2016-08-11T14:03:28-05:00 2015-12-31 410746749 CLIFTONLARSONALLEN LLP PO BOX 217 AUSTIN MN 55912 990 2015-01-01 410280115 MILL CITY CREDIT UNION MILL 7637646900 9999 WAYZATA BLVD MINNETONKA MN 55305 SHIRLEY NEUKOM SVP/CFO 7637646900 2016-08-09 1 SHERRI WESSELS P00888088 5074347000 2016-08-09 2015 2016-12-15 16:53:06Z KENT GREFF 9999 WAYZATA BLVD MINNETONKA MN 55305 65388156 0 X WWW.MILLCITYCU.COM X CU 1935 MN OUR MISSION AT MILL CITY CREDIT UNION IS TO HELP OUR MEMBERS ACHIEVE THEIR FINANCIAL GOALS BY PROVIDING EXCEPTIONAL VALUE THORUGH INNOVATIVE PRODUCTS, PERSONALIZED SERVICES, AND SECURE GROWTH OPPORTUNITIES. 9 9 0 12 0 0 0 0 2668971 10266543 277643 1556699 0 0 2946614 11823242 0 0 234702 933478 1165995 4779891 0 0 0 1038176 4693393 2438873 10406762 507741 1416480 300775245 315936703 267420892 281448643 33354353 34488060 OUR MISSION AT MILL CITY CREDIT UNION IS TO HELP OUR MEMBERS ACHIEVE THEIR FINANCIAL GOALS BY PROVIDING EXCEPTIONAL VALUE THORUGH INNOVATIVE PRODUCTS, PERSONALIZED SERVICES, AND SECURE GROWTH OPPORTUNITIES. 0 0 THE CREDIT UNION PROVIDED 8,937 LOANS TO MEMBERS TOTALING $181 MILLION. THE CREDIT UNION PROVIDED 42,962 DEPOSIT ACCOUNTS TO MEMBERS TOTALING $279 MILLION CONSISTING OF SAVINGS, CHECKING, IRAS, CERTIFICATES, DEBIT AND ATM CARDS. THE CREDIT UNION PROVIDES ACCESS TO APPROXIMATELY 27,084 MEMBERS THROUGH THE USE OF BRANCHES, PHONE/CALL CENTER, ATMS, ONLINE BANKING AND MOBILE BANKING CHANNELS. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 4200 0 1 0 0 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 X SHIRLEY NEUKOM 7637646995 9999 WAYZATA BLVD MINNETONKA MN 55305 BOB KIRK CHAIRMAN OF THE BOARD 1.00 X X 0 0 0 PETER MCDONALD VICE CHAIRMAN OF THE BOARD 1.00 X X 0 0 0 CAM HOANG SECRETARY OF THE BOARD 1.00 X X 0 0 0 EARL ROBERTSON DIRECTOR 1.00 X 0 0 0 MARTHA GSCHNEIDNER DIRECTOR 1.00 X 0 0 0 TITO WOUDA DIRECTOR 1.00 X 0 0 0 CHAD KERLIN DIRECTOR 1.00 X 0 0 0 GEOFF JOHNSON DIRECTOR 1.00 X 0 0 0 REBEKAH FERGUSON DIRECTOR 1.00 X 0 0 0 KENT GREFF PRESIDENT/CEO 37.50 X 263467 0 125969 SHIRLEY NEUKOM SVP/CFO 37.50 X 133682 0 56111 MISSY MOUND VICE PRESIDENT LOANS 37.50 X 87059 0 42057 MITCH MYRE VICE PRESIDENT OPERATIONS 37.50 X 86451 0 32714 PAM LABELLE VICE PRESIDENT MKTG & BUS 37.50 X 78950 0 35462 ROBIN DOWNING VICE PRESIDENT HUMAN RESOU 37.50 X 80693 0 32409 730302 0 324722 2 0 1 0 GENERAL MILLS INC BT03-A POBOX 1113 MINNEAPOLIS MN 55440 HUMAN RESOURCES, BENEFITS, TECHNOLOGY 5171772 FISERV 75 REMITTANCE DR STE 1649 CHICAGO IL 60675 ELECTRONIC SERVICES 1464771 XPRESS DATA INC 10983 VIA FRONTERA SAN DIEGO CA 92127 BULK PRINTING AND MAILING 100080 3 LOAN INTEREST 522100 7777530 7777530 OTHER OPERATING INCOME 522100 1559044 1559044 FEES & SERVICE CHARGES 522100 929969 929969 10266543 1354791 1354791 21074387 32692435 21038038 32526876 36349 165559 201908 201908 11823242 10266543 0 1556699 933478 1055024 2884219 840648 19823 24354 149527 421325 390843 962120 276766 28157 40644 220 426962 105972 PLASTIC CARD EXPENSES & 1302609 LOAN SERVICING EXPENSE 371549 PROPERTY TAX AND OREO E 114789 ASSOCIATION DUES 57256 477 10406762 2198751 1802046 38065252 41948319 173762465 181272891 211791 254604 7472477 4211571 3499183 3260906 56355603 64904621 16374819 13398419 10307381 9094897 300775245 315936703 1638447 2304113 265782445 279144530 267420892 281448643 X 0 0 0 0 33354353 34488060 33354353 34488060 300775245 315936703 X 1416480 -246424 -36349 X X 0 1 X 1 0 1375000 1375000 4404710 2954606 1450104 1624070 1256965 367105 68697 68697 3260906 MEMBER SHARE ACCOUNTS 279144530 279144530 X 11715884 -107358 -107358 11823242 0 11823242 10299407 -107355 -107355 10406762 0 10406762 PART X, LINE 2: THE CREDIT UNION IS EXEMPT, UNDER IRC 501 (C) (14), FROM FEDERAL AND STATE INCOME TAXES. CERTAIN PRODUCTS AND SERVICES PROVIDED BY SELECT STATE CHARTERED CREDIT UNIONS HAVE BEEN DEEMED BY THE INTERNAL REVENUE SERVICE (IRS), IN TECHNICAL ADVICE MEMORANDUMS (TAMS) RELEASED IN 2007, TO BE UNRELATED TO THE SPECIFIC ENTITY'S EXEMPT PURPOSE. AS PRESENTED IN THE TECHNICAL ADVICE MEMORANDUMS, THE NET TAXABLE INCOME FROM THESE PRODUCTS AND SERVICES WOULD BE SUBJECT TO INCOME TAXES. CREDIT UNIONS HAVE LITIGATED AGAINST THE IRS POSITIONS NOTED IN THE TAMS AND HAVE BEEN SUCCESSFUL IN HAVING COURTS DECLARE IN 2009 AND 2010 THAT REVENUE FROM INSURANCE PRODUCTS SOLD TO MEMBERS, HELPING THEM PROTECT THEIR FINANCIAL WELLBEING QUALIFIES AS EXEMPT PURPOSE INCOME, CONTRARY TO THE IRS POSITION IN THE TAMS. THE TAXING AUTHORITIES HAVE THE ABILITY TO ASSESS TAXES, PENALTIES AND INTEREST FOR ANY YEARS FOR WHICH NO TAX RETURN WAS FILED. IN THE OPINION OF MANAGEMENT, ANY LIABILITY RESULTING FROM TAXING AUTHORITIES IMPOSING INCOME TAXES ON THE NET TAXABLE INCOME FROM ACTIVITIES POTENTIALLY DEEMED TO BE UNRELATED TO THE CREDIT UNION'S EXEMPT PURPOSE IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL POSITION OR RESULTS OF OPERATIONS. WHEN THE CREDIT UNION CONVERTED TO A STATE CHARTERED CREDIT UNION DURING 2014, IT ADOPTED THE INCOME TAX STANDARD FOR UNCERTAIN TAX POSITIONS. AS A RESULT OF THE IMPLEMENTATION, THE CREDIT UNION EVALUATED ITS TAX POSITIONS AND DETERMINED NO UNCERTAIN TAX POSITIONS EXIST AS OF DECEMBER 31, 2015. THE CREDIT UNION EVALUATED ITS TAX POSITIONS AND DETERMINED NO UNCERTAIN TAX POSITIONS EXIST AS OF DECEMBER 31, 2015 AND 2014. THE CREDIT UNION'S 2014 AND 2015 TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: LOSS ON SALES OF ASSETS REPORTED AS EXPENSE ON FORM 990 -107,358. PART XII, LINE 2D - OTHER ADJUSTMENTS: LOSS ON SALES OF ASSETS REPORTED AS EXPENSE ON FORM 990 -107,358. ROUNDING 3. X 0 0 0 KENT GREFF PRESIDENT/CEO 194376 0 69091 0 0 0 0 0 125969 0 389436 0 0 0 SHIRLEY NEUKOM SVP/CFO 113699 0 19983 0 0 0 0 0 56111 0 189793 0 0 0 FORM 990, PART VI, SECTION A, LINE 6 MEMBERSHIP IN THIS CREDIT UNION IS COMPOSED OF EMPLOYEES AND RETIREES OF GENERAL MILLS; FAMILY MEMBERS OF EMPLOYEES AND MEMBERS, INCLUDING SPOUSE CHILD, STEPCHILD, FOSTER CHILD, ADOPTED CHILD, SIBLING, STEPSIBLING, PARENT, STEPPARENT, GRANDPARENT, AND GRANDCHILD; PERSONS RESIDING IN AND MAINTAINING THE SAME HOUSEHOLD AS CURRENT MEMBER. THE CREDIT UNION SERVES PERSONS WHO LIVE, WORK, WORSHIP, VOUNTEER OR ATTEND SCHOOL IN CARVER, HENNEPIN, MEEKER MCLEOD AND WRIGHT COUNTIES IN MINNESOTA. THE CREDIT UNION HAS ONE CLASS OF MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A A MEMBER SHALL HAVE BUT A SINGLE VOTE REGARDLESS OF THE AMOUNT OF HIS SHARE HOLDINGS. FORM 990, PART VI, SECTION A, LINE 7B UPON RESOLUTION OF THE BOARD, CREDIT UNION MEMBERS SHALL BE AUTHORIZED TO VOTE BY MAIL FOR ELECTION OF DIRECTORS, AND FOR AMENDMENTS TO THE CERTIFICATE OF ORGANIZATION OR BYLAWS, AT ANNUAL AND SPECIAL MEETINGS. FORM 990, PART VI, SECTION B, LINE 11 DETAILED REVIEW OF FORM 990 BY THE CFO AND CEO WITH COPIES PROVIDED TO THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 12C ALL EMPLOYEES AND VOLUNTEERS ARE SUBJECT TO THIS POLICY AND EACH ARE REQUIRED TO CERTIFY EACH YEAR IF THERE IS A CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS FOR DETERMINING THE COMPENSATION OF THE CREDIT UNION'S CEO IS BASED ON MARKET ANALYSIS AND REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS. THE PROCESS FOR DETERMINING THE COMPENSATION OF THE CREDIT UNION'S OTHER OFFICERS AND KEY EMPLOYEES IS BASED ON MARKET ANALYSIS AND REVIEWED AND APPROVED BY THE CEO AND HUMAN RESOURCES. THIS PROCESS WAS LAST COMPLETED IN 2015. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS ARE AVAILABLE IN EVERY BRANCH LOBBY. FORM 990, PART XI, LINE 9: RECLASSIFICATION FOR GAIN INCLUDED IN NET INCOME -36,349. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. FORM 990, PART V, LINE 2A: GENERAL MILLS IS THE CREDIT UNION'S SPONSOR FOR MEMBERSHIP PURPOSES, BUT GENERAL MILLS DOES NOT HAVE ANY CONTROL OVER THE CREDIT UNION. PAYROLL FOR THE CREDIT UNION IS PREPARED BY GENERAL MILLS AND FORMS W-2 ARE ISSUED BY GENERAL MILLS. THEREFORE, 0 EMPLOYEES ARE REPORTED ON LINE 21 OF PART V OF FORM 990. HOWEVER, COMPENSATION INFORMATION IS REPORTED ON PAGE 7, PART VII AND ON PAGE 10, PART X, LINES 5 - 9 TO ACCURATELY REFLECT THE AMOUNTS PAID BY THE CREDIT UNION TO GENERAL MILLS FOR OFFICER COMPENSATION AND BENEFITS.