355$ Business-type Activities Change in Net Position Total Primary Government Governmental Activities Business-type Activities City of Brookings Comprehensive Annual Financial Report December 31, 2014 Last Ten Fiscal Years Statistics (Unaudited) Table 2 (continued) Changes in Net Position (accrual basis of accounting) 134 2011 2010 2009 2008 2007 2006 2005 -$ -$ 8,544$ 5,303$ -$ -$ -$ 1,004,282 761,254 1,151,930 2,032,135 2,669,261 2,065,144 1,046,254 (121,605) (115,988) 31,046 (12,290) (694) (512,467) - (332,836) (345,268) (184,022) (304,943) (2,828,288) (1,000,000) - 1,344,008 84,045 125,333 128,231 84,883 120,045 (320,156) (2,984,124) (1,543,322) (2,550,138) (2,739,139) (2,839,500) (2,392,000) (2,472,000) (1,090,275) (1,159,279) (1,417,307) (890,703) (2,914,338) (1,719,278) (1,745,902) 17,844,549 15,793,348 15,296,801 17,629,307 14,176,588 13,253,435 11,091,251 6,792,051 3,194,624 3,219,984 6,562,430 6,283,052 3,768,350 1,551,619 9,040,104 6,362,693 4,339,247 8,681,757 6,846,140 10,883,773 4,579,286 15,832,155$ 9,557,317$ 7,559,231$ 15,244,187$ 13,129,192$ 14,652,123$ 6,130,905$ City of Brookings Comprehensive Annual Financial Report December 31, 2014 Statistics (Unaudited) 135 Last Ten Fiscal Years 2014 2013 2012 General Fund Reserved -$ -$ -$ Unreserved, Designated - - - Unreserved - - - Nonspendable 3,907,467 2,528,342 2,634,912 Restricted 68,104 70,892 58,954 Committed 3,609,682 3,496,014 3,445,058 Assigned 1,328,102 1,237,505 1,542,554 Unassigned 7,391,078 5,387,268 3,662,265 Total General Fund 16,304,433 12,720,021 11,343,743 All Other Governmental Funds Reserved - - - Unreserved, Designated - - - - - - - - - - Nonspendable 114,912 69,673 57,008 Restricted 2,732,901 2,442,979 3,398,017 Committed 4,549,043 7,330,753 5,857,965 Assigned 1,834,118 - - Unassigned (2,633,850) (3,322,382) (2,159,902) 6,597,124$ 6,521,023$ 7,153,088$ 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, 2014 136 2011 2010 2009 2008 2007 2006 2005 -$ 2,450,478$ 870,836$ 503,209$ 852,087$ 881,478$ 534,367$ - 667,158 2,779,067 2,319,265 4,650,025 - - - 5,373,043 4,115,965 4,568,066 2,394,795 5,524,685 4,771,486 2,616,277 - - - - - - 66,553 - - - - - - 4,498,922 - - - - - - 1,509,153 - - - - - - 2,509,943 - - - - - - 11,200,848 8,490,679 7,765,868 7,390,540 7,896,907 6,406,163 5,305,853 - 1,625,518 3,699,446 4,215,796 3,515,069 3,104,234 2,592,400 - - 3,720,000 4,410,374 3,325,500 - - - - 7,089,328 3,069,328 2,139,063 4,002,508 6,366,871 4,618,491 - 4,090,906 164,784 1,103,407 - 80,930 711,798 56,944 - - - - - - 6,305,790 - - - - - - 6,102,802 - - - - - - - - - - - - - (1,800,429) - - - - - - 10,665,107$ 12,805,752$ 10,653,558$ 11,868,640$ 10,843,077$ 9,552,035$ 7,922,689$ Statistics (Unaudited) City of Brookings Comprehensive Annual Financial Report December 31, 2014 137 Table 4 Changes in Fund Balances of Governmental Funds (modified accrual basis of accounting) Last Ten Fiscal Years 2014 2013 2012 Revenues Taxes General Property Taxes 3,376,885$ 3,016,469$ 2,841,272$ Storm Drainage Taxes 854,150 829,337 824,933 General Sales and Use Tax 13,163,848 12,806,189 11,423,187 Other Taxes 352,603 356,617 312,756 Licenses and Permits 239,343 278,460 415,398 Intergovernmental 1,418,147 2,264,557 1,158,203 Charges for Goods and Services 2,148,309 1,966,908 1,660,204 Fines and Forfeitures 119,012 131,109 125,436 Miscellaneous Revenue 2,068,555 868,679 1,151,440 Total Revenue 23,740,852 22,518,325 19,912,829 Expenditures General Government 2,589,569 2,028,213 1,912,768 Public Safety 4,145,744 4,010,385 3,766,245 Public Works 3,662,177 8,053,705 3,969,147 Health and Welfare 97,919 145,749 83,015 Culture and Recreation 5,869,280 5,144,313 5,128,429 Conservation and Development 1,951,862 990,262 1,916,933 Debt Service Principal 6,602,213 1,709,729 2,104,628 Interest 750,036 551,795 701,867 Capital Outlay 8,585,567 4,955,184 9,131,820 34,254,367 27,589,335 28,714,852 (10,513,515) (5,071,010) (8,802,023) Other Financing Sources (Uses) Transfers In 4,319,909 9,361,323 7,385,314 Transfers Out (3,098,764) (6,809,201) (4,446,667) 12,118,405 3,081,110 2,362,261 Refunding Bonds Issued - - - Premium (Discount) on Bonds Issued - - - Payment to Refunded Bond Escrow Agent - - - Sale of Capital Assets 144,667 181,991 131,991 Insurance Recoveries 689,811 - - 14,174,028 5,815,223 5,432,899 3,660,513$ 744,213$ (3,369,124)$ 25.79%9.69%13.61% Net Change in Fund Balances Debt service as a percentage of noncapital expenditures Statistics (Unaudited) Total Expenditures Expenditures in Excess of Revenues Proceeds From Long Term Debt Total Other Financing Sources City of Brookings Comprehensive Annual Financial Report December 31, 2014 138 2011 2010 2009 2008 2007 2006 2005 2,652,942$ 2,386,777$ 2,195,782$ 2,014,817$ 1,852,440$ 1,712,943$ 1,597,121$ 828,081 811,791 544,121 522,267 485253 259,486 226,770 10,869,687 10,516,247 10,405,658 10,675,328 10574365 9,560,755 7,686,383 362,092 491,212 173,839 172,496 151824 143,117 1,848 221,132 158,086 226,109 258,130 221,929 57,040 33,394 924,513 1,349,720 628,583 897,928 995,230 518,917 560,768 2,018,029 1,585,429 1,740,750 1,900,111 2,135,782 2,802,007 719,732 127,095 90,867 97,690 106,023 96,235 83,026 97,690 4,355,357 1,511,361 1,802,263 2,561,074 1,200,440 1,514,701 4,109,052 22,358,928 18,901,490 17,814,795 19,108,174 17,713,498 16,651,992 15,032,758 1,812,771 1,678,891 1,677,392 1,642,248 1,587,536 1,430,745 2,032,856 3,580,331 3,459,678 3,307,418 3,206,549 2,995,551 2,796,566 3,236,829 3,171,773 3,018,999 2,707,472 2,537,756 2,382,443 2,197,199 1,493,729 87,768 85,601 85,436 83,448 81,045 73,261 75,320 5,752,280 5,065,207 4,725,144 4,908,885 4,923,233 4,913,084 2,745,448 870,748 696,405 1,275,895 654,175 789,464 1,652,739 3,480,421 2,067,011 610,019 1,823,340 1,901,308 1,774,883 1,405,653 969,782 574,969 933,626 734,131 805,499 861,970 807,851 767,187 7,190,357 6,414,053 6,188,877 6,689,546 2,788,326 4,930,470 3,576,581 25,108,008 21,962,479 22,525,105 22,429,414 18,184,451 20,207,568 18,378,153 (2,749,080) (3,060,989) (4,710,310) (3,321,240) (470,953) (3,555,576) (3,345,395) 7,738,544 6,046,458 5,396,083 7,354,896 4,473,911 4,219,172 6,023,321 (4,754,420) (4,117,803) (2,845,945) (4,615,757) (1,634,411) (1,827,172) (3,551,321) 128,394 6,922,220 1,244,986 399,073 - 3,129,547 3,145,000 - 10,735,000 - - - - - - 143,820 - - - - - - (13,967,350) - - - - - 206,086 175,649 75,432 25,000 800 209,195 51,159 - - - - - - - 3,318,604 5,937,994 3,870,556 3,163,212 2,840,300 5,730,742 5,668,159 569,524$ 2,877,005$ (839,754)$ (158,028)$ 2,369,347$ 2,175,166$ 2,322,764$ 14.75%9.93%15.66%17.20%17.13%14.49%11.74% Statistics (Unaudited) City of Brookings Comprehensive Annual Financial Report December 31, 2014 139 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 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% 2006 917,860 402,262,660 307,040,591 710,221,111 2.61 787,544,821 90% 2005 931,765 350,372,620 272,281,631 623,586,016 2.74 693,110,146 90% Fiscal City Direct Year Rate County Rate Operating Debt Service Total School 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 2.54 4.71 n/a n/a 10.51 17.76 2007 2.57 4.83 n/a n/a 10.77 18.17 2006 2.61 4.91 n/a n/a 11.00 18.52 2005 2.74 5.13 n/a n/a 11.57 19.44 (2) Separate operating rate and debt service rate not available for 2003-2008. (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, 2014 Table 6 Last Ten Fiscal Years Direct and Overlapping Property Tax Rates Statistics (Unaudited) 140 Comprehensive Annual Financial Report December 31, 2014 Taxable Assessed Value Rank Percentage of Total Taxable Assessed Value Taxable Assessed Value Rank Percentage of Total Taxable Assessed Value 30,232,300$ 1 2.82%4,897,475$ 6 0.86% Bel Brands USA Inc 19,463,300 2 1.82%- 17,640,000 3 1.65%9,759,200 3 1.72% Innovation Village I LLC 14,038,700 4 1.31%- 11,323,200 5 1.06%10,651,350 2 1.88% 10,633,500 6 0.99%- 9,663,500 7 0.90%5,956,060 5 1.05% 8,980,700 8 0.84% 8,396,100 9 0.78%3,295,680 8 0.58% First Bank & Trust 8,291,200 10 0.77%- - 13,396,800 1 2.36% Northern Border Pipeline - - 8,129,916 4 1.43% - - 3,610,935 7 0.64% - - 3,224,500 9 0.57% MPM Properties LLC - - 3,031,500 10 0.53% 138,662,500$ 12.95%65,953,416$ 11.62% 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 2014 2,829,351$ (see note below) 2013 2,725,609 2,724,004$ 99.94%-$ 2,724,004$ 99.94% 2012 2,610,007 2,606,943 99.88%1,781 2,608,724 99.95% 2011 2,525,000 2,522,853 99.91%1,372 2,524,225 99.97%2010 2,435,050 2,431,149 99.84%3,215 2,434,364 99.97% 2009 2,351,611 2,338,232 99.43%13,221 2,351,453 99.99% 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% 2006 1,853,677 1,839,572 99.24%14,105 1,853,677 100.00% 2005 1,709,049 1,699,678 99.45%9,371 1,709,049 100.00% 3M City of Brookings Statistics (Unaudited) Table 7 Principal Taxpayers Current Year and Ten Years Ago 2014 2005 Taxpayer Dakotronics Individual Property Tax Levies and Collections Global Properties LLC Larson Manufacturing Wal-Mart RPS Prop of Brookings Park Place Lomar Development Totals Source : Brookings County Board of Equalization Table 8 Den Will Note : The year shown on this table indicates the year of the levy for collection in the next year, the 2014 tax levy will be collected in the year 2015, so such information is not available at the time of preparing this table. Last Ten Fiscal Years Total Collection to Date 141 Historical Sales and Use Tax Receipts Year General Sales Tax Second Penny Sales Tax Bed and Booze Tax (1) 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 2006 4,527,049 4,518,636 515,070 2005 3,684,328 3,675,235 326,820 Note 1: This sales tax is generated on revenue from lodging, alcoholic beverages, prepared food, Table 10 2014 2013 2012 2011 4,774,773$ 3,162,548$ 3,091,160$ 3,087,586$ Construction 49,954,176 18,793,981 10,474,771 8,618,867 Manufacturing 66,460,875 45,156,711 41,645,668 38,728,774 61,757,973 58,710,762 53,122,067 55,683,634 Wholesale Trade 35,228,991 36,436,419 29,170,715 28,177,927 Retail Trade 388,986,776 374,772,056 353,040,255 341,146,735 7,037,098 8,502,522 7,617,294 7,383,082 Services 98,365,125 94,689,688 87,868,632 93,746,109 Other 243,507 1,748,854 343,496 299,735 712,809,294$ 641,973,541$ 586,374,058$ 576,872,449$ City of Brookings Comprehensive Annual Financial Report December 31, 2014 Statistics (Unaudited) and admission. Table 9 Last Ten Fiscal Years Source: South Dakota Department of Revenue & Regulation Agriculture, Forestry, and Fishing Finance, Insurance, and Real Estate Transportation and Public Utilities Taxable Sales by Category Last Ten Fiscal Years 142 Table 10 (continued) 2010 2009 2008 2007 2006 2005 3,181,788$ 3,039,659$ 3,440,586$ 3,638,773$ 3,605,787$ 3,406,485$ 18,999,179 13,245,268 177,826 164,528 121,413 82,365 39,870,007 44,800,267 51,595,198 54,333,786 49,164,261 35,448,089 57,591,566 56,626,863 67,311,733 97,167,667 64,131,772 43,815,136 28,070,480 28,379,271 17,383,415 17,746,050 16,343,978 13,112,324 337,595,550 325,909,561 279,837,198 264,591,551 241,697,520 224,015,936 7,198,463 7,975,351 6,457,586 7,000,195 6,242,834 6,334,253 73,790,455 73,659,678 62,530,126 47,416,809 48,845,716 37,988,247 62,855 156,915 - - - - 566,360,343$ 553,792,833$ 488,733,668$ 492,059,359$ 430,153,281$ 364,202,835$ City of Brookings Comprehensive Annual Financial Report December 31, 2014 Statistics (Unaudited) Taxable Sales by Category Last Ten Fiscal Years 143 Table 11 Direct and Overlapping Sales Tax Rates Fiscal Year City Direct Rate (1) City Direct Rate (2) State Rate Total Tax Rate 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% 2006 2.00%1.00%4.00%7.00% 2005 1.90%1.00%4.00%6.90% (1) General Rate Fiscal Year Sales Tax Revenue Bonds Total Taxable Sales Percentage of Actual Taxable Sales Per Capita 2014 21,343,250$ 712,809,294$ 2.99%959.20 2013 12,724,633 641,973,541 1.98%571.87 2012 14,090,239 586,374,058 2.40%633.24 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 2006 17,415,000 430,153,281 4.05%926.23 2005 18,660,000 364,202,835 5.12%997.06 (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, 2014 Statistics (Unaudited) and admission. Table 12 Ratio of Net General Bonded Debt Last Ten Fiscal Years Source: South Dakota Department of Revenue and Regulations 144 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) 2014 151,640$ 25,571,694$ -$ 10,809,915$ 20,593,606$ 24,784,739$ 81,911,594$ 5.80%3,570$ 2013 297,042 17,012,869 2,909,217 11,750,015 4,120,364 27,737,866 63,827,373 4.59%2,869$ 2012 486,185 17,993,436 380,000 12,642,228 54,166 23,763,569 55,319,584 3.98%2,486$ 2011 652,465 17,681,550 148,123 13,491,721 - 21,505,000 53,478,859 4.71%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 2006 1,459,027 17,415,000 1,540,000 9,463,555 343,474 30,375,000 60,596,056 6.71%3,223 2005 257,266 18,660,000 - 10,055,000 475,000 23,690,001 53,137,267 6.25%2,839 Source: Direct and Overlapping Governmental Activities Debt As of December 31, 2014 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, 2014 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 21,730,000.00$ 76% 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. 16,514,800$ 16,514,800 25,571,695 42,086,495$ 145 2014 2013 2012 2011 2010 53,549,666$ 50,928,781$ 49,163,730$ 48,958,250$ 47,523,026$ 25,399,103 20,111,263 18,649,493 17,829,673 19,609,279 28,150,563$ 30,817,518$ 30,514,237$ 31,128,577$ 27,913,747$ 47.4%39.5%37.9%36.4%41.3% Total Net Debt applicable to the Limit as a Percentage of Debt Limit Table 15 Legal Debt Margin Information Last Ten Fiscal Years Debt Limit (5% limit) Total Net Debt applicable to Limit Legal Debt Margin Fiscal year City of Brookings Comprehensive Annual Financial Report December 31, 2014 Statistics (Unaudited) Note: The State of South Dakota Constitution sets two legal debt limits on municipalities. The City has an unrestricted (i.e. for any legally authorized purpose) legal debt limit equal to 5% of the total assessed value of taxable property. In addition, the Constitution permits the City to issue debt for water or sewer improvements in an amount equal to 10% of the total value of taxable property. Water or sewer debt that applies against the 10% limit does not apply against the 5% limit. 146 Statistics (Unaudited) 2009 2008 2007 2006 2005 46,230,688$ 42,685,016$ 38,887,744$ 35,511,056$ 31,179,301$ 15,705,058 16,208,485 17,585,639 19,298,474 19,135,000 30,525,630$ 26,476,531$ 21,302,105$ 16,212,582$ 12,044,301$ 34.0%38.0%45.2%54.3%61.4% "No Limit" Debt Debt Capacity at 5% (unrestricted) Additional 10% Debt Capacity (Water/Sewer) 1,070,993,328$ 53,549,666$ 107,099,333$ 2014A Sales Tax Revenue Bonds (3.15%)- 10,000,000 - - 10,750,000 - - 793,290 - - 593,250 - - 349,624 - SRF Loan No. 4 Bond (3%)- 316,519 - SRF Loan No. 5 Bond (3%)- 211,279 - SRF Loan No. 6 Bond (3%)- 1,918,052 - SRF Loan No. 7 Bond (3.25)20,593,606 - - Revenue Note TIF 4 (7.5%)- 315,449 - 4,005,000 - - 1,054,915 - - 2011 Series electric Utility Revenue Bonds (.65% to 339%)5,750,000 - - 31,403,521 25,247,463 Other Debt: 490,200 - - - 151,640 - Series 1998 Capital Lease - Utility Equipment 6,040,000 - - Series 1999 Capital Lease - Utility Equipment 3,360,000 - - 5,660,000 - - 9,725,369 - - 25,275,569 151,640 - Total Debt 56,679,090 25,399,103 - N/A 28,150,563$ 107,099,333$ 2005 Series Electric Utility Revenue Bonds (5.95%) Total Bonded Debt Capital Lease - Health System Equipment Total Other Debt Available Debt Capacity Capital Lease - Fire Truck Series 2006 Capital Lease - Utility Equipment Series 2012 COP - Skilled Nursing Facility 2000 Series Utility Revenue Bonds (6.50% to 7.75%) Legal Debt Margin Calculation for Fiscal Year 2014 2014 Assessed Value Maximum Debt Capacity Existing Bonds: 2010A Sales Tax Revenue Bonds (1.25% to 3.15%) SDHDA TIF 3 (5%) SRF Loan No.2 Bond TIF 1 (3%) SRF Loan No.3 Bond (3%) Table 15 (cont) Legal Debt Margin Information Last Ten Fiscal Years Fiscal year City of Brookings Comprehensive Annual Financial Report December 31, 2014 147 Comprehensive Annual Financial Report Fiscal Sales Tax Utility Service Less Operating Net Available Year Revenue Principal Interest Coverage Charge Expense Revenue Principal Interest Coverage 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 - - - - - - 2006 4,518,636 1,245,000 760,625 2.25 - - - - - - 2005 3,675,235 935,000 688,018 2.26 - - - - - - Debt Service Sales Tax Revenue Bonds Debt Service Last Ten Years 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. State Revolving Fund Bond #3 shown is backed by storm sewer fees. 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 City of Brookings December 31, 2014 Table 16 Pledged-Revenue Coverage Statistics (Unaudited) 148 City of Brookings Comprehensive Annual Financial Report December 31, 2014 Statistics (Unaudited) Table 16 (continued) Pledged-Revenue Coverage Last Ten Years Utility Service Less Operating Net Available Charge Expense Revenue Principal Interest Coverage 356,363$ 42,521$ 313,842$ 50,100$ 64,397$ 2.74 348,697 40,065 308,632 47,213 67,284 2.70 347,600 44,932 302,668 44,493 70,005 2.64 348,751 44,136 304,615 41,929 72,569 2.66 345,196 49,621 295,575 39,513 74,985 2.58 310,932 43,753 267,179 37,236 77,262 2.33 312,012 40,359 271,653 35,090 79,407 2.37 327,272 56,263 271,009 33,068 81,429 2.37 255,552 43,017 212,535 216,445 93,907 0.68 - - - 5,024 - Debt Service 2005 Utility Revenue Bonds 149 City of Brookings Comprehensive Annual Financial Report December 31, 2014 Statistics (Unaudited) Table 16 (continued) Pledged-Revenue Coverage Last Ten Years Utility Service Less Operating Net Available Charge Expense Revenue Principal Interest Coverage 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 150 Statistics (Unaudited) Fiscal Year Population (1) Per Capita Income (2) Total Personal Income (thousands of dollars) (2) School Enrollment (3) Unemploy- ment Rate (4) 2014 22,943 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% 2005 18,715 28,847 850,565 2,702 3.0% Source : 3) South Dakota Department of Education 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, 2014 Table 17 Demographic and Economic Statistics Last Ten Fiscal Years 1) U.S. Census Bureau 151 Current Year and Ten Years Ago Employees Rank Percentage of Total City Employed Employees Rank Percentage of Total City Employed 3,359 1 14.64%2,121 1 11.33% 2,030 2 8.85%1,425 2 7.61% 850 3 3.70%720 3 3.85% 540 4 2.35%644 4 3.44% 445 5 1.94%350 6 1.87% 443 6 1.93%350 6 1.87% 425 7 1.85%468 5 2.50% 405 8 1.77%233 9 1.24% 400 9 1.74%350 6 1.87% 319 10 1.39%- Brookings Municipal Utilities - 220 10 1.18% Total 9,216 25.53%4,760 25.43% Principal Employers Employer 2014 Larson Manufacturing City of Brookings Comprehensive Annual Financial Report December 31, 2014 Statistics (Unaudited) Table 18 Hy-Vee Food Store Wal-Mart 2005 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. Brookings School District City of Brookings Note: The employment survey is not conducted annually by the Brookings Economic Development Corporation. Brookings Health System Twin City Fan 152 Full-Time Equivalent City Government Employees by Function/Program 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Mayor/City Council 7 7 7 7 7 7 7 7 7 7 City Clerk 3 3 3 3 3 3 3 2 2 2 City Manager 1 1 1 1 1 1 1 1 1 1 Human Resources 2 2 2 2 2 2 2 2 2 2 Finance 5 4 4 4 4 4 4 4 4 3 Information Technology 1 1 1 1 1 1 1 1 1 - Community Development 4.8 4.8 4 4 4 4 - - - - Engineering 5.2 5.2 6 6 6 6 9 8 8 8 Police 35 34 33 33 32 30 30 30 29 29 Fire 3 3 3 3 3 3 3 3 3 3 E-911 9 8 7 7 7 7 7 6 6 6 Streets 14 14 14 14 14 14 13 13 13 13 Animal Control 1 1 1 1 1 1 1 1 1 1 Aquatic Center 1 1 1 - - - - - - - Recreation 1 1 1 4 4 4 4 4 3 3 Park 9 8 8 8 8 11 11 11 11 11 Ice Arena 2 2 2 - - - - - - - Forestry 5 5 5 5 5 4 4 4 4 4 Library 10 10 10 10 10 10 10 9 9 9 1 1 1 1 1 1 1 1 1 1 5 6 6 6 6 6 6 6 6 6 Water 10 10 16 16 16 16 16 17 18 18 Electric 35 36 37 37 37 39 39 40 41 41 12 12 16 16 16 17 16 16 16 17 Telephone 102 102 94 93 94 95 95 93 96 97 Hospital 225 234 228 223 234 264 250 210 210 210 Golf Course 3 3 3 3 3 - - - - - 2 2 2 2 2 2 2 2 2 1 6 6 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 City of Brookings Comprehensive Annual Financial Report December 31, 2014 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) 153 Table 20 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Public Safety Dispatch 9,265 8,069 7,528 7,859 7,115 6,948 7,112 7,231 6,385 6,953 434 426 483 420 459 455 533 648 600 668 Fire 237 203 178 180 198 185 145 190 150 144 5:53 6:08 4:33 6:05 6:20 6:03 6:03 5:36 6:12 5:42 Public Works Community Development Number of code enforcement investigations 1,262 1,685 1,325 1,349 1,774 1,565 800 225 **** Percent of rental units inspected & Licensed 19%35%23%24%19%37%35%18%0%0% Engineering Number of building permits issued: Single family 79 70 71 60 75 114 89 113 106 104 Townhomes 5 3 6 2 2 10 9 12 15 14 Duplexes 2 - 3 - 1 2 5 9 2 2 Apartments 3 10 16 4 - 7 8 7 - 3 4,901 4,758 4,703 4,677 4,655 4580 4,521 4,390 4,277 4,188 822 712 584 565 575 544 517 429 432 428 Tons of refuse collected 4,464 4,406 4,427 4,440 4,577 4,431 4,549 4,622 4,422 4,390 Tons of yard waste collected 589 598 519 514 566 518 397 410 420 493 Street - 231.44 208.00 208.00 208.00 208 197.7 197.70 197.70 197.70 Total miles swept 2,500.00******************* Culture and Recreation Park & Recreation Number of season passes sold for pool 1,559 1,410 1,828 1,721 1,861 1659 1,405 1,567 1,481 534 Number of season passes sold for golf 198 271 329 313 329 332 282 298 321 370 Number of paid golf rounds played 9-holes 2,783 3,884 4,735 4,179 4,673 5295 4,903 4,792 4,747 4,731 18-holes 2,403 2,190 2,600 2,266 2,593 2427 2,125 2,212 1,767 2,293 Library Participants in children's programs 22,216 21,033 20,940 20,695 20,084 22,384 13,355 14,861 13,655 13,544 Use of electronic databases 5,184 5,120 3,219 2,849 3,636 1,711 2,865 1,759 3,811 ** Total circulation 278,588 286,892 286,548 297,798 301,802 297940 275,418 254,618 247,541 257,236 Swiftel Events Held at Swiftel Center 256 249 225 240 208 200 209 276 335 194 Source: City Departments Notes: * adjusted method of measuring **Indicates information not available City of Brookings Comprehensive Annual Financial Repor December 31, 2014 Statistics (Unaudited) Number of households collected Total number of 911 calls Operating Indicators by Function/Program Last Ten Fiscal Years Function/Program Total number of animals impounded Fire calls Solid Waste Average response time (min:sec) Total lane miles swept Tons of recycling collected 154 Statistics (Unaudited) 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 General Government General Government Buildings 1 1 1 1 1 1 1 1 1 1 Stations 1 1 1 1 1 1 1 1 1 1 4 4 4 4 4 4 4 4 4 4 7 7 7 6 6 6 6 6 5 5 236.90 231.44 229.89 228.8 227.97 227.34 227.21 226.93 226.67 226.07 3,025 3,004 2,990 2,933 2,881 2,746 2,664 2,645 2,573 2,486 130 126 126 126 126 118 118 118 118 118 Acreage 664.8 664.8 664.8 664.8 664.8 664.8 664.8 664.8 664.8 664.8 13 13 13 13 13 13 12 12 12 12 21 21 21 21 21 21 20 20 20 20 11 11 11 11 11 11 11 11 11 11 1 1 1 1 1 1 1 1 1 1 Runways 2 2 2 2 2 2 2 2 2 2 Water Miles of water mains 124.02 122.2 121.87 121.33 121.18 119.51 118.3 114.21 113.7 108.88 City of Brookings December 31, 2014 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 155 156 Pass-Through CFDA Entity Identifying Number Number U.S Department of Transportation Direct Funding: *Airport Improvement Program 20.106 3-46-0005-24-2011 1,795$ 20.106 3-46-0005-25-2012 764,543 20.106 3-46-0005-26-2013 8,927,031 9,693,369$ Pass-Through the South Dakota Department of Public Safety, Office of Highway Safety: Highway Safety Cluster Alcohol Impaired Driving Countermeasures Incentive Grants I 20.601 2014-27-08 1,889 State and Community Highway Safety 20.600 2014-27-08 9,306 11,195 Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 2014-27-08 3,668 Total U.S. Department of Transportation 9,708,232 U.S. Department of Health and Human Services Direct Funding: Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement Program 93.912 H9CRH22855 357,129 Pass-Through the South Dakota Department of Health: Public Health Emergency Preparedness 93.069 14B1039 4,982 Pass-Through the State of South Dakota Department of Rural Health: Small Rural Hospital Improvement Grant Program 93.301 *********8,828 Total U.S. Department of Health and Human Services 370,939 General Services Administration Pass-Through the South Dakota Federal Property Agency: Donation of Federal Surplus Personal Property (Note 2)39.003 *********155 Total General Service Administration 155 U.S. Department of Interior Pass-Through the South Dakota State Historic Preservation Office: Historic Preservation Fund Grants-In-Aid 15.904 12054336 01 17,282 Pass-Through the South Dakota Department of Agriculture National Fire Plan - Rural Fire Assistance 15.242 12054336 1,230 Total U.S. Department of Interior 18,512 CITY OF BROOKINGS, SOUTH DAKOTA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2014 Federal Expenditures 157 CITY OF BROOKINGS, SOUTH DAKOTA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2014 U.S. Department of Justice Direct Funding: Bureau of Justice Assistance, Bulletproof Vest Partnership Program 16.607 *********9,182 Total U.S. Department of Justice 9,182 U.S. Department of Housing and Urban Development Direct Funding: Self-Help Homeownership Opportunity Program (SHOP)14.247 SH10011 105,000 Pass-Through the Governor's Office Federal Funds CDBG - State - Administered Small Cities Program Cluster *Community Development Block Grants 14.228 782871227 294,386 Total U.S. Department of Housing and Urban Development 399,386 U.S. Environmental Protection Agency Pass-Through the State of South Dakota Department of Environment and Natural Resources Clean Water State Revolving Fund Cluster *Capitalization Grants for Clean Water State Revolving Funds 66.458 CS46000111 1,579,000 CS46000114 67,843 1,646,843 Total U.S. Environmental Protection Agency 1,646,843 Institute of Museum and Library Services Pass-Through the South Dakota State Library: Formula Grant - Jump Start 45.310 *********400 Total Federal Awards 12,153,649$ ******No Pass-through entity identifying number available Note 1:The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City and is presented on the full accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Note 2:The amount reported represents 23.3% of the original acquisition cost of the federal surplus property received by the municipality. (Original acquisition cost is provided by Federal Surplus Property. It is not what the City actually paid for the items.) Note 3:In accordance with OMB Circular A-133, major programs are determined using a risk-based approach. Programs in the above schedule denoted with an asterisk (*) are determined by the independent auditor to be major programs. Note 4:During 2014, all of the funds expended under CFDA 14.228 were provided to one subrecipient, the Boys and Girls Club of Brookings, South Dakota. 158 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the 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, 2014, 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 13, 2015, 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, we considered the City’s internal control to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion 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. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses as defined above. However, material weaknesses may exist that have not been identified. 159 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 entity'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 13, 2015 160 Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance Independent Auditor's Report The Honorable Mayor and Members of the City Council City of Brookings, South Dakota Report on Compliance for Each Major Federal Program We have audited the compliance of the City of Brookings, South Dakota (the City) with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2014. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the City's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance. 161 Opinion on Each Major Federal Program In our opinion, the City of Brookings, South Dakota complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2014. Report on Internal Control Over Compliance Management of the City of Brookings, South Dakota is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. As required by South Dakota Codified Law 4-11-11, this report is a matter of public record and its distribution is not limited. Lincoln, Nebraska May 13, 2015 162 City of Brookings, South Dakota Schedule of Findings and Questioned Costs Year Ended December 31, 2014 Summary of Auditor’s Results 1. The opinions expressed in the independent auditor’s report were: Unmodified Qualified Adverse Disclaimer 2. The independent auditor’s report on internal control over financial reporting disclosed: Significant deficiency(ies)? Yes None Reported Material weakness(es)? Yes No 3. Noncompliance considered material to the financial statements was disclosed by the audit? Yes No 4. The independent auditor’s report on internal control over compliance for major federal awards programs disclosed: Significant deficiency(ies)? Yes None Reported Material weakness(es)? Yes No 5. The opinion expressed in the independent auditor’s report on compliance for major federal awards was: Unmodified Qualified Adverse Disclaimer 6. The audit disclosed findings required to be reported by OMB Circular A-133? Yes No 7. The City’s major programs were: Cluster/Program CFDA Number Community Development Block Grants – State Administered Small Cities Program Cluster 14.228 Airport Improvement Program 20.106 Capitalization Grants for Clean Water State Revolving Funds 66.458 8. The threshold used to distinguish between Type A and Type B programs as those terms are defined in OMB Circular A-133 was $364,609. 9. The City qualified as a low-risk auditee as that term is defined in OMB Circular A-133? Yes No 163 City of Brookings, South Dakota Schedule of Findings and Questioned Costs - Continued Year Ended December 31, 2014 Findings Required to be Reported by Government Auditing Standards Reference Number Finding Questioned Costs No matters are reportable. Findings Required to be Reported by OMB Circular A-133 Reference Number Finding Questioned Costs No matters are reportable. 164 City of Brookings, South Dakota Summary Schedule of Prior Audit Findings Year Ended December 31, 2014 Reference Number Summary of Finding Status No matters are reportable. 165 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 2015-0397,Version:1 Presentation on Brookings Health System Hospital Expansion and Renovation. Summary: CEO Jason Merkley and Foundation Development Officer Barb Anderson will provide an update on the Brookings Health System Hospital Expansion and Renovation project. Attachments: Presentation City of Brookings Printed on 5/21/2015Page 1 of 1 powered by Legistar™ Progress Lives Here 1 PROGRESS LIVES HERE Hospital Expansion & Renovation Project TIMELINE •1907 – First hospital built on Harvey Dunn •1935 – City purchased hospital •1964 – Hospital built on 22nd Avenue •2008 - Master Campus Plan: o 2011 – New emergency department & lab o 2013 – Neighborhoods at Brookview o 2014-17 Hospital expansion & renovation SINCE 1964 1.Community has grown 2.Healthcare has changed 3.Patient expectations have changed QUICK FACTS •INDEPENDENT –Work with many to serve more •HIGH QUALITY CARE –Ranked #2 in state; Ranked in top 7% in US •SELF SUPPORTED & NON PROFIT –No ongoing funding from city or county taxes •GIVE BACK –$400,000 in charity care 2014 •ECONOMIC IMPACT –800 jobs + generate $27M/yr to Brookings economy •SERVE REGION –Including ambulance service to entire county CITY FUNDING REQUEST $1.5Million 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 2015-0406,Version:1 Mayor’s Annual State of the City Message. Summary: Mayor Reed will present his annual State of the City Message at the meeting. A copy of the report will be available after the meeting on the City of Brookings website:www.cityofbrookings.org <http://www.cityofbrookings.org> City of Brookings Printed on 5/21/2015Page 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 #:RES 15-058,Version:1 Action on Resolution 15-058, a Resolution awarding the contract for the purchase of a 1200 Gallon Con Cover All-Purpose Spraying Machine. Summary: Two bids were received from New Waste Concepts, Inc. for a Con Cover Machine. One bid was for a new machine for a cost of $95,400.00 and the second bid was for a used machine for a cost of $81,000.00. Background: The current machine was damaged in a shop accident on January 5, 2015. The machine was totaled out by the insurance company and the city received $70,500.00 to replace it. This machine is used on a daily bases to spray Alternative Daily Cover on the garbage. Fiscal Impact: The landfill has money set aside for equipment replacement and can use the difference, which is $10,500.00 to purchase the used machine. Recommendation: Staff recommends the acceptance of the bid for the used Con Cover Spraying Machine from New Waste Concepts for the amount of $81,000.00. Attachments: Resolution City of Brookings Printed on 5/21/2015Page 1 of 1 powered by Legistar™ Resolution 15-058 Resolution Awarding Bids for a 1200 Gallon Con Cover All Purpose Spraying Machine Whereas, the City of Brookings has received two bids on May 5,2015 for one (1) new or used 1200 Gallon Con Cover All Purpose Spraying Machine: Company Net Price New Waste Concepts, Inc. Perrysburg, OH $95,400.00 new New Waste Concepts, Inc. Perrysburg, OH $81,000.00 used Now Therefore, Be It Resolved that the bid from New Waste Concepts, Inc. for one used 1200 Gallon Con Cover All Purpose Spraying Machine in the amount of $81,000.00 be accepted. Passed and approved this 26th day of May, 2015. CITY OF BROOKINGS ______________________________ Tim Reed, 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 15-059,Version:1 Action on Resolution 15-059, a Resolution awarding the contract for the Street Department Maintenance Facility Demolition Project. Summary: The City of Brookings opened bids for the Street Department Maintenance Facility Demolition Project on Tuesday, May 12, 2015 at 1:30 p.m. at the Brookings City and County Government Center. The following bids for the Project were received: Prussman Construction in the amount of $49,048.00, and V.J. Ahlers Excavating in the amount of $48,875.00. Recommendation: Staff recommends the project be awarded to V.J. Ahlers Excavating for the low bid of $48,875.00. Attachments: Resolution Bid Tab Final Specs Prussman Bid VJ Ahlers Bid City of Brookings Printed on 5/21/2015Page 1 of 1 powered by Legistar™ Resolution 15-059 Resolution Awarding Bids on Street Department Demolition Project Whereas, the City of Brookings opened bids for the Street Department Demolition Project on Tuesday, May 12, 2015 at 1:30 p.m. at the Brookings City and County Government Center; and Whereas, the City of Brookings has received the following bids for the Street Department Demolition Project: Prussman Construction $49,048.00, VJ Ahlers Excavating $48,875.00. Now Therefore, Be It Resolved that the project be awarded to VJ Ahlers Excavating for the low bid of $48,875.00. Passed and approved this 26th day of May, 2015. CITY OF BROOKINGS __________________ Tim Reed, Mayor ATTEST: ____________________ Shari Thornes, City Clerk 2015-Street Department Demolition BID TAB BID OPENING: May 12, 2015, 1:30 PM, CITY & COUNTY GOVERNMENT CENTER Prussman Construction VJ Ahlers Excavating ENGINEERS 223 Railroad St.530 1st St. S ESTIMATE Brookings, SD 57006 Brookings, SD 57006 605-692-5421 605-692-8081 BID BOND/CASHIERS CHECK Included Included INSURANCE Included Included Total $49,048.00 $48,875.00 NOTES CITY OF BROOKINGS SOUTH DAKOTA SPECIFICATIONS FOR STREET DEPARTMENT DEMOLITION WORK 125 7TH AVENUE BROOKINGS, SOUTH DAKOTA CITY COUNCIL Tim Reed, Mayor Tom Bezdichek Dan Hansen Keith Corbett Ope Niemeyer John Kubal Jael Thorpe City Manager Jeff Weldon City Engineer Jackie Lanning MAY 2015 NOTICE TO BIDDERS Street Department Demolition Work Sealed bids will be received by the City Council of Brookings, South Dakota, at the office of the City Clerk at the Brookings City & County Government Center, 520 3rd Street, Suite 230, PO Box 270, Brookings, South Dakota, until 1:30 P.M. Tuesday, May 12, 2015, for the Street Department Demolition Work. All bids will then be publicly opened and read. Such bids are to provide for the demolition and site clearance of remaining buildings and underground materials for the site of the new Brookings City Street Department Facility located on 2nd Street between 6th and 7th Avenues. Specifications and bidding blanks may be inspected and procured at the Brookings Street Department, 3120 Highway 14 Bypass, Brookings, South Dakota or online at www.cityofbrookings.org. The City will provide an on-site pre-bid meeting on Wednesday, May 6, 2015, at 12:00 noon for potential bidders to inspect the subject properties prior to submitting their bid. Bidders may contact the Street Department at 605-692-2016 to arrange an inspection at an alternate time and with questions. Bidders shall check for Addendums on the website. Each proposal must be accompanied by a certified check, cashier's check, or draft for five percent (5%) of the amount of the bid, such check to be certified or issued by either a State or National Bank, and payable to the City of Brookings, South Dakota, or in lieu thereof, a bid bond for ten percent (10%) of the amount of the bid, such bond to be issued by a surety authorized to do business in this State and payable to the City of Brookings. The check or bond will be retained by the City as liquidated damages if the successful bidder refuses or fails to enter into a contract and performance bond in accordance with the bid when notified. All bidders are required to hold all applicable South Dakota tax licenses. Bidder is required to furnish a Performance/Surety Bond in an amount not less than the contract price, for the faithful performance of the contract, Contractor shall promptly pay all persons supplying him/her with labor or material in the performance of the work provided for in the contract. By virtue of Statutory Authority, preference will be given to materials, products, and supplies found or procured within the State of South Dakota. All bids must be signed and submitted in a sealed envelope and shall state on the left hand corner of the envelope “Street Department Demolition Work”. Any bids received after the deadline will not be accepted. Bids may not be withdrawn within thirty (30) days after the actual opening thereof. The City of Brookings reserves the right to waive irregularities and to reject any and all bids. Shari Thornes, Brookings 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 $___________. INSTRUCTIONS TO BIDDERS Bidders will observe the following instructions together with those contained in the "Notice to Bidders". IB-1 CONTRACT DOCUMENTS The following are part and parcel of the Contract and whenever the word "Contract" appears herein, the same shall be held to include all of these items: A. Legal and Procedural Documents 1. Notice to Bidders 2. Instructions to Bidders 3. Proposal Form 4. Contract Form 5. Contractor's Performance Bond Form B. General Conditions of the Contract C. Special Conditions D. Detailed Specifications E. Drawings IB-2 DEFINITIONS Wherever the word "Owner" is used herein, it shall mean the City of Brookings. Wherever the word "Bidder" is used in the documents, it shall mean each or any of the persons, partnerships, or corporations submitting proposals for the performance of the work covered by these specifications. Wherever the word "Contractor" is used herein, it shall mean the person, firm or corporation entering into the Contract for the performance of the work covered by these specifications. Wherever the term "Engineer" is used, it shall mean the Engineer employed by the Owner to supervise the construction. IB-3 PROPOSALS Bids shall be made upon the form furnished herein with all items properly filled out; numerals shall be written in ink, and the signature of all persons signing shall be in longhand. Discrepancies between words and figures shall be resolved in favor of words. If discrepancies exist between an extension and indicated sum of any column of figures, the corrected extensions or sum thereof will govern. Bids shall not contain any recapitulation of the work to be done, and alternative proposals will not be considered unless called for. No oral, telephonic or telegraphic proposals or modifications will be considered. 00200-1 Before submitting a bid, bidders shall carefully examine the drawings, read the specifications, and form and terms of the Contract, and shall fully inform themselves as to all existing conditions and limitations, and shall include in the bid, a sum to cover the cost of all items included in the Contract. Making a bid creates a conclusive presumption that the Contractor is aware of all existing conditions and all work is included in the submitted bid price. All bids must be sealed, addressed to and deposited with the City Clerk, Brookings, South Dakota on or before the day and hour set for opening of bids in the advertised "Notice to Bidders". The bids must be endorsed on the outside with the title of the work and the name of the bidder. IB-4 PROPOSAL GUARANTEE Each proposal must be accompanied by a certified check, cashier's check, or draft for five percent (5%) of the amount of the bid, such check to be certified or issued by either a State or National Bank, and payable to the City of Brookings, South Dakota, or in lieu thereof, a bid bond for ten percent (10%) of the amount of the bid, such bond to be issued by a surety authorized to do business in this State and payable to the City of Brookings. The check or bond will be retained by the City as liquidated damages if the successful bidder refuses or fails to enter into a contract and performance bond in accordance with the bid when notified. IB-5 WITHDRAWAL OF BID Bids may be withdrawn by the bidder prior to, but not after, the time set for the opening of bids. IB-6 INTERPRETATION OF DRAWINGS AND DOCUMENTS Should a bidder find discrepancies in or omission from the Drawings or Specifications or should he be in doubt as to their meaning, he shall, at once, notify the Engineer; and if the point in question is not clearly and fully set forth, a written addendum or bulletin of instructions will be mailed or delivered to each person obtaining a set of Contract Documents as provided for in the "Notice to Bidders". Each person requesting an interpretation will be responsible for the delivery of his request to the Engineer. The Owner will not be bound by, or responsible for, any other explanation or interpretations of the proposed documents than those given in writing as set forth in this paragraph. No oral instructions, interpretations or representations shall be binding upon the Owner. IB-7 SUBSTITUTION FOR PATENTED AND SPECIFIED ARTICLES Whenever in the Drawing or Specifications, any material or process is indicated or specified by patent or proprietary name and/or by name of manufacturer, such specifications shall be deemed to be used for the purpose of facilitating description of the material and/or process desired, contractor may offer any material or process which shall be equal in every respect to that so indicated or specified; provided, however, that if the material, process or article offered by the Contractor is not, in the opinion of the Engineer, equal in every respect, then the Contractor must furnish the material, process or article specified or one that, in the opinion of the Engineer, is the equal thereof in every respect. 00200-2 IB-8 AWARD OR REJECTION OF BIDS The owner reserves the right to reject any part or all of any and all bids and to waive any informalities in bids received. The contract will be awarded to the lowest responsive and responsible bidder. IB-9 CONSIDERATION OF THE PROPOSALS IN AWARDING OF CONTRACT Promptly after the opening of the proposals, a compilation of them will be prepared, and the certified checks of these bidders, who in the judgement of the Owner, should not be considered in making the award, will be returned. The other checks, except that of the successful bidder, will be returned as soon as a Contract is awarded or after a lapse of thirty (30) days of time from the opening of bids. The check of the successful bidder will be returned as soon as contract and bond are executed. The Contract will be awarded within thirty (30) days after the opening of bids unless all bids are rejected. The successful bidder will be required to execute the Contract and furnish the performance bond required within ten (10) days of receipt of the Notice of Award to him. Failure to do so shall be just cause for the annulment of the award and in the event of such annulment, the certified check of the bidder shall become the property of the Owner. Award may then be made to another bidder or the Owner may call for other bids. Performance and payment bonds will be required for this project. IB-10 COMPARISON OF BIDS Proposals will be compared on the basis of the lump sum prices. Time required for the completion of the contract is very important and the bidders should plan adequate forces to maintain the work schedule called for in the Special Conditions of the Specifications. IB-11 PAYMENT TO CONTRACTOR Payment for the work under this contract shall made upon completion of the work to the satisfaction of the Owner. IB – 12 INSURANCE REQUIREMENTS Hold Harmless Requirement - To the fullest extent permitted by law, the Contractor shall indemnify and hold harmless the City of Brookings and Brookings County and its agents, employees and volunteers from and against all claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from the performance of the Work, including loss of use resulting there from and is caused in whole or in part by any negligent act or omission of the Contractor, any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. 00200-3 Contractor shall maintain occurrence based commercial general liability insurance or equivalent form with a limit of not less than $1,000,000.00 each occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or be no less than two times the occurrence limit. Such insurance shall add the Owner and its employees and volunteers as additional insured’s. Contractor shall maintain business automobile liability insurance with a limit of not less than $1,000,000.00 each accident. Such insurance shall include coverage for owned, hired and non-owned vehicles. Contractor shall procure and maintain workers’ compensation and employers’ liability insurance as required by South Dakota Law. Such insurance shall provide coverage for sole proprietor, if applicable. Prior to commencement of work under this Agreement, Contractor shall furnish the Owner with property executed certificate of insurance which shall clearly evidence all insurance required in this agreement and provide that such insurance shall not be canceled, except on 30 days’ prior written notice to the Owner. 00200-4 Specifications for Street Department Demolition Work 125 7th Avenue, City of Brookings -for- Brookings City Street Department Building The City of Brookings is accepting bids for the removal of structures above and below grade on, Lots 4 and 5 Eberleins Addition. The bid will include demolition and removal of the existing buildings, stem walls and foundations/footings. Demolition is for the construction of the new Street Department Building as described in Exhibit A. Section 1: Description of removals to be done Contractor shall remove above ground building and concrete floors. Contractor shall also remove all underground water and sanitary sewer service lines, electrical lines, gas lines, cisterns, footings, foundations and any item discovered during the course of demolition. Owner will have all utility services disconnected and structures inspected for asbestos or other hazardous materials.. If any is known to exist, owner will abate such material prior to or during demolition. Contractor is responsible for properly disconnecting and capping utilities to the required utility standard Contractor SHALL NOT remove any curb, gutter, or street surface. The owner will be removing any City surplus items prior to demolition. These items include: furnace, air conditioner, water heater, radiant heaters, garage doors, garage door openers and windows. Contractor shall consider the remaining scrap items in their bid such as steel, copper, tin and any other materials deemed as scrap material to be retained or disposed of by the Contractor. City of Brookings Street Department shall secure the perimeter of the site with a safety fence which will remain until demolition is complete. The owner will also provide site erosion control for storm water runoff. Section 2: Condition of site following site clearance Upon completion of the demolition and compaction of engineered fill, the Contractor shall grade the site to provide a smooth surface. Contractor SHALL NOT leave holes in the ground where excavation operations existed. It is necessary to import engineered fill to the site, compact fill in layers and perform soil compaction tests. Contractor must remove all demolition materials before vacating the site. Section 3: Disposal and haul route Contractor shall haul away all demolition materials from site. If needed, Contractor shall deliver any materials to the Brookings Landfill via the following route: Seventh Ave. , to 6th Street, west to Western Avenue, north to Highway 14 bypass, east to Landfill. Disposal fees at the Brookings Landfill will be waived for the contractor but material must still be weighed via the scale pursuant to Landfill use policies. When hauling, the Contractor shall not mix loads from this site with other materials. Section 4: Demolition work schedule All demolition and site clearance described in Section 1 & 2 shall be allowed to begin after Notice To Proceed is provided, and must be completed by June 29, 2015. Section 5: Insurance requirements Hold Harmless Requirement - To the fullest extent permitted by law, the Contractor shall indemnify and hold harmless the City of Brookings and its agents, employees and volunteers from and against all claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from the performance of the Work, including loss of use resulting there from and is caused in whole or in part by any negligent act or omission of the Contractor, any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. Contractor shall maintain occurrence based commercial general liability insurance or equivalent form with a limit of not less than $1,000,000.00 each occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or be no less than two times the occurrence limit. Such insurance shall add the Owner and its employees and volunteers as additional insured’s. Contractor shall maintain business automobile liability insurance with a limit of not less than $1,000,000.00 each accident. Such insurance shall include coverage for owned, hired and non- owned vehicles. Contractor shall procure and maintain workers’ compensation and employers’ liability insurance as required by South Dakota Law. Such insurance shall provide coverage for sole proprietor, if applicable. Prior to commencement of work under this Agreement, Contractor shall furnish the Owner with property executed certificate of insurance which shall clearly evidence all insurance required in this agreement and provide that such insurance shall not be canceled, except on 30 days’ prior written notice to the Owner. Section 6: Bid opening Bidders are instructed to complete the attached bid sheet and provide proof of insurance and place in a sealed envelope with the bidders name on the exterior and labeled “STREET DEPARTMENT DEMOLITION WORK”. Sealed bids must arrive in the City Clerk’s office of the City of Brookings, at the Brookings City & County Government Center, 520 3rd Street, Suite 230, PO Box 270, Brookings, South Dakota, by 1:30 P.M. Tuesday, May 12, 2015. Section 7: Site inspection The City will provide an on-site pre-bid meeting on Wednesday, May 6, 2015 at noon for potential bidders to inspect the subject properties prior to submitting their bid. All bidders are encouraged to attend the pre-bid meeting. In the event a bidder is not able to attend, arrangements may be made with the Street Department to inspect the property at an alternate time. Section 8: Contractor right to salvage material The awarded contractor shall have the right to retain any materials of the structures that remains at time of demolition. Section 9: Bidder’s questions Bidders may direct questions about the project to Street Superintendant Matt Bartley at 605- 691-4081 during regular business hours. BID SHEET Name of Contractor Company: ________________________________ Name of Principal: ________________________________ Signature: ________________________________ I propose to complete the work described in the specification sheet for the lump sum price of $__________________________. (Disposal fees at Brookings Landfill will be waived.) Proof of insurance information must be attached. Check One: All material will be delivered to the Brookings Landfill. ______ All material will be delivered to the Brookings Landfill except concrete. ______ Addendums are acknowledged within this bid. ______ DEMOLITION WORK The City of Brookings is accepting bids for the removal of structures above and below grade on, Lots 1-3, 6 and 7, Eberleins Addition, of the existing buildings, stem walls and foundations/footings. Demolition is for the building of the new Street Department Building as described in Exhibit A. Specifications and information is available from the City of Brookings City Manager’s Office, Brookings City Hall, 500 3rd St., Brookings; or the following websites: www.cityofbrookings.org Sealed bids are due by 1:30 p.m. on Tuesday, May 12, 2015 at the Office of the City Clerk at Brookings City Hall, at which time and place bids will be opened. EXHIBIT A Structures to be demolished 125 7th Avenue 1. Street Department Building 2. Tin Building - stem walls and footings (building already removed) 3. Wash bay (building burned down) concrete floor, stem walls footings and associated basement space. 4. Coal unloading concrete hopper 5. Concrete approaches and Asphalt parking areas. 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 15-057,Version:2 Action on Resolution 15-057, a Resolution to purchase an 11’ Toro Mower from the State Contract List. The Parks Department is replacing a 2003 Hustler 4500 12’ mower with a Toro Groundmaster 4000D 11’ mower. The current mower has reached the end of its useful life and will be parted out to keep two other Hustler mowers in-service. This is large mower used throughout the park system to mow large spaces such as ball fields and major parks. The mower is being purchased through a cooperative purchasing agreement through the state’s membership in the National Association of State Purchasing Officials and as a member of the Western States Contracting Alliance. The Parks Department Capital Improvement Budget for this purchase is $42,000. The department originally intended to purchase a mower similar to the 2003 mower, but Hustler ended production of this model in 2014. Similar models from competing companies run approximately $20,000 more; thus, a budget amendment for an additional $20,000 will be necessary. The total price for the mower with sunshade and road package (headlights, tail lights, etc.) is $61,563.00. Recommendation: Staff recommends approval of purchase contract. Attachments: Resolution Price Quote City of Brookings Printed on 5/21/2015Page 1 of 1 powered by Legistar™ Resolution15-057 Resolution to Purchase One New Toro 11’ Mower for the Parks, Recreation & Forestry Dept. (Parks) Whereas, the City of Brookings has sought and received the following quote for One New Toro 11’ Mower from the Midwest Turf and Irrigation through a cooperative purchasing agreement with the National Association of State Purchasing Officials and the Western States Contracting Alliance. Company Base Price Sunshade Road Package Final Price Midwest Turf $60,214.000 $524.00 $728.00 $61,563.00 and Irrigation/ Toro Now Therefore, Be it Resolved that the contract from the Midwest Turf and Irrigation/Toro in the amount of $61,905.00 be accepted. The capital budget for this expenditure is $62,000.00 (including budget amendment). Passed and approved this 26th day of May, 2015. CITY OF BROOKINGS ________________________________ Tim Reed, 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 15-064,Version:1 Action on Resolution 15-064, a Resolution authorizing the City Manager to sign an agreement for professional services for a 20th Street South Interstate Access Evaluation. Summary: Resolution 15-064 authorizes the City Manager to sign an agreement for professional services with HDR Engineering, Inc. for a 20th Street South Interstate Access Evaluation. Background: Pursuant to the City Council directive provided at the March 24, 2015 City Council meeting, staff contacted HDR Engineering, Inc. regarding the planning process necessary to pursue an interchange at 20th Street South and Interstate 29. HDR is one of two pre-qualified engineering firms in South Dakota approved by DOT to perform such studies. HDR has significant history with the City of Brookings having completed the Industrial Park Traffic Impact Study, Brookings Area Master Transportation Plan, and traffic modeling/design on numerous traffic signal intersections in the community. City staff reviewed the draft with DOT staff and the HDR proposal for services meets the DOT requirements for this type of study. Fiscal Impact: $95,850 Recommendation: Staff Recommends Approval. Attachments: HDR Agreement City of Brookings Printed on 5/21/2015Page 1 of 1 powered by Legistar™ Resolution No. 15-064 Resolution authorizing the City Manager to sign an Agreement for Professional Services for a 20th Street South Interstate Access Evaluation. Whereas, the Brookings City Council identified a transportation need for a future interchange at 20th Street South and Interstate 29; and Whereas, the City of Brookings desires professional services with HDR Engineering, Inc. for a interstate access evaluation of the proposed 20 th Street South interchange. Now, Therefore Be It Resolved that the City Manager of the City of Brookings is authorized to sign the Agreement and other related documents for the 20th Street South interstate access evaluation. Dated this 26th day of May, 2015. CITY OF BROOKINGS _________________________ Tim Reed, Mayor ATTEST: __________________________ Shari Thornes, City Clerk Agreement for Professional Services 1 7-2010 SHORT FORM AGREEMENT BETWEEN OWNER AND HDR ENGINEERING, INC. FOR PROFESSIONAL SERVICES THIS AGREEMENT is made as of this ________ day of May, 2015, between City of Brookings (“OWNER”), and HDR ENGINEERING, INC., (“ENGINEER”) for services in connection with the project known as 20th Street South Interstate Access Evaluation (“Project”); WHEREAS, OWNER desires to engage ENGINEER to provide professional engineering, consulting and related services (“Services”) in connection with the Project; and WHEREAS, ENGINEER desires to render these Services as described in SECTION I, Scope of Services. NOW, THEREFORE, OWNER and ENGINEER in consideration of the mutual covenants contained herein, agree as follows: SECTION I. SCOPE OF SERVICES ENGINEER will provide Services for the Project, which consist of the Scope of Services as outlined on the attached Exhibit A. SECTION II. TERMS AND CONDITIONS OF ENGINEERING SERVICES The “HDR Engineering, Inc. Terms and Conditions for Professional Services,” which are attached hereto in Exhibit B, are incorporated into this Agreement by this reference as if fully set forth herein. SECTION III. RESPONSIBILITIES OF OWNER The OWNER shall provide the information set forth in paragraph 6 of the attached “HDR Engineering, Inc. Terms and Conditions for Professional Services.” SECTION IV. COMPENSATION Compensation for ENGINEER’S services under this Agreement shall be on the basis of: - Per Schedule of Pay Rates (Exhibit C) per the Employee discipline identified, plus Reimbursable Expenses, and Engineer’s technology charges. The amount of the not to exceed fee is $95,850.00. The amount of any sales tax, excise tax, value added tax (VAT), or gross receipts tax that may be imposed on this Agreement shall be added to the ENGINEER’S compensation as Reimbursable Expenses. Compensation terms are defined as follows: Agreement for Professional Services 2 7-2010 Reimbursable Expense shall mean the actual expenses incurred directly or indirectly in connection with the Project for transportation travel, subconsultants, subcontractors, computer usage, telephone, telex, shipping and express, and other incurred expense. SECTION V. PERIOD OF SERVICE Upon receipt of written authorization to proceed, ENGINEER shall perform the services within the time period(s) described in Exhibit A. Unless otherwise stated in this Agreement, the rates of compensation for ENGINEER’S services have been agreed to in anticipation of the orderly and continuous progress of the project through completion. If any specified dates for the completion of ENGINEER’S services are exceeded through no fault of the ENGINEER, the time for performance of those services shall be automatically extended for a period which may be reasonably required for their completion and all rates, measures and amounts of ENGINEER’S compensation shall be equitably adjusted. Agreement for Professional Services 3 7-2010 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. “OWNER” BY: NAME: TITLE: ADDRESS: HDR ENGINEERING, INC. “ENGINEER” BY: NAME: TITLE: ADDRESS: EXHIBIT A SCOPE OF SERVICES PROPOSAL FOR DESIGN ENGINEERING SERVICES TO: Jeff Weldon, City of Brookings PROJECT NAME: 20th Street Interstate Access Evaluation LOCATION: Brookings, SD DATE: May 14, 2014 PROJECT PHASE: Transportation Planning Services The City of Brookings has identified a transportation need for a future interchange connecting 20th Street South with Interstate 29. The concept of a new 20th Street South interchange has occurred in the SDDOT Decennial Interstate Corridor Study, the Brookings Industrial Park Traffic Impact Study, and the Brookings Area Master Transportation Plan. Guidance from the Federal Highway Administration allows a preliminary assessment of proposed interchanges in the Interstate Access Informational Guide (2010): “FHWA allows flexibility in the process to request a change in access to the Interstate System. This flexibility includes the opportunity for a review of the engineering and operational aspects of a change in access prior to including the project in the long-range transportation plan and TIP or STIP in non-urban areas or initiating environmental phases of the project.” DESCRIPTION OF WORK TASKS The following tasks describe a plan of work to perform a preliminary interstate access evaluation of the proposed 20th Street South interchange. The work will build upon the technical foundation established in the previous studies and will result in a document that will provide the basis for decisions by the City of Brookings, SDDOT and the Federal Highway Administration. Task 1: Methods and Assumption Document. A draft Methods and Assumptions document will be prepared which lists procedures and input data necessary for the study. The document will include a recommended year of construction for any subsequent project. The document will be coordinated with the Study Advisory Committee, City of Brookings, SDDOT and FHWA for consensus and signatures. Task 2: Data Gathering. Assemble available traffic count data, geometric data, available plans and mapping. Supplement data with new traffic counts and field investigation to build a database of data no older than 3 years. Based on a preliminary investigation, the following locations will need new turning movement counts:  22nd Ave. S./3rd St. S.  22nd Ave. S./Oelwein St.  22nd Ave. S./Orchard Dr.  22nd Ave. S./8th St. S.  22nd Ave. S./12th St. S.  22nd Ave. S./20th St. S.  22nd Ave. S./32nd St. S.  34th Ave. S./32nd St. S.  472nd Ave./217th St. PROPOSAL FOR TRANSPORTATION PLANNING SERVICES 20th Street South Interstate Access Evaluation April 14, 2015 PAGE 2 OF 4  SD 324/I-29 SB  SD 324/I-29 NB  SD 324/473rd Ave. Task 3: Traffic Forecasting. Review and update the existing traffic forecasting model with current land use and traffic network information. Validate the forecasting model to 2015 conditions and produce forecast traffic volumes for 2015, 2045 no-build, and 2045 build conditions. The scope and fee for this item assumes that the existing traffic forecasting model is acceptable to SDDOT and FHWA for updating and revalidation. Intersection forecast volumes will be produced for the following intersections:  6th Street/22nd Ave.  6th Street/25th Ave.  6th Street/I-29 SB  6th Street/I-29 NB  6th Street/32nd Ave.  6th Street/34th Ave.  22nd Ave. S./3rd St. S.  22nd Ave. S./Oelwein St.  22nd Ave. S./Orchard Dr.  22nd Ave. S./8th St. S.  22nd Ave. S./12th St. S.  22nd Ave. S./20th St. S.  22nd Ave. S./32nd St. S.  34th Ave. S./32nd St. S.  472nd Ave./217th St.  SD 324/I-29 SB  SD 324/I-29 NB  SD 324/473rd Ave. Task 4: Operations Analysis. Evaluate the operational conditions associated with Existing, 2045 no-build (no interchange at 20th Street South) and 2045 build scenarios (with an interchange at 20th Street South). The standard for evaluation of operational conditions will be level of service as defined by the 2010 Highway Capacity Manual and 2010 Highway Capacity Software. Analysis will include Interstate mainline operations, Interstate ramp merge/diverge/weaving operations, Interstate Interchange operations, and arterial street intersection operations. Intersection analysis will be conducted at the following locations:  6th Street/22nd Ave.  6th Street/25th Ave.  6th Street/I-29 SB  6th Street/I-29 NB  6th Street/32nd Ave.  6th Street/34th Ave.  22nd Ave. S./3rd St. S.  22nd Ave. S./Oelwein St.  22nd Ave. S./Orchard Dr. PROPOSAL FOR TRANSPORTATION PLANNING SERVICES 20th Street South Interstate Access Evaluation April 14, 2015 PAGE 3 OF 4  22nd Ave. S./8th St. S.  22nd Ave. S./12th St. S.  22nd Ave. S./20th St. S.  22nd Ave. S./32nd St. S.  34th Ave. S./32nd St. S.  472nd Ave./217th St.  SD 324/I-29 SB  SD 324/I-29 NB  SD 324/473rd Ave. Task 5: Crash Analysis. Review records of state-reportable crashes within the study area and identify crash concentrations and potential issues that may be remedied with roadway improvements. Task 6: Environmental Review. Provide a review of existing databases and solicit input from regulatory agencies regarding environmental issues that would need to be addressed during subsequent formal environmental study. Document the environmental review findings and provide recommendations for detailed study and potential mitigation needs. No fieldwork will be included in this task, but fieldwork may be added as fieldwork needs are identified. Task 7: Public Involvement. Coordinate and staff a public open house to present the findings of the traffic analysis and solicit public input on the need for future interstate access. Task 8: Coordination. Assist in formulation of a Study Advisory Team including agencies and groups with a stake in the outcome of the study. Present study findings to the Study Advisory Team and to the City of Brookings. Coordinate with the City of Brookings, SDDOT and the Federal Highway Administration regarding potential reviews of access request documentation. Coordinate with City of Brookings and SDDOT regarding further Interchange Justification Report and Environmental Assessment studies. Task 9: Documentation. Provide a draft study document for review by the Study Advisory Team. Address any review comments and produce a final study document. Task 10: Quality Assurance/Quality Control. HDR will follow all internal requirements as per our Quality Assurance / Quality Control program. Task 11: Project Administration & Coordination. This task allows for the completion of administrative tasks for this project. The task includes completing general administrative tasks associated with this project and coordination with City staff. DELIVERABLES  Draft and Final Methods and Assumptions Document  Draft and Final Study Report SCHEDULE  June 2015 – NTP  June/July 2015 – Provide Methods and Assumptions document, Address Comments  September 2015 – Complete Data Gathering, Begin Update of Forecasting Model PROPOSAL FOR TRANSPORTATION PLANNING SERVICES 20th Street South Interstate Access Evaluation April 14, 2015 PAGE 4 OF 4  September/October/November 2015 – Complete Traffic Forecasting, Complete Operations and Crash Analysis, Prepare Draft Study Report  Late November/Early December 2015 - Public Open House  December, 2015 - Submittal to City, Coordination for Next Steps  January, 2015 – Project Completion ESTIMATED FEE The fee for the planning engineering services $95,850 is estimated at a not to exceed amount as shown in the Man-hours and Fee Spreadsheet. HDR would like to note that scope revisions and follow-up discussions may require a revision to the contract not to exceed fee provided. HDR is always willing to discuss man-hours and fees to ensure we are meeting the expectations of our clients. WORK HOUR AND FEE ESTIMATEBROOKINGS 20TH ST. SOUTH. INTERSTATE STUDYKjenstad Laughlin Miller Erickson Coday SchwebachTASK PROJECT MANAGER ENGINEER V CADD TECH III ENVIRONMENTAL SCIENTIST I ADMINISTRATIVE ACCOUNTING TOTAL1. Methods and Assumptions Document 8 16242. Data gathering 1 233. Traffic forecasting 1 160 41654. Operations analysis 4 80845. Crash analysis 1 24256. Environmental review 1 4 60 657. Public Involvement 16 8248. Coordination 16 16329. Documentation 8 60 4010810. QA/QC 4 281411. Project Administration 20 881652SUBTOTALS 80 380 44 60 8 24TOTAL HOURS596CLASSIFICATION HOURS RATEPROJECT MANAGER 80 165.00$ $13,200.00ENGINEER V 380 160.00$ $60,800.00CADD TECHNICIAN II 44 90.00$ $3,960.00ENVIRONMENTAL SCIENTIST I 60 80.00$ $4,800.00ADMINISTRATIVE 8 65.00$ $520.00ACCOUNTING 24 95.00$ $2,280.00$85,560.00TOTAL DIRECT LABORINDIRECT COSTS UNITS RATE TOTALSUBCONTRACT TRAFFIC COUNTING 12 600.00$ 7,200.00$ SHPO Research 1 150.00$ 150.00$ COPIES 800 (8.5"x11" Plain) 0.15$ 120.00$ MILEAGE 800 0.75$ 600.00$ TECH. CHARGE 596 3.70$ 2,205.20$ INDIRECT COST TOTAL10,275.20$ DIRECT LABOR $85,560.00INDIRECT COST 10,275.20$ HOURS EXHIBIT B TERMS AND CONDITIONS 1 (12/2012) HDR Engineering, Inc. Terms and Conditions for Professional Services 1. STANDARD OF PERFORMANCE The standard of care for all professional engineering, consulting and related services performed or furnished by ENGINEER and its employees under this Agreement will be the care and skill ordinarily used by members of ENGINEER’s profession practicing under the same or similar circumstances at the same time and in the same locality. ENGINEER makes no warranties, express or implied, under this Agreement or otherwise, in connection with ENGINEER’s services. 2. INSURANCE/INDEMNITY ENGINEER agrees to procure and maintain, at its expense, Workers' Compensation insurance as required by statute; Employer's Liability of $250,000; Automobile Liability insurance of $1,000,000 combined single limit for bodily injury and property damage covering all vehicles, including hired vehicles, owned and non-owned vehicles; Commercial General Liability insurance of $1,000,000 combined single limit for personal injury and property damage; and Professional Liability insurance of $1,000,000 per claim for protection against claims arising out of the performance of services under this Agreement caused by negligent acts, errors, or omissions for which ENGINEER is legally liable. OWNER shall be made an additional insured on Commercial General and Automobile Liability insurance policies and certificates of insurance will be furnished to the OWNER. ENGINEER agrees to indemnify OWNER for claims to the extent caused by ENGINEER's negligent acts, errors or omissions. However, neither Party to this Agreement shall be liable to the other Party for any special, incidental, indirect, or consequential damages arising out of, resulting from, or in any way related to the Project or the Agreement from any cause or causes, including but not limited to any such damages caused by the negligence, errors or omissions, strict liability or breach of contract. 3. OPINIONS OF PROBABLE COST (COST ESTIMATES) Any opinions of probable project cost or probable construction cost provided by ENGINEER are made on the basis of information available to ENGINEER and on the basis of ENGINEER's experience and qualifications, and represents its judgment as an experienced and qualified professional engineer. However, since ENGINEER has no control over the cost of labor, materials, equipment or services furnished by others, or over the contractor(s') methods of determining prices, or over competitive bidding or market conditions, ENGINEER does not guarantee that proposals, bids or actual project or construction cost will not vary from opinions of probable cost ENGINEER prepares. 4. CONSTRUCTION PROCEDURES ENGINEER's observation or monitoring portions of the work performed under construction contracts shall not relieve the contractor from its responsibility for performing work in accordance with applicable contract documents. ENGINEER shall not control or have charge of, and shall not be responsible for, construction means, methods, techniques, sequences, procedures of construction, health or safety programs or precautions connected with the work and shall not manage, supervise, control or have charge of construction. ENGINEER shall not be responsible for the acts or omissions of the contractor or other parties on the project. ENGINEER shall be entitled to review all construction contract documents and to require that no provisions extend the duties or liabilities of ENGINEER beyond those set forth in this Agreement. OWNER agrees to include ENGINEER as an indemnified party in OWNER’s construction contracts for the work, which shall protect ENGINEER to the same degree as OWNER. Further, OWNER agrees that ENGINEER shall be listed as an additional insured under the construction contractor’s liability insurance policies. 5. CONTROLLING LAW This Agreement is to be governed by the law of the state where ENGINEER's services are performed. 6. SERVICES AND INFORMATION OWNER will provide all criteria and information pertaining to OWNER's requirements for the project, including design objectives and constraints, space, capacity and performance requirements, flexibility and expandability, and any budgetary limitations. OWNER will also provide copies of any OWNER-furnished Standard Details, Standard Specifications, or Standard Bidding Documents which are to be incorporated into the project. OWNER will furnish the services of soils/geotechnical engineers or other consultants that include reports and appropriate professional recommendations when such services are deemed necessary by ENGINEER. The OWNER agrees to bear full responsibility for the technical accuracy and content of OWNER-furnished documents and services. In performing professional engineering and related services hereunder, it is understood by OWNER that ENGINEER is not engaged in rendering any type of legal, insurance or accounting services, opinions or advice. Further, it is the OWNER’s sole responsibility to obtain the advice of an attorney, insurance counselor or accountant to protect the OWNER’s legal and financial interests. To that end, the OWNER agrees that OWNER or the OWNER’s representative will examine all studies, reports, sketches, drawings, specifications, proposals and other documents, opinions or advice prepared or provided by ENGINEER, and will obtain the advice of an attorney, insurance counselor or other consultant as the OWNER deems necessary to protect the OWNER’s interests before OWNER takes action or forebears to take action based upon or relying upon the services provided by ENGINEER. 7. SUCCESSORS AND ASSIGNS OWNER and ENGINEER, respectively, bind themselves, their partners, successors, assigns, and legal representatives to the covenants of this Agreement. Neither OWNER nor ENGINEER will assign, sublet, or transfer any interest in this Agreement or claims arising therefrom without the written consent of the other. 8. RE-USE OF DOCUMENTS All documents, including all reports, drawings, specifications, computer software or other items prepared or furnished by ENGINEER pursuant to this Agreement, are instruments of service with respect to the project. ENGINEER retains ownership of all such documents. OWNER may retain copies of the documents for its information and reference in connection with the project; however, none of the documents are intended or represented to be suitable for reuse by OWNER or others on extensions of the project or on any other project. Any reuse without written verification or adaptation by ENGINEER for the specific purpose intended will be at OWNER's sole risk and without liability or legal exposure to ENGINEER, and OWNER will defend, indemnify and hold harmless ENGINEER from all claims, damages, losses and expenses, including attorney's fees, arising or resulting therefrom. Any such verification or adaptation will entitle ENGINEER to further compensation at rates to be agreed upon by OWNER and ENGINEER. 9. TERMINATION OF AGREEMENT OWNER or ENGINEER may terminate the Agreement, in whole or in part, by giving seven (7) days written notice to the other party. Where the method of payment is "lump sum," or cost reimbursement, the final invoice will include all services and expenses associated with the project up to the effective date of termination. An equitable adjustment shall also be made to provide for termination settlement costs ENGINEER incurs as a result of commitments that had become firm before termination, and for a reasonable profit for services performed. 10. SEVERABILITY If any provision of this agreement is held invalid or unenforceable, the remaining provisions shall be valid and binding upon the parties. One or more waivers by either party of any provision, term or condition shall not be construed by the other party as a waiver of any subsequent breach of the same provision, term or condition. 11. INVOICES ENGINEER will submit monthly invoices for services rendered and OWNER will make prompt payments in response to ENGINEER's invoices. ENGINEER will retain receipts for reimbursable expenses in general accordance with Internal Revenue Service rules pertaining to the support of expenditures for income tax purposes. Receipts will be available for inspection by OWNER's auditors upon request. If OWNER disputes any items in ENGINEER's invoice for any reason, including the lack of supporting documentation, OWNER may temporarily Terms & Conditions for Professional Services 2 (12/2012) delete the disputed item and pay the remaining amount of the invoice. OWNER will promptly notify ENGINEER of the dispute and request clarification and/or correction. After any dispute has been settled, ENGINEER will include the disputed item on a subsequent, regularly scheduled invoice, or on a special invoice for the disputed item only. OWNER recognizes that late payment of invoices results in extra expenses for ENGINEER. ENGINEER retains the right to assess OWNER interest at the rate of one percent (1%) per month, but not to exceed the maximum rate allowed by law, on invoices which are not paid within thirty (30) days from the date of the invoice. In the event undisputed portions of ENGINEER's invoices are not paid when due, ENGINEER also reserves the right, after seven (7) days prior written notice, to suspend the performance of its services under this Agreement until all past due amounts have been paid in full. 12. CHANGES The parties agree that no change or modification to this Agreement, or any attachments hereto, shall have any force or effect unless the change is reduced to writing, dated, and made part of this Agreement. The execution of the change shall be authorized and signed in the same manner as this Agreement. Adjustments in the period of services and in compensation shall be in accordance with applicable paragraphs and sections of this Agreement. Any proposed fees by ENGINEER are estimates to perform the services required to complete the project as ENGINEER understands it to be defined. For those projects involving conceptual or process development services, activities often are not fully definable in the initial planning. In any event, as the project progresses, the facts developed may dictate a change in the services to be performed, which may alter the scope. ENGINEER will inform OWNER of such situations so that changes in scope and adjustments to the time of performance and compensation can be made as required. If such change, additional services, or suspension of services results in an increase or decrease in the cost of or time required for performance of the services, an equitable adjustment shall be made, and the Agreement modified accordingly. 13. CONTROLLING AGREEMENT These Terms and Conditions shall take precedence over any inconsistent or contradictory provisions contained in any proposal, contract, purchase order, requisition, notice-to-proceed, or like document. 14. EQUAL EMPLOYMENT AND NONDISCRIMINATION In connection with the services under this Agreement, ENGINEER agrees to comply with the applicable provisions of federal and state Equal Employment Opportunity for individuals based on color, religion, sex, or national origin, or disabled veteran, recently separated veteran, other protected veteran and armed forces service medal veteran status, disabilities under provisions of executive order 11246, and other employment, statutes and regulations, as stated in Title 41 Part 60 of the Code of Federal Regulations § 60-1.4 (a-f), § 60-300.5 (a-e), § 60-741 (a- e). 15. HAZARDOUS MATERIALS OWNER represents to ENGINEER that, to the best of its knowledge, no hazardous materials are present at the project site. However, in the event hazardous materials are known to be present, OWNER represents that to the best of its knowledge it has disclosed to ENGINEER the existence of all such hazardous materials, including but not limited to asbestos, PCB’s, petroleum, hazardous waste, or radioactive material located at or near the project site, including type, quantity and location of such hazardous materials. It is acknowledged by both parties that ENGINEER’s scope of services do not include services related in any way to hazardous materials. In the event ENGINEER or any other party encounters undisclosed hazardous materials, ENGINEER shall have the obligation to notify OWNER and, to the extent required by law or regulation, the appropriate governmental officials, and ENGINEER may, at its option and without liability for delay, consequential or any other damages to OWNER, suspend performance of services on that portion of the project affected by hazardous materials until OWNER: (i) retains appropriate specialist consultant(s) or contractor(s) to identify and, as appropriate, abate, remediate, or remove the hazardous materials; and (ii) warrants that the project site is in full compliance with all applicable laws and regulations. OWNER acknowledges that ENGINEER is performing professional services for OWNER and that ENGINEER is not and shall not be required to become an “arranger,” “operator,” “generator,” or “transporter” of hazardous materials, as defined in the Comprehensive Environmental Response, Compensation, and Liability Act of 1990 (CERCLA), which are or may be encountered at or near the project site in connection with ENGINEER’s services under this Agreement. If ENGINEER’s services hereunder cannot be performed because of the existence of hazardous materials, ENGINEER shall be entitled to terminate this Agreement for cause on 30 days written notice. To the fullest extent permitted by law, OWNER shall indemnify and hold harmless ENGINEER, its officers, directors, partners, employees, and subconsultants from and against all costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals, and all court or arbitration or other dispute resolution costs) caused by, arising out of or resulting from hazardous materials, provided that (i) any such cost, loss, or damage is attributable to bodily injury, sickness, disease, or death, or injury to or destruction of tangible property (other than completed Work), including the loss of use resulting therefrom, and (ii) nothing in this paragraph shall obligate OWNER to indemnify any individual or entity from and against the consequences of that individual’s or entity’s sole negligence or willful misconduct. 16. EXECUTION This Agreement, including the exhibits and schedules made part hereof, constitute the entire Agreement between ENGINEER and OWNER, supersedes and controls over all prior written or oral understandings. This Agreement may be amended, supplemented or modified only by a written instrument duly executed by the parties. 17. ALLOCATION OF RISK OWNER AND ENGINEER HAVE EVALUATED THE RISKS AND REWARDS ASSOCIATED WITH THIS PROJECT, INCLUDING ENGINEER’S FEE RELATIVE TO THE RISKS ASSUMED, AND AGREE TO ALLOCATE CERTAIN OF THE RISKS, SO, TO THE FULLEST EXTENT PERMITTED BY LAW, THE TOTAL AGGREGATE LIABILITY OF ENGINEER (AND ITS RELATED CORPORATIONS, SUBCONSULTANTS AND EMPLOYEES) TO OWNER AND THIRD PARTIES GRANTED RELIANCE IS LIMITED TO THE GREATER OF $100,000 OR ITS FEE, FOR ANY AND ALL INJURIES, DAMAGES, CLAIMS, LOSSES, OR EXPENSES (INCLUDING ATTORNEY AND EXPERT FEES) ARISING OUT OF ENGINEER’S SERVICES OR THIS AGREEMENT REGARDLESS OF CAUSE(S) OR THE THEORY OF LIABILITY, INCLUDING NEGLIGENCE, INDEMNITY, OR OTHER RECOVERY. THIS LIMITATION SHALL NOT APPLY TO THE EXTENT THE DAMAGE IS PAID UNDER ENGINEER’S COMMERCIAL GENERAL LIABILITY INSURANCE POLICY. 18. LITIGATION SUPPORT In the event ENGINEER is required to respond to a subpoena, government inquiry or other legal process related to the services in connection with a legal or dispute resolution proceeding to which ENGINEER is not a party, OWNER shall reimburse ENGINEER for reasonable costs in responding and compensate ENGINEER at its then standard rates for reasonable time incurred in gathering information and documents and attending depositions, hearings, and trial. 19. UTILITY LOCATION If underground sampling/testing is to be performed, a local utility locating service shall be contacted to make arrangements for all utilities to determine the location of underground utilities. In addition, OWNER shall notify ENGINEER of the presence and location of any underground utilities located on the OWNER’s property which are not the responsibility of private/public utilities. ENGINEER shall take reasonable precautions to avoid damaging underground utilities that are properly marked. The OWNER agrees to waive any claim against ENGINEER and will indemnify and hold ENGINEER harmless from any claim of liability, injury or loss caused by or allegedly caused by ENGINEER’s damaging of underground utilities that are not properly marked or are not called to ENGINEER’s attention prior to beginning the underground sampling/testing. EXHIBIT C SCHEDULE OF PAY RATES HDR Engineering 2015 Hourly Billing Rates Enclosed are the 2015 Hourly Billable Rates for HDR Engineering. These billing rates shall be adjusted annually to reflect any salary adjustments incurred by employees. The rates listed below do not included Reimbursable Expenses or hourly billing rates for equipment as defined below. Description Billing Rate/Hour Managing Principal $205 Senior Project Manager $195 Project Manager $165 ASME Disciplines $170 Engineer V $160 Engineer IV $145 Engineer III $130 Engineer II $110 Engineer I $95 Engineering Technician III $110 Engineering Technician II $90 Engineering Technician I $80 Cadd/GIS Technician IV $120 Cadd/GIS Technician III $95 Cadd/GIS Technician II $90 Cadd/GIS Technician I $80 Right of Way III $165 Right of Way II $150 Right of Way I $125 Environmental Scientist V $160 Environmental Scientist IV $145 Environmental Scientist III $125 Environmental Scientist II $95 Environmental Scientist I $80 Senior Land Surveyor $140 Land Surveyor $120 Survey Technician III $100 Survey Technician II $90 Survey Technician I $80 Senior Construction Manager $165 Construction Manager $130 Construction Engineer $110 Construction Field Rep $80 Public Involvement III $135 Public Involvement II $105 Public Involvement I $85 Accountant $95 Graphic Designer $80 Admin Assistant $65 HDR has technical experts in various geographic locations that may be utilized based on specific project need. This specialized expertise is not subject to the above rates and associated billing rates are to be determined at the time of contract negotiation. Direct Expenses Traffic Counting Equipment $120.00 per hour Survey/GPS Equipment $50.00 per hour Robotic Total Station $50.00 per hour Side-by-Side Utility Vehicle $20.00 per hour Mileage $0.75 per mile Technology Charge $3.70 per hour Copies: 24" x 36" Mylar $15.00 each Plots Bond $8.00 each Plain Paper Copies $0.15 each Plain Paper Copies 11" x 17" $0.25 each Color 11" x 17" Copies $1.25 each OTHER REIMBURSABLE EXPENSES Reimbursable Expense shall mean the actual expenses incurred directly or indirectly in connection with the Project for transportation travel, subconsultants, subcontractors, computer usage, telephone, telex, shipping and express, and other incurred expense. Unless negotiated otherwise in the contract, ENGINEER will add 10% to invoices received by ENGINEER from subconsultants and subcontractors to cover administrative expenses and vicarious liability. Hourly equipment charges apply to specific equipment used on the project. Technology Charges apply to each hour an employee works on the project. 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 15-008,Version:1 Introduction and First Reading on Ordinance 15-008, an Ordinance rezoning Outlots A, B, and C in the S ½ of the N ½ of the SE ¼ of Section 22-T110N-R50W from a Residence R-1A District to a Residence R-3 District. Public Hearing: June 9, 2015. Proposal: Develop a high-density residential use along Western Avenue. Background: Land use changes along Western Avenue from 8th Street to the bypass began in the late 1940s. Land south of W. 13th Street contains many different residential uses that were developed beginning around 1950 and continue to this day. These uses include single-family, two- family, apartments, and mobile home parks. Most of the industrial uses and buildings that are north of W. 13th Street were established in the 1970s. The majority of the land in this area is in the Special Flood Hazard Area (SFHA). The SFHA is adjacent to the Six-Mile Creek floodway/channel. Beginning in 1978, buildings constructed in the SFHA were required to be built to a specific elevation according to local regulations and had to meet all applicable FEMA regulations. The three outlots contain two, single-family homes with accessory buildings. The homes were built in the 1960s. The outlots are surrounded by high-density zoned land on the north, south, and west sides. These areas contain apartment complexes and a mobile home park. Land to the east across Western Avenue is used as an apple orchard and another apartment complex. Specifics: Outlots A, B, and C contain a combined 1.46 acres. Outlots A and B have a combined 212 feet of frontage width on Western Avenue. The maximum density permitted in the R-3 District is 24 dwelling units per acre. However, based on current standards and customary building practices, 12-14 units per acre would be the anticipated density. If rezoned, the land would be required to be elevated to a height similar to the adjacent land on the west and south sides prior to development. Recommendation: The Planning Commission voted 7 yes and 0 no to recommend approval of the rezoning. Attachments: Ordinance Public Notice Planning Commission Minutes & Summary Zoning Map Aerial Map City of Brookings Printed on 5/21/2015Page 1 of 1 powered by Legistar™ C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@1006ACA5\@BCL@1006ACA5.doc Ordinance No. 15-008 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: Outlots A, B, and C in the S ½ of the N ½ of the SE ¼ of Section 22-T110N-R50W be and the same is hereby rezoned and reclassified from a Residence R-1A District to a Residence R-3 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: May 26, 2015 Second Reading and Adoption: Published: CITY OF BROOKINGS ________________________ Tim Reed, Mayor ATTEST: _________________________ Shari Thornes, City Clerk C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@9405AE1E\@BCL@9405AE1E.doc 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 3V2K, LLC has submitted a petition to rezone the following described real estate in the City of Brookings, in Brookings County, South Dakota: Outlots A, B, and C in the S ½ of the N ½ of the SE ¼ of Section 22-T110N- R50W from a Residence R-1A District to a Residence R-3 District. NOTICE IS FURTHER GIVEN That said request will be acted on by the City Planning Commission at 5:30 PM on Tuesday, May 5, 2015, 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 April, 2015. ____________________________ Dan Hanson Planning & Zoning Administrator OFFICIAL MINUTES 3V2K LLC has submitted a request to rezone Outlots A, B, and C in the S1/2 of the N1/2 of the SE ¼ of Section 22-T110N-R50W from a Residence R-1A District to a Residence R-3 District. (Pierce/DeKraai) Motion to approve the rezoning as requested. All present voted aye. MOTION CARRIED. OFFICIAL SUMMARY David Kneip, a partner in 3V2K, LLC, stated that the adjacent properties were currently zoned for apartments and 2 new apartment complexes had been constructed to the south and west. The land to be rezoned was occupied by two single-family dwellings. Jason Bowes and Shawn Storhaug, adjacent landowners, supported the request and felt it would complement their project. John Mills, an adjacent property owner, was neutral on the rezoning request but was concerned about flooding in the area since the land would have to be filled to be redeveloped with apartments. He felt any damming effects on the west side of Western Avenue may cause problems for properties on the east side. Pierce asked about the flow direction of any water from the site. Lanning was unsure without a drainage plan for the property. She added that the historical flow rates entering and leaving the site would be required to be maintained. 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 15-009,Version:1 Introduction and First Reading on Ordinance 15-009, an Ordinance for a Conditional Use Request for a Group Home on Lot B, Block 1, Hunter’s Ridge Addition. Public Hearing: June 9, 2015. Proposal: Establish a supervised, adult care facility in a low-density residential district. Background: This parcel was established in the 1890s as a farmstead. The property contains a single-family home with a detached garage. In November 2014, the lot was rezoned to a Residence R-1B District. Surrounding land uses include single-family dwellings to the south and east, and a vacant lot to the north which is owned by a religious organization. The lot fronts on Main Avenue South. Specifics: Lot B contains 28,500 square feet of area. It has 115 feet of frontage width and varies in depth from 216 to 275 feet. The proposal is to build an 8 bed group home with an attached three stall garage. The exterior would have a residential appearance with two outdoor patios and a small parking area along the south end. The parking spaces would be screened from adjacent residences with a 6’ privacy fence. Perimeter landscaping would also be preserved or planted as shown on the plan. The attached plans include a site plan, two aerial views, and three elevations of the proposed building. A conditional use definition is as follows: 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 impact 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. The minimum standards for a group home are as follows: A group home shall generally be located in an area where the residents are close to services. Applicants shall provide statements as to the type of supervision the home will have and be prepared to present information on all anticipated physical changes to the structure. Recommendation: The Planning Commission voted 7 yes and 0 no to recommend approval of the conditional use subject to the conditions listed in the ordinance. Attachments: Ordinance Hearing Notice Planning Commission Minutes & Summary Site Plan City of Brookings Printed on 5/21/2015Page 1 of 2 powered by Legistar™ File #:ORD 15-009,Version:1 Aerial Map Aerial Map with Site Plan Building Elevations City of Brookings Printed on 5/21/2015Page 2 of 2 powered by Legistar™ C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@1006CAAD\@BCL@1006CAAD.doc Ordinance No. 15-009 An Ordinance pertaining to an Application for a Conditional Use for a Group Home in the Residence R-1B District. Be It Ordained by the governing body of the City of Brookings, South Dakota that said Conditional Use shall be approved for a Group Home on Lot B, Block 1, Hunter’s Ridge Addition with the following conditions: 1. The privacy fence on the south side of the lot shall be relocated to the south lot line. 2. The trash enclosure shall be relocated to the north side of the attached garage or confined within the garage. All sections and ordinances in conflict herewith are hereby repealed. First Reading:May 26, 2015 Second Reading: Published: CITY OF BROOKINGS __________________________ Tim Reed, Mayor ATTEST: ________________________________ Shari Thornes, City Clerk C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@9405A33F\@BCL@9405A33F.doc 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 ADVANCE Foundation, Inc. has submitted an application for a Conditional Use on the following described real estate: Lot B, Block 1, Hunter’s Ridge Addition The request is to establish a Group Home in the Residence R-1B District. NOTICE IS FURTHER GIVEN that said request will be acted on by the City Planning Commission at 5:30 PM on Tuesday, May 5, 2015, 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 April, 2015. ____________________________ Dan Hanson Planning & Zoning Administrator OFFICIAL MINUTES Advance Foundation has submitted an application for a Conditional Use on Lot B, Block 1, Hunter’s Ridge Addition to establish a Group Home in the Residence R-1B District. (Pierce/Gregg) Motion to approve the Conditional Use as presented. (DeKraai/Pierce) Amendment to the motion to add “provided the fence is relocated to the south lot line and the trash enclosure is relocated to the north side of the attached garage or confined within the garage”. All present voted aye. AMENDMENT CARRIED. The motion, as amended, was voted on. All present voted aye. MOTION CARRIED. OFFICIAL SUMMARY Brian Ardry, representing Advance Foundation, Inc., stated there was a need for another group home in Brookings. The site plan had been acceptable to neighbors. However, two design changes were proposed regarding the location of the south privacy fence and the relocation of the trash receptacle and enclosure. He also noted that outdoor lighting would be no different than what was customary for a single-family residence. Bailey asked what the traffic patterns would be to and from the site after 5 PM. Ardry stated two vehicles would depart at 9 PM, one would arrive at 11 PM, and one would leave at 11 PM. Only staff personnel would drive to and from the site. He added that residents did not drive. Gregg asked what the capacity was of the home. Ardry replied 8. Steve Timmerman and Rich Reid, neighbors, supported the plan with the proposed changes. 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 15-010,Version:1 Introduction and First Reading of Ordinance 15-010, an Ordinance authorizing a Supplemental Appropriation to the 2015 Budget for the purpose of providing for Additional Funds for the Operation of the City. Public Hearing: June 9, 2015. Summary: Be It Ordained by the City of Brookings, South Dakota: WHEREAS, the 2014 assigned funds were established for capital projects not completed and capital equipment not purchased to be expensed in 2015 budgets must be amended accordingly; and WHEREAS, it is necessary to reduce budgets for insurance premium discounts and refunds, WHEREAS, the Secretary of State eliminated administrative and equipment support for the election; and WHEREAS, there was a damage to City equipment due to accidents it is necessary to recognize the insurance reimbursement and the capital expense to replace the equipment; and WHEREAS, the City is building a new street shop after the fire it is necessary to transfer funds for the project and to recognize additional expenses for relocating the street department; and WHEREAS, the City has approved the feasibility study for the I-29 overpass and interchange project; and WHEREAS, the City reached an agreement with the Department of Transportation and CPN&E for the railroad crossing arms; and WHEREAS, the federal funds for the Main Avenue S & 26th Street South Project was held within the Public Improvement Fund and now need to be transferred to the project; and WHEREAS, the mowers budgeted to purchase in 2015 were discontinued in November of 2014 and similar models cost more; and WHEREAS, the pool heater at the Hillcrest Aquatic Center needs to be replaced; and WHEREAS, the third dispatch station was moved up from 2016 to 2015 to accommodate the Next Generation Project; and WHEREAS, the Dakota Nature Center project needs the boardwalk trail restored, special equipment, furnishings and plantings; and WHEREAS, the landscaping and plantings around the Pioneer Park sign needs to be completed; and WHEREAS, the Department of Transportation has offered to compensate the City for cost savings associated with not paving the center medians; and City of Brookings Printed on 5/26/2015Page 1 of 4 powered by Legistar™ File #:ORD 15-010,Version:1 WHEREAS STATE LAW (SDCL 9-21-7) AND THE CITY CHARTER (4.06 (a) permit supplemental appropriations provided there are sufficient funds and revenues available to pay the appropriation when it becomes due, Now, Therefore, Be It Resolved by the City Council that the City Manager be authorized to make the following budget adjustments to the 2015 budget: Budget Amendment #1 Policy & Adm-City Council City Clerk, City Attorney, City Manager Revenue Expense City Council 7,022 City Clerk 6,859 City Manager (242) Total Policy & Administration 0 13,639 Financial Adm-Finance, Human Res Human Resources (5,657) Finance (5,010) Total Financial Administration 0 (10,667) Other-Non-Dept, Gen Gov Buildings, IT Non-Departmental 3,300,000 General Government Buildings 2,518 City/County Administration Building (5,201) Information Technology 1,663 Total Other 0 3,298,980 Public Safety-Police, Fire, Animal Control Police 24,535 (9,950) Fire 2,068 Animal Control (318) Total Public Safety 24,535 (8,200) Public Works-Comm Dev, Engineer, Street Community Development (3,332) Engineer (11,449) Street 39,012 22,463 Total Public Works 39,012 7,682 Culture & Recreation-Park, Rec, Forestry, Library, Aquatic, Ice Arena Dakota Nature Park 27,925 Hillcrest Aquatic Park (4,976) Recreation 4,000 1,445 Parks 53,000 117,361 Larson Ice Arena (1,498) Forestry 171,246 Library 500 (15,405) Total Culture & Recreation 57,500 296,098 Total General Government 121,047 3,597,532 25% Sales & Use Tax 526,663 75% Public Improvement 1,004,203 (2,309,031) E-911 65,757 Swiftel Center 180,486 180,486 Storm Drainage 335,030 Total Special Revenue 1,184,689 (1,201,095) Dakota Nature Park 11,000 605,058 Gateway Project 23,000 S Main Project 955,625 642,432 Street Shop Project 4,100,000 1,656,006 Total Capital Projects 5,066,625 2,926,496 Liquor (6,355) Airport (5,303) Edgebrook Golf (1,891) Solid Waste Collections (16,106) Solid Waste Disposal (8,570) Research & Technology Center 593 Total Enterprise Funds (37,632) City of Brookings Printed on 5/26/2015Page 2 of 4 powered by Legistar™ File #:ORD 15-010,Version:1 Policy & Adm-City Council City Clerk, City Attorney, CityManager Revenue Expense City Council 7,022 City Clerk 6,859 City Manager (242)Total Policy & Administration 0 13,639Financial Adm-Finance, Human Res Human Resources (5,657) Finance (5,010)Total Financial Administration 0 (10,667)Other-Non-Dept, Gen Gov Buildings, IT Non-Departmental 3,300,000 General Government Buildings 2,518 City/County Administration Building (5,201) Information Technology 1,663Total Other 0 3,298,980Public Safety-Police, Fire, Animal Control Police 24,535 (9,950) Fire 2,068 Animal Control (318)Total Public Safety 24,535 (8,200)Public Works-Comm Dev, Engineer, Street Community Development (3,332) Engineer (11,449) Street 39,012 22,463Total Public Works 39,012 7,682Culture & Recreation-Park, Rec, Forestry, Library, Aquatic, Ice Arena Dakota Nature Park 27,925 Hillcrest Aquatic Park (4,976) Recreation 4,000 1,445 Parks 53,000 117,361 Larson Ice Arena (1,498) Forestry 171,246 Library 500 (15,405) Total Culture & Recreation 57,500 296,098 Total General Government 121,047 3,597,532 25% Sales & Use Tax 526,663 75% Public Improvement 1,004,203 (2,309,031) E-911 65,757 Swiftel Center 180,486 180,486 Storm Drainage 335,030 Total Special Revenue 1,184,689 (1,201,095) Dakota Nature Park 11,000 605,058 Gateway Project 23,000 S Main Project 955,625 642,432 Street Shop Project 4,100,000 1,656,006 Total Capital Projects 5,066,625 2,926,496 Liquor (6,355) Airport (5,303) Edgebrook Golf (1,891) Solid Waste Collections (16,106) Solid Waste Disposal (8,570) Research & Technology Center 593 Total Enterprise Funds (37,632) All Ordinances or parts of Ordinances in conflict herewith are hereby repealed. First Reading:May 26, 2015 Second Reading:June 9, 2015 Published:June 12, 2015 CITY OF BROOKINGS _________________________ Tim Reed, Mayor ATTEST ____________________________ Shari Thornes, City Clerk Background: In 2014 the City issued the 2014A Bond for capital projects and equipment . We are using the funds not spent for capital to build the street shop and to transfer funds back into the public improvement City of Brookings Printed on 5/26/2015Page 3 of 4 powered by Legistar™ File #:ORD 15-010,Version:1 fund. Fiscal Impact: This budget amendment moves money between projects and funds and uses 2014 capital expenditures to finance 2015 capital expenditures. The fiscal impact of this budget amendment is minimal. Recommendation: Staff recommends passing the ordinance as presented. Attachments: Ordinance Budget Adjustment Summary City of Brookings Printed on 5/26/2015Page 4 of 4 powered by Legistar™ Ordinance 15-010 An Ordinance authorizing a Supplemental Appropriation to the 2015 Budget for the purpose of providing for Additional Funds for the Operation of the City. Be It Ordained by the City of Brookings, South Dakota: Whereas, the 2014 assigned funds were established for capital projects not completed and capital equipment not purchased to be expensed in 2015 budgets must be amended accordingly; and Whereas, it is necessary to reduce budgets for insurance premium discounts and refunds; and Whereas, the Secretary of State eliminated administrative and equipment support for the election; and Whereas, there was a damage to City equipment due to accidents it is necessary to recognize the insurance reimbursement and the capital expense to replace the equipment; and Whereas, the City is building a new street shop after the fire it is necessary to transfer funds for the project and to recognize additional expenses for relocating the street department; and Whereas, the City has approved the feasibility study for the I-29 overpass and interchange project; and Whereas, the City reached an agreement with the Department of Transportation and CPN&E for the railroad crossing arms; and Whereas, the federal funds for the Main Avenue S & 26th Street South Project was held within the Public Improvement Fund and now need to be transferred to the project; and Whereas, the mowers budgeted to purchase in 2015 were discontinued in November of 2014 and similar models cost more; and Whereas, the pool heater at the Hillcrest Aquatic Center needs to be replaced; and Whereas, the third dispatch station was moved up from 2016 to 2015 to accommodate the Next Generation Project; and Whereas, the Dakota Nature Center project needs the boardwalk trail restored, special equipment, furnishings and plantings; and Whereas, the landscaping and plantings around the Pioneer Park sign needs to be completed; and Whereas, the Department of Transportation has offered to compensate the City for cost savings associated with not paving the center medians; and Whereas State Law (SDCL 9-21-7) and the City Charter (4.06 (a) permit supplemental appropriations provided there are sufficient funds and revenues available to pay the appropriation when it becomes due. Now, Therefore, Be It Resolved by the City Council that the City Manager be authorized to make the following budget adjustments to the 2015 budget: Budget Amendment #1 Policy & Adm-City Council City Clerk, City Attorney, City Manager Revenue Expense City Council 7,022 City Clerk 6,859 City Manager (242) Total Policy & Administration 0 13,639 Financial Adm-Finance, Human Res Human Resources (5,657) Finance (5,010) Total Financial Administration 0 (10,667) Other-Non-Dept, Gen Gov Buildings, IT Non-Departmental 3,300,000 General Government Buildings 2,518 City/County Administration Building (5,201) Information Technology 1,663 Total Other 0 3,298,980 Public Safety-Police, Fire, Animal Control Police 24,535 (9,950) Fire 2,068 Animal Control (318) Total Public Safety 24,535 (8,200) Public Works-Comm Dev, Engineer, Street Community Development (3,332) Engineer (11,449) Street 39,012 22,463 Total Public Works 39,012 7,682 Culture & Recreation-Park, Rec, Forestry, Library, Aquatic, Ice Arena Dakota Nature Park 27,925 Hillcrest Aquatic Park (4,976) Recreation 4,000 1,445 Parks 53,000 117,361 Larson Ice Arena (1,498) Forestry 171,246 Library 500 (15,405) Total Culture & Recreation 57,500 296,098 Total General Government 121,047 3,597,532 25% Sales & Use Tax 526,663 75% Public Improvement 1,004,203 (2,309,031) E-911 65,757 Swiftel Center 180,486 180,486 Storm Drainage 335,030 Total Special Revenue 1,184,689 (1,201,095) Dakota Nature Park 11,000 605,058 Gateway Project 23,000 S Main Project 955,625 642,432 Street Shop Project 4,100,000 1,656,006 Total Capital Projects 5,066,625 2,926,496 Liquor (6,355) Airport (5,303) Edgebrook Golf (1,891) Solid Waste Collections (16,106) Solid Waste Disposal (8,570) Research & Technology Center 593 Total Enterprise Funds (37,632) All Ordinances or parts of Ordinances in conflict herewith are hereby repealed. First Reading: May 26, 2015 Second Reading: June 9, 2015 Published: June 12, 2015 CITY OF BROOKINGS _________________________ Tim Reed, 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 15-065,Version:1 Public Hearing and Action on Resolution 15-065, a Resolution of Intent to Lease Real Property to Brookings Economic Development Corporation. Summary: BEDC is proposing to renew a lease agreement on a month to month basis for the South Dakota Education Campus. Background: The Research & Technology Center is a commercial/office building offering space to new, start-up, and growing businesses. BEDC currently leases 1,308 square feet of space for the South Dakota Education Campus. The terms of the approved lease started at $3.50 per square foot for one (1) year with the option to renew for one (1) additional year with the lease rate negotiated between the City Manager and the BEDC. The lease rate for the second year increased to $4.00 per square foot. The lease on this space expires August 15, 2015. The BEDC Board of Directors met on May 20, 2015 to discuss lease options for BEDC offices, an entrepreneurship program referred to as Makerspace, and the South Dakota Education Campus. The BEDC Board took action to authorize the BEDC Executive Director to pursue lease options with the Growth Partnership Board for BEDC office space and the Makerspace concept and to discuss with the South Dakota Education Campus Committee on their space needs with the potential of co- locating with BEDC offices and the Makerspace. The South Dakota Education Campus needs additional time to evaluate long term space needs as well as ensure the Innovation Center can build the necessary tenant improvements in a timely manner. Therefore, the BEDC is proposing to renew the lease at the current $4.00 square foot price for the space occupied by the South Dakota Education Campus on a month to month basis for a period not to exceed one (1) year. Fiscal Impact: $5,232 Recommendation: Staff recommends approval. Attachments: Resolution City of Brookings Printed on 5/21/2015Page 1 of 1 powered by Legistar™ Resolution No. 15-065 Resolution of Intent to Lease Real Property to Brookings Economic Development Corporation Be It Resolved by the governing body of the City of Brookings, South Dakota that the City of Brookings intends to enter into a lease agreement with Brookings Economic Development Corporation on a month to month basis for a period not to exceed one year and pertaining to the following described property: Research & Technology Center –813 32nd Avenue The Lease will be an amount of $4.00 per square foot based on the agreed upon square footage of 1,308 square feet on a month to month basis for a period not to exceed one (1) year. Be It Further Noted, that a Public Hearing on this Resolution was held on May 26, 2015 at 6:00 o’clock P.M. at the Brookings City & County Government Center and that all persons were given an opportunity to be heard on the intent to lease real property. Passed and approved this the 26th day of May, 2015. CITY OF BROOKINGS, SD Tim Reed, 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 15-062,Version:2 Public Hearing and Action on Resolution 15-062, a Resolution of Intent to Lease Real Property to Private Person (City Hay). Summary: This resolution will allow the City to enter into a contract with Scott Werre for the City Hay Lease in Section 21-T110N-R50W for 2015 and 2016. Background: The City awarded a contract to Scott Werre on May 12, 2015 to lease 60 acres of hay land in the Section 21-T110N-R50W, which is located near the Brookings Regional Airport as shown on the enclosed map (previously owned by the Nichols family). The City leases the property for haying operations which provides for extra income for the City as well as provides for weed control. A public hearing is required as per SDCL 9-12-5.2 to lease to a private person: 9-12-5.2. Powers - Lease to private person - Resolution - Notice - Hearing - Authorization. If the governing body decides to lease any municipally owned property to any private person for a term exceeding one hundred twenty days and for an amount exceeding five hundred dollars annual value it shall adopt a resolution of intent to enter into such lease and fix a time and place for public hearing on the adoption of the resolution. Notice of the hearing shall be published in the official newspaper once, at least ten days prior to the hearing. Following the hearing the governing body may proceed to authorize the lease upon the terms and conditions it determines. The Notice of Public Hearing was advertised as required. This resolution will allow the City to enter into a lease agreement with Scott Werre for a two year lease for 2015 and 2016 for 60 acres in Section 21-T110N-R50W at the awarded contract price of $132.00 per acre. Fiscal Impact: The City will receive $7,920.00 in revenue in 2015 and 2016. Recommendation: Staff recommends approval. Attachments: Resolution City of Brookings Printed on 5/21/2015Page 1 of 1 powered by Legistar™ Resolution No. 15-062 Resolution Of Intent To Lease Real Property To Private Person (City Hay) Be It Resolved by the governing body of the City of Brookings, South Dakota, that the City of Brookings intends to enter into a Lease with Scott Werre for a period of two (2) years, commencing May 26, 2015 and ending December 31, 2016, and pertaining to the following described property: The designated hay land, sixty (60) acres more or less, in Section 21, T110N-R50W in the City of Brookings, Brookings County, South Dakota. The Lease will be an amount of One Hundred Thirty Two Dollars ($132.00) for hay land, payable the first half payment will be due July 1 st with the second half due November 1st of each year. Be It Further Noted, that a Public Hearing on this Resolution was held on May 26, 2015, at 6:00 o’clock P.M. in the Chambers of the City & County Government Center and that all persons were given an opportunity to be heard on the intent to lease real property. Passed and approved this 26 th day of May, 2015. CITY OF BROOKINGS ____________________________________ Tim Reed, Mayor ATTEST: __________________________ Shari Thornes, City Clerk Resolution No. 15-053 Resolution Awarding Bids on City Hay Lease Whereas, the City of Brookings opened bids for approximately 60 acres of City Hay Land for the City-owned parcel located in Section 21-T110-R50W on Tuesday, May 5, 2015 at 1:30 PM at the Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids for City Hay Lease: Scott Werre, Brookings, SD - $132.00 per acre, Jason Voss, Bruce, SD - $125.00 per acre, David Rochel, Aurora, SD - $108.55 per acre, Lyle Johnson, Brookings, SD - $85.00 per acre, Joe Mendel, Brookings, SD - $70.00 per acre and Brian Fett, Dell Rapids, SD - $52.75 per acre. Now Therefore, Be It Resolved that the high bid of $132.00 per acre from Scott Werre, Brookings, SD be accepted. Passed and approved this 12th day of May, 2015. CITY OF BROOKINGS ________________________________ Tim Reed, Mayor ATTEST: _________________________ Shari Thornes, City Clerk CRP 212TH ST 469TH AVE 468TH AVE DM& E R A I L R O A D RENTAL LAND - 60 ACRES 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 15-063,Version:2 Public Hearing and Action on Resolution 15-063, a Resolution of Intent to Lease Real Property to Private Person (Airport Hay). Summary: This resolution will allow the City to enter into a contract with Jason Voss for the 2015-2016 Airport Hay Land Lease. Background: The City awarded a contract to Jason Voss on May 12, 2015 to lease 236 acres of hay land in Sections 26, 27 and 28, T110N, R50W, which is shown on the enclosed map. The City leases the property for haying operations which provides for extra income for the City as well as provides for weed control. A public hearing is required as per SDCL 9-12-5.2 to lease to a private person: 9-12-5.2. Powers - Lease to private person - Resolution - Notice - Hearing - Authorization. If the governing body decides to lease any municipally owned property to any private person for a term exceeding one hundred twenty days and for an amount exceeding five hundred dollars annual value it shall adopt a resolution of intent to enter into such lease and fix a time and place for public hearing on the adoption of the resolution. Notice of the hearing shall be published in the official newspaper once, at least ten days prior to the hearing. Following the hearing the governing body may proceed to authorize the lease upon the terms and conditions it determines. The Notice of Public Hearing was advertised as required. This resolution will allow the City to enter into a lease agreement with Jason Voss for a two year lease for 236 acres in Section 26, 27 and 28, T110N, R50W at the awarded contract price of $75.00 per acre. Fiscal Impact: The City will receive $17,700.00 in revenue in 2015 and 2016. Recommendation: Staff recommends approval. Attachments: Resolution - Intent to Lease Resolution - Bid Award Map City of Brookings Printed on 5/21/2015Page 1 of 1 powered by Legistar™ Resolution 15-063 Resolution of Intent to Lease Real Property to Private Person (Airport Hay) Be It Resolved by the governing body of the City of Brookings, South Dakota, that the City of Brookings intends to enter into a Lease with Jason Voss for a period of two (2) years, commencing on May 26, 2015 and ending December 31, 2016, and pertaining to the following described property: The designated hayland on the Brookings Regional Airport, two hundred and thirty six (236) acres more or less in Sections 26, 27, and 35, T110N, R50W, in the City of Brookings, Brookings County, South Dakota. The Lease will be an amount of Seventy Five Dollars ($75.00) per acre for the hayland, with the first half payable on July 1 and the remaining half on November 1. Be It Further Noted, that a Public Hearing on this Resolution was held on May 26, 2015 at 6:00 o’clock P.M. in the Chambers at the City & County Government Center and that all persons were given an opportunity to be heard on the intent to lease real property. Passed and approved this 26 th day of May, 2015. CITY OF BROOKINGS _________________________ Tim Reed, Mayor ATTEST: __________________________ Shari Thornes, City Clerk Resolution No. 15-054 Resolution Awarding Bids on Airport Hay Lease Whereas, the City of Brookings opened bids for approximately 236 acres of Airport Hay Land at the Brookings Regional Airport located in Sections 26, 27 and 28, T110, R50W, on Tuesday, May 5, 2015 at 1:30 PM at the Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids for Airport Hay Lease: Jason Voss, Bruce, SD - $75.00 per acre and Brian Fett, Dell Rapids, SD - $56.80 per acre. Now Therefore, Be It Resolved that the high bid of Jason Voss, Bruce, SD for $75.00 per acre be accepted. Passed and approved this 12th day of May, 2015. CITY OF BROOKINGS ________________________________ Tim Reed, 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 15-005,Version:2 Second Reading and Action Ordinance 15-005, an Ordinance amending Article V of Chapter 2 of the Code of Ordinances of the City of Brookings, SD and pertaining to the Human Rights Committee of the City of Brookings. Summary: Ordinance 15-005 will change the Committee to a Commission and expand its scope and work. Background: The Brookings Human Rights Committee was created in 1985 with the intention of becoming a Human Rights Commission at a later date. As a Committee, its role has been to promote human and civil rights for all its citizens and visitors by providing educational opportunities; studying and determining the existence, character, causes and extent of discrimination; and receiving, investigating and conciliating complaints alleging discrimination. The transition from Committee to Commission would give the community a clear message that Brookings is committed to becoming an inclusive community. The Commission designation comes with inherent powers and responsibilities that demonstrate to the public that the City takes human rights issues seriously. A Commission can bring energy and enhance the legitimacy with which the City addresses the legal and ethical issues surrounding the rights of community members. While a Committee can provide activities and support, a Commission can meaningfully aid businesses and individuals with questions, concerns and resolutions. Commissions (HRCs) serve a vital role in imparting the value of diversity, raising awareness of discrimination, educating the community about existing remedies, and providing guidance and resources to city officials. HRCs are important bridges between residents and their city. Having the ability to enforce nondiscrimination protections allow HRCs to realize these values and goals to the fullest extent. By accepting complaints and first attempting to resolve discriminatory practices through mediation, HRCs can be on the forefront of safeguarding the rights of vulnerable members of the community. At the same time, HRCs can help reduce costly litigation through the conciliation process. HRCs give residents an avenue of redress that they otherwise would not have. In this way, HRCs help ensure that nondiscrimination laws protect everyone equally in practice. Summary of changes made to Ordinance since 4/28/15 Version: 1)The discrimination definition was clarified. City of Brookings Printed on 5/21/2015Page 1 of 4 powered by Legistar™ File #:ORD 15-005,Version:2 DISCRIMINATION.In accordance with State law, any unlawful act or attempted unlawful act which, because of sex, race, color, creed, religion, ancestry, disability, national origin or familial status marital status, gender identity, or sexual orientation results in the unequal treatment or separation or segregation of any person, or denies, prevents, limits or otherwise adversely affects, or if accomplished would deny, prevent, limit or otherwise adversely affect the benefit or enjoyment by any person of employment, membership in a labor union organization, ownership or occupancy of real property, a public accommodation, a public service or an educational institution.Except as provided in Section 2-155(16), DISCRIMINATION as defined above is unlawful and is a violation of this chapter.In addition, it is the policy of the City that discriminatory practices based on marital status, gender identity or sexual orientation, while not prohibited by State law or City ordinance, constitute unfair practices which adversely affect people. The City, through education and as permitted by Section 2-155, will seek to improve human relations and eliminate such discriminatory practices. Accordingly, discriminatory practices based on marital status, gender identity or sexual orientation will not be investigated or be the subject of complaint resolution until permitted by State law. 2)Eliminated ability to initiate complaints or conduct compliance review. The scope of investigation was further defined to be specific to the complaint only. Section 2-155. Substantive and Procedural Authority and Duties. (6)Receive or, on the basis of its own information, initiate complaints, to the extent permitted, alleging discrimination and conduct those investigations and inquiries as may reasonably appear necessary to find the facts with respect thereto. Investigations and inquiries can only be initiated upon the receipt of a complaint and shall be limited to the allegations contained in a complaint. (10)In response to a complaint, the Commission may execute programs of compliance review designed to determine whether persons are observing the terms of this chapter; and to that end the commission shall have power to require the persons to submit periodic reports concerning hiring, compensation, promotion and discharge policies and the racial, religious, national composition and such other reports pertaining to their work force which are deemed necessary. 3)Confidentiality of the complaint process was clarified. Filing a complaint, determination of probable cause, and the conciliation/mediation is completely confidential. Only the public hearing is not confidential. Section 2-158. Service of Respondent and Answer. (1)Promptly upon the filing of any complaint, the commission shall serve a copy thereof, by personal service or registered or certified mail, upon the respondent. Respondent shall file a written answer thereto within ten calendar days after receipt thereof or within any City of Brookings Printed on 5/21/2015Page 2 of 4 powered by Legistar™ File #:ORD 15-005,Version:2 period of extension granted by the representative of the city as designated by the commission.The Complaint and Answer shall be confidential documents until such time as a public hearing panel conducts a hearing on the Complaint. Section 2-159. Determination of Probable Cause. (1)The commission shall proceed to make the investigation based on a filed complaint as it may deem appropriate to determine whether there is probable cause to believe that the allegations of discrimination are well founded.The investigation shall remain confidential until such time as the matter is heard by a public hearing panel or is removed to Circuit Court. If there is no probable cause to believe that the allegations of discrimination are well founded, the commission shall dismiss the complaint. If, after investigation, it is found that there is probable cause to believe that the allegations of discrimination are well founded, the commission shall transmit the finding of probable cause, along with the reasons for the finding and a recitation of the evidence and names of witnesses that support the finding, to both complainant and respondent. Both complainant and respondent shall be permitted to inspect any documents not prepared by the commission in the files of the commission that are relevant to the determination of probable cause. If there is probable cause to believe that the allegations of discrimination are well founded, and the matter has not been satisfactorily resolved, the parties shall be served notice of the time and place of a conciliation conference by personal service or registered or certified mail at least five business days prior thereto. Section 2-160. Conciliation. The conciliation conference shall be conducted by a representative of the city, who shall attempt to achieve a just resolution and obtain assurances that the respondent will eliminate unfair or discriminatory practices and take appropriate affirmative action. The settlement terms shall be set forth in a conciliation agreement which shall be signed by the complainant, respondent and the commission chairperson.Conciliation shall be a confidential procedure. Section 2-161. Public Hearing. (5)Hearings before the public hearing panel are not confidential. 4)The quorum requirements were modified. Section 2-152. Quorum/Participation by Members Limited to One Panel. Three members of the commission shall constitute a quorum for probable cause determination pursuant to Section 2-159.Three members of the commission shall constitute a quorum for public hearing panels pursuant to Section 2-161.Members participating in a probable cause determination shall not also serve on a public hearing panel for the same matter . A majority of the voting members then holding a current appointment shall constitute a quorum for the transaction of all other business. 5)Effective date of ordinance was changed from July 1, 2015 to January 1, 2016 to accommodate staff and commission training. Recommendation: City of Brookings Printed on 5/21/2015Page 3 of 4 powered by Legistar™ File #:ORD 15-005,Version:2 Staff recommends approval. Attachments: Ordinance (clean) Ordinance (with amendments) (dated 5/21/15) Why Become a Commission? Draft Commission Roles & Responsibilities Complaint Process Flowchart Draft Intake Forms & Instructions Draft Supplemental Intake Information City of Brookings Printed on 5/21/2015Page 4 of 4 powered by Legistar™ 1 Ordinance No. 15-005 An Ordinance Amending Article V. of Chapter 2 of the Code of Ordinances of the City of Brookings, South Dakota and Pertaining to the Human Rights Committee of the City of Brookings. BE IT ORDAINED AND ENACTED BY THE COUNCIL OF THE CITY OF BROOKINGS, STATE OF SOUTH DAKOTA, AS FOLLOWS: I Section 2-141. Definitions. For the purposes of this ordinance, the following definitions shall apply unless the context clearly indicates or requires a different meaning. ADA. The Americans with Disabilities Act, being 42 U.S.C. §§ 12101 et seq. AGE. Chronological age of any person. CITY ATTORNEY. The duly appointed attorney for the city or such person designated by the city attorney. COMMISSION. The Brookings Human Rights Commission. COMPLAINANT. A person for or on whose behalf a complaint alleging unlawful discrimination has been filed or issued. DISABILITY. A physical or mental impairment of a person resulting from disease, injury, congenital condition of birth or functional disorder which substantially limits one or more of the person’s major life functions; a record of having an impairment; or being regarded as having an impairment which: (1) For purposes of Section 2-143 (1) through (3), inclusive, is unrelated to an individual’s ability to perform the major duties of a particular job or position, or is unrelated to an individual’s qualifications for employment or promotion; (2) For purposes of Section 2-143 (4) and (8) is unrelated to an individual’s ability to acquire, rent, or maintain property; and (3) For purposes of Section 2-143 (5) and (6) is unrelated to an individual’s ability to utilize and benefit from opportunities, programs, and facilities of the accommodations and services. DISCRIMINATION. In accordance with state law, any unlawful act or attempted unlawful act which, because of sex, race, color, creed, religion, ancestry, disability, national origin or familial status, results in the unequal treatment or separation or segregation of any person, or denies, prevents, limits or otherwise adversely affects, or if accomplished would deny, prevent, limit or otherwise adversely affect the benefit or enjoyment by any person of employment, 2 membership in a labor union organization, ownership or occupancy of real property, a public accommodation, a public service or an educational institution. DISCRIMINATION as defined above is unlawful and is a violation of this chapter. In addition, it is the policy of the City that discriminatory practices based on marital status, gender identity or sexual orientation, while not prohibited by State law or City ordinance, constitute unfair practices which adversely affect people. The City, through education and as permitted by Section 2-155, will seek to improve human relations and eliminate such discriminatory practices. Accordingly, discriminatory practices based on marital status, gender identity or sexual orientation will not be investigated or be the subject of complaint resolution until permitted by State Law. EDUCATIONAL INSTITUTION. Any university, college or school operating within the city including any school, institution or organization for vocational training, but the term shall not apply to the students of, or the education provided by, any school maintained and operated by a religious corporation, or association solely for the benefit of its own membership. EMPLOY. To use or be entitled to the use and benefit of the services of a person as an employee. EMPLOYEE. Any and all persons who perform services for any employer for compensation, whether in the form of wages, salary, commission or otherwise. EMPLOYER. Any person within the city who hires or employs any employee, and any person wherever situated who hires or employs any employee whose services are to be partially or wholly performed in the city, but the word EMPLOYER shall not include any person with respect to the hiring or employment of a household domestic employee, or any religious corporation, association or society with respect to the hiring or employment of individuals of a particular religion, when religion shall be a bona fide occupational qualification for employment, provided the selection is not based on race, color, sex, creed, religion, ancestry, national origin, disability, marital status, gender identity, or sexual orientation. EMPLOYMENT. The state of being employed as an employee by an employer. EMPLOYMENT AGENCY. Any person regularly undertaking, with or without compensation, to procure employees for any employer or to procure for employees opportunities to work for any employer and includes any agent of the person. FAMILIAL STATUS. (1)One or more individuals under the age of eighteen (18) domiciled with one of the following: A. A parent or another person having legal custody of the individual or individuals. B. The designee of the parent or the other person having custody of the individual or individuals, with the written permission of the parent or other person. 3 (2)Protections against discrimination on the basis of familial status shall apply to any person who is pregnant or is in the process of securing legal custody of any individual who has not attained the age of eighteen (18) years. GENDER IDENTITY or EXPRESSION. A term meaning a gender-related identity, appearance, expression or behavior of an individual regardless of the individual’s assigned sex at birth. HIRE. To engage or contract for or attempt to engage or contract for the services of any person as an employee. LABOR ORGANIZATION. Any person, employee representation commission or plan in which employees participate and which exists wholly or in part for the purpose of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours or other terms or conditions of employment and shall include any conference, general commission, joint or system board or joint council. LAWYER. A person duly authorized and licensed by the state to engage in the practice of law. MARITAL STATUS. The state of being married, single, divorced, separated or widowed. PERSON. Includes one or more individuals, partnerships, associations, corporations, unincorporated organizations, mutual companies, joint stock companies, trusts, agents, legal representatives, trustees, trustees in bankruptcy, receivers, labor organizations, public bodies, public corporations and the state and all political subdivisions and agencies thereof. PUBLIC ACCOMMODATION. Each and every place, establishment or facility of whatever kind, nature or class that caters or offers services, facilities or goods to the general public for a fee or charge. Each and every place, establishment or facility that caters or offers services, facilities or goods to the general public gratuitously shall be deemed a public accommodation if the accommodation receives any substantial governmental support or subsidy. Public accommodation shall not mean any bona fide private club or other place, establishment or facility which is by its nature distinctly private, except that, when such distinctly private place, establishment or facility caters or offers services, facilities or goods to the general public for a fee or charge or gratuitously gratuity, it shall be deemed a public accommodation during such period. PUBLIC SERVICES. The services or facilities provided within the city to the general public including those provided by any public facility, department, agency, board or commission, owned, operated or managed by or on behalf of the state, any political subdivision thereof, or any other public corporation. REAL ESTATE BROKER or REAL ESTATE SALESPERSON. A real estate broker and a real estate salesperson as defined by state law. 4 REAL PROPERTY. Any right, title, interest in or to the possession, ownership, enjoyment or occupancy of any parcel of land, any building situated thereon, or any portion of the building in the city. RESPONDENT. A person against whom a complaint alleging unlawful discrimination has been filed or issued. SEXUAL HARASSMENT. A form of sex discrimination. Sexual harassment may take the form of deliberate or repeated comments, questions, representations or physical contacts of a sexual nature which are unwelcome to the recipient. Sexual harassment may also take the form of conduct that has the purpose or effect of creating an intimidating, hostile or offensive environment. SEXUAL ORIENTATION. A term describing a person’s attraction to members of the same sex and/or a different sex, usually defined as lesbian, gay, bisexual, heterosexual, or asexual. Section 2-142. Declaration of Policy and Purpose. It is the public policy of the city and the purpose of this chapter: (1)That discriminatory practices based on race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation with respect to employment, labor union membership, housing accommodations, property rights, education, public accommodations and public services, or any of them, tend to create and intensify conditions of poverty, ill health, unrest, lawlessness and vice and adversely affect the public health, safety, order, convenience and general welfare; the rights, privileges and opportunities threatened by those discriminatory practices are hereby declared to be civil rights; (2)To declare as civil rights the rights of all persons to the fullest extent of their capacities, and without regard to race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, equal opportunities with respect to employment, labor union membership, housing accommodations, property rights, education, public accommodations and public services; (3)To prevent and prohibit, to the extent permitted by law, any and all discriminatory practices based on race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, with respect to employment, labor union membership, housing accommodations, property rights, education, public accommodations or public services; (4)To protect all persons from unfounded charges of discriminatory practices; and (5)To effectuate this policy by means of public information and education, mediation and conciliation, and enforcement. 5 Section 2-143. Act of Discrimination. Without limitation, the following are declared to be discrimination: (1)For an employer, because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, sexual orientation, to fail or refuse to hire, to discharge an employee, or to accord adverse, unlawful or unequal treatment to any person or employee with respect to application, hiring, training, apprenticeship, tenure, promotion, upgrading, compensation, layoff, discharge, or any term or condition of employment; (2)For an employment agency, because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, to accord adverse or unequal treatment to any person in connection with any application for employment, any referral or any request for assistance in procurement of employees, or to accept any listing of employment on that basis; (3)For any labor organization, because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, to deny full and equal membership rights to an applicant for membership or to a member; to expel, suspend or otherwise discipline a member; or to accord adverse, unlawful or unequal treatment to any person with respect to his or her hiring, apprenticeship, training, tenure, compensation, upgrading, layoff or any term or condition of employment; (4)For any owner of rights to housing or real property, or any person acting for an owner, with or without compensation, including any person licensed as a real estate broker or salesman, attorney, auctioneer, agent or representative by power of attorney or appointment, or to any person acting under court order, Trust, or Will, because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, to fail or refuse to sell, rent, assign or otherwise transfer any real property to any other person, or to accord adverse, unlawful, or unequal treatment to any person with respect to the acquisition, occupancy, use and enjoyment of any real property. The provisions of this section do not apply to rooms or units in dwellings that contain living quarters for no more than two families living independently of each other, if the owner maintains and occupies one of the living quarters as his or her residence. (a) For the purposes of determining discrimination based on familial status, a FAMILY is one or more individuals under the age of 18 who are domiciled with their parent, legal custodian or person granted custody with permission of the parent or custodian. This definition includes a person who is pregnant or in the process of securing custody of a person under the age of 18. Discrimination based on familial status applies to housing accommodations only. (b) The provisions of this section as they refer to familial status do not apply to residences publicized as specifically designated for older or disabled residents and if: 6 (1) A state or federal program has designated the residence for the elderly; (2) The residences are intended for and solely occupied by persons 62 years of age or older; or (3) Facilities and services for the residence are designed to meet the needs of the elderly, and at least 80% of the units are occupied or intended to be occupied by one or more persons 55 years of age or older. (c) It is an unfair or discriminatory practice to design or construct for first occupancy any multi-family dwelling with more than four units for sale, rent, lease, assignment, sublease or transfer that does not enable accessibility to ground floor common areas and usability of ground floor housing units by disabled persons or by wheelchairs. If the building has elevators, all housing units and common areas shall be usable by disabled persons and persons in wheelchairs. The accommodations may include widened doors, lowered electrical switches and outlets, lowered environmental controls, grab bars or reinforcements, kitchens and bathrooms usable by the disabled. Nothing in this provision may be construed to require prior approval of plans for construction by the commission. (d) It is also discriminatory to refuse to permit, at the expense of the disabled person, reasonable modifications of existing property that may be necessary to afford full enjoyment of the property. The landlord may, where it is reasonable to do so, condition permission for remodification on the renter’s agreeing to restore the premises to the condition that existed prior to the modification at the conclusion of renter’s tenancy, reasonable wear and tear excepted. (5)For any person engaged in the provision of public accommodations, because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, to fail or refuse to provide to any person access to the use of and benefit from the services and facilities of those public accommodations; or to accord adverse, unlawful, or unequal treatment to any person with respect to the availability of the services and facilities, the price or other consideration therefor, the scope and quality thereof, or the terms and conditions under which such are made available, including terms and conditions relating to credit, payment, warranties, delivery, installation and repair; (6)For any person engaged in the provision of public services, because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, to fail or refuse to provide to any person access to the use and benefit thereof, or the terms and conditions under which such are made available; (7)For any person, because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, directly or indirectly, to conceal any unlawful discrimination; to aid, abet, compel, coerce, incite or induce another person to discriminate; or by any means, trick, artifice, advertisement 7 or sign, to use any form of application, or make any record or inquiry, or device whatsoever to bring about or facilitate discrimination; or to engage in or threaten to engage in any reprisal, economic or otherwise, against any person because of the latter’s filing a charge, testifying or assisting in the observance and support of the purposes and provisions of this chapter; (8)For any person, bank, banking organization, mortgage company, insurance company or other financial institution or lender to whom application is made for financial assistance for the purchase, lease, acquisition, construction, rehabilitation, repair or maintenance of any real property or any agent or employee thereof to discriminate against any person or group of persons, because of the race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation of the person or group of persons or of the prospective occupants or tenants of the real property in the granting, withholding, extending, modifying, renewing or in the rates, terms, conditions and the extension of services in connection therewith; (9)Wherever religious organizations or bodies are exempt from any of the provisions of this chapter, the exemption shall apply only to religious qualifications for employment or residence in church-owned or church-operated property, and the organizations shall not be exempt from any provisions of this chapter relating to discrimination based upon race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation; (10)Nothing contained in this chapter shall apply to any business or enterprise on or near a Native American Indian reservation with respect to any publicly announced employment practice of the business or enterprise under which a preferential treatment is given to any individual because the individual is an Indian living on or near a reservation; (11)Nothing in this chapter requires the following people to modify property in any way, incur any additional expenses, or exercise a higher degree of care for persons having a disability than for a person who does not have a disability nor does this chapter relieve any person of any obligations generally imposed on all persons, regardless of any disability, in a written lease, rental agreement, or contract of purchase or sale, or to forbid distinctions based on the inability to fulfill the terms and conditions, including, but not limited to, financial obligations of the lease, agreement or contract: (a) Employer; (b) Provider of public accommodations; (c) Provider of public services; (d) Person selling, renting, or leasing real property; (e) Person acting on behalf of any of the persons listed in a-d above, with or without compensation, including but not limited to any person licensed as a real estate broker or salesman, attorney, auctioneer, agent, or representative by power of attorney or appointment; and (f) Person acting under court order, Trust or Will. 8 Section 2-144. Contracts with City. The city and all of its contracting agencies, departments, and units shall include in all contracts entered into or renewed or extended provisions whereby each contracting party agrees that: (1)With respect to any and all business conducted or acts performed pursuant to the contract, the other contracting party shall be deemed an employer within the meaning of this chapter and shall be subject to the provisions of this subchapter; (2)If the other contracting party fails to perform the contractual provisions, the contract may forthwith be terminated and cancelled in whole or in part by the city, and the other contracting party shall be liable for any costs or expense incurred by it in obtaining from other sources the work and services to be rendered or performed or the goods or properties to be furnished or delivered to the city under the contract so terminated or cancelled; (3)Should the commission in a proceeding brought as provided in this chapter find that the contracting party has engaged in discrimination in connection with any contract and issue a cease and desist order with respect thereto, the city shall withhold up to 15% of the contract price until such time as the commission’s order has been complied with or the other contracting party has been adjudicated not guilty of discrimination; (4)The other contracting party will permit access to any and all records pertaining to hiring and employment and to other pertinent data and records for the purpose of enabling the commission , its agencies or representatives, to ascertain compliance with the provisions of this chapter applicable to the other contracting party; and (5)This section shall be binding on all subcontractors or and suppliers. Section 2-145. Responsibilities and Duties of City Employees. All officials, commissioners, agents, employees and servants of the city, elected and appointed, including civil service employees, and whether serving with or without compensation, shall observe the terms and provisions of this chapter and shall, except as expressly prohibited by law, respond promptly to any and all requests by the commission for information and for access to data and records for the purpose of enabling the commission to carry out its responsibilities under this chapter. The failure of any official, commissioner, agent, employee or servant of the city to comply with any provision of this chapter relating to any matter within the scope of his or her official duties shall be deemed a violation of this chapter. II. That the following Sections of Division 2 of Article V. and pertaining to Human Rights Commission are amended to read as follows: Section 2-146. Continued. The city has established in and for the city, a human rights commission. Section 2-147. Composition. The human rights commission shall consist of ten members, nine of which shall be selected by the mayor with the advice and consent of the council, and one of which shall be selected by the board of county commissioners. In selecting members, due regard shall be given to 9 representation of minority groups on the human rights commission. One member of the human rights commission selected by the mayor shall be a student enrolled in a post-secondary educational institution. Section 2-148. Term of Office; Date of Appointment; Compensation. (1)All members of the human rights commission shall serve for terms of five years, except the student member who shall serve a one-year term. Any members whose term expires may be reappointed. (2)All members of the human rights commission shall serve without compensation. Section 2-149. Vacancies. If a vacancy on the human rights commission occurs on a date other than the first Monday of the year, then the vacancy may be filled by appointment for the remainder of the vacated term, which term shall expire on the first Monday in January. If a member is absent from three consecutive regular meetings without authorization from the human rights commission, the member's seat may be considered vacant, and a new member may be appointed. Section 2-150. Officers. The human rights commission shall designate from among its membership a chairperson, vice- chairperson, and such other officers and subcommittees as it may deem appropriate and necessary. Section 2-151. Meetings. The human rights commission shall meet at such times and places as may be determined by such commission. Section 2-152. Quorum/Participation by Members Limited to One Panel. Three members of the commission shall constitute a quorum for probable cause determination pursuant to Section 2-159.Three members of the commission shall constitute a quorum for public hearing panels pursuant to Section 2-161. Members participating in a probable cause determination shall not also serve on a public hearing panel for the same matter. A majority of the voting members then holding a current appointment shall constitute a quorum for the transaction of all other business. Section 2-153. Rules, Regulations. The commission, with the approval of the city council, shall adopt suitable rules and regulations for the conduct of its operations and the effectuation of the purposes of this chapter. Section 2-154. Purpose. The purpose of the Brookings Human Rights Commission (BHRC) is to improve human relations and civil rights in the Brookings area by fighting discrimination through educational efforts and a complaint resolution procedure. Except as limited by Section 2-155(15),the commission has the power to investigate complaints alleging discrimination against individuals or groups because of their sex, race, color, creed, religion, ancestry, disability, familial status, or national origin, with respect to 10 origin, with respect to employment, labor union membership, housing accommodations, property rights, education, public accommodations or public services. Section 2-155. Substantive and Procedural Authority and Duties. The authority and duties of the Brookings Human Rights Commission shall be to: (1)Promote human and civil rights for all its citizens and visitors. (2)Promote a mutual understanding and respect among all racial, religious and nationality groups and work to discourage and prevent discriminatory practices against any such group. (3)Attempt to foster, through community effort or otherwise, goodwill, cooperation and conciliation. (4)Study and determine the existence, character, causes and extent of discrimination in employment, housing accommodations, property rights, education, public accommodations, public services in the city, and discrimination based on age, disability, marital status, familial status, ethnicity, religion, sexual orientation, gender identity and political affiliation. The study and determination of discrimination is based on a broad understanding of civil and human rights as embodied in the 1964 Civil Rights Act as amended, which includes race, color, religion, gender and country of origin. (5)Seek to prevent and eliminate bias and discrimination because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation by means of education, persuasion, conciliation and, to the extent permitted, enforcement, and utilize all the powers at its disposal to carry into execution the provisions of this chapter. (6)Receive complaints alleging discrimination and conduct those investigations and inquiries as may reasonably appear necessary to find the facts with respect thereto. Investigations and inquiries can only be initiated upon the receipt of a complaint and shall be limited to the allegations contained in a complaint. (7)Conduct public meetings and hearings, gather and disseminate information to governmental agencies and to the public. (8)Utilize the records and services of municipal, state and federal governmental departments and agencies to the extent permitted by law, and pursuant to agreement with departments and agencies may refer matters for preliminary inquiry, conciliation, hearings and findings. (9)Furnish to any appropriate state or federal agency having jurisdiction in the premises a transcript of the proceedings and findings in any case in which a court of competent 11 jurisdiction or the commission has, after hearings, found that any person has unlawfully discriminated. (10)Enlist the cooperation of various racial, religious and ethnic groups, community, civil, labor and business organizations, student organizations, fraternal and benevolent associations, veterans’ organizations, and other groups in educational campaigns and programs devoted to teaching the need for eliminating group tensions, prejudices, intolerance, bigotry and unlawful discrimination. (11)Cooperate with federal, state and city agencies in developing programs showing the contributions of the various groups to the culture and traditions of our city and nation, the menace of prejudice, intolerance, bigotry and unlawful discrimination and the need for mutual respect. (12)Advise the mayor, city council members, city manager and the respective departments of the city concerning matters consistent with the purposes and powers of the human rights commission. (13)Recommend ordinances and other legislation pertinent to the purposes of protection of human rights. (14)Conduct educational programs and disseminate information in furtherance of the purposes and policies of the human rights commission. (15)Hear and investigate complaints alleging discrimination regarding the City of Brookings, in accordance with the grievance procedures for ADA grievances adopted by resolution of the city. Pursuant to State law, there is presently no legal authority to investigate complaints alleging discrimination because of marital status, gender identity or sexual orientation. Accordingly, until State law authorizes municipalities, pursuant to SDCL 20- 12-4, to investigate discriminatory practices based on marital status, gender identity or sexual orientation, these discriminating practices cannot be investigated or enforced by the Human Rights Commission. Section 2-156. Filing Complaint. (1)Any person claiming to be aggrieved by a discriminatory practice may file with the commission a verified written complaint which shall state the name and address of each person complained against (respondent) and shall set forth the pertinent facts as known to the complainant. Except as limited by Section 2-155(15), whenever the commission has information indicating that any person has been discriminated, it may issue and file a verified complaint. (2)The city may, however, dismiss a complaint if the complainant fails to state a claim upon which relief can be granted, or if the city determines the complaint has been abandoned or withdrawn if the city determines the city is not authorized by State Law to enforce compliance. 12 Section 2-157. Time for filing Complaint. Any complaint filed under this Chapter shall be filed within one hundred eighty (180) days after the last occurrence of an alleged discriminatory or unfair practice. Section 2-158. Service of Respondent and Answer. Promptly upon the filing of any complaint, the commission shall serve a copy thereof, by personal service or registered or certified mail, upon the respondent. Respondent shall file a written answer thereto within ten calendar days after receipt thereof or within any period of extension granted by the representative of the city as designated by the commission. The Complaint and Answer shall be confidential documents until such time as a public hearing panel conducts a hearing on the Complaint. Section 2-159. Determination of Probable Cause. (1)The commission shall proceed to make the investigation based on a filed complaint as it may deem appropriate to determine whether there is probable cause to believe that the allegations of discrimination are well founded. The investigation shall remain confidential until such time as the matter is heard by a public hearing panel or is removed to Circuit Court. If there is no probable cause to believe that the allegations of discrimination are well founded, the commission shall dismiss the complaint. If, after investigation, it is found that probable cause to believe that the allegations of discrimination are well founded, the commission shall transmit the finding of probable cause, along with the reasons for the finding and a recitation of the evidence and names of witnesses that support the finding, to both complainant and respondent. Both complainant and respondent shall be permitted to inspect any documents not prepared by the commission in the files of the commission that are relevant to the determination of probable cause. If there is probable cause to believe that the allegations of discrimination are well founded, and the matter has not been satisfactorily resolved, the parties shall be served notice of the time and place of a conciliation conference by personal service or registered or certified mail at least five business days prior thereto. (2)No later than 20 days after notice of the finding of probable cause and prior to hearing, the complaining party or the respondent may elect to have the claims asserted in the complaint decided in a circuit court in lieu of a hearing before the commission. Parties shall be notified of their right to this election in the notice of the finding of probable cause. Upon receipt of notice of election, the commission shall have no further jurisdiction over the parties concerning the charge filed. In a civil action, if a court or jury finds that an unfair or discriminatory practice has occurred, it may award the charging party compensatory damages. The court may grant as relief any injunctive order including affirmative action. Punitive damages may be awarded under SDCL 21-3-2 for a violation of this chapter as they pertain to housing. Attorney’s fees and costs may be awarded to the prevailing party for housing matters. Section 2-160. Conciliation. 13 The conciliation conference shall be conducted by a representative of the city, who shall attempt to achieve a just resolution and obtain assurances that the respondent will eliminate unfair or discriminatory practices and take appropriate affirmative action. The settlement terms shall be set forth in a conciliation agreement which shall be signed by the complainant, respondent and the commission chairperson. Conciliation shall be a confidential procedure. Section 2-161. Public Hearing. (1)If the matter before the commission cannot be resolved by the conciliation conference panel, the matter shall be set for public hearing. The parties shall be served notice of the time and place of a public hearing by personal service or registered or certified mail at least ten days prior thereto. The notice shall include a statement informing the parties of their right to transfer the matter to the circuit court. The public hearing shall be conducted by a public hearing panel which shall be composed of three commissioners, none of whom shall have been involved in the investigation, determination of probable cause or conciliation. (2)The public hearing panel shall have authority to conduct prehearing conferences, to subpoena witnesses to appear, testify and produce records, books, papers and other documents, to administer oaths, to take testimony, to receive evidence, to examine and cross examine witnesses and issue orders authorized by this chapter. (3)Both complainant and respondent shall appear in person at the hearing and may be represented by counsel. Both may, in accordance with the order of procedures as may be determined by the public hearing panel, present evidence, call witnesses and present arguments bearing upon the facts alleged in the complaint. (4)All witnesses, including complainant and respondent, may be examined and cross examined. The hearing may consist of a bifurcated proceeding without direct and cross examination if the commission deems it appropriate in the circumstances. The conduct of the hearing will be within the sole discretion of the commission. The public hearing panel shall not be bound by the strict rules of evidence applicable to judicial proceedings, but its findings must be based upon competent evidence. Each witness at the hearing shall testify under oath. A stenographic record shall be made of the proceedings or an electronic device may be used. In a judicial review, the commission may, upon request, furnish the complainant and respondent each with a copy of the transcript of the hearing without charge. (5)Hearings before the public hearing panel are not confidential. Section 2-162. Dismissal of Complaint. (1)If the commission determines that allegations of discrimination are not well founded, that the unlawful act or practice complained of has been satisfactorily eliminated and that further proceedings are unnecessary, or the allegations complained of are being processed or have been addressed, to the satisfaction of the commission by another agency or court, it may order the dismissal of the complaint. It shall within five days of 14 the determination serve notice of the order upon the complainant and respondent by personal service or registered or certified mail. (2)The public hearing panel may also take and direct the affirmative action as in the judgment of the public hearing panel will effectuate its purposes. The powers of the public hearing panel are coextensive with the powers of the state human rights commission as set forth in SDCL 20-13-42. These powers include awarding compensation incidental to the violation other than pain and suffering, punitive or consequential damages; costs allowed under SDCL Ch. 15-17 and any other appropriate relief including reasonable attorney fees for housing matters as in the judgment of the public hearing panel will effectuate the purposes of this chapter. (3)Further, the public hearing panel may order the respondent to cease and desist from discriminatory or unfair practices and to take the affirmative action including hiring, reinstatement, or upgrading of employees with or without back pay, the referring of applicants for employment by any respondent employment agency, and the remittance or restoration of membership by any respondent labor organization. Section 2-163. Depositions and Discovery. The commission, through the city attorney’s office, shall have power to cause the deposition of witnesses to be taken or other discovery procedure to be conducted upon notice to the interested person in like manner that depositions of witnesses are taken or other discovery procedure is to be conducted in civil actions pending in court in any manner concerning contested cases. Section 2-164. Prosecution of Violation. (1)If a respondent fails to comply with a conciliation agreement or fails to obey an order issued by the public hearing panel, the commission may request the city attorney to prosecute the respondent in a court of competent jurisdiction for violation of the terms of this chapter. The failure of a person to obey a subpoena issued pursuant to this chapter may be punished as a contempt of court. The commission shall render to the city attorney assistance as requested in connection with any prosecution. (2)The commission or a party may obtain an order of the court for the enforcement of the provisions of this chapter. The court may allow the prevailing party reasonable attorney’s fees and costs against the respondent. The court may also assess a civil penalty against the respondent in an amount not to exceed $10,000 for willful or repeated violations or refusal to comply with the order of the commission. Section 2-165. Rights of Parties to seek Judicial Determination. Nothing contained in this ordinance shall be construed to limit the right of the complainant to make and file a complaint, nor to preclude, abridge or restrict the right of appeal or the right of anyone concerned or affected to a review of the facts and issues in a court of competent jurisdiction on the evidence and merits in any matter involved. 15 Section 2-166. Application to Other Disabilities. The commission, to the extent permitted by law, is authorized to apply any portion of this chapter which it may deem applicable to deal with discriminatory actions and practices against individuals or groups disadvantaged by reason of physical, mental or social handicap and not otherwise within the purview of this chapter. Section 2-167. Time Limit for filing Complaint. Any complaint filed under this chapter shall be filed within One Hundred Eighty (180) days after the alleged discriminatory or unfair practice occurred. III. This Ordinance is effective on January 1, 2016. IV. Any or all ordinances in conflict herewith are hereby repealed. First Reading:March 24, 2015 Second Reading:May 26, 2015 Published:May 29, 2015 CITY OF BROOKINGS, SD ATTEST:Tim Reed, Mayor Shari Thornes, City Clerk 1 Ordinance No. 15-005 An Ordinance Amending Article V. of Chapter 2 of the Code of Ordinances of the City of Brookings, South Dakota and Pertaining to the Human Rights Committee of the City of Brookings Committees. BE IT ORDAINED AND ENACTED BY THE COUNCIL OF THE CITY OF BROOKINGS, STATE OF SOUTH DAKOTA, AS FOLLOWS: I Section 2-141. Definitions. For the purposes of this ordinance, the following definitions shall apply unless the context clearly indicates or requires a different meaning. ADA. The Americans with Disabilities Act, being 42 U.S.C. §§ 12101 et seq. AGE. Chronological age of any person. CITY ATTORNEY. The duly appointed attorney for the city or such person designated by the city attorney. COMMISSION. The Brookings Human Rights Commission. COMPLAINANT. A person for or on whose behalf a complaint alleging unlawful discrimination has been filed or issued. DISABILITY. A physical or mental impairment of a person resulting from disease, injury, congenital condition of birth or functional disorder which substantially limits one or more of the person’s major life functions; a record of having an impairment; or being regarded as having an impairment which: (1) For purposes of Section 2-143 (1) through (3), inclusive, is unrelated to an individual’s ability to perform the major duties of a particular job or position, or is unrelated to an individual’s qualifications for employment or promotion; (2) For purposes of Section 2-143 (4) and (8) is unrelated to an individual’s ability to acquire, rent, or maintain property; and (3) For purposes of Section 2-143 (5) and (6) is unrelated to an individual’s ability to utilize and benefit from opportunities, programs, and facilities of the accommodations and services. DISCRIMINATION. In accordance with state law, any unlawful act or attempted unlawful act which, because of sex, race, color, creed, religion, ancestry, disability, national origin or familial status, results in the unequal treatment or separation or segregation of any person, or denies, prevents, limits or otherwise adversely affects, or if accomplished would deny, prevent, limit or otherwise adversely affect the benefit or enjoyment by any person of employment, 2 membership in a labor union organization, ownership or occupancy of real property, a public accommodation, a public service or an educational institution. DISCRIMINATION as defined above is unlawful and is a violation of this chapter. In addition, it is the policy of the City that discriminatory practices based on marital status, gender identity or sexual orientation, while not prohibited by State law or City ordinance, constitute unfair practices which adversely affect people. The City, through education and as permitted by Section 2-155, will seek to improve human relations and eliminate such discriminatory practices. Accordingly, discriminatory practices based on marital status, gender identity or sexual orientation will not be investigated or be the subject of complaint resolution until permitted by State Law. EDUCATIONAL INSTITUTION. Any university, college or school operating within the city including any school, institution or organization for vocational training, but the term shall not apply to the students of, or the education provided by, any school maintained and operated by a religious corporation, or association solely for the benefit of its own membership. EMPLOY. To use or be entitled to the use and benefit of the services of a person as an employee. EMPLOYEE. Any and all persons who perform services for any employer for compensation, whether in the form of wages, salary, commission or otherwise. EMPLOYER. Any person within the city who hires or employs any employee, and any person wherever situated who hires or employs any employee whose services are to be partially or wholly performed in the city, but the word EMPLOYER shall not include any person with respect to the hiring or employment of a household domestic employee, or any religious corporation, association or society with respect to the hiring or employment of individuals of a particular religion, when religion shall be a bona fide occupational qualification for employment, provided the selection is not based on race, color, sex, creed, religion, ancestry, national origin, disability, marital status, gender identity, or sexual orientation. EMPLOYMENT. The state of being employed as an employee by an employer. EMPLOYMENT AGENCY. Any person regularly undertaking, with or without compensation, to procure employees for any employer or to procure for employees opportunities to work for any employer and includes any agent of the person. FAMILIAL STATUS. (1)One or more individuals under the age of eighteen (18) domiciled with one of the following: A. A parent or another person having legal custody of the individual or individuals. B. The designee of the parent or the other person having custody of the individual or individuals, with the written permission of the parent or other person. 3 (2)Protections against discrimination on the basis of familial status shall apply to any person who is pregnant or is in the process of securing legal custody of any individual who has not attained the age of eighteen (18) years. GENDER IDENTITY or EXPRESSION. A term meaning a gender-related identity, appearance, expression or behavior of an individual regardless of the individual’s assigned sex at birth. HIRE. To engage or contract for or attempt to engage or contract for the services of any person as an employee. LABOR ORGANIZATION. Any person, employee representation commission or plan in which employees participate and which exists wholly or in part for the purpose of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours or other terms or conditions of employment and shall include any conference, general commission, joint or system board or joint council. LAWYER. A person duly authorized and licensed by the state to engage in the practice of law. MARITAL STATUS. The state of being married, single, divorced, separated or widowed. PERSON. Includes one or more individuals, partnerships, associations, corporations, unincorporated organizations, mutual companies, joint stock companies, trusts, agents, legal representatives, trustees, trustees in bankruptcy, receivers, labor organizations, public bodies, public corporations and the state and all political subdivisions and agencies thereof. PUBLIC ACCOMMODATION. Each and every place, establishment or facility of whatever kind, nature or class that caters or offers services, facilities or goods to the general public for a fee or charge. Each and every place, establishment or facility that caters or offers services, facilities or goods to the general public gratuitously shall be deemed a public accommodation if the accommodation receives any substantial governmental support or subsidy. Public accommodation shall not mean any bona fide private club or other place, establishment or facility which is by its nature distinctly private, except that, when such distinctly private place, establishment or facility caters or offers services, facilities or goods to the general public for a fee or charge or gratuitously gratuity, it shall be deemed a public accommodation during such period. PUBLIC SERVICES. The services or facilities provided within the city to the general public including those provided by any public facility, department, agency, board or commission, owned, operated or managed by or on behalf of the state, any political subdivision thereof, or any other public corporation. REAL ESTATE BROKER or REAL ESTATE SALESPERSON. A real estate broker and a real estate salesperson as defined by state law. 4 REAL PROPERTY. Any right, title, interest in or to the possession, ownership, enjoyment or occupancy of any parcel of land, any building situated thereon, or any portion of the building in the city. RESPONDENT. A person against whom a complaint alleging unlawful discrimination has been filed or issued. SEXUAL HARASSMENT. A form of sex discrimination. Sexual harassment may take the form of deliberate or repeated comments, questions, representations or physical contacts of a sexual nature which are unwelcome to the recipient. Sexual harassment may also take the form of conduct that has the purpose or effect of creating an intimidating, hostile or offensive environment. SEXUAL ORIENTATION. A term describing a person’s attraction to members of the same sex and/or a different sex, usually defined as lesbian, gay, bisexual, heterosexual, or asexual. Section 2-142. Declaration of Policy and Purpose. It is the public policy of the city and the purpose of this chapter: (1)That discriminatory practices based on race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation with respect to employment, labor union membership, housing accommodations, property rights, education, public accommodations and public services, or any of them, tend to create and intensify conditions of poverty, ill health, unrest, lawlessness and vice and adversely affect the public health, safety, order, convenience and general welfare; the rights, privileges and opportunities threatened by those discriminatory practices are hereby declared to be civil rights; (2)To declare as civil rights the rights of all persons to the fullest extent of their capacities, and without regard to race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, equal opportunities with respect to employment, labor union membership, housing accommodations, property rights, education, public accommodations and public services; (3)To prevent and prohibit, to the extent permitted by law, any and all discriminatory practices based on race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, with respect to employment, labor union membership, housing accommodations, property rights, education, public accommodations or public services; (4)To protect all persons from unfounded charges of discriminatory practices; and (5)To effectuate this policy by means of public information and education, mediation and conciliation, and enforcement. 5 Section 2-143. Act of Discrimination. Without limitation, the following are declared to be discrimination: (1)For an employer, because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, sexual orientation, to fail or refuse to hire, to discharge an employee, or to accord adverse, unlawful or unequal treatment to any person or employee with respect to application, hiring, training, apprenticeship, tenure, promotion, upgrading, compensation, layoff, discharge, or any term or condition of employment; (2)For an employment agency, because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, to accord adverse or unequal treatment to any person in connection with any application for employment, any referral or any request for assistance in procurement of employees, or to accept any listing of employment on that basis; (3)For any labor organization, because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, to deny full and equal membership rights to an applicant for membership or to a member; to expel, suspend or otherwise discipline a member; or to accord adverse, unlawful or unequal treatment to any person with respect to his or her hiring, apprenticeship, training, tenure, compensation, upgrading, layoff or any term or condition of employment; (4)For any owner of rights to housing or real property, or any person acting for an owner, with or without compensation, including any person licensed as a real estate broker or salesman, attorney, auctioneer, agent or representative by power of attorney or appointment, or to any person acting under court order, Trust, or Will, because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, to fail or refuse to sell, rent, assign or otherwise transfer any real property to any other person, or to accord adverse, unlawful, or unequal treatment to any person with respect to the acquisition, occupancy, use and enjoyment of any real property. The provisions of this section do not apply to rooms or units in dwellings that contain living quarters for no more than two families living independently of each other, if the owner maintains and occupies one of the living quarters as his or her residence. (a) For the purposes of determining discrimination based on familial status, a FAMILY is one or more individuals under the age of 18 who are domiciled with their parent, legal custodian or person granted custody with permission of the parent or custodian. This definition includes a person who is pregnant or in the process of securing custody of a person under the age of 18. Discrimination based on familial status applies to housing accommodations only. (b) The provisions of this section as they refer to familial status do not apply to residences publicized as specifically designated for older or disabled residents and if: 6 (1) A state or federal program has designated the residence for the elderly; (2) The residences are intended for and solely occupied by persons 62 years of age or older; or (3) Facilities and services for the residence are designed to meet the needs of the elderly, and at least 80% of the units are occupied or intended to be occupied by one or more persons 55 years of age or older. (c) It is an unfair or discriminatory practice to design or construct for first occupancy any multi-family dwelling with more than four units for sale, rent, lease, assignment, sublease or transfer that does not enable accessibility to ground floor common areas and usability of ground floor housing units by disabled persons or by wheelchairs. If the building has elevators, all housing units and common areas shall be usable by disabled persons and persons in wheelchairs. The accommodations may include widened doors, lowered electrical switches and outlets, lowered environmental controls, grab bars or reinforcements, kitchens and bathrooms usable by the disabled. Nothing in this provision may be construed to require prior approval of plans for construction by the commission. (d) It is also discriminatory to refuse to permit, at the expense of the disabled person, reasonable modifications of existing property that may be necessary to afford full enjoyment of the property. The landlord may, where it is reasonable to do so, condition permission for remodification on the renter’s agreeing to restore the premises to the condition that existed prior to the modification at the conclusion of renter’s tenancy, reasonable wear and tear excepted. (5)For any person engaged in the provision of public accommodations, because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, to fail or refuse to provide to any person access to the use of and benefit from the services and facilities of those public accommodations; or to accord adverse, unlawful, or unequal treatment to any person with respect to the availability of the services and facilities, the price or other consideration therefor, the scope and quality thereof, or the terms and conditions under which such are made available, including terms and conditions relating to credit, payment, warranties, delivery, installation and repair; (6)For any person engaged in the provision of public services, because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, to fail or refuse to provide to any person access to the use and benefit thereof, or the terms and conditions under which such are made available; (7)For any person, because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation, directly or indirectly, to conceal any unlawful discrimination; to aid, abet, compel, coerce, incite or induce another person to discriminate; or by any means, trick, artifice, advertisement 7 or sign, to use any form of application, or make any record or inquiry, or device whatsoever to bring about or facilitate discrimination; or to engage in or threaten to engage in any reprisal, economic or otherwise, against any person because of the latter’s filing a charge, testifying or assisting in the observance and support of the purposes and provisions of this chapter; (8)For any person, bank, banking organization, mortgage company, insurance company or other financial institution or lender to whom application is made for financial assistance for the purchase, lease, acquisition, construction, rehabilitation, repair or maintenance of any real property or any agent or employee thereof to discriminate against any person or group of persons, because of the race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation of the person or group of persons or of the prospective occupants or tenants of the real property in the granting, withholding, extending, modifying, renewing or in the rates, terms, conditions and the extension of services in connection therewith; (9)Wherever religious organizations or bodies are exempt from any of the provisions of this chapter, the exemption shall apply only to religious qualifications for employment or residence in church-owned or church-operated property, and the organizations shall not be exempt from any provisions of this chapter relating to discrimination based upon race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation; (10)Nothing contained in this chapter shall apply to any business or enterprise on or near a Native American Indian reservation with respect to any publicly announced employment practice of the business or enterprise under which a preferential treatment is given to any individual because the individual is an Indian living on or near a reservation; (11)Nothing in this chapter requires the following people to modify property in any way, incur any additional expenses, or exercise a higher degree of care for persons having a disability than for a person who does not have a disability nor does this chapter relieve any person of any obligations generally imposed on all persons, regardless of any disability, in a written lease, rental agreement, or contract of purchase or sale, or to forbid distinctions based on the inability to fulfill the terms and conditions, including, but not limited to, financial obligations of the lease, agreement or contract: (a) Employer; (b) Provider of public accommodations; (c) Provider of public services; (d) Person selling, renting, or leasing real property; (e) Person acting on behalf of any of the persons listed in a-d above, with or without compensation, including but not limited to any person licensed as a real estate broker or salesman, attorney, auctioneer, agent, or representative by power of attorney or appointment; and (f) Person acting under court order, Trust or Will. 8 Section 2-144. Contracts with City. The city and all of its contracting agencies, departments, and units shall include in all contracts entered into or renewed or extended provisions whereby each contracting party agrees that: (1)With respect to any and all business conducted or acts performed pursuant to the contract, the other contracting party shall be deemed an employer within the meaning of this chapter and shall be subject to the provisions of this subchapter; (2)If the other contracting party fails to perform the contractual provisions, the contract may forthwith be terminated and cancelled in whole or in part by the city, and the other contracting party shall be liable for any costs or expense incurred by it in obtaining from other sources the work and services to be rendered or performed or the goods or properties to be furnished or delivered to the city under the contract so terminated or cancelled; (3)Should the commission in a proceeding brought as provided in this chapter find that the contracting party has engaged in discrimination in connection with any contract and issue a cease and desist order with respect thereto, the city shall withhold up to 15% of the contract price until such time as the commission’s order has been complied with or the other contracting party has been adjudicated not guilty of discrimination; (4)The other contracting party will permit access to any and all records pertaining to hiring and employment and to other pertinent data and records for the purpose of enabling the commission , its agencies or representatives, to ascertain compliance with the provisions of this chapter applicable to the other contracting party; and (5)This section shall be binding on all subcontractors or and suppliers. Section 2-145. Responsibilities and Duties of City Employees. All officials, commissioners, agents, employees and servants of the city, elected and appointed, including civil service employees, and whether serving with or without compensation, shall observe the terms and provisions of this chapter and shall, except as expressly prohibited by law, respond promptly to any and all requests by the commission for information and for access to data and records for the purpose of enabling the commission to carry out its responsibilities under this chapter. The failure of any official, commissioner, agent, employee or servant of the city to comply with any provision of this chapter relating to any matter within the scope of his or her official duties shall be deemed a violation of this chapter. II. That the following Sections of Division 2 of Article V. and pertaining to Human Rights Committee Commission are amended to read as follows: Sec. Section 2-1461. Continued. The city has established in and for the city, a human rights committee commission. Sec. Section 2-1472. Composition. The human rights committee commission shall consist of ten members, nine of which shall be selected by the mayor with the advice and consent of the council, and one of which shall be selected by the board of county commissioners. In selecting members, due regard shall be 9 given to representation of minority groups on the human rights committee commission. One member of the human rights committee commission selected by the mayor shall be a student enrolled in a post-secondary educational institution. Sec. Section 2-1483. Term of Ooffice; Ddate of Aappointment; Ccompensation. (1)(a) All members of the human rights committee commission shall serve for terms of three five years, except the student member who shall serve a one-year term. Any members whose term expires may be reappointed. (2)(b) All members of the human rights committee commission shall serve without compensation. Sec. Section 2-1494. Vacancies. If a vacancy on the human rights committee commission occurs on a date other than the first Monday of the year, then the vacancy may be filled by appointment for a term not exceeding three years for the remainder of the vacated term, which term shall expire on the first Monday in January. If a member is absent from three consecutive regular meetings without authorization from the human rights commission, the member's seat may be considered vacant, and a new member may be appointed. Sec. Section 2-15045.Officers. The human rights committee commission shall designate from among its membership a chairperson, vice-chairperson, and such other officers and subcommittees as it may deem appropriate and necessary. Sec. Section 2-15146. Meetings. The human rights committee commission shall meet at such times and places as may be determined by such committee commission. Section 2-152. Quorum/Participation by Members Limited to One Panel. Three members of the commission shall constitute a quorum for probable cause determination pursuant to Section 2-159.Three members of the commission shall constitute a quorum for public hearing panels pursuant to Section 2-161. Members participating in a probable cause determination shall not also serve on a public hearing panel for the same matter. A majority of the voting members then holding a current appointment shall constitute a quorum for the transaction of all other business. Section 2-153. Rules, Regulations. The commission, with the approval of the city council, shall adopt suitable rules and regulations for the conduct of its operations and the effectuation of the purposes of this chapter. Sec. Section 2-15447. Purpose. The purpose of the Brookings Human Rights Committee Commission (BHRC) is to improve human relations and civil rights in the Brookings area by fighting discrimination through educational efforts and a complaint resolution procedure. The Except as limited by Section 2-155(15),the committee 10 commission has the power to investigate complaints alleging discrimination against individuals or groups because of their sex, race, color, creed, religion, ancestry, disability, familial status, or national origin, with respect to origin, with respect to employment, labor union membership, housing accommodations, property rights, education, public accommodations or public services. Sec. Section 2-15548.Powers generally. Substantive and Procedural Authority and Duties. The powers authority and duties of the Brookings Human Rights Committee Commission shall be to: (1)Promote human and civil rights for all its citizens and visitors. (2)Promote a mutual understanding and respect among all racial, religious and nationality groups and work to discourage and prevent discriminatory practices against any such group. (3)Attempt to foster, through community effort or otherwise, goodwill, cooperation and conciliation. (4)Study and determine the existence, character, causes and extent of discrimination in employment, housing accommodations, property rights, education, public accommodations, public services in the city, and discrimination based on age, disability, marital status, familial status, ethnicity, religion, sexual orientation, gender identity and political affiliation. The study and determination of discrimination is based on a broad understanding of civil and human rights as embodied in the 1964 Civil Rights Act as amended, which includes race, color, religion, gender and country of origin. (5)Seek to prevent and eliminate bias and discrimination because of race, color, sex, creed, religion, ancestry, national origin, familial status, disability, marital status, gender identity, or sexual orientation by means of education, persuasion, conciliation and, to the extent permitted, enforcement, and utilize all the powers at its disposal to carry into execution the provisions of this chapter. (6)Receive complaints alleging discrimination and conduct those investigations and inquiries as may reasonably appear necessary to find the facts with respect thereto. Investigations and inquiries can only be initiated upon the receipt of a complaint and shall be limited to the allegations contained in a complaint. (7)Conduct public meetings and hearings, gather and disseminate information to governmental agencies and to the public. (8)Utilize the records and services of municipal, state and federal governmental departments and agencies to the extent permitted by law, and pursuant to agreement with departments and agencies may refer matters for preliminary inquiry, conciliation, hearings and findings. 11 (9)Furnish to any appropriate state or federal agency having jurisdiction in the premises a transcript of the proceedings and findings in any case in which a court of competent jurisdiction or the commission has, after hearings, found that any person has unlawfully discriminated. (5)Advise and provide a forum for those who have been subje4cted to unfair and discriminatory practices in the city. (6)To receive, investigate and conciliate complaints alleging discrimination and where probable cause for discrimination is found to exist, refer the complaint to the appropriate governmental agency. The human rights committee shall develop rules of procedure subject o approval of the city council. (10)(7) Enlist the cooperation of various racial, religious and ethnic groups, community, civil, labor and business organizations, student organizations, fraternal and benevolent associations, veterans’ organizations, and other groups in educational campaigns and programs devoted to teaching the need for eliminating group tensions, prejudices, intolerance, bigotry and unlawful discrimination. (11)(8) Cooperate with federal, state and city agencies in developing programs showing the contributions of the various groups to the culture and traditions of our city and nation, the menace of prejudice, intolerance, bigotry and unlawful discrimination and the need for mutual respect. (12)(9) Advise the mayor, city council members, city manager and the respective departments of the city concerning matters consistent with the purposes and powers of the human rights committee commission. (13)(10) Recommend ordinances and other legislation pertinent to the purposes of protection of human rights. (14)(11) Conduct educational programs and disseminate information in furtherance of the purposes and policies of the human rights committee commission. (15)(12)Hear and investigate complaints alleging discrimination regarding the City of Brookings, in accordance with the grievance procedures for ADA grievances adopted by resolution of the city. Pursuant to State law, there is presently no legal authority to investigate complaints alleging discrimination because of marital status, gender identity or sexual orientation. Accordingly, until State law authorizes municipalities, pursuant to SDCL 20-12-4, to investigate discriminatory practices based on marital status, gender identity or sexual orientation, these discriminating practices cannot be investigated or enforced by the Human Rights Commission. Section 2-156. Filing Complaint. 12 (1)Any person claiming to be aggrieved by a discriminatory practice may file with the commission a verified written complaint which shall state the name and address of each person complained against (respondent) and shall set forth the pertinent facts as known to the complainant. Except as limited by Section 2-155(15), whenever the commission has information indicating that any person has been discriminated, it may issue and file a verified complaint. (2)The city may, however, dismiss a complaint if the complainant fails to state a claim upon which relief can be granted, or if the city determines the complaint has been abandoned or withdrawn if the city determines the city is not authorized by State Law to enforce compliance. Section 2-157. Time for filing Complaint. Any complaint filed under this Chapter shall be filed within one hundred eighty (180) days after the last occurrence of an alleged discriminatory or unfair practice. Section 2-158. Service of Respondent and Answer. Promptly upon the filing of any complaint, the commission shall serve a copy thereof, by personal service or registered or certified mail, upon the respondent. Respondent shall file a written answer thereto within ten calendar days after receipt thereof or within any period of extension granted by the representative of the city as designated by the commission. The Complaint and Answer shall be confidential documents until such time as a public hearing panel conducts a hearing on the Complaint. Section 2-159. Determination of Probable Cause. (1)The commission shall proceed to make the investigation based on a filed complaint as it may deem appropriate to determine whether there is probable cause to believe that the allegations of discrimination are well founded. The investigation shall remain confidential until such time as the matter is heard by a public hearing panel or is removed to Circuit Court. If there is no probable cause to believe that the allegations of discrimination are well founded, the commission shall dismiss the complaint. If, after investigation, it is found that probable cause to believe that the allegations of discrimination are well founded, the commission shall transmit the finding of probable cause, along with the reasons for the finding and a recitation of the evidence and names of witnesses that support the finding, to both complainant and respondent. Both complainant and respondent shall be permitted to inspect any documents not prepared by the commission in the files of the commission that are relevant to the determination of probable cause. If there is probable cause to believe that the allegations of discrimination are well founded, and the matter has not been satisfactorily resolved, the parties shall be served notice of the time and place of a conciliation conference by personal service or registered or certified mail at least five business days prior thereto. (2)No later than 20 days after notice of the finding of probable cause and prior to hearing, the complaining party or the respondent may elect to have the claims asserted in the complaint decided in a circuit court in lieu of a hearing before the commission. Parties 13 shall be notified of their right to this election in the notice of the finding of probable cause. Upon receipt of notice of election, the commission shall have no further jurisdiction over the parties concerning the charge filed. In a civil action, if a court or jury finds that an unfair or discriminatory practice has occurred, it may award the charging party compensatory damages. The court may grant as relief any injunctive order including affirmative action. Punitive damages may be awarded under SDCL 21-3-2 for a violation of this chapter as they pertain to housing. Attorney’s fees and costs may be awarded to the prevailing party for housing matters. Section 2-160. Conciliation. The conciliation conference shall be conducted by a representative of the city, who shall attempt to achieve a just resolution and obtain assurances that the respondent will eliminate unfair or discriminatory practices and take appropriate affirmative action. The settlement terms shall be set forth in a conciliation agreement which shall be signed by the complainant, respondent and the commission chairperson. Conciliation shall be a confidential procedure. Section 2-161. Public Hearing. (1)If the matter before the commission cannot be resolved by the conciliation conference panel, the matter shall be set for public hearing. The parties shall be served notice of the time and place of a public hearing by personal service or registered or certified mail at least ten days prior thereto. The notice shall include a statement informing the parties of their right to transfer the matter to the circuit court. The public hearing shall be conducted by a public hearing panel which shall be composed of three commissioners, none of whom shall have been involved in the investigation, determination of probable cause or conciliation. (2)The public hearing panel shall have authority to conduct prehearing conferences, to subpoena witnesses to appear, testify and produce records, books, papers and other documents, to administer oaths, to take testimony, to receive evidence, to examine and cross examine witnesses and issue orders authorized by this chapter. (3)Both complainant and respondent shall appear in person at the hearing and may be represented by counsel. Both may, in accordance with the order of procedures as may be determined by the public hearing panel, present evidence, call witnesses and present arguments bearing upon the facts alleged in the complaint. (4)All witnesses, including complainant and respondent, may be examined and cross examined. The hearing may consist of a bifurcated proceeding without direct and cross examination if the commission deems it appropriate in the circumstances. The conduct of the hearing will be within the sole discretion of the commission. The public hearing panel shall not be bound by the strict rules of evidence applicable to judicial proceedings, but its findings must be based upon competent evidence. Each witness at the hearing shall testify under oath. A stenographic record shall be made of the proceedings or an electronic device may be used. In a judicial review, the commission 14 may, upon request, furnish the complainant and respondent each with a copy of the transcript of the hearing without charge. (5)Hearings before the public hearing panel are not confidential. Section 2-162. Dismissal of Complaint. (1)If the commission determines that allegations of discrimination are not well founded, that the unlawful act or practice complained of has been satisfactorily eliminated and that further proceedings are unnecessary, or the allegations complained of are being processed or have been addressed, to the satisfaction of the commission by another agency or court, it may order the dismissal of the complaint. It shall within five days of the determination serve notice of the order upon the complainant and respondent by personal service or registered or certified mail. (2)The public hearing panel may also take and direct the affirmative action as in the judgment of the public hearing panel will effectuate its purposes. The powers of the public hearing panel are coextensive with the powers of the state human rights commission as set forth in SDCL 20-13-42. These powers include awarding compensation incidental to the violation other than pain and suffering, punitive or consequential damages; costs allowed under SDCL Ch. 15-17 and any other appropriate relief including reasonable attorney fees for housing matters as in the judgment of the public hearing panel will effectuate the purposes of this chapter. (3)Further, the public hearing panel may order the respondent to cease and desist from discriminatory or unfair practices and to take the affirmative action including hiring, reinstatement, or upgrading of employees with or without back pay, the referring of applicants for employment by any respondent employment agency, and the remittance or restoration of membership by any respondent labor organization. Section 2-163. Depositions and Discovery. The commission, through the city attorney’s office, shall have power to cause the deposition of witnesses to be taken or other discovery procedure to be conducted upon notice to the interested person in like manner that depositions of witnesses are taken or other discovery procedure is to be conducted in civil actions pending in court in any manner concerning contested cases. Section 2-164. Prosecution of Violation. (1)If a respondent fails to comply with a conciliation agreement or fails to obey an order issued by the public hearing panel, the commission may request the city attorney to prosecute the respondent in a court of competent jurisdiction for violation of the terms of this chapter. The failure of a person to obey a subpoena issued pursuant to this chapter may be punished as a contempt of court. The commission shall render to the city attorney assistance as requested in connection with any prosecution. 15 (2)The commission or a party may obtain an order of the court for the enforcement of the provisions of this chapter. The court may allow the prevailing party reasonable attorney’s fees and costs against the respondent. The court may also assess a civil penalty against the respondent in an amount not to exceed $10,000 for willful or repeated violations or refusal to comply with the order of the commission. Section 2-165. Rights of Parties to seek Judicial Determination. Nothing contained in this ordinance shall be construed to limit the right of the complainant to make and file a complaint, nor to preclude, abridge or restrict the right of appeal or the right of anyone concerned or affected to a review of the facts and issues in a court of competent jurisdiction on the evidence and merits in any matter involved. Section 2-166. Application to Other Disabilities. The commission, to the extent permitted by law, is authorized to apply any portion of this chapter which it may deem applicable to deal with discriminatory actions and practices against individuals or groups disadvantaged by reason of physical, mental or social handicap and not otherwise within the purview of this chapter. Section 2-167. Time Limit Ffor Ffiling Complaint. Any complaint filed under this chapter shall be filed within One Hundred Eighty (180) days after the alleged discriminatory or unfair practice occurred. III. This Ordinance is effective on January 1, 2016. IV. Any or all ordinances in conflict herewith are hereby repealed. First Reading:October 13, 2009 March 24, 2015 Second Reading:October 27, 2009 May 26, 2015 Published:October 30, 2009 May 29, 2015 CITY OF BROOKINGS, SD ATTEST:Tim Reed, Mayor Shari Thornes, City Clerk 1 WHY DO WE NEED A HUMAN RIGHTS COMMISSION? 1. Creating a Commission establishes Brookings as a leader in the state. 2. Creating a Commission gives a clear message to all that live, work or visit Brookings that Brookings is committed to protecting human rights and being an inclusive community. 3. Without a Commission, there is no local option to resolve disputes between parties. A local Commission can meaningfully assist individuals, property owners and businesses with questions, concerns and resolutions. 4. A Commission may provide the only confidential means to resolve a dispute between parties. 5. All Commission members are appointed by the Mayor with the approval of the City Council. All Commission members will receive annual compliance training. 6. The Commission can not initiate a compliant. It serves solely as a neutral fact finder. 7. A Commission serves a vital role in proactive education imparting the value of diversity, raising awareness of discrimination, educating the community about existing remedies, and providing guidance and resources to city officials. Draft dated 5/17/15 1 Human Rights Commission 520 3rd Street, Suite 230 Brookings, SD 57006 (605) 692-6281 I.HUMAN RIGHTS COMMISSION ROLES AND RESPONSIBILITIES The Commissioners of the Brookings Human Rights Commission serve in an appointed role at the discretion of the Mayor to effectuate the purposes of the Brookings Code of Ordinances, Chapter 2, Article 5, Division 2, Human Rights Commission. To serve as a member of the Brookings Human Rights Commission, individuals must demonstrate through personal or professional involvement an interest in civil rights issues. To the highest degree possible, each individual commits to fulfill the role and responsibilities of the Human Rights Commissioner. Any Commissioner should have the ability to review factual information and investigatory testimony to make a fair, neutral, and objective determination regarding the presence or absence of “probable cause” regarding discrimination charges filed with the Human Rights Office. Commissioners must be willing to commit the adequate and appropriate amount of time to effectively fulfill their role and responsibilities. The major responsibilities of the Human Rights Commissioner include: A. Reviewing investigative findings of charges of discrimination filed with the Human Rights Commission and render determinations regarding “probable cause” or “no probable cause” of discrimination relating to employment, housing, public services, public accommodations, and education. B. Reviewing conciliation proposals and documents prepared by Human Rights Commission staff/mediator and to achieve corrective settlement between the charging party and respondent where probable cause for discrimination has been determined. C. Conduct public hearings and issue findings in the matters of discrimination where probable cause has been found and conciliation efforts are unsuccessful as provided by City ordinance. Draft dated 5/17/15 2 D. Being informed regarding current civil rights issues in the Brookings community and to maintain current information and familiarity with civil rights laws, regulations, ordinances, and pending local and state legislation deferring to legal counsel for guidance and interpretation. E. Providing recommendations regarding those means which will effectively provide information, education, and training regarding civil rights issues for community organizations, agencies, businesses, institutions, target groups/individuals, and the public in general. Typical informational communications, education, and training activities may include: Periodic newsletter on civil rights issues. Specialized information seminars, workshops, and training for target groups/individuals. Public presentations to interested organizations and groups. Personal participation and memberships in community-based organizations. F. Providing opportunities for the general public to present issues, concerns, and problems relating to civil rights in the community of Brookings through conducting regularly scheduled public meetings. Human Rights Commission may establish committees of the Commission, committees representing the general public, or conduct public forums as needed to better understand civil rights concerns. The Human Rights Commission, or established committees, will not substitute for civil rights organizations, agencies, and community-based groups already existing in the Brookings community. G. Advising appropriate City officials of information, developments, problem areas, and current issues relating to civil rights in the community of Brookings, and provide input and recommendations where requested or deemed appropriate. H. Participating in the ongoing self-review and evaluation of the effectiveness of the Brookings Human Rights Commission and development of goals and objectives which serve to effectuate the purposes of the revised ordinances. II.COMMISSION OFFICERS A. Executive Committee: The Commission officers will consist of a chair, a vice-chair, and a recorder. B. Terms of Office: Commission shall designate officers at its first regular meeting in January of each year who shall serve a two year term. C. Nomination of Candidates: The chair will appoint a nominating committee of two, but not more than four, Commissioners. The committee shall place into nomination a proposed slate of officers. Neither the proposed slate nor nominations from the floor require a second. The nominating committee will normally be appointed at the November meeting and will place into nomination the proposed slate of officers at the January meeting. Draft dated 5/17/15 3 D. Election of Officers: The Commission shall designate officers at the January meeting. E. Oath of Office: The City Clerk or designee may administer the oath and the elected officers will assume their duties upon being sworn. F. Unexpired Terms: If, for any reason, an officer finds it necessary to leave office before the regular term is completed, the vacancy shall be filled as follows: 1. Nominations will be received at the regularly scheduled meeting following the vacancy. The election will be held the following month. 2. Should the office of the chair be vacated, the vice-chair will succeed as chair and the office of vice-chair will be filled as prescribed above. 3. Additional combinations of vacancies in more than one leadership role will be filled utilizing the aforementioned process facilitated by the City Clerk or designee. III.COMMISSION MEETINGS A. Regular Meetings: The Commission shall meet on at least a monthly basis at a date, time, and location to be determined by the Commission. All of the meetings are open to the public except those dealing with discrimination complaints. B. Meeting Agenda: The agenda for the regular monthly meeting shall be prepared by the Human Rights staff and shall be approved or amended before any business is transacted during the meeting. C. Quorum: Six (6) members of the Commission on Human Rights shall constitute a quorum for the transaction of business at a regular meeting. D. Special Meetings: A special meeting may be called upon the initiative of the chair. As much notice as possible will be provided to all Commissioners and to the public. E. Executive Committee Meetings: The Executive Committee shall meet at the time and place designated by the chair. F. Case Panel Meetings: The time, date, and place of case panel meetings will be set only after consultation and coordination among the Human Rights staff and the three panel members. Case files will be distributed to Commission members either by mail, email or at the regular scheduled monthly meeting. A special case meeting may be called upon the request of a case panel member. G. Public Hearing Panel Meetings: The time, date, and place of public hearing panel meetings will be set only after consultation and coordination among the Human Rights staff and the three panel members different than those in point F above. H. Conduct of Meetings: Robert’s Rules of Order shall govern the procedures of the meeting. Draft dated 5/17/15 4 IV.EXECUTIVE COMMITTEE The Executive Committee shall consist of the chair, the vice-chair, and the recorder. The Executive Committee is responsible for all administrative matters not requiring a quorum of the Commission. The Executive Committee shall make recommendation to the Commission as a whole on matters of policy and procedure. V.APPOINTMENT OF COMMITTEES The Human Rights Commission shall designate and appoint such additional committees as it may deem appropriate. The membership of such committees may consist of both members and nonmembers of the Commission or may consist entirely of non-members of the Commission. Such committees shall assist and advise the Commission in carrying out the objectives of this chapter. VI.TRAINING All Commissioners shall receive annual training on the complaint process, rules and procedures are already clearly defined in city ordinance and state statute. Initial “New Human Rights Commission” training will be provided by the U.S. Department of Justice (DOJ) Community Services Division and the Brookings City Attorney. The City Attorney and DOJ will prepare training materials for annual review. Intake and investigator training will be provided by the Equal Employment Opportunity Commission (EEOC). VII.COMPLAINT PROCESS A. Time Limit for Filing Complaint - Any complaint filed under this chapter shall be filed within six (6) months after the alleged discriminatory or unfair practice occurred. B. Filing Complaint - Any person claiming to be aggrieved by a discriminatory practice may file with the Human Rights Commission a verified written complaint. To the highest degree possible, the complaint shall contain the name and address of each person complained against (respondent) and shall specify the pertinent facts as known to the complainant. The complainant may submit the complaint in person, online or by mail. Complaints that are not complete or cannot be completed will not be given full consideration. C. Service of Respondent and Answer - Promptly upon the filing of any complaint, the Human Rights Commission shall serve a copy thereof by personal service or registered or certified mail upon the respondent. Respondent shall file a verified written answer thereto within ten (10) days after receipt thereof, or within any period of extension granted by the representative of the City as designated by the Human Rights Commission. D. Retaliation – at no point shall the respondent nor complainant affect change on the other in terms of modification of the contractual relationship. Draft dated 5/17/15 5 E. Dismissal of Complaint - At any point in proceedings under this chapter where it is determined that the allegations of discrimination appear to be inconclusive or that the unlawful act or practice complained of has been satisfactorily eliminated and that further proceedings are unnecessary, the Commission may forthwith order the dismissal of the complaint and shall within five (5) business days of such determination serve notice of said order upon the complainant and respondent by personal service or registered or certified mail. F. Case Panel – A case panel to review the case will be called within two weeks of submission of a complete complaint. The panel will consist of three members of the Human Rights Commission. 1. Determination of Probable Cause - The Case Panel shall proceed to make such investigation as it may deem appropriate to determine whether there is probable cause to believe that the allegations of discrimination are well founded. No Probable Cause - If there is no probable cause to believe that the allegations of discrimination are well founded, the Commission shall dismiss the complaint. 2. Probable Cause - If, after investigation, probable cause is found indicating the allegations of discrimination are well founded, the Commission shall transmit the finding of probable cause, along with the reasons for such finding and a record of the evidence and names of witnesses that support such finding, to both complainant and respondent. Both complainant and respondent shall be permitted to inspect any document not prepared by the Commission in the files of the Commission that is relevant to the determination of probable cause. If there is a probable cause to believe that the allegations of discrimination are well founded and the matter has not been satisfactorily resolved, the parties shall be served notice of the time and place of conciliation at least five (5) business days prior thereto. G. Conciliation/Mediation - The conciliation conference shall be conducted by an appointed representative of the City who shall attempt to achieve a just resolution and obtain assurances that the respondent will eliminate unfair or discriminatory practices and take appropriate affirmative action. If an agreement is reached, the settlement terms shall be set forth in a conciliation agreement which shall be signed by the complainant, respondent, and the Human Rights Commission chairperson. Upon agreement, both parties agree to all the terms of the resolution and will not pursue further resolution through the Commission or the City. H. Public Hearing - If the matter cannot be resolved by conciliation, the matter shall be scheduled for a public hearing. The parties shall be served notice of the time and place of public hearing by personal service or registered or certified mail at least ten (10) business days prior thereto. The Draft dated 5/17/15 6 public hearing shall be conducted by a public hearing panel, which shall be composed of three (3) Commissioners, none of whom shall have been involved in the investigation, determination of probable cause, or conciliation. The public hearing panel shall have authority to conduct prehearing conferences, to subpoena witnesses to appear, testify, and produce records, books, papers, and other documents, to administer oaths, to take testimony, to receive evidence, and to examine and cross-examine witnesses. Both complainant and respondent shall appear in person at the hearing and may be represented by counsel. Both may, in accordance with such order of procedures as may be determined by the public hearing panel, present evidence, call witnesses, and present arguments bearing upon the facts alleged in the complaint. A public hearing moderator who is selected by the City shall oversee the process. The moderator will be afforded the opportunity to set the expectations for all parties involved including but not limited to excusing non-compliant parties from the proceeding. The City Attorney will also attend public hearings to provide legal guidance. All witnesses, including complainant and respondent, may be examined and cross- examined. The public hearing panel shall not be bound by the strict rules of evidence applicable to judicial proceedings, but its findings must be based upon competent evidence. Each witness at the hearing shall testify under oath. In the event of judicial review, the Commission may, upon request, furnish the complainant and respondent each with a copy of the transcript of the hearing without charge. VIII.REPORTING The Human Rights Commission to submit an annual report to the City Manager and City Council indicating number, type, status, demographics, and resolution of cases filed in a calendar year and a comparison to previous years’ statistics. (optional approach) COMPLAINT PROCESS Complaint Filed Service of Complaint Mediation Successful Agreement Unsuccessful Agreement Respondent Answer Case Panel Probable Cause Conciliation Conference Successful Conciliation Unsuccessful Conciliation BHRC Public Hearing Elect Circuit Court No Probable Cause Circuit Court Appeal Negotiated Settlement Order of Dismissal 1 Human Rights Commission 520 3rd Street, Suite 230 Brookings, SD 57006 (605) 692-6281 BROOKINGS HUMAN RIGHTS COMMISSION INSTRUCTIONS FOR COMPLETING INTAKE QUESTIONNAIRE *****PLEASE READ THIS ENTIRE DOCUMENT BEFORE STARTING***** The Code of Ordinances of Brookings, SD, Chapter 2, Article 5, Division 2, prohibits discrimination on the basis of race, color, creed, religion, sex, national origin, ancestry, disability, or familial status. The Ordinance applies to the following areas: employment, housing, education, public accommodations, public services, property rights, and labor union membership. In order to file a complaint, you must allege discrimination because of your race, color, creed, religion, sex, national origin, ancestry, disability, or familial status (housing only) in the areas of employment, housing, education, public accommodations, public services, property rights, and/or labor union membership. Your charge must be filed within 180 days, but less than 300 days, please contact the Human Rights Commission office for advice before completing these instructions. Please fill out the attached/enclosed form as completely as possible. Use the reverse side and/or extra paper to explain exactly what happened to you. Be specific with all names and dates. Please note that completing this questionnaire does not mean that a charge of discrimination has been filed. After you submit the information, the Human Rights Commission staff will draft a charge of discrimination and then ask you to come in to review it and will notarize your signature. If the information is not sufficient to draft a charge, you will be contacted to discuss your allegations further. Please return the completed questionnaire as soon as possible to: Brookings Human Rights Commission, 520 3rd Street, Suite 230, Brookings, SD, 57006 or email it to sthornes@cityofbrookings.org. 2 Human Rights Commission 520 3rd Street, Suite 230 Brookings, SD 57006 (605) 692-6281 BROOKINGS HUMAN RIGHTS COMMISSION INTAKE QUESTIONNAIRE 1. Complainant Information: (please print) Name (first/middle/last): Address: City/state/zip code: County: Daytime phone: Other phone: Date of birth (provide only if claiming age discrimination): □ Male □ Female Provide the name of someone who lives at a different address, who would know how to contact you at any time: Name: Relationship: Address: Daytime phone: City/state/zip code: Are you represented by an attorney: □ Yes □ No If yes, indicate the name of the attorney, firm, address and phone number. Please note that you are not required to be represented by an attorney. You can, however, seek representation at any time. Name of attorney: Firm: Address: Phone number: 3 2. Respondent Information: Provide the name and address of the company, employer, labor union, employment agency, school, business or public service agency who you believe discriminated against you: Name: Respondent type (i.e. employer/business/company): Address: City/state/zip code: Phone number: Name, address and telephone number of company headquarters, if different from address listed above (if known): Name: Address: City/state/zip code: Phone number: 3. Statement of Allegations (Describe the action by the Respondent against you): Explain, specifically, the action taken against you, by whom (include name and job title), and dates of each event. Attach an additional sheet if necessary. Begin by stating the action, i.e. failed to hire, failed to promote, retaliated against, denied reasonable accommodation, harassed, terminated, denied access, etc. 4 4. Reason for action(s) stated by Respondent: State the reason given for the action(s) taken against you. If documentation was provided, please attach a copy: 5. Basis of Complaint: Check the category(s) which best describes why you believe you were discriminated against. If none of the following bases apply to your situation, please stop here. □ Race What is your race? □ Age What is your age/date of birth? □ Sex What is your gender? □ National origin What is your national origin? □ Religion What is your religion? □ Color What is your color? □ Disability What is your disability? □ Retaliation Explain how you were retaliated against: □ Other Explain: 5 6. Date(s) of Alleged Discrimination Action: Beginning date: Ending date: 7. Witness(es): List any and all persons who witnessed the discrimination and can support your allegations: Name: Phone number: What are they a witness to? (if necessary, continue on a separate attached sheet): 8. List other persons (if any) who were discriminated against in the same manner as you were. Include name, address and phone number. Name Address Phone number 6 9. Have you filed similar complaints with any other governmental agency? (i.e. South Dakota Division of Human Rights or Equal Employment Opportunity Commission) □ Yes If yes, which agency: □ No 10. Mediation Information: Are you interested in pursuing mediation as an alternative to the investigative and formal decision-making process? □ Yes □ No The goal of mediation is to arrive at a reasonable settlement, acceptable to all parties. The Brookings Human Rights Commission supports mediation and strongly recommends you consider mediation. If you and the Respondent agree to enter into mediation, a trained professional mediator will be provided at no cost to you. If for some reason mediation does not result in a mutual settlement, your charge will then continue through the administrative process, pursuant to City Ordinance. 11. Disability Information (Complete only if claiming disability as the basis for your complaint.): Describe the impairment and indicate how it affects a major life activity (i.e. working, eating, sleeping, walking, talking and breathing – list all); include any necessary explanation. Include if, how and when the information was known to the Respondent. Description of impairment: Impact on major life activity: If, how and when the information was known to Respondent: Please provide signed documentation from a medical professional specifically stating your medical condition and how it limits your daily life functions. 7 12. Employment Information: (Complete only if Respondent is your employer or prospective employer as applicable) a. Date(s) of your employment: b. Job title at the time of hire: c. Current job title: d. Supervisor: e. Approximate number of employees: f. Did you fill out an application for employment or promotion? □ Yes □ No g. Were you qualified for the position for which you applied? □ Yes □ No h. Were you interviewed? □ Yes □ No i. If you were not hired or promoted, do you know who was? □ Yes □ No If yes, please state name and protected class (i.e. race, religion, national origin). Name: Protected class: j. Were you given a copy of the company’s rules and policies? □ Yes □ No k. Did you ever complain to your supervisor or Human Resources department about the discriminatory acts against you? □ Yes □ No Explain whatever action was taken: 8 The Brookings Human Rights Commission does not charge any fees for its services. As a government agency, the Commission cannot endorse or recommend any particular attorney. This intake form is not an official filing document. Your charge of discrimination will be drafted from the information provided and you will be contacted to come in and sign. I declare and affirm that this information is, to the best of my knowledge, true and correct. Signature of Complainant Date Human Rights Commission 520 3rd Street, Suite 230 Brookings, SD 57006 (605) 692-6281 SUPPLEMENTALINTAKEINFORMATION FORTHOSECLAIMINGDISABILITYDISCRIMINATION Do you believe you were discriminated against because? Check all that apply: 1.□ You have an impairment that substantially limits a major life activity, such as caring for yourself, performing manual tasks, walking, seeing, hearing, speaking, breathing, and/or learning. Use the space below to describe the impairment and indicate how it affects a major life activity. Include information as to whether the company/employer/business/ public service (Respondent) knew and how it became known: 2.□ You have a record of having a disability. Use the space below to describe the type and dates of the record. Explain how it became known to the Respondent: 3.□ You are regarded by the Respondent as having a disability. Use the space below to explain how you are so regarded and how the respondent let you know: 4.□ You are related to or otherwise associated with an individual with a known disability. Indicate in the space below your relationship to an individual with a disability, the type of disability, and how it was known to the Respondent: Area of Discrimination: 1. Employment List job title held or sought: Describe the duties of the job, indicate which are essential (major) and which are nonessential (minor): Explain how you are qualified to perform the major duties of the job. Include information regarding education, training, experience, skills, etc.: Major job duties: Minor job duties: Education: Training: Experience: Skills: Other: Explain how you can perform the major functions of the job with or without a reasonable accommodation: If an accommodation is needed, did you give notice? If so, indicate to whom, date, and form of notice and type of accommodation requested: Was an accommodation offered, accepted, rejected? Explain: If an accommodation was denied, what reasons did the employer give to you? Accommodation: □Offered □Accepted □Rejected Explain: Was notice given? Yes □ No □ To whom: Date: Form of notice: Type of accommodation requested: 2. Business / Public Service / Public Accommodation: Describe how you were discriminated against – i.e. denied access, denied service, not accommodated, etc.: If an accommodation is needed, did you give notice? If so, indicate to whom, date, and form of notice and type of accommodation requested: Was an accommodation offered, accepted, rejected? Explain: If an accommodation was denied, what reasons were given to you? Accommodation: □Offered □Accepted □Rejected Explain: Was notice given? Yes □ No □ To whom: Date: Form of notice: Type of accommodation requested: If you were denied access, how were you denied – i.e. physical barrier, no accessible route, no accessible parking: If you were denied service, please explain: What action(s) did you take, if any, to resolve the situation on your own? Explain what you did and what, if any, documentation you have of your action(s): 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 2015-0389,Version:2 Action to approve the Brookings Economic Development Corporation proposal to purchase industrial land in the Foster Industrial Park. Summary: Brookings Economic Development Corporation is proposing to purchase land in the Foster Industrial Park to support heavy commercial and small enterprise development. Background: Brookings Economic Development Corporation (BEDC) has been working with several small businesses in an attempt to locate reasonably priced land for purchase to assist these businesses with building ownership and growth. The BEDC is proposing the following: ·The City of Brookings invest to make an approximately 7 acre site on 32nd Avenue shovel ready, to include, platting, grading, an internal street, water main, sewer main, and associated water and sewer stubbed to property line for 4 lots of approximately 1.4 acre each. ·BEDC will work with its list of potential buyers to assemble a group of buyers that will purchase the number of parcels required, at a minimum, to offset the City’s land development cost, with the land price set at $61,000 per acre. ·The joint Investment Committee consisting of BEDC and City Council representatives will make the final determination regarding who may purchase the land at $61,000 per acre. ·The BEDC also request the City Council to discuss the merits of making one parcel available for the development of condo-style space. BEDC would work with a local developer to whom the land would be sold and negotiate a price for the condo-style space that meets current demand. If no local developer is interested, BEDC would reach out beyond the community. If no agreement can be formalized, the land would remain as a large parcel for sale. ·BEDC would draft claw backs similar to those used in the past and would be a condition of each land sale. Additional claw back restricting use of the land to an owner-occupied situation for an appropriate number of years, and restrictions concerning the sale (not lease) of condo style space would be developed. The land is located within Tax Increment District #5, which was created to assist in financing the 32 nd Avenue improvements, and all increment generated from construction will be applied towards the debt service of TID #5. If approved, a formal request for transferring the property to the BEDC will be forthcoming upon completion of platting. City of Brookings Printed on 5/21/2015Page 1 of 2 powered by Legistar™ File #:ID 2015-0389,Version:2 Fiscal Impact: Projected revenue is $25,545 per acre minus grading and platting costs. Recommendation: Attachments: Example of Restrictive Covenant Sample Lot Layout City of Brookings Printed on 5/21/2015Page 2 of 2 powered by Legistar™ Exhibit “A” ________________________________________ Property Description: _________________________________________________________ Township One Hundred Ten (110) North, Range Forty-nine (49) West of the 5th P.M., City of Brookings, County of Brookings, State of South Dakota. Restrictive Covenant: ___________ referred to hereinafter as “Grantee”, agrees to utilize the above-described property solely for the purposes of expansion of its __________ facilities and company headquarters. The City of Brookings and the Brookings Economic Development Corporation have developed this Restrictive Covenant to provide assurance that industrial property conveyed is fully developed and improved as an expansion of the _________ facilities and company headquarters of ____________. In the event Grantee does not develop the property within three (3) years of the recording date of this Warranty Deed, Grantee, upon request of the Brookings Economic Development Corporation, will re-convey the above-described property free from liens and encumbrances to the Brookings Economic Development Corporation for consideration equal to the original purchase price of the above-described property. Should Grantee desire to sell any of the above-described property after it has been developed within ten (10) years following the recording date of the Warranty Deed to the above-described property, Grantee will notify Brookings Economic Development Corporation and Brookings Economic Development Corporation shall have the right of first refusal to purchase the property at the original purchase price of $___________. Grantee may not utilize the property in whole, or in part, for a period of ___ years to obtain lease income or revenue resulting from the use of the property. Grantor agrees to permit Grantee’s lender to have priority over the Covenants and Restrictions contained herein and, accordingly, Grantor has agreed to execute a subordination agreement, if necessary, however the Grantor and Grantee agree the foregoing Restrictive Covenant will run with the land and be binding on Grantee’s successors and assigns. 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 2015-0400,Version:1 Action to appoint Deputy Mayor. Summary: The City Charter requires the City Council to annually appoint a Deputy Mayor. The Deputy Mayor’s duties are to conduct City Council Meetings in the absence of the Mayor and to conduct ceremonial duties when the Mayor is not available. This is a one-year term ending June 1, 2016. Council Member Keith Corbett is the current Deputy Mayor. City of Brookings Printed on 5/21/2015Page 1 of 1 powered by Legistar™