CITY OF SAINT PETER, MINNESOTA AGENDA AND NOTICE OF MEETING

Regular Workshop Session of Monday, July 6, 2015 Library Meeting Room - 5:30 p.m.

601 South Washington Avenue

I. CALL TO ORDER

II. DISCUSSION A Building Department Presentation B. Hospital Audit Presentation C. City/School Subdivision Development D. Others

Ill. ADJOURNMENT

TP/bal

Office of the City Administrator Todd Prafke

CITY ADMINISTRATOR FILE COPY

--~CITYoFM (Q)!!i?!:JJY!!!

TO: Honorable Mayor Strand Members of the City Council

FROM: Todd Prafke City Administrator

RE: Department Presentation: Building

ACTION/RECOMMENDATION

None needed. For your information only.

BACKGROUND

Memorandum

DATE: 6/30/15

As has been our past practice, time has been set aside on this workshop agenda for a presentation on one of the City's Departments. Director of Building Dean Busse will be at the workshop on Monday evening to provide information on activities in his Department.

Please feel free to contact me if you have any questions or concerns on this agenda item.

TP/bal

TO: Honorable Mayor Strand Members of the City Council

FROM: Todd Prafke City Administrator

RE: Hospital Audit Presentation

ACTION/RECOMMENDATION

None needed. For your information only.

BACKGROUND

Memorandum

DATE: 7 /1 /15

Monday's workshop agenda includes a presentation of the 2014 audit results for River's Edge Hospital and Clinic. CEO George Rohrich will present the audit findings.

In addition , Mr. Rohrich will introduce the new Hospital CFO Gregg Chartrand.

Please feel free to contact me if you have any questions or concerns on this agenda item.

TP/bal

River's Edge Hospital and Clinic

----EideBailly. '------'

Required Auditor's Communication

1. Auditor's responsibility under generally accepted auditing standards

Responsibility for finoncial statements - monagement

Audit consists of tests, not complete verification - we obtain reasonoble, not absolute, assurance about whether the financiol statements are free of material misstatements

Engaged to perform audit in accordance with auditing standards generally accepted in the United States of America

2. Significant accounting policies

1. Described in notes to finoncial stotements 2. No changes in existing accounting policies

www .• ,ol.batly.com 2

Contents

• Required Auditor's Communication

• Internal Control Matters

• Financial and Operational Analysis Balance Sheet Performance Ratios

Financial Performance Ratios

Operating Activities

Market Share

- ·••d•b111!1y.eo111 I

Required Auditor's Communication

3. Management judgments and accounting estimates and qualitative aspects of accounting practices

Estimated third-party payer settlements

Allowance for doubtful accounts and contractual adiustments Depreciation expense

4. Corrected and uncorrected misstatements Corrected

• To increase the estimoted Medicore liability - $141,000

Uncorrected To increase MN Care tax liability - $45,600

• Required Auditor's Communication

5. Difficulties encountered in performing the audit • No difficulties in dealing with management

6. Disagreements with management • None

7. Management consultations with other independent accountants

• None noted

8. Other matters discussed prior to retention • None

9. Supplementary information accompanies the financial statements

Health Care Environmental Trends

Market trends affecting your industry both nationally and locally are key to understanding the impact to your future strategy:

Rising Costs

Reduced Reimbursement

Health Care Reform

Physician Recruitment &

Retention

Health Information Technology

Althou1h thti medit.11 are consum.r price lnde:ic continues to Iner.as., re!mburtement rates and physician services fen have not been ;iible to keep p1ce .

New requirements fOf' reportln1 and malntalnln1 quality standards, in addition to ch1n1es In relmburs.ment will ch1llen1e Internal operational effld encies.

A reduction in the supply of primary care physicians It 1

n1tlonal l...,el lscrnt1n11nincreasln1 chal11n1eto1ttract and reuin physicians.

HHlth information technolosv r.qufrements pissed by ARRA will be1Jn to penallz• CAH facllltl.s In 2015 for non­compli1n~. Si1nlflc1nt ll'lllfftm•nt In r.sourc.s ind tlm• w ill b• ,.. ulred to m••t com Hane• .

Current Year Internal Control Matters

Significant Deficiency

1. Preparation of financial statements

2. Limited size of office staff

Balance Sheet Performance Ratios

Balance Sheets

°"""'~ c...tlandcMb...,...v.J""'• ~.~~eqlliV&icDU • "°"'1d&lio11

Paclen1,necol..O~~l«tJ~ol'"P9"0lllmAUly 54M,C'IOtl i11 l:tH4MdSlllflJIOOi1120lland ~"OlllrlCNai~IUlmcau ofapproJ.imom:ly SL,770.000 ia 2014aDdUl6.000h120Ll .,,_

Supplieo Prq>UJcxpc:MC>

NOG<'\ll'NlllCW.aodln~• 0..1ipatcd b)'Comoniwion

Capil.o.JA-Capit.iu-11011bafl&do'preciUed ~capilal..,.. .. M1ot1o«11mul1teddorptoci.alion

OchcrAMe!I ~._...,,~ illwoc......winjollllV«ll'Ufe

Days Cash On Hand

281

2009 2010 2011

"'" --"'-"-

s l.942.07• s 5,4'1,046 3'.72' )6,711

4 .5111,1211 L.11411.1120 7,498 14,IMl

376,M j 1711,ljSJ

-----12!..lli.. ~

~ ~

3,669379 ~

30,.527 l.41l,7U

~ _.!!.!.!.!..U!.

~ ~

""" R7,17li

~ ~

~ ~

~ ~

2012 2013 2014

- Ri"°"s Edge Hospol8 - 25% Peer - 5-0% Peer - 75% Pee<

www.•1deb<.1ly.<11111 10

Balance Sheets

Current Li..MJiries C'wral• 1¥1oOIUtili«1 or Iona-"""" debt Aceounup&y•bls

T,.,. & mnatO<lthird-polnyJM.ytt-tlemeftta ......... .._. Slllariea..11'qu,Mdbencfiu

""·-

Ne1PooiotMN1 Netinve111nen1mcapllal..-1 Un1.,.lric:1f'd

"'" --"'-"-

661.7)9

l , 1'3,207 72&,e»' S46,MO 19,4 1)

1,149,»l l.O'll • .672

--1l!!J!!... -illi.ll!..

~~

lfl0l791'w. ~

(3.~.080) (3,4 )1.007)

~~

~~

Sll.M-9592 ~

Days Revenue In Patient Receivables

125

100 89

75

so

25

2009 2010 201 1 2012 2013 2014

- Rver's Edge 1-klspital - 25% Peer - 50% Peer - 75'.4 Peer Moan

Current Ratio

5.0

2009 2010 201 1 2012 2013 2014

- Rjver's Edge Hospital - 25% Peer - 50% Peer - 75% Pw Mean

Statements of Revenues, Expenses, and Chan es in Net Position

Opeo'llinsR~~ues Nee p1llelll 1«¥ica revenue (lie( of pt0v1lioa fot Md ddlu

ol"52.S61in2014uxl.$3S0,672in:Wl3J Other~venue

Op«aria1~­N~1n1~ Otherprofnsional~ia-5 Qenenl and adniinistracive wvias Pmpeny uxl bouKhokl services Depuciation

Nonoperlllin1Rc>T11uei<{Eil(~n,.u)

l111ere11e11pensc lnVCl(.lllelW jllCl.)alt

Noncapiu.leoaaiblllkwandsran11 -NetPosition, EndofYtar

• 18,616.713 ~

~

1.1147.942 LO,ISJ,089 S,949,107

678..279 ~

~

~

(456,010) 26,561

"' ---"'-' ~

( l,4S8,640)

~

~

• 17,742.Mll ~

~

1.295.442 9,639,752 S.2S7,80& ... ,,, ~

~

____illlJl2l

(464.0))) 31,957 14,711

---"-' ~

<'2)1,533)

~

s 8290326

•----Financial Performance Ratios

Net Margin Percentage

15.0%

10.0%

5.0%

0.0%

~.0%

·10.0%

·15.0%

-l<l.0% 2009

-13.1%

2010 2011 2012 2013

- ~ver's Edge Hol!lilal - 25% Peer - 50% Peer - 75% Peer

2014

Mean

EBIDA Percentage Rivers Edge Hospital and Clinic Debt Service Coverage Ratio

4.0

15.0%

10.0% 3.0

5.0% 2.0

1.9

0.0% 1.2 1.3

2009 2010 2011 2012 2013 2014 1.0

- -·Edge Hospital - 25% Peer - 50% P...- - 75% Peer Mean 0.3

0.0

2011 2012 2013 2014

Total Patient Days (Adult & Swing}

1,932

Operating Activities 1.750 1,751

1,500

1,250

1,000

River's Edge 25% Peer 50% Peer 75% Peer Mean Hospital

Inpatient Revenue to Total Revenue Percentage

"'"' 35.0%

Rillels Edge 25% Peer 50% Peer 75% Peer Hospital

$10,000

$8,000 $7,127

$6,000

M,000

szooo Rival s Edge 25% Peer 50% Peer 75% Peer

Hospital

31 .5%

Mean

$5,464

Mean

Outpatient Revenue to Total Revenue Percentage

"""' '"' 69.6% 69.9% 73.0%

"" "" 0%

Rivels Edge 25% Peer 50% Peer 75% Peer Mean Hospital

www.f!CebG1lly.co111 21

Total Expenses Per Adjusted Patient Day

S7.SOO T

$5,143 SS.000 $4,439

-~ j so

Rive r's Edge 25% Peer 50% Peer 75% Peer Mean Hospital

www.e1debo1lly.<0111 23

Salaries Per FTE

$57,585

$50,467

540000 RNe~s Edge 25% Peer 50% Peer 75% Peer Mean

Hosprtal

•----Market Share

ID

• Personnel Expense as a Percent of Total _O~p~e_r_a_~_n_g_R_e_v_e_n_ue~~~~~~~~~

650%

600%

55 0%

50.0%

45 0%

"°" 2008 2009 2010 2011 2012 2013 2014

- River's Edge Hospital - 25% Peer - 50% Peer - 75% Peer 'kan

• Primary Zip Code Market Share

Below displays the zip code in Riveris Edge and the peer group's service area with the largest number of discharges .

... . "'"

25.60%

River's Edge Hospital

25% Peer

44.80% 39.33%

50% Peer 75% Peer Mean

TO: Honorable Mayor Strand Members of the City Council

FROM: Todd Prafke City Administrator

RE: Housing Subdivision

ACTION/RECOMMENDATION

None needed. For your information and discussion.

BACKGROUND

Memorandum

DATE: 7/2/2015

It is my hope to have updated information related to a housing subdivision at your workshop. As you may know, we have had about 2.5 days to get things together so the information in your packet is limited. I do hope to have additional information for you on Monday evening.

The goals for our discussion will be: • Review of the updated design • Discussion of financing issues including use of Tax Increment Financing • Review of the affordability data that was initially reviewed at your goal session • Discussion of Market • Discussion on ideas to benefit other segments of the market place

If we are unable to get the data all together, I may ask to have this item removed from the agenda and moved to the next workshop. I have included what we have assembled so far and look forward to our discussion.

Please feel free to contact me if you have any questions or concerns about this agenda item.

TP/bal

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SITE DATA

83 3 =TOT AL SITE ACRES 26 0 = SCHOOL ACRES 57 3 = NET ACRES FOR HOME UNITS

201 =TOTAL HOME UNITS 76 =WITH-ALLEY HOMES (APX 55' x 125') (37 8%) 97 =NO-ALLEY HOMES (APX 65' x 125') (48 3%) 28 = TOWNHOMES (13 9%)

3 51 = HOME UNITS PER ACRE (201/57 3)

MLL.TI FAMILY HOUSING /IACRLS

(ASSUMED~/OiUHCIT=S==~C-::::X,

TRAVERSE ROAD

SCHOOl PROPERTY 26.0ACRES

MUlTI FAMILY HOUSING

STORMWATER POND

N

~ 0 150' r-r;-.·

~ " 1·

11~

Scale:

PHASE I

PHASE 2

PHASE J

PHASE l.

PROPOSED MUL Tl FAMILY HOUSING

T'41SDOCVMENTISTMEF'fl:OP£1tl'l'Of'l•SGROUP INC ANDMAYHOTBE.USED COPIEDOJIOU"l.ICATEO wrn.ouT Plt!Ofl.IMllTTEHCONSEH'T

SAINT PETER SCHOOL

PROPERTY

SAINT PETER MINNESOTA

CONCEPT 19 A

SITE DATA

83.3 =TOTAL SITE ACRES 26.0 =SCHOOL ACRES 57 3 = NET ACRES FOR HOME UNITS

206 =TOTAL HOME UNITS 76 =WITH-ALLEY HOMES (APX 55' x 125') (36 9"/o) 102 =NO-ALLEY HOMES (APX 65' x 125') (49 5%) 28 =TOWNHOMES (136%)

3.60 = HOME UNITS PER ACRE (206157 3)

ML(.TI FAMILY HOUSING

TRAVERSE ROAD

SCHOOL PROPERTY 2f!OACRES

MUL TI FAMIU' HOUSING

STORMWATER PONO

N

~ Scale:

·\I ..••.

,\.:,[~ 'JUI

PHASE I

PHASE Z

PHASE J

PHASE t,

PROPOSED HUL Tl FAMILY HOUSING

THl.!I tlOClJ"'Eh'T IS TI-IE 1'11.oPt:RTY Of" 1•$ OROUF INC AJ<l ...... VHOl" e.EVS£0 COPIEOOl'tDUPltCATUl v.frHOUT PRIOR -ITT EN CONSENT

SAINT PETER SCHOOL

PROPERTY

SAINT PETER MINNESOTA

CONCEPT 19 B

SITE DATA

63 3 =TOTAL SITE ACRES 27 3 =SCHOOL ACRES 56 0 = NET ACRES FOR HOME UNITS

201 =TOTAL HOME UNITS 72 =WITH-ALLEY HOMES (APX SS' x 125') (35 6%) 101 =NO-ALLEY HOMES (APX 6S' x 12S') (40 2%) 26 = TOWNHOMES (13 9%)

3 S9 =HOME UNITS PER ACRE (201/56)

HU.Tl FAMILY HOUSING /_/ACRES

(ASSUHEO;,IO;;UN= IT=S ':=::::::::::;:~-::3(

TRAVERSE ROAD

SCHOOL PROPERTY 27 25ACRES

MULTI FAMILY HOUS!NG

STORMWATER ?ONO

0 150' ,,,...._. Scale:

1il

/3L

PHASE I

PHASE 2

PHASE J

PHASE 4

PROPOSED HUL Tl FAMILY HOUSING

I

THISOOCUMENl 1$ THEF'llOPERTYOIF l•SGROUf' !MC ,.NO..,.YNOTllEUSEDCOPIEt>OltDIJPl.CA.TEO WITHOVT PftlO!ll l'rll'IITTEN CONSENT

SAINT PETER SCHOOL

PROPERTY

SAINT PETER MINNESOTA

CONCEPT 19 c