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Home My Public Portal About05.18.2021 Complete City Council Meeting Packet Posted 5/13/2021 Page 1 of 1 AGENDA FOR THE REGULAR MEETING OF THE MEDINA CITY COUNCIL Tuesday, May 18, 2021 7:00 P.M. Meeting to be held telephonically/virtually pursuant Minn. Stat. Sec. 13D.021 I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ADDITIONS TO THE AGENDA IV. APPROVAL OF MINUTES A. Minutes of the May 4, 2021 Regular Council Meeting V. CONSENT AGENDA A. Approve Ball Field Lighting Installation Agreement with Killmer Electric Co. Inc. B. Approve the 75% Design for the Hackamore Road Improvement Project VI. COMMENTS A. From Citizens on Items Not on the Agenda B. Park Commission C. Planning Commission VII. PRESENTATIONS A. Abdo, Eick, and Meyers – 2020 Annual Financial Report VIII. NEW BUSINESS A. Chippewa Road – Arrowhead Drive to Mohawk Drive – Wetland Replacement Plan IX. CITY ADMINISTRATOR REPORT A. Update on Terminating Local Emergency and Returning to In-Person Meetings X. MAYOR & CITY COUNCIL REPORTS XI. APPROVAL TO PAY BILLS XII. ADJOURN Telephonic/Virtual Meeting Call-in Instructions Join via Microsoft Teams to view presentations at this link: https://medinamn.us/council/ For audio only: Dial 1-612-517-3122 Enter Conference ID: 374 806 568# MEMORANDUM TO: Medina Mayor and City Council FROM: Scott Johnson, City Administrator DATE OF REPORT: May 13, 2021 DATE OF MEETING: May 18, 2021 SUBJECT: City Council Meeting Report Telephonic/Virtual Meeting Call-in Instructions Join via Microsoft Teams to view presentations at this link: https://medinamn.us/council/ For audio only: Dial 1-612-517-3122; Enter Conference ID: 374 806 568# V. CONSENT AGENDA A. Approve Ball Field Lighting Installation Agreement with Killmer Electric Co. Inc. – Three bids were received after soliciting proposals through the Office of State Procurement (State Cooperative Purchasing Venture). Staff recommends approval of the agreement with the low bid, Killmer Electric. See attached report. B. Approve the 75% Design for the Hackamore Road Improvement Project – Staff recommends approval of the 75% Design for the Hackamore Road Improvement project. See attached work session packet. VII. PRESENTATIONS A. 2020 Annual Financial Report – A representative from Medina’s auditing firm, Abdo, Eick, and Meyers, will be at the meeting to present a report on the City’s 2020 annual financial statements. See attached report. Recommended Motion: Accept the 2020 Audit from Abdo, Eick, and Meyers. VIII. NEW BUSINESS A. Chippewa Road – Arrowhead Drive to Mohawk Drive – Wetland Replacement Plan – The City’s transportation plan identifies the need for the construction of Chippewa Road between Arrowhead Drive and Mohawk Drive. Construction of the roadway is projected to impact a total of 2.81 acres of the wetland. This includes 0.37 acre of DNR regulated wetlands and 2.44 acre of adjacent wetlands regulated by the Wetland Conservation Act. 2 The City proposes to purchase credits from a wetland replacement bank at a 2:1 ratio to mitigate the wetland impacts. See attached memos and plan. Recommended Motion # 1: Move to authorize payment of wetland replacement costs related to the Chippewa Road Extension project. Recommended Motion # 2: Move to approve the Wetland Conservation Act Replacement Plan application for the Chippewa Road Extension Project. IX. CITY ADMINISTRATOR REPORT A. Update on Terminating Local Emergency and Returning to In-Person Meetings – Attorney Ron Batty prepared the attached memo outlining matters the city should take into consideration when determining when and how to end the local emergency and transition back to in-person meetings. See attached memo. XI. APPROVAL TO PAY BILLS Recommended Motion: Motion to approve the bills, EFT 005925E-005945E for $61,665.26 and order check numbers 051512-051567 for $299,124.75, and payroll EFT 0511011-0511045 for $56,304.01 and payroll check 020448 for $193.62. INFORMATION PACKET:  Planning Department Update  Police Department Update  Public Works Department Update  Claims List Medina City Council Meeting Minutes 1 May 4, 2021 DRAFT 1 2 MEDINA CITY COUNCIL MEETING MINUTES OF MAY 4, 2021 3 4 The City Council of Medina, Minnesota met in regular session on May 4, 2021 at 7:00 5 p.m. in the City Hall Chambers. Mayor Martin presided. 6 7 Martin read a statement explaining that the meeting continues to be held in a virtual 8 format due to the ongoing pandemic and provided instructions on how members of the 9 public can participate. 10 11 I. ROLL CALL 12 13 Members present: Albers, Cavanaugh, DesLauriers, Martin, and Reid. 14 15 Members absent: None. 16 17 Also present: City Administrator Scott Johnson, Assistant City Administrator Jodi 18 Gallup, City Attorney Ron Batty, Finance Director Erin Barnhart, City Engineer Jim 19 Stremel, City Planning Director Dusty Finke, Public Works Director Steve Scherer, and 20 Chief of Police Jason Nelson. 21 22 II. PLEDGE OF ALLEGIANCE (7:03 p.m.) 23 24 III. ADDITIONS TO THE AGENDA (7:03 p.m.) 25 The agenda was approved as presented. 26 27 IV. APPROVAL OF MINUTES (7:03 p.m.) 28 29 A. Approval of the April 20, 2021 Regular City Council Meeting Minutes 30 Martin noted that prior to the meeting proposed corrections from herself were circulated 31 for incorporation. 32 33 Moved by Martin, seconded by DesLauriers, to approve the April 20, 2021 regular City 34 Council meeting minutes as amended. 35 36 A roll call vote was performed: 37 38 DesLauriers aye 39 Albers aye 40 Cavanaugh aye 41 Reid aye 42 Martin aye 43 44 Motion passed unanimously. 45 46 V. CONSENT AGENDA (7:05 p.m.) 47 48 A. Approve 2020 Annual Report 49 B. Resolution No. 2021-28 Accepting Resignation of Community Service 50 Officers Patrick Johnson 51 Medina City Council Meeting Minutes 2 May 4, 2021 C. Approve Community Service Officer Job Description 1 D. Approve Internal Recruitment and Replacement for Community Service 2 Officer Position 3 E. Approve Manufacturer’s Materials Bid with Musco Sports Lighting for the 4 Paul Fortin Memorial Ball Field 5 Reid requested to pull Item A for additional comments. 6 7 Moved by Reid, seconded by Cavanaugh, to remove Item A from the Consent Agenda. 8 9 A roll call vote was performed: 10 11 DesLauriers aye 12 Albers aye 13 Cavanaugh aye 14 Reid aye 15 Martin aye 16 17 Motion passed unanimously. 18 19 Moved by Cavanaugh, seconded by Reid, to approve the consent agenda as amended. 20 21 A roll call vote was performed: 22 23 DesLauriers aye 24 Albers aye 25 Cavanaugh aye 26 Reid aye 27 Martin aye 28 29 Motion passed unanimously. 30 31 A. Approve 2020 Annual Report 32 Reid stated that she was incredibly impressed with this professional document and 33 would like it posted on the website for residents to read. She complimented staff for the 34 work they put into the document. 35 36 Martin applauded the contributions of the individual department heads to the report and 37 the significant efforts of Gallup to meld those reports into a unified single report of the 38 City. 39 40 Moved by Reid, seconded by Martin, to approve the 2020 Annual Report and post the 41 report on the City website with the corrections submitted by DesLauriers. 42 43 Medina City Council Meeting Minutes 3 May 4, 2021 A roll call vote was performed: 1 2 Reid aye 3 Cavanaugh aye 4 Martin aye 5 DesLauriers aye 6 Albers aye 7 8 Motion passed unanimously. 9 10 VI. COMMENTS (7:09 p.m.) 11 12 A. Comments from Citizens on Items not on the Agenda 13 There were none. 14 15 B. Park Commission 16 Park Commissioner Sharp stated that the Commission did not meet in April. He stated 17 that Three Rivers Park District is wrapping up the comment period on the trail this week. 18 He stated that a series of neighborhood meetings have been held this past year and 19 there will be another for residents along Hamel Road the following night to be held 20 outdoors. He stated that once that is complete, the Commission will review the potential 21 route options down Hamel Road and the options for crossing Highway 55. He stated 22 that two new youth members were appointed to the Commission and the Commission is 23 excited to meet them and gain their input. 24 25 Martin commented that the meeting the following night at Baker Park has been noticed 26 as a public meeting as a number of Council members have expressed interest in 27 attending. 28 29 C. Planning Commission 30 Finke reported that the Planning Commission will meet the following week to hold a 31 public hearing to consider the Pioneer Trail Preserve subdivision, which is a three-lot 32 subdivision of 40 acres. He stated that there will also be a Site Plan review for an 33 accessory structure at 215 Hamel Road. 34 35 VII. PRESENTATIONS 36 37 A. Resolution No. 2021-29 Recognizing Planning Director Dusty Finke for 38 Fifteen Years of Service to the City of Medina (7:14 p.m.) 39 Martin commended Finke for the excellent work that he completes on behalf of the City. 40 She read aloud the draft resolution recognizing Finke for 15 years of service to the City 41 of Medina. 42 43 Moved by Martin, seconded by Albers, to adopt Resolution No. 2021-29 Recognizing 44 Planning Director Dusty Finke for 15 Years of Service to the City of Medina. 45 46 Further discussion: Johnson commented that Finke is an incredible member of staff and 47 he is fortunate to have him on the team. Finke goes above and beyond his planning 48 duties and thanked him for his years of dedicated service. 49 50 Medina City Council Meeting Minutes 4 May 4, 2021 Cavanaugh echoed the comments of thanks to Finke and expressed appreciation for his 1 work. 2 3 Martin stated that she appreciates the insight and skill Finke brings to his position, 4 guiding the City through difficult decisions. She also commended him for the well written 5 and comprehensive staff reports. 6 7 A roll call vote was performed: 8 9 Albers aye 10 Reid aye 11 Cavanaugh aye 12 DesLauriers aye 13 Martin aye 14 15 Motion passed unanimously. 16 17 Finke thanked everyone for the kind words, noting that it has been an honor to be a part 18 of City staff for the past 15 years. He commented that the City has a great staff team, 19 and it is an awesome place to work. 20 21 VIII. OLD BUSINESS 22 23 A. Gambling License at Medina Entertainment Center, 500 Highway 55 24 (7:22 p.m.) 25 Johnson provided background information on the request which came before the Council 26 at its last meeting. He stated that the permit meets the requirements and there is no 27 reason for denial. He stated that at the last meeting staff was directed to further 28 research the ability for the City to require permittees to contribute up to 10 percent of 29 profits into a City administered fund. 30 31 Gallup stated that after researching the items requested by the Council, staff was able to 32 find additional clarification. She stated that the City would be limited to a request of 10 33 percent be contributed from profits earned. She stated that the City should also not 34 require an organization to make a contribution to a specific organization as that could 35 violate second amendment rights and therefore, if the Council chooses, it should choose 36 the option to have an ordinance which would require permittees to contribute ten percent 37 of profits into a City administered fund. She stated that this would be a separate fund 38 that would have restricted uses, noting that examples of lawful uses were included within 39 the staff report. She stated that would require an ordinance amendment that the City 40 can enact at any time. She clarified that once enacted, any permittee would fall under 41 that requirement to contribute ten percent of its profits earned into that City administered 42 fund. She recommended that the Council approve the permit tonight and provide 43 direction on whether it would like to pursue such ordinance. 44 45 Martin stated that it seems the City is in a legal position where it needs to grant the 46 permit. 47 48 1. Resolution No. 2021-30 Approving Premises Permit to District #284 49 Wayzata Youth Hockey to Conduct Lawful Gambling at 500 Highway 55 50 Medina City Council Meeting Minutes 5 May 4, 2021 Moved by Martin, seconded by Reid, to adopt Resolution No. 2021-30 Approving 1 Premises Permit to District #284 Wayzata Youth Hockey to Conduct Lawful Gambling at 2 500 Highway 55. 3 4 A roll call vote was performed: 5 6 Reid aye 7 Albers aye 8 Cavanaugh aye 9 DesLauriers aye 10 Martin aye 11 12 Motion passed unanimously. 13 14 Moved by Martin, seconded by Cavanaugh, to direct staff to bring back an ordinance 15 amendment to establish the 10 percent lawful gambling contribution requirement into a 16 City administered fund. 17 18 Further discussion: Albers asked if the City could look to potentially dedicate that fund to 19 establish some ice hockey rinks in several parks and fund their management. 20 21 Martin stated that the materials provided by staff state that could be a use of the fund but 22 noted that she would not want to restrict the use of those funds to just that purpose as 23 there would be other opportunities such as Medina Celebration Day, public safety, or 24 other park improvements. 25 26 DesLauriers commented that the monies should go into a fund as recommended to be 27 distributed as needed. 28 29 Reid agreed with the comments of DesLauriers. 30 31 Cavanaugh also agreed that the monies should go into a general fund. He asked if 32 there would be any way to coordinate with Wayzata Youth Hockey, noting that perhaps 33 that organization would be willing to use some of its newly found profits to provide that 34 outdoor ice space in Medina. 35 36 Albers stated that he does like that approach and recommended engaging the Wayzata 37 Orono, and Delano hockey associations to determine if they would be interested in 38 contributing to the costs for outdoor ice space in Medina. 39 40 Barnhart stated that she has been told by several of the other cities she spoke with that 41 participate in this action that the gambling board is very thorough in its compliance and 42 the City will be thorough as well in how the funds are used. She stated that the funds 43 cannot be used for general park improvements and has to be specific to youth programs 44 and possibly park equipment. She stated that there are restrictions in contributing those 45 funds to the City. 46 47 Martin asked if there would be a deadline in which the City must use the funds from this 48 new account. 49 50 Medina City Council Meeting Minutes 6 May 4, 2021 Barnhart commented that she does not believe there would be such a deadline but 1 noted that the City would have to report an annual tax form and submit the balance. 2 3 A roll call vote was performed: 4 5 Reid aye 6 Albers aye 7 Cavanaugh aye 8 DesLauriers aye 9 Martin aye 10 11 Motion passed unanimously. 12 13 IX. NEW BUSINESS 14 15 A. Embedded Social Worker Program with Police Department (7:34 p.m.) 16 Johnson stated that seven police agencies are looking to join forces and add an 17 embedded social worker from Hennepin County to provide resources and assistance 18 with mental health crisis calls. He commented that this is a great opportunity as there 19 has been a spike with mental health crisis calls for police. He commented that this is a 20 positive step and would be a great addition. 21 22 Nelson stated that Medina would look to partner with the other agencies to offer 23 additional services. He stated that if the police have to provide all of these services, it is 24 just a band-aid without follow-up. He stated that this program has funding available to 25 assist with 40 percent of the cost for the workers. He stated that as things continue to 26 change with use of force and officers responding to mental health calls, the hope would 27 be that this program would help to provide services before a crisis scenario is reached. 28 He stated that this would provide help to loved ones that need help for a family member. 29 He stated that this program would connect someone in crisis with services available 30 through the County along with follow-up. He stated that this would involve a two-year 31 commitment and after that time there would be enough data to determine if the program 32 provides the desired results. He stated that Plymouth and Minnetonka were previously 33 involved in the program and after one year decided that they had enough calls and 34 benefit to hire their own social worker directly. He stated that tonight he is asking for 35 approval to work with the other cities to develop a formal contract which would come 36 back before the Council for formal consideration. He hoped that this could move forward 37 later this year. 38 39 Martin thanked Nelson for the report. She stated that she has a better understanding for 40 the need to bring social work into the arena in which the police act and therefore 41 supports moving forward to work with the other cities in this capacity. 42 43 Albers commented that he also supports the idea. 44 45 DesLauriers stated that he fully agrees that this would be a great way to try out this 46 concept. 47 48 Reid stated that when she read summaries of calls from the police and fire, most of the 49 calls for service are not related to police or fire and therefore supports this action. 50 51 Medina City Council Meeting Minutes 7 May 4, 2021 Cavanaugh agreed that this is a great concept and believes it will be money well spent. 1 2 Moved by Martin, seconded by Albers, to approve direct staff to work with other 3 participating agencies to prepare a contract to hire a social worker. 4 5 A roll call vote was performed: 6 7 Reid aye 8 Cavanaugh aye 9 Martin aye 10 DesLauriers aye 11 Albers aye 12 13 Motion passed unanimously. 14 15 B. Reserve of Medina 3rd Addition – Final Plat and Development Agreement 16 (7:43 p.m.) 17 Johnson stated that Pulte Homes is requested the Final Plat approval for the last phase 18 of its development. He stated that there were concerns shared from an adjacent 19 property owner which City Engineer Stremel will address. 20 21 Finke stated that this is a review of the Final Plat for the 3rd Addition and highlighted the 22 lot locations in the northern portion of the project. He stated that Final Plat review is 23 meant to ensure the plat is consistent with the previously approved Preliminary Plat, 24 noting that in this instance they are identical. He stated that the conditions of 25 Preliminary Plat have either been met, or will be met, through the development of the 26 site noting that most of the conditions will carry over and be included with the Final Plat 27 Resolution and/or Development Agreement. He referenced Hackamore Road and 28 stated that language was included in the Preliminary Plat including a contribution to the 29 improvements for the roadway. He stated that the implementation of the contribution 30 has been delayed until this time as the 3rd Addition connects to Hackamore Road and 31 highlighted the segment of the roadway improvement that Pulte would be responsible for 32 with this phase of the development. He stated that the developer would also provide 33 additional filtration volume within the pond for the new hardcover of Hackamore Road. 34 He stated that if the Council approves the Resolution and Development Agreement, 35 Pulte would be responsible for the physical construction of that portion of Hackamore 36 Road. He stated that the other matter related to the grading and drainage related to 37 adjacent property and noted that additional language was included that intends to 38 specify those grading and drainage requirements included within the City Engineer 39 review comments. 40 41 DesLauriers appreciated City staff members going out to the property to review drainage 42 issues and find a resolution that satisfies all parties. 43 44 Albers asked if the new language was presented to the adjacent property and found to 45 be appropriate to address their concerns. 46 47 Finke stated that he did not discuss the exact language but did discuss the issues on the 48 site and those were the primary issues. 49 50 Medina City Council Meeting Minutes 8 May 4, 2021 Stremel stated that with the Xenia Trail drainage issues, curb and gutter will be installed 1 to capture water from the roadway and there will be a swale in the rear yard of some 2 homes to capture additional drainage. 3 4 Reid thanked Finke and Stremel for visiting the site to resolve these issues prior to the 5 meeting and noted that the adjacent property owner most likely appreciated that effort 6 and attention. 7 8 1. Resolution No. 2021-31 Granting Final Plat Approval for Reserve 9 of Medina 3rd Addition 10 Moved by Reid, seconded by Cavanaugh, to adopt Resolution No. 2021-31 Granting 11 Final Plat Approval for Reserve of Medina 3rd Addition. 12 13 Further discussion: Finke asked if the Council would accept the amended language for 14 condition seven. 15 16 Martin confirmed the consensus of the motion maker and seconder to accept that 17 amended language as recommended by staff. 18 19 A roll call vote was performed: 20 21 DesLauriers aye 22 Albers aye 23 Cavanaugh aye 24 Reid aye 25 Martin aye 26 27 Motion passed unanimously. 28 29 1. Development Agreement by and between the City of Medina and 30 Pulte Homes of Minnesota, LLC for Reserve of Medina 3rd Addition 31 Moved by DesLauriers, seconded by Cavanaugh, to approve the Development 32 Agreement by and between the City of Medina and Pulte Homes of Minnesota, LLC for 33 Reserve of Medina 3rd Addition. 34 35 A roll call vote was performed: 36 37 Reid aye 38 Cavanaugh aye 39 Albers aye 40 DesLauriers aye 41 Martin aye 42 43 Motion passed unanimously. 44 45 X. CITY ADMINISTRATOR REPORT (8:00 p.m.) 46 Martin noted that she believed there was an error on page three of the minutes from the 47 last meeting related to a comment from Barnhart, which has been confirmed by 48 Barnhart. 49 50 Medina City Council Meeting Minutes 9 May 4, 2021 Johnson stated that change can be handled administratively. He noted that he had 1 nothing further to report. 2 3 XI. MAYOR & CITY COUNCIL REPORTS (8:01 p.m.) 4 Martin recognized that everyone would love to return to in person meetings at City Hall 5 for Council and Commission meetings but noted that the Chamber at City Hall is very 6 small and therefore it does not seem appropriate to meet in person at this time. She 7 asked if members of staff, Council and Commissions could report to Johnson on the 8 status of their vaccinations. She stated that she would be hesitant to gather in that room 9 including staff, members of the Council and Commissions, and members of the public 10 that would create an increased risk of infection and disease. She commented that she 11 may have a conflict on May 12th with the Hennepin County Mayors meeting and noted 12 that if there were a member of the Council that would like to attend in her place, they 13 would be welcome. 14 15 XII. APPROVAL TO PAY THE BILLS (8:05 p.m.) 16 Moved by Cavanaugh, seconded by Martin, to approve the bills, EFT 005904E-005924E 17 for $62,252.56, order check numbers 051481-051511 for $72,384.77, and payroll EFT 18 0510982-0511010 for $57,629.68. 19 20 A roll call vote was performed: 21 22 Albers aye 23 Cavanaugh aye 24 Reid aye 25 Martin aye 26 DesLauriers aye 27 28 Motion passed unanimously. 29 30 XIII. CLOSED SESSION: ATTORNEY-CLIENT PRIVILEGED DISCUSSION ON 31 POTENTIAL LITIGATION RELATED TO ZONING VIOLATION AT 2402 STATE 32 HIGHWAY 55 PURSUANT TO MINN. STAT. SEC. 13D.05, SUBD. 3(b) 33 34 Martin noted that Cavanaugh has recused himself from the closed session. Moved by 35 DesLauriers, seconded by Reid, to adjourn the meeting to closed session at 8:09 p.m. to 36 discuss potential litigation related to zoning violation at 2402 State Highway 55 pursuant 37 to Minn. Stat. 13d.05, subd.3(b). 38 39 A roll call vote was performed: 40 41 DesLauriers aye 42 Albers aye 43 Cavanaugh aye 44 Reid aye 45 Martin aye 46 47 Motion passed unanimously. 48 49 The meeting reconvened to open session at 8:42 p.m. 50 Medina City Council Meeting Minutes 10 May 4, 2021 1 XIV. ADJOURN 2 Moved by Albers, seconded by DesLauriers, to adjourn the meeting at 8:43 p.m. 3 4 A roll call vote was performed: 5 6 DesLauriers aye 7 Albers aye 8 Reid aye 9 Martin aye 10 11 Motion passed unanimously. 12 13 14 15 __________________________________ 16 Kathleen Martin, Mayor 17 Attest: 18 19 ____________________________________ 20 Jodi M. Gallup, City Clerk 21 1 TO: City Council, through City Administrator Scott Johnson FROM: Steve Scherer, Public Works Director DATE: May 12, 2021 MEETING: May 18, 2021 SUBJECT: Paul Fortin Memorial Field – Structural Installation and Electrical System Bids Three bids were received after soliciting proposals through the Office of State Procurement (State Cooperative Purchasing Venture). The review comparison conducted by Sports Lighting Authority is documented in the attached email/memo. Recommendation Award the structural installation and electrical system contract to Killmer Electric Company, Inc. for a sum of $72,950.00. Attachments: • Email/memo from Sports Lighting Authority with bid • Ball Field Lighting Installation Agreement MEMORANDUM Agenda Item #5A 2 From: Craig Gallop <cgallop@sportslightingauthority.com> Sent: Monday, May 10, 2021 11:11 AM To: Steve Scherer <steve.scherer@medinamn.gov> Cc: Jodi Gallup <jodi.gallup@medinamn.gov>; Lisa DeMars <lisa.deMars@medinamn.gov> Subject: Bid Opening for Paul Fortin Baseball - Electrical and Installation Steve, This morning we opened bids for the structural installation and the electrical system for the Paul Fortin baseball field lighting. Bids came in at a good number with Killmer Electric being the low bid at $72,950. Other bids came in from Starry Electric at $88,300 and Medina Electric at $128,621. I am not sure if you are aware but there has been a steep increase in the price of copper wiring and conduit over the past 2 months. The bid by Killmer is where I had estimated the cost prior to the price increase. Killmer meets the requirements of the specifications and I recommend award of contract to them. Craig Gallop Sports Lighting Authority 763.525.0070 | cgallop@sportslightingauthority.com BID REQUEST PAUL FORTIN BASEBALL FIELD LIGHTING SYSTEM Structural Installation and Electrical System CITY OF MEDINA, MN Bids for the baseball field lighting "structural installation and electrical system" will be received by the City of Medina until 10:00 AM Monday May 10th, 2021 at the Medina City Offices...2052 County Road 24 Medina, MN 55340. Note, if delivering bid in person, go to lower level on backside of City Hall. Bids will be received from electrical contractors in accord with the specifications. The lighting fixtures, poles, pole wiring, and associated lighting equipment will be provided by the owner. Bids will be for the installation of the lighting equipment, poles, concrete bases, and electrical system. The bids will be reviewed as to pricing and meeting specification requirements. Bids shall be submitted by mail or in person and shall state on outside cover "Bid for installation and Electrical System — Paul Fortin Baseball Field Lighting". Send bid to Attention: Lisa DeMars City of Medina 2052 County Road 24 Medina, MN 55340 Any questions regarding specifications shall be addressed to the sports -lighting consultant... Craig Gallop Sports Lighting Authority cgallop@SportsLightingAuthority.corn 0 763-525-0070 C 612-226-3288 STRUCTURAL AND ELECTRICAL INSTALLATION A. Unloading of Lighting Equipment: 1. The installing contractor is responsible for unloading lighting equipment at time of delivery. 2. All LED lighting fixtures and equipment must be placed in containers or in a secured area until installed. 3. Protection and safe keeping of the lighting equipment is the contractor's responsibility until all lighting equipment is mounted on poles and poles set in the air. 4. Pre -stressed concrete bases and pole sections can be moved to staked pole locations at time of delivery upon approval of owner. B. Installation Timing: 1. Upon owner's approval structural installation of the concrete bases can be started at delivery time. 2. If field is still in use, scheduling of installation can be arranged to allow work in areas of inactivity at agreed upon time between owner and contractor. 3. Pre -stressed concrete bases will require augured holes with concrete backfill as follows... "A" bases 12' X 30", "B" bases 16' x 30" and "C" bases 12' x 30". 4. It is anticipated that the lighting system will be delivered in the first week of June. 5. Lighting system installation and electrical system shall be completed prior to end of June. C. Mounting of Lighting Equipment to Poles: 1. Pole sections slip fit together and shall be installed using (2) come-alongs that are attached to the ears at the bottom and top of each pole section. 2. All fixtures, crossarms, remote electrical component enclosures, and pole wire harness shall mount to the poles in accord with the lighting manufacturer's recommendations. 3. Pole wire harness shall be attached using wire mesh grips to "J" hooks located inside of pole. 4. Factory assembled remote electrical component enclosures shall be mounted to the wire access hub and hanger on lower section of pole. 5. Pole wire harness shall plug into luminaire wiring connectors at top of pole and into the wire connectors in the remote electrical component enclosure on the lower pole section. 6. All wiring and connections shall be completed by the electrical contractor from the underground wiring at each pole up to the factory installed disconnect located at a 10' height in the remote electrical component enclosure. Contactor shall provide any additional connections within the remote electrical component enclosure required to make the electrical system complete and operable. D. Mounting and Aiming of Fixtures: 1. LED Lighting fixtures are factory aimed and shall be installed in accord with the lighting manufacturer's recommendations. 2. All fixtures are numbered and shall be mounted to the corresponding numbered light fixture bracket on the crossarms. 3. Ball -tracking fixtures will be attached to the factory mounted fixture bracket facing field side on the lower portion of the pole. 4. Upon completion of setting poles, contractor shall be responsible for additionally checking the overall aiming making sure all fixtures are aimed on the field. 5. If any discrepancies appear, the contractor shall immediately notify the lighting manufacture and the lighting consultant to make sure any possible problems can be addressed while contractor and lift are still on site. E. Installation of Factory Provided Contactor Cabinet: 1. Contractor shall mount the factory provided contactor cabinet adjacent to the breaker panel (not provided) along with any additional required panels or equipment in accord to State requirements. 2. All electrical connections shall be made between the underground electrical system and the factory provided contactor panel for a complete and operable lighting system. 3. Upon completion of the electrical system, the contractor shall check to make sure all fixtures are operable. 4. Contractor shall notify the lighting consultant that all work has been completed and the lighting system is operable and ready to be tested. F. Electrical System Requirements: 1. The electrical system shall be design/build in accord with these specifications. 2. The installing contractor shall be responsible for providing the equipment and installation of a complete and operable lighting system commencing from the secondary side of the service transformer and terminating at the safety disconnect located in the remote electrical component enclosure on each pole. 3. The new transformer will be provided by Xcel and will be installed on or before June 4th 4. Voltage shall be 240 single phase. 5. Maximum voltage drop shall not exceed 3% throughout system. G. Electrical System Design: 1. Provide conductors and conduit from the transformer to the service entrance panel board. 2. The service entrance panel shall meet State and National Electrical Code (NEC) requirements with appropriate individual circuit over -current protection and bolt -on breakers. 3. Provide copper conductors from the service panel to the safety disconnect on each pole. 4. Grounding conductors and grounding methods shall meet NEC and State requirements and be located at the service entrance panel board and remote electrical component enclosure located on each pole. 5. Lighting protection shall be provided by the lighting manufacturer via concrete encased electrode grounding system. 6. Underground wiring shall be copper and shall be buried at 2' below grade in accordance to NEC and State Code and shall be installed in PVC Schedule 40 conduit. 7. Installing contactor shall be responsible for locating all public underground utilities. 8. The owner shall be responsible for location all private utilities and accepts responsibility for damage to such facilities that are not properly located. 9. Trenches shall be back -filled with excavated soil and compacted with no trench or feeder circuit crossing the playing area. 10. Circuits to poles may be daisy -chained. 11. "As -built" drawings shall be provided by the electrical contractor to the owner upon completion of the project. 12. Contractor and any subcontractors shall provide insurance including Workman's Compensation, Contractor's Public Liability and Property Damage, and Automobile Public and Property Damage in accord with the owner's requirements. 13. The electrical contractor shall upon completion of the project protect the owner against defective materials or faulty workmanship for a period of 2 years on wiring, panels, equipment, and labor for all electrical not provided by the lighting manufacture (the lighting manufacturer's warranty covering parts and labor on the lighting system shall be a separate 25 year warranty). BID FORM PAUL FORTIN BASEBALL FIELD LIGHTING STRUCTURAL INSTALLATION AND ELECTRICAL SYSTEM City of Medina The information supplied herein shall be in compliance with the specifications for the structural installation of the lighting system and for the installation of the electrical system at the Paul Fortin baseball field -in Medina, MN. -By signing, all specifications requirements have been met (except as noted). Base Bid: Structural installation of lighting system (lighting fixtures, lighting equipment, poles, and pre- stressed concrete bases provided by owner) and materials/installation of design/build electrical system $ 72,950.00 The following is a complete list of any items not in compliance with the specifications. The following is a list of items that exceed specification requirements. CONTRACTOR •1'(‘SIGNATURE CONTACT NAME Sk i/I All A - IL- 36 7/0t -ti DATE 57/'7%a L.� BALLFIELD LIGHTING INSTALLATION AGREEMENT This Agreement is made this 18th day of May 2021, by and between Killmer Electric Co. Inc, 5141 Lakeland Avenue N, Crystal, MN 55429, a Minnesota corporation (the “Contractor”) and the City of Medina, a Minnesota municipal corporation (the “City”). Recitals 1. The City has been authorized to enter into a contract for ballfield lighting installation; and 2. The City has approved the contract for ballfield lighting installation with the Contractor; and 3. The parties wish to define the scope of services and terms of their agreement. NOW, THEREFORE, the City and the Contractor agree as follows: Terms 1.0 SCOPE OF SERVICES. The Contractor will perform ballfield lighting installation for the City. “Ballfield Lighting Installation” will consist of structural installation of the pre-stressed concrete bases, galvanized steel poles, LED fixtures, pole wire harness, and remote electrical enclosure at Paul Fortin Baseball field in accordance with the attached Exhibit A. 2.0. TERM. The term of this contract will be from May 2021 to November 2021. 3.0 COMPENSATION. The City shall compensate the Contractor $72,950.00 for ballfield lighting installation at Hamel Legion Park, as defined in the Scope of Services above and approved by the Public Works Director. 3.01 The Contractor shall pay for all licenses and permits. These costs shall be included in the bid cost in accordance with the attached Exhibit A. 4.0 INDEPENDENT CONTRACTOR. 4.01 Both the Contractor and the City acknowledge and agree that the Contractor is an independent contractor and not an employee of the City. Any employee or subcontractor who may perform services for the Contractor in connection with this Agreement is also not an employee of the City. The Contractor understands that the City will not provide any benefits of any type in connection with this Agreement, including but not limited to health or medical insurance, worker’s compensation insurance and unemployment insurance, nor will the City withhold any state or federal taxes, including income or payroll taxes, which may be payable by the Contractor. 4.02 The Contractor will supply and use its own equipment, tools, and materials to complete the services under this Agreement. 4.03 The Contractor acknowledges that any general instruction it receives from the City has no effect on its status as an independent contractor. 5.0 INSURANCE. The Contractor will maintain adequate insurance to protect itself and the City from claims and liability for injury or damage to persons or property for all work performed by the Contractor and its respective employees or agents under this Agreement. The Contractor shall name the City as an additional insured under its general liability policy in limits acceptable to the City. Prior to performing any services under this Agreement, the Contractor shall provide evidence to the City that acceptable insurance coverage is effective. 6.0 WORKER’S COMPENSATION. 6.01 The Contractor will comply with the provisions of the Minnesota worker’s compensation statute as an independent contractor before commencing work under this Agreement. 6.02 The Contractor will provide its own worker’s compensation insurance and will provide evidence to the City of such coverage before commencing work under this Agreement. 7.0 INDEMNIFICATION. The Contractor will hold harmless and indemnify the City, its officers, employees, and agents, against any and all claims, losses, liabilities, damages, costs and expenses (including defense, settlement, and reasonable attorney’s fees) for claims as a result of bodily injury, loss of life, property damages and any other damages arising out of the Contractor’s performance under this Agreement. 8.0 APPLICABLE LAW. The execution, interpretation, and performance of this Agreement will, in all respects, be controlled and governed by the laws of Minnesota. 9.0 PRIVATIZATION CLAUSE. Contractor agrees to comply with the Minnesota Government Data Practices Act (the “Act”) and all other applicable state and federal laws relating to data privacy or confidentiality. All data created, collected, received, stored, used, maintained or disseminated by the Contractor in performing its obligations is subject to the requirements of the Act, and the Contractor must comply with the requirements of the Act as if the Contractor was a government entity. 10.0 ASSIGNMENT. The Contractor may not assign this Agreement or procure the services of another individual or company to provide services under this Agreement without first obtaining the express written consent of the City. The Contractor shall provide the City with copies of all contracts for assigned services. 11.0 ENTIRE AGREEMENT; AMENDMENTS. This Agreement constitutes the entire Agreement between the parties, and no other agreement prior to or contemporaneous with this Agreement shall be effective, except as expressly set forth or incorporated herein. Any purported amendment to this Agreement is not effective unless it is in writing and executed by both parties. 12.0 NO WAIVER BY CITY. By entering into this Agreement, the City does not waive its entitlement to any immunities under statute or common law. 13.0 TERMINATION. Either party may terminate this Agreement at any time, for any reason. IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year written above. CITY OF MEDINA By __________________________________ Kathleen Martin, Mayor By __________________________________ Jodi M. Gallup, City Clerk KILLMER ELECTRIC CO, INC (CONTRACTOR) By ____________________________ Brian Palmer, Project Manager DO EICK & MEYERS LLP Certified Public Accounta nts & Consulta nts City of Medina 2020 Financial Statement Audit Introduction ABDO EICKME& c �. r=nMr r >t« ;,nY ERS LLP General Fund Results Other iclernmental Funds Key Performance Indicators 2 Audit Results ABDO SIC' K& 1 1 E S LLY Auditor's Opinion Minnesota Legal Compliance 3 Audit Results ABDO EICK MEYERS E11S LLY (.crijf / NM( irrr,ruunur< & GonSUUa ntc Preparation of Financial Statements 4 Co ro navirus Relief Funds • Internal Control Finding • Legal Compliance Finding Results From Prio r Year: ABDO EICK MEYERS lS UP *ntnitzn!< & Cams4 krrirr Prior Year Finding Internal Control Finding - Material Audit Adjustment Update: The current year audit did not require an audit adjustment and all developer assets were recognized . ImmL_ General Fund Co mparing Unassigned Fund Balance to Future Year Budget ABDO EICK WYE i El S LIP (;rrryied Nike Ilrrxx tu.ints c% Consultants $5,500,000 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 50 .3 % 50% 50% 50% $4,807,124 $4,309,741 $4,426,643 $4,572,338 68.8% 65 .3 % 63.4 % 61 .0 % 50% 50 % $4 ,903,646 2016 2017 2018 2019 2020 2021 -- Unassigned Fund Balance 6 —ye— Budget Minimum Fund Balance Policy General Fund Budget to Actual ABDO EICT K& MEYE E LLl' firlijirri f)1 Jir ;IrEineit ivw & ! ag uilaws Revenues Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing S ources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 7 Final Budgeted Amounts $ 4,586,340 4,803,124 (216, 784) 220,784 (4,000) 216,784 3,126,401 Actual Amounts Variance with Final Budget $ 5,457,923 $ 871,583 5,294,176 (491, 052) 163,747 220,784 (4,000) 216,784 380,531 3,126,401 380,531 380,531 $ 3,126, 401 $ 3,506,932 $ 380,531 Special Revenue Fund Balances ABDO SICK & ! 1 E W LLP ceriifirti Aal lir .Irrxxu u«ntt & ax uuhnms Fund Nonmajor Environmental Municipal Park Field House Police Forfeiture Police Reserve Equipment German Liberal Cemetery Community Event Cable Franchise Total $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- $(200,000) Restricted Fund Balances December 31, 2020 2019 $ 519,744 $ 379,194 6,178 236,881 17,371 167,605 23,328 69,514 527,411 269,320 8,038 248,123 17,939 155,299 18,865 21,347 1,419 815 $ 1,266,342 1 Committed ■ 2018 ■ 2019 2020 Note : Nonspendable balance not presented for 2020 . Increase (Decrease) $ (7, 667) 109,874 (1,860) (11,242) (568) 12,306 4,463 48,167 153,473 Unassigned Capital Projects Fund Balances ABDO EICK & MEYEl S LLP Grayly! doh. /lr '. itts n t. & C:ca;iriiantx Fund Balances December 31, Fund 2020 Major Sewer Capital Improvements Nonmajor Park Dedication General Capital Improv ement Ta x Increment 1-9 Water Capital Improvem ents Road Improvement Equipment Replacement Total Nonmajor Total $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- $(1,000,000) $ 3,235,754 $ 1,669,215 262,126 (65,207) 1,510,364 300,211 25,051 3,701,760 2019 Increase (Decrease) 3,122,661 $ 113,093 1,607,679 317,969 (117,998) 1,483,661 1,051,534 101.181 4,444.026 6,937,514 $ 7.566, 687 NiL 61,536 (55,843) 52,791 26,703 (751,323) (76.130) (742,266) (629,173) Restricted Committed Assigned .2018 'T 2019 2020 Unassigned Debt Service Funds ABDO EICK & 11iE 1 LRS LLP (,rrryied NM( ;I ,tu usants K %atst4Grmts Debt Description Cash Total Bonds Maturity Balance Assets Outstanding Date 316 Hunter North Improvement Bonds 20116 $ (509) $ 1,911 $ - 2022 319 G .O. Capital Improoement Bonds 2012A 5,350,833 5,361,075 5,060,000 2034 320 G .O . Refunding Bonds 20126 11,609 19,211 2021 321 G.O . Ref unding Bonds 2013A 171,808 177,395 465,000 2023 322 G.0 Refunding Bonds 2015A 380,919 885,390 1,280,000 2024 323 G .O. Impro'ements Bonds 2016A 41,471 64,799 720,000 2024 324 G.O. Improvements Bonds 2017A 317,525 1,025,818 5,720,000 2031 Total $1,400,000 $1,200,000 $1,000,000 -± $800,000 $600,000 $400,000 $200,000 $- $ 6,273 .656 $ /535,599 $ 13,245,000 Total Remaining Inter est Payments 1,873 856 2027 2028 2029 2030 2021 2022 2023 2024 2025 2026 �+ Principal Interest 10 Water Fund - Cash Flows fro m Operatio ns and Cash Balances Note: 2012E Bonds paid off in 2020 ABDO EICK & MEYERS El S LIT ;ifirr� r ota tt;rfuv iatPrk Corlaift<>rir. + $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800, 000 $600,000 $400,000 $200,000 $- $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- y • 2017 2017 2018 2018 2019 2019 Operating Disbursements $2.360,985 2020 2020 Debt Payments (Including Related Transfers) • Operating Receipts $2,520,309 $2,793,160 111111 $3 .272,300 2017 2018 2019 2020 Cash Balance Minimum Target Balance (_Following Year Debt Service Plus 6 Months of Operating Cosh 11 Sewer Fund - Cash Flo ws fro m operatio ns and Cash Balances ABDO EICK 11' 1t 1 ERS LLP Cry flie d Pl hlir inxxu ttan t< & Co nsultan ts $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- 2017 $2,500,000 $2,000,000 $1,500,000 ' $1,000,000 - $500,000 6- 2017 2018 2018 , .Oper ating Disbursements $1,816,475 $1,658,824 2019 2019 2020 2020 a Operating Receipts $1,812,088 2017 2018 2019 Ca sh Ba lance M inim urn Target Balance (Following Ye ar D ebt Servi ce Pl us 6 Months of Oper ating Costs) $2.023 .594 I.M.• •••••y 12 2020 Storm Water Fund - Cash Flows fro m Operatio ns and Cash Balances ABDO EICK MEYERS ERS LLY Certified Publir,1rerHrntrrr,i$ & Coeuulta ni.o $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- III 2017 2017 2018 2018 ■Operating Disbursements $529 .812 $368 .391 2017 2018 2019 2019 UOperating Receipts $497,521 2019 2020 2020 $345,291 2020 Cash Balance Minimum Target Balance (Following Year Debt Service Plus e_Monthsof Operating., 13 Cash and Investments Balances by Fund Type ABDO EICK & 111E 1E LLL' %rrlyied 7'u/Mr .1nrxin ternt.� l Gxr, ,ulter+us $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 2018 General Fund Debt Service Funds 14 2019 Capital Projects Funds F Enterprise Funds 2020 Special Revenue Funds Key Performance Indicators ABDO SICK & MEUR, LLY (. rq/i d Ahhriv .5:;ild;lE a ril., . 'tW czth(7,Vo 70.0% 60.0% 50 .0 % 40.0% 30 .0% 20.0% 10.0 % 0.0% Class 4 Cities Cities in Hennepin County --City of Medina 15 Tax Rates s 2017 2018 2019 2020 59 .8% 58 .5% 58.1% N/A 43.7 % 41.9% 41.5% N/A 22.3% 20.1% 21.5% 22.5% I 1 Key Perfo rmance Indicators ABDO EICK & MEYERS ERS LLY car rd mat,. -lrenurunnry G;xucu�uuats $900 $800 $700 $600 $500 $400 $300 $200 $100 $- Ta xes Per Capita 2017 2018 2019 2020 Class 4 Cities $524 $549 $574 N/A Cities in Hennepin County $727 $752 $785 N/A —r-- City of Medina $714 $696 $695 $735 16 Debt Per Capita Key Perfo rmance Indicators ABDO EICK '& l� 1 E LLH frAT:ilied Publie Irovn zr r;Px $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- 2017 2018 2019 2020 Class 4Cities $2,693 $2,697 $2,005 N/A Cities in Hennepin County $2,040 $1,942 $1,751 N/A —o—Cityof Medina $2,289 $1,992 $1,685 $2,096 40.00% 35 .00% 30 .00% 25.00 % 20.00% 15.00% 10.00% 5.00% 0. 00% Debt Service Expenditures as a Percent of Current Expenditures 2017 2018 2019 2020 — Class 4 Cities 21.79% 20.55 % 14 .16% N/ A Cities in Hennepin Coun ty 18.84% 16 .40% 13 .23% N/A —.—City of Medina 20. 79% 18 .98% 18 .20% 35 .06% 17 Current E xpenditures Per Capita Key Performance Indicato rs ABDO SICK MEYERS El W LLY Certified Public ilrerU,IUIildc & Coratdoutt. $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $- Class 4 Cities Cities in Hennepin County ■ City of Medina $450 $400 $350 $300 $250 $200 $150 $100 $50 $- Class 4 Cities Cities in Hennepin County e City of Medina 18 I 1 2017 2018 2019 2020 $730 $753 $791 N/A $809 $825 $872 N/A $693 $690 $693 $733 Capital Expenditures Per Capita I I 1 2017 2018 2019 2020 $418 $400 $426 N/A $391 $336 $369 N/A $195 $264 $231 $312 1.4\, Steve McDonald, CPA Justin Nilson, CPA Managing Partner Ma nager smcdonald@ aemcpas.com justin.nilson @aemcpas.com ABDO EICK '& ME 1 EIS LLY Ca r frrd MAW. Nexpuntutits & Gxn,snika ux Audit Team C ontacts 19 Management Communication City of Medina Medina, Minnesota For the Year Ended December 31, 2020 ABDO EICK & MEYERS LLB' Certified Public Atrcruretaals & Canuahaats People +Process, Going Beyond the Numbers ABDO EICK & MEYE S LLP Cvt f ed Public Acrouniunis R: Consultants Management, Honorable Mayor and City Council City of Medina, Minnesota April 29, 2021 We have audited the financial statements of the governmental activities, the business -type activities, the aggregate discreetly presented component units, each major fund, and the aggregate remaining fund information of the City of Medina, Minnesota (the City), for the year ended December 31, 2020. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 28, 2020. Professional standards also require that we communicate to you the following information related to our audit. Our Responsibility Under Auditing Standards Generally Accepted in the United States of America As stated in our engagement letter, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement. As part of our audit, we considered the internal control over financial reporting (internal control) of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. Significant Audit Findings In planning and performing our audit of the financial statements, we considered the District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District'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 entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. As described below, we identified a deficiency in internal control that we consider to be a material weakness, as finding 2020-001. 5201 Eden Avenue, Suite 250 Edina, MN 55438 952.835.9090 I Fax 952.835.3261 2 2020-001 Preparation of Financial Statements Condition: Criteria: Cause: As auditors, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Auditing standards require auditors to communicate this situation to the City Council as an internal control deficiency. Ultimately, it is management's responsibility to provide for the preparation of your statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. It is our responsibility to inform you that this deficiency could result in a material misstatement to the financial statements that could have been prevented or detected by your management. Essentially, the auditors cannot be part of your internal control process. Internal controls should be in place to provide reasonable assurance over financial reporting. From a practical standpoint we do both for you at the same time in connection with our audit. This is not unusual for us to do with an organization of your size. Effect: The effectiveness of the internal control system relies on enforcement by management. The effect of deficiencies in internal controls can result in undetected errors in financial reporting. Recommendation: It is the responsibility of the City to make the decision to accept this degree of risk associated with this condition because of cost or other considerations. We have requested management to review a draft of the auditor prepared financials in detail for their accuracy; we have answered any questions they might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification of disclosure in your statements. We are satisfied that the appropriate steps have been taken to provide you with the completed financial statements. While the City is reviewing the financial statements we recommend that the City agree its financial software to the numbers reported in the financial statements. Management Response: The City's management accepts the degree of risk associated with this condition and thoroughly reviews a draft of the financial statements. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. 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 one instance of noncompliance or other matters that are required to be reported under Minnesota statutes noted below as finding 2020-002. 3 2020-002 Coronavirus Relief Fund Condition: Criteria: During our Coronavirus Relief Fund (CRF) compliance testing procedures, we reviewed City costs applied to the program as reported to the State of Minnesota and identified questioned costs of $4,224. The questioned expenses were paid November 17, 2020, after the program end date. The Department of the Treasury Coronavirus Relief Fund program guidance states revenue replacement is not a permissible use of Fund payments. The State of Minnesota required Cities to either spend CRF funds by November 15, 2020 or return any unspent funds by November 20, 2020. Cause: The City was aware of the program compliance requirement, however the checks were paid past the deadline due to the date of the City Council meeting date and approval of payments. Effect: The City is out of compliance with the CRF program Recommendation: We recommend City staff ensure future expenditures are spent withing the grant period. This may involve considering additional options or modifications to the purchasing policy. Management Response: The City considered the expense paid to the vendor via credit card within the grant spending period. The credit card statement was paid two days after the grant period due to the scheduling of the City Council meeting. The City amended the final report to the State of Minnesota, restating the expenses to remove the election expenses considered past the deadline to eligible public safety expenses that where within the grant period. The State of Minnesota accepted the amended final report. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies were not changed during the year ended December 31, 2020. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were related to estimated historical cost of the capital assets, depreciation on capital assets, evaluating a liability for other post -employment benefits, and the liability for the City's pensions. • Management's estimate of depreciation is based on estimated useful lives of the assets. Depreciation is calculated using the straight-line method. • Allocations of gross wages and payroll benefits are approved by City Council within the City's budget and are derived from each employee's estimated time to be spent servicing the respective functions of the City. These allocations are also used in allocating accrued compensated absences payable and other postemployment benefits. • Management's estimate of its pension liability is based on several factors including, but not limited to, anticipated investment return rate, retirement age for active employees, life expectancy, salary increases and form of annuity payment upon retirement • Management's estimate of its OPEB liability is based on several factors including, but not limited to, anticipated retirement age for active employees, life expectance, turnover, and healthcare cost trend rates. 4 We evaluated key factors and assumptions used to develop these accounting estimates in determining that it is reasonable in relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. We proposed one journal entry that we consider to be an audit entry or correction of management decisions. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated April 29, 2021. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the required supplementary information (RSI) (Management's Discussion and Analysis, the Schedules of Employer's Share of the Net Pension Liability, the Schedules of Employer's Contributions, Schedule of changes in the City's OPEB Liability and Related Ratios), which is information that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the supplementary information (combining and individual fund financial statements and schedules and schedules of federal awards), which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory section or statistical sections, which accompany the financial statements but is not RSI. We did not audit or perform other procedures on this other information, and we do not express an opinion or provide any assurance on it. 5 Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future City financial statements: (1) GASB Statement No. 87 - Leases Summary The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments' financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities. Effective Date and Transition The requirements of this Statement are effective for fiscal years beginning after June 15, 2021, and all reporting periods thereafter. Leases should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or, if applied to earlier periods, the beginning of the earliest period restated). However, lessors should not restate the assets underlying their existing sales -type or direct financing leases. Any residual assets for those leases become the carrying values of the underlying assets. How the Changes in This Statement Will Improve Accounting and Financial Reporting This Statement will increase the usefulness of governments' financial statements by requiring reporting of certain lease liabilities that currently are not reported. It will enhance comparability of financial statements among governments by requiring lessees and lessors to report leases under a single model. This Statement also will enhance the decision - usefulness of the information provided to financial statement users by requiring notes to financial statements related to the timing, significance, and purpose of a government's leasing arrangements. GASB Statement No. 89 - Accounting for Interest Cost Incurred before the End of a Construction Period Summary The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5-22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business -type activity or enterprise fund. This Statement also reiterates that in financial statements prepared using the current financial resources measurement focus, interest cost incurred before the end of a construction period should be recognized as an expenditure on a basis consistent with governmental fund accounting principles. People. + 1 rotes Going I;('1(N1(Ithr 6 Future Accounting Standard Changes (Continued) Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2020. Earlier application is encouraged. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by providing users of financial statements with more relevant information about capital assets and the cost of borrowing for a reporting period. The resulting information also will enhance the comparability of information about capital assets and the cost of borrowing for a reporting period for both governmental activities and business -type activities. GASB Statement No. 91 - Conduit Debt Obligations Summary The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. All conduit debt obligations involve the issuer making a limited commitment. Some issuers extend additional commitments or voluntary commitments to support debt service in the event the third party is, or will be, unable to do so. An issuer should not recognize a conduit debt obligation as a liability. However, an issuer should recognize a liability associated with an additional commitment or a voluntary commitment to support debt service if certain recognition criteria are met. As long as a conduit debt obligation is outstanding, an issuer that has made an additional commitment should evaluate at least annually whether those criteria are met. An issuer that has made only a limited commitment should evaluate whether those criteria are met when an event occurs that causes the issuer to reevaluate its willingness or ability to support the obligor's debt service through a voluntary commitment. This Statement also addresses arrangements - often characterized as leases - that are associated with conduit debt obligations. In those arrangements, capital assets are constructed or acquired with the proceeds of a conduit debt obligation and used by third -party obligors in the course of their activities. Payments from third -party obligors are intended to cover and coincide with debt service payments. During those arrangements, issuers retain the titles to the capital assets. Those titles may or may not pass to the obligors at the end of the arrangements. This Statement requires issuers to disclose general information about their conduit debt obligations, organized by type of commitment, including the aggregate outstanding principal amount of the issuers' conduit debt obligations and a description of each type of commitment. Issuers that recognize liabilities related to supporting the debt service of conduit debt obligations also should disclose information about the amount recognized and how the liabilities changed during the reporting period. Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2021. Earlier application is encouraged. 7 Ittoirle + I'roc ess (Going lieNcxulm. \uiiiln'l ' Future Accounting Standard Changes (Continued) How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders' uncertainty as to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financial resources of issuers and help users assess issuers' roles in conduit debt obligations. GASB Statement No. 92 - Omnibus 2020 Summary The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics and includes specific provisions about the following: • The effective date of Statement No. 87, Leases, and Implementation Guide No. 2019-3, Leases, for interim financial reports • Reporting of intra-entity transfers of assets between a primary government employer and a component unit defined benefit pension plan or defined benefit other postemployment benefit (OPEB) plan • The applicability of Statements No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, as amended, and No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, to reporting assets accumulated for postemployment benefits • The applicability of certain requirements of Statement No. 84, Fiduciary Activities, to postemployment benefit arrangements • Measurement of liabilities (and assets, if any) related to asset retirement obligations (AROs) in a government acquisition • Reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers • Reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature • Terminology used to refer to derivative instruments. 8 People + PrOCeSS. Going I3e uii lAlie \tiritlwrs Future Accounting Standard Changes (Continued) Effective Date and Transition The requirements of this Statement are effective as follows: • The requirements related to the effective date of Statement 87 and Implementation Guide 2019-3, reinsurance recoveries, and terminology used to refer to derivative instruments are effective upon issuance. • The requirements related to intra-entity transfers of assets and those related to the applicability of Statements 73 and 74 are effective for fiscal years beginning after June 15, 2020. • The requirements related to application of Statement 84 to postemployment benefit arrangements and those related to nonrecurring fair value measurements of assets or liabilities are effective for reporting periods beginning after June 15, 2020. • The requirements related to the measurement of liabilities (and assets, if any) associated with AROs in a government acquisition are effective for government acquisitions occurring in reporting periods beginning after June 15, 2020. Earlier application is encouraged and is permitted by topic. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature. More comparable reporting will improve the usefulness of information for users of state and local government financial statements. GASB Statement No. 93 - Replacement of Interbank Offered Rates Summary The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. This Statement achieves that objective by: • Providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions when an IBOR is replaced as the reference rate of the hedging derivative instrument's variable payment • Clarifying the hedge accounting termination provisions when a hedged item is amended to replace the reference rate • Clarifying that the uncertainty related to the continued availability of IBORs does not, by itself, affect the assessment of whether the occurrence of a hedged expected transaction is probable • Removing LIBOR as an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap • Identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark interest rates for the qualitative evaluation of the effectiveness of an interest rate swap • Clarifying the definition of reference rate, as it is used in Statement 53, as amended • Providing an exception to the lease modifications guidance in Statement 87, as amended, for certain lease contracts that are amended solely to replace an IBOR as the rate upon which variable payments depend 9 Future Accounting Standard Changes (Continued) Effective Date and Transition The removal of LIBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021. All other requirements of this Statement are effective for reporting periods beginning after June 15, 2020. Earlier application is encouraged. The exceptions to the existing provisions for hedge accounting termination and lease modifications in this Statement will reduce the cost of the accounting and financial reporting ramifications of replacing IBORs with other reference rates. The reliability and relevance of reported information will be maintained by requiring that agreements that effectively maintain an existing hedging arrangement continue to be accounted for in the same manner as before the replacement of a reference rate. As a result, this Statement will preserve the consistency and comparability of reporting hedging derivative instruments and leases after governments amend or replace agreements to replace an !BOR. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature. More comparable reporting will improve the usefulness of information for users of state and local government financial statements. GASB Statement No. 94 - Public -Private and Public -Public Partnerships and Availability Payment Arrangements Summary The primary objective of this Statement is to improve financial reporting by addressing issues related to public -private and public -public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange -like transaction. Some PPPs meet the definition of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or approve which services the operator is required to provide, to whom the operator is required to provide the services, and the prices or rates that can be charged for the services; and (3) the transferor is entitled to significant residual interest in the service utility of the underlying PPP asset at the end of the arrangement. This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). As defined in this Statement, an APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange -like transaction. Effective Date and Transition The requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. Earlier application is encouraged. PPPs should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or if applicable to earlier periods, the beginning of the earliest period restated). How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by establishing the definitions of PPPs and APAs and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions. That uniform guidance will provide more relevant and reliable information for financial statement users and create greater consistency in practice. This Statement will enhance the decision usefulness of a government's financial statements by requiring governments to report assets and liabilities related to PPPs consistently and disclose important information about PPP transactions. The required disclosures will allow users to understand the scale and important aspects of a government's PPPs and evaluate a government's future obligations and assets resulting from PPPs. 10 Future Accounting Standard Changes (Continued) GASB Statement No. 95 - Postponement of the Effective Dates of Certain Authoritative Guidance Summary The primary objective of this Statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in Statements and Implementation Guides that first became effective or are scheduled to become effective for periods beginning after June 15, 2018, and later. The effective dates of certain provisions contained in the following pronouncements are postponed by one year. • Statement No. 83, Certain Asset Retirement Obligations • Statement No. 84, Fiduciary Activities • Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements • Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period • Statement No. 90, Majority Equity Interests • Statement No. 91, Conduit Debt Obligations • Statement No. 92, Omnibus 2020 • Statement No. 93, Replacement of Interbank Offered Rates • Implementation Guide No. 2017-3, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting) • Implementation Guide No. 2018-1, Implementation Guidance Update - 2018 • Implementation Guide No. 2019-1, Implementation Guidance Update - 2019 • Implementation Guide No. 2019-2, Fiduciary Activities. The effective dates of the following pronouncements are postponed by 18 months: • Statement No. 87, Leases • Implementation Guide No. 2019-3, Leases. Effective Date and Transition The requirements of this Statement are effective immediately. How the Changes in This Statement Will Improve Accounting and Financial Reporting Providing governments with sufficient time to apply the authoritative guidance addressed in this Statement will help to safeguard the reliability of their financial statements, which in turn will benefit the users of those financial statements. 11 + I'roc.CSS: Going Ile'\On(I I1i,• \utiihers Future Accounting Standard Changes (Continued) GASB Statement No. 96 - Subscription -Based Information Technology Arrangements Summary This Statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right -to -use subscription asset - an intangible asset - and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. Under this Statement, a government generally should recognize a right -to -use subscription asset - an intangible asset - and a corresponding subscription liability. A government should recognize the subscription liability at the commencement of the subscription term, - which is when the subscription asset is placed into service. The subscription liability should be initially measured at the present value of subscription payments expected to be made during the subscription term. Future subscription payments should be discounted using the interest rate the SBITA vendor charges the government, which may be implicit, or the government's incremental borrowing rate if the interest rate is not readily determinable. A government should recognize amortization of the discount on the subscription liability as an outflow of resources (for example, interest expense) in subsequent financial reporting periods. This Statement provides an exception for short-term SBITAs. Short-term SBITAs have a maximum possible term under the SBITA contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. Subscription payments for short-term SBITAs should be recognized as outflows of resources. This Statement requires a government to disclose descriptive information about its SBITAs other than short-term SBITAs, such as the amount of the subscription asset, accumulated amortization, other payments not included in the measurement of a subscription liability, principal and interest requirements for the subscription liability, and other essential information. Effective Date and Transition The requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. Earlier application is encouraged. Assets and liabilities resulting from SBITAs should be recognized and measured using the facts and circumstances that existed at the beginning of the fiscal year in which this Statement is implemented. Governments are permitted, but are not required, to include in the measurement of the subscription asset capitalizable outlays associated with the initial implementation stage and the operation and additional implementation stage incurred prior to the implementation of this Statement. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government's financial statements by requiring a government to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government's SBITA activities and evaluate a government's obligations and assets resulting from SBITAs. 12 Future Accounting Standard Changes (Continued) GASB Statement No. 97 - Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32 Summary The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. This Statement requires that for purposes of determining whether a primary government is financially accountable for a potential component unit, except for a potential component unit that is a defined contribution pension plan, a defined contribution OPEB plan, or another employee benefit plan (for example, certain Section 457 plans), the absence of a governing board should be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform. This Statement also requires that the financial burden criterion in paragraph 7 of Statement No. 84, Fiduciary Activities, be applicable to only defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that meet the criteria in paragraph 3 of Statement No. 67, Financial Reporting for Pension Plans, or paragraph 3 of Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, respectively. This Statement (1) requires that a Section 457 plan be classified as either a pension plan or another employee benefit plan depending on whether the plan meets the definition of a pension plan and (2) clarifies that Statement 84, as amended, should be applied to all arrangements organized under IRC Section 457 to determine whether those arrangements should be reported as fiduciary activities. This Statement supersedes the remaining provisions of Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, as amended, regarding investment valuation requirements for Section 457 plans. As a result, investments of all Section 457 plans should be measured as of the end of the plan's reporting period in all circumstances. Effective Date and Transition The requirements of this Statement that (1) exempt primary governments that perform the duties that a governing board typically performs from treating the absence of a governing board the same as the appointment of a voting majority of a governing board in determining whether they are financially accountable for defined contribution pension plans, defined contribution OPEB plans, or other employee benefit plans and (2) limit the applicability of the financial burden criterion in paragraph 7 of Statement 84 to defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that meet the criteria in paragraph 3 of Statement 67 or paragraph 3 of Statement 74, respectively, are effective immediately. The requirements of this Statement that are related to the accounting and financial reporting for Section 457 plans are effective for fiscal years beginning after June 15, 2021. For purposes of determining whether a primary government is financially accountable for a potential component unit, the requirements of this Statement that provide that for all other arrangements, the absence of a governing board be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform, are effective for reporting periods beginning after June 15, 2021. Earlier application of those requirements is encouraged and permitted by requirement as specified within this Statement. The Board considered the effective dates for the requirements of this Statement in light of the COVID-19 pandemic and in concert with Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. I Wpll', + I)1'Oo('.5.s, {;going I�t\OIRl��, 13 \utill ers Future Accounting Standard Changes (Continued) How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will result in more consistent financial reporting of defined contribution pension plans, defined contribution OPEB plans, and other employee benefit plans, while mitigating the costs associated with reporting those plans. The requirements also will enhance the relevance, consistency, and comparability of (1) the information related to Section 457 plans that meet the definition of a pension plan and the benefits provided through those plans and (2) investment information for all Section 457 plans. 00) Note. From GASB Pronouncements Summaries. Copyright 2020 by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, USA, and is reproduced with permission. * * * Restriction on Use * * This communication is intended solely for the information and use of the City Council, management, others within the City and the Minnesota Office of the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. The comments and recommendation in this report are purely constructive in nature, and should be read in this context. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service, and for the courtesy and cooperation extended to us by your staff. 0146 auk.YY1a no, LGI° ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota April 29, 2021 People ± Process . Going fiewnd wig 14 City of Medina Medina, Minnesota For the Year Ended December 31, 2020 ABDO EICK & 1 EiL Ortifh'd Public Acrouniauis Cotrst(iauis THIS PAGE IS LEFT BLANK INTENTIONALLY City of Medina, Minnesota Annual Financial Report Table of Contents For the Year Ended December 31, 2020 Introductory Section Elected and Appointed Officials Paqe No. 9 Financial Section Independent Auditor's Report 13 Management's Discussion and Analysis 17 Basic Financial Statements Government -wide Financial Statements Statement of Net Position Statement of Activities 29 Fund Financial Statements 30 Governmental Funds Balance Sheet Reconciliation of the Balance Sheet to the Statement of Net Position 34 36 Statement of Revenues, Expenditures and Changes in Fund Balances 36 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 37 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 39 Proprietary Funds Statement of Net Position Statement of Revenues, Expenses and Changes in Net Position 43 43 Statement of Cash Flows Notes to the Financial Statements 44 47 Required Supplementary Information Schedule of Employer's Share of Public Employees Retirement Association Net Pension Liability - General Employees Retirement Fund 78 Schedule of Employer's Public Employees Retirement Association Contributions - General Employees Retirement Fund 78 Notes to the Required Supplementary Information - General Employees Retirement Fund 79 Schedule of Employer's Share of Public Employees Retirement Association Net Pension Liability - Public Employees Police and Fire Fund 81 Schedule of Employer's Public Employees Retirement Association Contributions - Public Employees Police and Fire Fund 81 Notes to the Required Supplementary Information - Public Employees Police and Fire Fund 82 Schedule of Changes in the City's Total OPEB Liability 84 3 THIS PAGE IS LEFT BLANK INTENTIONALLY 4 City of Medina, Minnesota Annual Financial Report Table of Contents (Continued) For the Year Ended December 31, 2020 Combining and Individual Fund Financial Statements and Schedules Page No. Nonmajor Governmental Funds Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances 87 Nonmajor Special Revenue Funds 87 Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances 88 Nonmajor Capital Projects Funds 90 Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances 92 General Fund 94 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Debt Service Funds 96 Combining Balance Sheet Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 100 Summary Financial Report 102 Revenues and Expenditures for General Operations - Governmental Funds 104 Other Required Report Independent Auditor's Report on Minnesota Legal Compliance Schedule of Findings and Responses 5 107 108 THIS PAGE IS LEFT BLANK INTENTIONALLY 6 INTRODUCTORY SECTION CITY OF MEDINA MEDINA, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2020 7 THIS PAGE IS LEFT BLANK INTENTIONALLY 8 City of Medina, Minnesota Elected and Appointed Officials For the Year Ended December 31, 2020 ELECTED Name Title Term Expires Kathleen Martin Mayor 12/31/20 John Anderson Council Member Jeff Pederson 12/31/20 Council Member Todd Albers 12/31/20Council Member Dino DesLauriers 12/31/22 Council Member 12/31/22 Name Scott Johnson Erin Barnhart Jodi Gallup APPOINTED Title City Administrator Finance Director Assistant City Administrator/City Clerk 9 THIS PAGE IS LEFT BLANK INTENTIONALLY 10 FINANCIAL SECTION CITY OF MEDINA MEDINA, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2020 11 THIS PAGE IS LEFT BLANK INTENTIONALLY 12 ABDO EICK c 11-W 1 El S LLP (:erttfkd I'uldic .Arr{aunionts & ConsuAunts INDEPENDENT AUDITOR'S REPORT Honorable Mayor and City Council City of Medina, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the City of Medina, Minnesota (the City), as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of 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 City'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 City'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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the City as of December 31, 2020, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparison for the General fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. 5201 Eden Avenue, Suite 250 Edina, MN 55-036 952.835.9090 I Fax 952.835.3261 13 THIS PAGE IS LEFT BLANK INTENTIONALLY 14 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis starting on page 17 and the Schedules of Employer's Share of the Net Pension Liability, the Schedules of Employer's Contributions, the related note disclosures, and the Schedule of Changes in the City's OPEB liability starting on page 78 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquires of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquires, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming an opinion on the basic financial statements that collectively comprise the City's basis financial statements. The introductory section and combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. 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 financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the financial statements as a whole. The introductory section 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 April 29, 2021, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. oL jZ) .4 ,2.c' 1� ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota April 29, 2021 15 THIS PAGE IS LEFT BLANK INTENTIONALLY 16 As management of the narrative overview and Management's Discussion and Analysis City of Medina, Minnesota (the City), we offer readers of the City's financial statements this analysis of the financial activities of the City for the fiscal year ended December 31, 2020. Financial Highlights • The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $47,995,360 (net position). Of this amount, $13,893,378 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors. • The total net position of governmental activities increased by $454,227 and total net position of the business -type activities increased by $2,122,997. This resulted in an increase to total net position of $2,577,224 for the City. This is largely due to continued development and growth. The City's partnerships with developers to expand utility and transportation infrastructure and associated development fees have contributed to a large part of the increase in total net position. • As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $18,008,783, an increase of $4,459,623 in comparison with the prior year. The increase can mainly be attributed to bonds issued in the amount of $5,720,000 that are to be used in 2021 to refund and payoff previously issued bonds. • At the end of the current fiscal year, unassigned fund balance for the General fund was $3,375,231, or 63.7 percent of total General fund expenditures and transfers out. • The City's total debt increased $3,029,172, or 27.0 percent during the current fiscal year. The key factor of this increase was due to the issuance of the 2020A bonds in the amount of $5,720,000 offset with regularly scheduled principal payments. 17 Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements comprise of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition to the basic financial statements themselves. The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of combining and individual fund financial statements and schedules that further explains and supports the information in the financial statements. Figure 1 shows how the required parts of this annual report are arranged and relate to one another. In addition to these required elements, we have included a section with combining and individual fund financial statements and schedules that provide details about nonmajor governmental funds, which are added together and presented in single columns in the basic financial statements. Figure 1 Required Components of the City's Annual Financial Report • • • Management's Discussion and Analysis Government - wide Financial Statements Summary ZNN-N_ Basic Financial Statements Required Supplementary Information • Fund Financial Statements 18 • Notes to the Financial Statements Detail Figure 2 summarizes the major features of the City's financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management's discussion and analysis explains the structure and contents of each of the statements. Figure 2 Major Features of the Government -wide and Fund Financial Statements Scope Government -wide Statements Fund Financial Statements Governmental Funds Proprietary Funds Required financial statements Accounting basis and measurement focus Type of asset/liability information Entire City government (except fiduciary funds) The activities of the City that are not proprietary or fiduciary, such as police, fire and parks • Statement of Net Position • Statement of Activities • Balance Sheet • Statement of Revenues, Expenditures, and Changes in Fund Balances Accrual accounting and economic resources focus Modified accrual accounting and current financial resources focus Activities of the City that operates similar to private businesses, such as the water and sewer systems • Statements of Net Position • Statements of Revenues, Expenses and Changes in Fund Net Position • Statements of Cash Flows Accrual accounting and economic resources focus All assets and liabilities, both financial and capital, as well as short-term and long- term All deferred outflows/inflows of resources, regardless of when cash is received or paid Type of deferred outflows/inflows of resources information Type of inflow/outflow information Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included Only deferred outflows of resources expected to be used up and deferred inflows of resources that come due during the year or soon thereafter; no capital assets included Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter All revenues and expenses during the year, regardless of when cash is received or paid All assets and liabilities, both financial and capital, as well as short-term and long-term All deferred outflows/inflows of resources, regardless of when cash is received or paid All revenues and expenses during the year, regardless of when cash is received or paid Government -wide Financial Statements. The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private -sector business. The statement of net position presents information on all of the City's assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). 19 Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other 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, streets and highways, sanitation and recycling, culture and recreation, economic development, miscellaneous and interest on long-term debt. The business -type activities of the City include water, sanitary sewer, and storm water. The government -wide financial statements start on page 29 of this report. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain 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 two categories: governmental funds and proprietary 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 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 by the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains numerous individual governmental funds, eight of which are Debt Service funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General fund, Debt Service fund, and the Sewer Capital Improvements fund, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements or schedules elsewhere in this report. The City adopts an annual appropriated budget for its General fund. A budgetary comparison statement has been provided for the General fund to demonstrate compliance with this budget. The basic governmental fund financial statements start on page 34 of this report. Proprietary Funds. The City maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for its water, sanitary sewer and storm sewer. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for each of the three enterprise funds, all of which are considered to be major funds of the City. The basic proprietary fund financial statements start on page 40 this report. 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. The notes to the financial statements start on page 47 of this report. Other Information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented following the notes to the financial statements. Combining and individual fund statements and schedules start on page 86 of this report. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension and other post - employment benefits to its employees. Required supplementary information can be found starting on page 78 of this report. 20 Government -wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $47,995,360 at the close of the most recent fiscal year. By far, the largest portion of the City's net position (52.8 percent) reflects its investment in capital assets (e.g., land, buildings, machinery and equipment), less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its 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. City of Medina's Summary of Net Position Assets Current and other assets Capital assets Total Assets Deferred Outflows of Resources Liabilities Noncurrent liabilities Other liabilities Total Liabilities Governmental Activities Increase Increase 2020 _ 2019 (Decrease) 2020 2019 (Decrease) Business -type Activities $ 21,639,065 $ 17,263,227 $ 4,375,838 $ 5,967,814 $ 5,315,109 $ 652,705 26,066,760 26,274,363 (207,6033) 13,491,961 12,593,515 898,446 47,705,825 43,537,590 4,168,235 19,459,775 17,908,624 1,551,151 728,871 1,104,251 15,976,090 2,023,020 17,999,110 Deferred Inflows of Resources 951,449 Net Position Net investment in capital assets Restricted Unrestricted 12,450,810 8,772,788 8,260,539 (375,380) 17,445 20,889 (3,444) 12,110,504 3,865,586 1,834,134 188,886 13,944,638 4,054,472 889,054 1,451,108 (562,054) 64,127 45,989 18,138 953,181 _ 1,497,097 (543,916) 1,667,293 (715,844) 12,816 44,190 (31,374) 16,439,841 4,464,889 8,125,180 (3,989,031) 12,878,384 4,307,899 135,359 5,632,839 11,402,682 1,475,702 4,985,544 647,295 Total Net Position $ 29,484,137 $ 29,029,910 $ 454,227 $ 18.511,223 $ 16.388,226 $ 2,122,997 An additional portion of the City's net position (18.3 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position $13,893,378 may be used to meet the City's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the City as a whole, as well as for its separate governmental and business -type activities. The same situation held true for the prior fiscal year. 21 Governmental Activities. Governmental activities increased the City's net position by $454,227. Key elements of this increase are as follows: City of Medina's Changes in Net Position Governmental Activities Business -type Activities Increase Increase 2020 2019 (Decrease) 2020 2019 (Decrease) Revenues Program Revenues Charges for services $ 1,071,894 $ 1,254,827 $ (182,933) $ 2,504,173 $ 2,103,976 $ 400,197 Operating grants and contributions 831,400 420,950 410,450 68,591 439 68,152 Capital grants and contributions 728,360 2,809,171 (2,080,811) 376,227 1,259,302 (883,075) General Revenues Property taxes 4,406,347 4,063,049 343,298 Tax increments 523,716 491,715 32,001 Franchise taxes 60,506 61,648 (1,142) Grants and contributions not restricted to specific programs 34,571 31,331 3,240 - - Unrestricted investment earnings 320,427 431,793 (111,366) 113,828 143,725 (29,897) Gain on sale of capital assets - 111,439 _ 35,880 75,559 - - - Total Revenues 8,088,660 9364 (1,511,704) _ 3,062,819 3,507,442 (444.623) Expenses General government 1,298,834 1,319,665 (20,831) Public safety 2,973,551 2,755,337 218,214 Streets and highways 2,076,050 1,803,752 272,298 Sanitation and recycling 13,470 15,311 (1,841) Culture and recreation 17,837 471,625 (453,788) Economic development 226,789 203,234 23,555 Interest on long-term debt 272,200 211,132 61,068 - - Water - - 834,465 840,718 (6,253) 657,385 691,716 (34,331) Sewer 203,674 194,506 9,168 Storm water Total Expenses 6,878,731 6,780,056_ 98,675 1,695,524 1,726,940 (31,416) Change in Net Position Before Transfers 1,209,929 2,820,308 (1,610,379) 1,367,295 1,780,502 (413,207) 715,724 (22,321) (693,403) 715,724 22,321 693,403 Transfers - Capital Assets ( ) 12,195 39,978 52,173 (12,195) Transfers (39,978) (52,173)_ Change in Net Position 454,227 2,745,814 (2,291,587) 2,122,997 1,854,996 268,001 Net Position, January 1 29,029,910 26,284,096 2,745,814 16,388,226 14,533,230 1 96 Net Position, December 31 $ 29,484,137 $ 29,029,910 $ 454.227 $ 18,511,223. $ 16,388,226 $ 2,122.997 Capital contributions decreased $2,080,811 mainly due to contributions from developers decreasing from the prior year. Operating grants and contributions increased $410,450 mainly due to CARES funding received during the current audit year. Property taxes represent 54.5 percent of total revenues in 2020 in governmental activities. 22 The following graph depicts various governmental activities and shows the revenue and expenses directly related to those activities. $3,000,000 $2,700,000 $2,400,000 $2,100,000 $1,800,000 $1,500,000 $1,200,000 $900,000 $600,000 $300,000 $- Go`le Gene° Taxes 61.7% Expenses and Program Revenue - Governmental Activities 46.1 ti5 s�t� r,�a`1y aaa�� 6:ELeo` 6;`c4 F,ec�ea�or J6o,�ea� xe�pee� n an SC.\ �`cQe on9 Sa`,�tiA Gv�e �oao ves.' NO' Expenses Revenues Revenue by Source - Governmental Activities Grants and Contributions Not Restricted to Specific Programs 0.4% 23 Unrestricted Investment Earnings 4.0% Gain on Sale of Capital Assets 1.4% Charges for Services 13.2% Operating Grants and Contributions 10.3% Capital Grants and Contributions 9.0% Business -type Activities. Business -type activities increased the City's net position by $2,122,997. The increase from prior year is mainly due charges for services in excess of expenditures during the current year. The following graph depicts various business -type activities and shows the revenue and expenses directly related to those activities. Expenses and Program - Revenue Business -type Activities Graph $1,600,000 $1,500,000 $1,400,000 $1,300,000 $1,200,000 $1,100,000 $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- Grants and Contributions 14.5% Water Sewer Expenses Revenues Revenue by Source - Business -type Activities Unrestricted Investment Earnings 3.7% r 24 Storm Water L Charges for Services 81.8% Financial Analysis of the Government's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds. The focus of the City's governmental funds is to provide information on near -term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, 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. Major Funds General The fund balance of the General fund increased by $380,531 Fund Balance December 31, Increase 2020 2019 _(Decrease) $ 3,506,932 $ 3,126,401 $ 380,531 as a result positive budget variance of $535,866 in Debt Service $ 6,144,522 $ 1,589,730 $ 4,554,792 The Debt Service fund balance increased $4,554,792 mainly due to the issuance of refunding bonds during the current year of $5,720,000. The payoff date of the refunded bonds is February 1, 2021. Sewer Capital Improvements $ 3,235,754 $ 3,122,661 $ 113,093 The Sewer Capital Improvement fund balance increased $113,093 mainly due to an increase in interest revenue from investments and special assessment revenue received in the current year. Proprietary Funds. The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net position of the enterprise funds at the end of the year amounted to $5,632,839. The total increase in net position for the funds was $2,122,997. Other factors concerning the finances of this fund have already been addressed in the discussion of the City's business -type activities. General Fund Budgetary Highlights The City's General fund budget was not amended during the year and the budget called for no change in fund balance. Revenues exceeded the budget by $871,583, primarily intergovernmental (CARES Act local aid) and licenses and permits exceeding the budget by $535,866 and $208,686, respectively. Expenditures were over budget by $491,052 during the year. The budget variance can be attributed mainly to public safety (COVID-19) and capital outlay (Arrowhead Rail Trail Crossing) of $347,055, and $376,815, respectively. Capital Asset and Debt Administration Capital Assets. The City's investment in capital assets for its governmental and business type activities as of December 31, 2020, amounts to $25,329,194 (net of accumulated depreciation). This investment in capital assets includes land, structures, improvements, machinery and equipment, park facilities, and roads. Major capital asset events during the current fiscal year included the following: • Brockton Lane Street and Utility Improvements • Arrowhead Rail Trail Crossing • Woods Medina Watermain and Sewer lines • Police Vehicles, Ditch Mower, Backhoe, Bobcat, Air Compressor 25 Additional information on the City's capital assets can be found in Note 3B starting on page 59 of this report. City of Medina's Capital Assets (Net of Depreciation) Governmental Activities Business-ty a Activities Land Infrastructure Buildings Improvements Machinery and Equipment Construction in Progress Total 2020 $ 813,779 13,901,216 6,829,439 1,872,475 1,287,397 1,362,454 2019 $ 813,779 13,457,735 7,503,802 1,963,600 1,132,698 1,402,749 $ 26,066,760 $ 26,274,363 Increase (Decrease) 2020 2019 - $ 138,393 $ 56,393 443,481 6,380,413 5,627,071 (674,363) 4,586,096 4,793,191 (91,125) 1,112,372 1,139,591 154,699 883,302 950,963 (40,295) 391,385 26,306 (207,603) Increase (Decrease) $ 82,000 753,342 (207,095) (27,219) (67,661) 365,079 $ 13,491.961 $ 12,593,515 $ 898,446 Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $13,810,000. City of Medina's Outstanding Debt Governmental Activities General Obligation Improvement Bonds G.O. Tax Increment Bonds General Obligation Revenue Bonds Unamortized Premium on Bonds Total $ 13,615,950 $ 10,009.522 $ 3.606.428 $ 613.577_ $ 1,190,833 $ (5771256), The City's total debt increased $3,029,172 (27.0 percent) during the current fiscal year mainly due to regularly schedule principal payments. Additional information on the City's long-term debt can be found in Note 3D starting on page 62 of this report. Economic Factors and Next Year's Budgets and Rates • The unemployment rate for Hennepin County is currently 4.1 percent (Feb 2021). This compares favorably to the State of Minnesota's average unemployment rate of 4.3 percent and the national average rate of 6.0 percent. • Property valuations increased 4.3 percent within the City from 2020 to 2021. The City's total property tax levy will increase in 2021 by 5.2 percent. The General fund levy increase amounts to 8.7% and the debt service levies decreasing a total of 7.0%. The City's tax capacity rate remained at 22.49% for 2021. A water rate increase of 1.0 percent was approved for the three individual water systems for 2021. Sanitary sewer a 1% increase and storm water utility rates also increased 3.0 percent. All of these factors were considered in preparing the City's budget for the 2021 fiscal year. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, City of Medina, 2052 County Road 24, Medina, MN 55340-9790. Increase 2020 2019 (Decrease) 2020 2019 $ 13,245,000 $ 9,705,000 $ 3,540,000 $ $ - 175,000 (175,000) 600,000 1,170,000 370,950 129,522 241,428 13,577 20,833 Business -type Activities Increase (Decrease) _ (570,000) (7,256) 26 GOVERNMENT -WIDE FINANCIAL STATEMENTS CITY OF MEDINA MEDINA, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2020 27 THIS PAGE IS LEFT BLANK INTENTIONALLY 28 City of Medina, Minnesota Statement of Net Position December 31, 2020 Assets Cash and temporary investments Receivables Accounts Taxes Special assessments Due from other governments Prepaid items Capital assets Nondepreciable Depreciable, net of accumulated depreciation Total Assets Deferred Outflows of Resources Deferred pension resources Deferred other postemployment benefits Total Deferred Outflows of Resources Liabilities Accounts payable Due to other governments Salaries payable Accrued interest payable Deposits payable Unearned revenue Noncurrent liabilities Due within one year Long-term debt Due in more than one year Long-term debt Net pension liability Other postemployment benefits liability Total Liabilities Deferred Inflows of Resources Deferred pension resources Deferred other post employment benefits Total Deferred Inflows of Resources Net Position Net investment in capital assets Restricted for Debt service Park improvements Police expenditures Unrestricted Total Net Position The notes to the financial statements are an integral part of this statement. 29 Governmental Activities $ 19,722,535 124,234 115,511 1,569,242 60,082 47,461 2,176,233 23,890,527 47,705,825 710,548 18,323 728,871 168,801 11,098 56,348 77,491 1,587,483 121,799 677,793 13,302,215 1,871,584 124,498 17, 999,110 955,562 (4,113) 951,449 12,450,810 7,318,108 1,267,034 187,646 8,260,539 Business -type Activities $ 5,641,185 135,590 50,479 105,648 34,912 529,778 12,962,183 19,459,775 14,739 2,706 17,445 48,092 2,024 9,433 4,578 201,672 476,600 193,369 17,413 953,181 13,423 (607) 12,816 12,878,384 5,632,839 Total $ 25,363,720 259,824 115,511 1,619,721 165,730 82,373 2,706,011 36,852,710 67,165,600 725,287 21,029 746,316 216,893 13,122 65,781 82,069 1,587,483 121,799 879,465 13,778,815 2,064,953 141,911 18,952,291 968,985 (4,720) 964,265 25,329,194 7,318,108 1,267,034 187,646 13,893,378 $ 29,484 137 $ 18.511,223 $ 47,_995,360 City of Medina, Minnesota Statement of Activities For the Year Ended December 31, 2020 Program Revenues Functions/Programs Governmental Activities General government Public safety Streets and highways Sanitation and recycling Culture and recreation Economic development Interest on long-term debt Total Governmental Activities Business -type Activities Water Sewer Storm water Total Business -type Activities Total Expenses $ 1,298,834 2,973,551 2,076,050 13,470 17,837 226,789 272,200 6,878,731 834,465 657,385 203,674 1,695,524 $ 8,574,255 Charges for Services $ 106,710 867,339 9,115 31,850 56,880 1,071,894 1,326,177 906,316 271,680 2,504,173 $ 3,576,067 Operating Grants Capital Grants and and Contributions Contributions $ 11,941 710,298 15,286 24,214 69,661 $ 439 685,033 42,888 831,400 728,360 63,380 5,116 95 68,591 376,227 100,932 114,318 160,977 $ 899,991 $ 1,104,587 General Revenues Taxes Property taxes, levied for general purposes Property taxes, levied for debt service Tax increments Franchise taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on sale of capital assets Transfers - Capital Assets Transfers Total General Revenues and Transfers Change in Net Position Net Position - January 1 Net Position, December 31 The notes to the financial statements are an integral part of this statement. 30 Net (Expenses) Revenues and Changes in Net Position Governmental Activities $ (1,179,744) (1,395,914) (1,366,616) 10,744 126,562 (169, 909) (272,200) 4,247,077) Business -type Activities Total - $ (1,179,744) (1,395,914) (1,366,616) 10,744 126,562 - (169,909) (272,200 (4,247,077) 656,024 368,365 229,078 1,253,467 (4,247,077) - 1,253,467 3,874,700 531,647 523,716 60,506 34,571 320,427 111,439 (715,724) (39,978) 4,701,304 454,227 29,029,910 $ 29,484,137 113,828 715,724 39,978 656,024 368,365 229,078 1,253,467 (2,993,610) 3,874, 700 531,647 523,716 60,506 34,571 434,255 111,439 869,530 5,570,834 2,122,997 16,388,226 $ 18,511,223 2,577,224 45,418,136 $ 47,995,360 The notes to the financial statements are an integral part of this statement. 31 THIS PAGE IS LEFT BLANK INTENTIONALLY 32 FUND FINANCIAL STATEMENTS CITY OF MEDINA MEDINA, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2020 33 City of Medina, Minnesota Balance Sheet Governmental Funds December 31, 2020 Assets Cash and temporary investments Receivables Accounts Taxes Special assessments Due from other governments Due from other funds Prepaid items Total Assets Liabilities Accounts payable Due to other funds Due to other governments Salaries payable Deposits payable Unearned revenue Total Liabilities Deferred Inflows of Resources Unavailable revenue - taxes Unavailable revenue - assessments Total Deferred Inflows of Resources Fund Balances Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances 101 General Debt Service $ 5,229,022 $ 6,273,656 3,860 99,575 44,447 41,587 47,236 15,061 1,236,016 10,866 403 Other Total Sewer Capital Governmental Governmental Improvements Funds Funds $ 2,978,346 $ 5,241,511 $ 19,722,535 8,027 257,408 112,347 124,234 875 115,511 288,779 1,569,242 7,629 60,082 - 257,408 225 47,461 $ 5,465,727 $ 7,535,599 $ 3,243.781 $ 5,651.366 $ 21,896,473 $ 159,887 $ 140,000 9,630 56,348 1,587,483 1,425 1,814,773 140,000 99,575 44,447 15,061 1,236,016 144,022 1,251,077 47,236 84,465 3,375,231 3,506,932 6,144,522 6,144,522 $ _ $ 8,914 117,408 1,468 8,027 8,027 3,235,754 112,347 240,137 $ 168,801 257,408 11,098 56,348 1,587,483 121,799 2,202,937 875 115,511 288,779 1,569,242 289,654 1,684,753 225 47,461 1,454,680 7,599,202 1,634,125 1,634,125 2,097,752 5,417,971 (65,207) 3,310,024 3,235,754 5,121,575 18,008,783 $ 5,465,727 $ 7,535,599 $ 3,243,781 $ 5,651,366 $ 21 896,473 The notes to the financial statements are an integral part of this statement. 34 City of Medina, Minnesota Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds December 31, 2020 Amounts reported for governmental activities in the statement of net position are different because Total Fund Balances - Governmental Funds $ 18,008,783 Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of capital assets Less accumulated depreciation 38,162,709 (12,095,949) Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year-end consist of Bonds payable Plus premium on bonds (13,245,000) Compensated absences payable (370,950) Other postemployment benefits payable (364,058) Net pension liability (124,498) (1,871,584) Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are unavailable in the funds. Taxes receivable Special assessments receivable Governmental funds do not report long-term amounts related to pensions and other postemployment benefits. Deferred outflows of pension resources Deferred inflows of pension resources Deferred outflows of other postemployment benefits resources Deferred inflows of other postemployment benefits resources Governmental funds do not report a liability for accrued interest until due and payable. Total Net Position - Governmental Activities The notes to the financial statements are an integral part of this statement. 35 115,511 1,569,242 710,548 (955,562) 4,113 18,323 (77,491) $ 29.484,137 City of Medina, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2020 101 403 Other Total Debt Sewer Capital Governmental Governmental General Service Improvements Funds Funds Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest on investments Miscellaneous Total Revenues $ 3,435,852 $ 531,647 $ 492,055 824,639 324,611 77,158 - 439 327,242 93,011 31,050 210,158 - 5,457,923 41,939 71,262 889,939 113,201 $ 1,006,159 1,600 397,763 14,487 166,823 125,104 73,043 1,784,979 $ 4,973,658 492,055 826,239 764,313 91,645 494,504 320,427 283,201 8,246,042 Expenditures Current 1,205,045 Public safety General government 1,205,045 - 2,853,240 1,404 2,854,644 _ 640,117 Streets and highways 640,117 _ 10,117 Sanitation and recycling 13,800 Culture and recreation 205,159 46,961 252,120 Capital outlay 98 General government _ _ 62 164, 7798 62,98 164,7798 Public safety 108 1,190,775 1,567,698 Streets and highways 376,815 _ 91,719 91,719 Culture and recreation - - 214,5259 214,5259 Economic development Debt service 2,355,000 Principal 2,355,000 325,882 Interest and other charges 325,882 Total Expenditures _ 5,294,176 2,680,882 - 108 1,792,289 9,767,455 Excess (Deficiency) of Revenues Over (Under) Expenditures 163,747 (1,790,943) 113,093 (7,310) (1,521,413 ) Other Financing Sources (Uses) 19,556 Proceeds from sale of capital assets 19,556- 1 ,556 583,839 Transfers in 220,784 351,666 Bonds issued - 5,720,000 5,720,000 - 281,458 Premium on bonds issued 281,458 - Transfers out (4,000 (7,389) (612,428) (623,817 3 Total Other Financing Sources (Uses) 216,784 6,345,735 (581,48a 5,981,036 Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 380,531 4,554,792 113,093 (588,793) 4,459,623 3,126,401 1,589,730 3,122,661 5 ,368 13,549,160 $ 3,506,932 $ 6,144,522 A 3,235,754 $ 5,121,575 $ 18,008,783 The notes to the financial statements are an integral part of this statement. 36 City of Medina, Minnesota Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities Governmental Funds For the Year Ended December 31, 2020 Amounts reported for governmental activities in the statement of activities are different because Total Net Change in Fund Balances - Governmental Funds $ 4,459,623 Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital outlay 1,729,619 Depreciation expense (1,313,380) The net effect of various miscellaneous transactionsinvolving capital assets is to increase (decrease) net position. Book value of disposed assets (5,917) A gain or loss on the trade-in of capital assets, including the difference between carrying value and any related sales proceeds, is included in net position. However, only the sales proceeds are included in the change in the change in fund balance. 97,800 Capital assets constructed in capital projects funds but intended for enterprise fund use are transferred in the government -wide financial statements. (715,724) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are amortized in the statement of activities. Bonds issued (5,720,000) Premium on bonds issued (281,458) Amortization of bond premium 40,030 Principal repayments 2,355,000 Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Property taxes Special assessments Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Other postemployment benefits costs Compensated absences 13,652 16,911 (303,232) (11,807) (4,702) Long-term pension activity is not reported in governmental funds. Pension expense 80,312 Pension revenue 17,500 Change in Net Position - Governmental Activities $ _ 454,227 The notes to the financial statements are an integral part of this statement. 37 THIS PAGE IS LEFT BLANK INTENTIONALLY 38 City of Medina, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended December 31, 2020 Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest on investments Miscellaneous Total Revenues Expenditures Current General government Public safety Police Building inspection Fire Streets and highways Sanitation and recycling Culture and recreation Economic development Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 Budgeted Amounts Original Final $ 3,509,452 283,369 288,773 245,387 95,000 30,000 134,359 4,586,340 $ 3,509,452 283,369 288,773 245,387 95,000 30,000 134,359 4,586,340 Actual Variance with Amounts Final Budget $ 3,435,852 492,055 824,639 324,611 77,158 439 93,011 210,158 5,457,923 1,227,476 1,227,476 1,205,045 1,756,410 1,756,410 1,974,821 330,664 330,664 425,195 419,111 419,111 453,224 751,401 751,401 640,117 26,001 26,001 13,800 235,181 235,181 205,159 56,880 56,880 - 376,815 4,803,124 4,803,124 5,294,176 (216,784) (216,784) 163,747 220,784 220,784 220,784 (4,000) 4,000) (4,000) 216,784 216,784 216,784 3,126,401 3,126,401 $ 3,126, 401 j 3,126, 401 380,531 3,126,401 $ (73,600) 208,686 535,866 79,224 (17,842) 439 63,011 75,799 871,583 22,431 (218,411) (94,531) (34,113) 111,284 12,201 30,022 56,880 (376, 815) (491,052) 380,531 380,531 $ 3,506,932 $ 380,531 The notes to the financial statements are an integral part of this statement. 39 City of Medina, Minnesota Statement of Net Position Proprietary Funds December 31, 2020 Business -type Activities - Enterprise funds Assets Current Assets Cash and temporary investments Receivables Accounts Special assessments Due from other governments Prepaid items Total Current Assets Noncurrent Assets Capital assets Land Infrastructure Buildings Improvements Machinery and equipment Construction in progress Less accumulated depreciation Total Noncurrent Assets Total Assets Deferred Outflows of Resources Deferred pension resources Deferred other postemployment benefits Total Deferred Outflows of Resources 601 Water 602 Sewer 603 Storm Water Totals $ 3,272,300 $ 2,023,594 $ 345,291 $ 5,641,185 51,153 75,407 21,287 25,179 4,340 741 34,171 3,349,821 2,158,351 9,030 4,013 101,308 135,590 50,479 105,648 34,912 459,642 5,967,814 7,393 49,000 82,000 6,668,066 2,973,282 219,262 8,216,454 192,000 330,082 1,133,263 1,164,212 2,921,472 44,174 162,372 59,920 169,093 (7,197,199) (3,341,315) 1361,570) 9,351,380 2,854,359 1,286,222 12,701,201 5,012,710 1,745,864 6,285 1,148 7,433 5,737 1,027 6,764 2,717 531 3,248 138,393 9,860,610 8,408,454 1,463,345 4,129,858 391,385 (10,900,084) 13,491,961 19,459,775 14,739 2,706 17,445 The notes to the financial statements are an integral part of this statement. 40 City of Medina, Minnesota Statement of Net Position (Continued) Proprietary Funds December 31, 2020 Business -type Activities - Enterprise funds Liabilities Current Liabilities Accounts payable Accrued interest payable Salaries payable Due to other governments Compensated absences payable - current Bonds payable - current Total Current Liabilities Noncurrent Liabilities Other postemployment benefits payable Compensated absences payable Net pension liability Bonds payable Total Noncurrent Liabilities Total Liabilities Deferred Inflows of Resources Deferred pension resources Deferred other post employment benefits Total Deferred Inflows of Resources Net Position Net investment in capital assets Unrestricted Total Net Position 601 Water $ 41,387 4,578 4,079 999 2,888 195,000 602 Sewer 603 Storm Water Totals $ 5,451 $ 3,794 1,025 2,635 248,931 12,905 7,389 24,165 82,456 418,577 532,587 781,518 5,724 (258) 5,466 8,737,803 3,183,847 $ 11,921,650 6,610 22,641 75,269 104,520 117,425 1,254 $ 48,092 4,578 1,560 9,433 - 2,024 1,149 6,672 195,000 3,963 265,799 3,414 11,217 35,644 50,275 54,238 17,413 58,023 193,369 418,577 687,382 953,181 5,225 2,474 13,423 (231) (118) _ (607) 4,994 2,356 12,816 2,854,359 2,042,696 1,286,222 406,296 12,878,384 5,632,839 $ 4,897,055 $ 1,692,518 $ 18,511,223 The notes to the financial statements are an integral part of this statement. 41 THIS PAGE IS LEFT BLANK INTENTIONALLY 42 City of Medina, Minnesota Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended December 31, 2020 Business -type Activities - Enterprise funds Operating Revenues Charges for services 601 602 603 Water Sewer Storm Water Totals $ 1,326,177 $ _ 906,316 $ 271,680 $ 2,504,173 Operating Expenses Wages and salaries 137,062 132,081 63,173 332,316 Materials and supplies 103,472 4,807 793 109,072 Professional services 65,331 54,597 96,633 216,561 Repairs and maintenance (6,201) (3,807) (24,167) (34,175) Insurance 8,287 4,233 593 13,113 Utilities 157,693 13,084 - 170,777 Depreciation 363,846 108,889 66,649 539,384 Sewer treatment charges 343,501 - 343,501 Total Operating Expenses 829,490 657,385 203,674 1,690,549 Operating Income 496,687 248,931 68,006 813,624 Nonoperating Revenues (Expenses) Interest on investments 59,884 45,178 8,766 113,828 Miscellaneous income 63,380 5,116 95 68,591 Interest and service charges (4,975) (4,975) Total Nonoperating Revenues (Expenses) 118,289 50,294 8,861 177,444 Income Before Contributions and Transfers 614,976 299,225 76,867 991,068 Capital Contributions from Other Funds 463,406 80,867 171,451 715,724 Capital Contributions 100,932 114,318 160,977 376,227 Transfers In 356,028 - 356,028 Transfers Out (125,758) (130,357) (59,935) (316,050) Change in Net Position 1,409,584 364,053 349,360 2,122,997 Net Position - January 1 10,512,066 4,533,002 1,343,158 16,388,226 Net Position, December 31 $ 11,921,650 $ 4,897.055 $ 1,692,518 $ 18,511,223 The notes to the financial statements are an integral part of this statement. 43 City of Medina, Minnesota Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2020 Business -type Activities - Enterprise funds 601 602 603 Water Sewer Storm Water Totals Cash Flows from Operating Activities Receipts from customers and users $ 1,386,227 $ 905,057 $ 268,801 $ 2,560,085 Payments to suppliers (311,879) (416,729) (73,110) (801,718) Payments to employees (144,609) (132,462) (63,643) (340,714) Net Cash Provided (Used) by Operating Activities 929,739 355,866 132,048 1,417,653 Cash Flows from Noncapital Financing Activities Transfers from other funds 356,028 356,028 Transfers to other funds (125,758) (130,357) (59,935) (316,050) Net Cash Provided (Used) by Noncapital Financing Activities 230,270 ( 7,1a51..)_ (59,935) 39,978 Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (162,370) (59,181) (293,110) (514,661) Connection fees 7,805 7,805 Intergovernmental 60,001 60,001 Principal paid on bonds (570,000) - (570,000) Interest paid on bonds (16,190) (16,190) Net Cash Provided (Used) by Capital and Related Financing Activities (740,755) (59,181) (233,109) (1,033,045) Cash Flows from Investing Activities Interest received on investments 59,886 45,178 8,766 113,830 Net Increase (Decrease) in Cash and Cash Equivalents 479,140 211,506 (152,230) 538,416 Cash and Cash Equivalents, January 1 2,793,160 1,812,088 497,521 5,102,769 Cash and Cash Equivalents, December 31 $ 3.272,300 $ 2,023,594 $ 345,291 $ 5.641,185 The notes to the financial statements are an integral part of this statement. 44 City of Medina, Minnesota Statement of Cash Flows (Continued) Proprietary Funds For the Year Ended December 31, 2020 Business -type Activities - Enterprise funds Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating income Adjustments to reconcile operating income to net cash provided by operating activities Other items related to operations Depreciation (Increase) decrease in assets and deferred outflows Accounts receivable Due from other governments Special assessments receivable Prepaid items Pension resources Other postemployment benefits Increase (decrease) in liabilities and deferred inflows Accounts payable Due to other governments Salaries payable Compensated absences payable Net pension liability Pension resources Other postemployment benefits payable Net Cash Provided (Used) by Operating Activities Schedule of Noncash Capital Financing Activities Contribution of assets from developers Contribution of assets from other funds Capital grants Amortization of bond premium 601 Water 602 603 Sewer - Storm Water Totals $ 496,687 $ 248,931 $ 68,006 $ 813,624 63,380 5,116 363,846 108,889 (139) 3,292 (6,483) 1,133 2,156 (327) 19,474 (3,577) 1,443 2,963 (475) (14,101) 467 129 3,871 (10,375) (2,105) 1,472 (366) 2,070 87 1,401 2,709 4,446 (11,706) 1,297 95 66,649 (2,150) 18 (842) 338 715 (206) 610 587 1,189 1,923 (5,587) 703 68,591 539,384 (2,160) 7,181 (17,700) (634) 4,343 (899) 22,154 (3,490) 3,431 6,861 5,894 (31,394) 2,467 $ 929,739 $ 355,866 $ 132,048 $ 1.417,653 $ 93,127 $ 114,318 $ - $ 207,445 $ 463.406 $ 80,867 $ 171,451 $ 715,,724 $ $ - $ 100,976 $ 100,976 $ 7,256 $ - $ - $ 7,256 The notes to the financial statements are an integral part of this statement. 45 THIS PAGE IS LEFT BLANK INTENTIONALLY 46 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies A. Reporting Entity The City of Medina, Minnesota (the City) operates under the "Optional Plan A" form of government as defined in the State of Minnesota statutes. Under this plan, the government of the City is directed by a City Council composed of an elected Mayor and four elected City Council Members. The City Council exercises legislative authority and determines all matters of policy. The City Council appoints personnel responsible for the proper administration of all affairs relating to the City. The City has considered all potential units for which it is financially accountable and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board (GASB) has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization's governing body, and (1) the ability of the primary government to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens on the City. Blended component units, although legally separate entities are, in substance, part of the City's operations and so data from these units are combined with data of the City. The City has the following component unit: Blended Component Unit. The Medina Economic Development Authority (MEDA) of the City was created pursuant to Minnesota statutes 469.090 through 469.108 to carry out economic and industrial development and redevelopment consistent with policies established by the City Council. It is comprised of five members, all of which are City Council members, and has a December 31 year end. The EDA activities are blended and reported in a Capital Project fund (Tax Increment 1-9) due to substantively the same governing board and the financial benefit/burden relationship. Separate financial statements are not issued for this component unit. B. Government -wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. 47 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and iudaments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. Non -exchange transactions, in which the City receives value without directly giving equal value in return, include property taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non -exchange transactions must also be available before it can be recognized. Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are also recorded as unearned revenue. 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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 48 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies (Continued) The City reports the following major governmental funds: The General fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Debt Service fund accounts for the resources accumulated and payments made for principal and interest on long- term general obligation debt of governmental funds. The Sewer Capital Improvements fund accounts for the costs associated with replacement of the City's utility and road systems. The City reports the following major proprietary funds: The Water fund accounts for the activities of the City's water distribution system, which are financed by the water utility fee, and insure that user charges are sufficient to pay for those costs. The Sewer fund accounts for the activities of the City's wastewater collection operations which are financed by the sanitary sewer utility fee, and insure that user charges are sufficient to pay for those costs. The Storm Water fund accounts for the activities of the City's storm water collection operations which are financed by the storm sewer utility fee, and insure that user charges are sufficient to pay for those costs. As a general rule, the effect of interfund activity has been eliminated from government -wide financial statements. 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 City enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 49 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies (Continued) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position/Fund Balance Deposits and Investments The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. The proprietary funds' portion in the government -wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of the statement of cash flows. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of the funds. The City may also invest idle funds as authorized by Minnesota statutes, as follows: 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a final maturity of thirteen months or less. 3. General obligations of a state or local government with taxing powers rated "A" or better; revenue obligations rated "AA" or better. 4. General obligations of the Minnesota Housing Finance Agency rated "A" or better. 5. Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute section 126C.55. 6. Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System. 7. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less. 8. Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions qualified as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker -dealers. 9. Guaranteed Investment Contracts (GIC's) issued or guaranteed by a United States commercial bank, a domestic branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt obligations were rated in one of the top two rating categories by a nationally recognized rating agency. Broker money market funds operate in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the shares. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. 50 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies (Continued) The City has the following recurring fair value measurements as of December 31, 2020: • U.S. Government Agency securities of $1,498,530 are valued using quoted market prices (Level 1 inputs) • Negotiable certificates of deposit of $10,316,909 are values using a matrix pricing model (Level 2 inputs) The Minnesota Municipal Money Market Fund is regulated by Minnesota statutes and the Board of Directors of the League of Minnesota Cities and is an external investment pool not registered with the Securities Exchange Commission (SEC) that follows the regulatory rules of the SEC. In accordance with GASB Statement No. 79, the City's investment in this pool is valued at amortized cost, which approximates fair value. There are no restrictions or limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14 -day restriction period will be subject to a penalty equal to seven days interest on the amount withdrawn. Seven days' notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series for any charges, losses, and other costs attributable to the early redemption. Financial statements of the 4M Fund can be obtained by contracting RBC Global Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN 55402-1240. At December 31, 2020, the City had no investments in one issuer (other than investments issued by or explicitly guaranteed by U.S. government, mutual funds, external investment pools, and other pooled investments) that represent 5 percent or more of the City's investments. The investment in the Minnesota Municipal Money Market Mutual Fund is not subject to the custodial credit risk classifications as noted in paragraph 9 of GASB Statement No. 40. Property Taxes The City Council annually adopts a tax levy and certifies it to the County in December for collection the following year. The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable property within the City on January 1 and are payable by the property owners in two installments. The taxes are collected by the County Treasurer and tax settlements are made to the City during January, July and December each year. Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a deferred inflow of resources for delinquent taxes not received within 60 days after year end in the fund financial statements. Accounts Receivable Accounts receivable include amounts billed for services provided before year end. Unbilled utility enterprise fund receivables are also included for services provided in 2020. The City annually certifies delinquent water, sewer and storm water accounts to the County for collection in the following year. As a result, there has been no allowance for doubtful accounts established for the enterprise funds. Special Assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. Assessments were also completed for unreimbursed costs and uncollected City charges for services. These assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue when they are certified to the County or received in cash or within 60 days after year end. All governmental special assessments receivable are offset by a deferred inflow of resources in the fund financial statements. 51 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies (Continued) interfund Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non -current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. The City reports infrastructure assets on a network and subsystem basis. Accordingly, the amounts spent for the construction or acquisition on infrastructure assets are capitalized and reported in the government -wide financial statements. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities) the City chose to include all assets accounted for prospectively from the phase 3 GASB 34 implementation date. As the City constructs or acquires additional capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful life beyond the original estimate. Donated capital assets are recorded at acquisition value at the time of donation. Property, plant and equipment of the City are depreciated using the straight-line method over the following estimated useful lives: Assets Useful Lives in Years Buildings 20 to 40 Land Improvements 20 Building Improvements 20 Furniture and Equipment 5 to 10 Light Vehicles 3 to 5 Machinery and Equipment 5 to 10 Heavy Trucks 7 to 10 Infrastructure 25 to 40 52 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies (Continued) Deferred Outflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items which qualify for reporting in this category. Accordingly, the items, deferred pension resources and deferred other postemployment benefit resources, are reported only in the statement of net position. These items result from actuarial calculations and current year pension contributions and OPEB contributions made subsequent to the measurement dates. Compensated Absences The City compensates employees who resign or retire in good standing for all unused vacation. Sick leave may be accumulated and banked to a maximum of 960 hours for full-time and regular part-time employees. For sick leave accumulated is excess of 960 hours, the employee may bank the hours in an account established by the City for retirement health insurance premiums. An employee who leaves employment voluntarily, with four of more years of service with the City and gives a 14 calendar day notice of termination of employment will be paid at the base rate of pay, one-third of accumulated sick leave hours. Any sick leave banked in excess of 960 hours will be forfeited. Two options are available in regards to accrued sick leave for an employee who voluntarily leaves after 20 or more years of service with the City. After giving at least a 14 day notice of termination of employment an employee may receive payment for one-half of all accrued sick leave at the employee's base rate of pay at the time of termination including sick leave banked in excess of 960 hours. A second option allows the employee to give the City at least 14 days' notice of termination of employment; which then allows the employee to place any accrued sick leave into the retirement health insurance account including sick leave banked in excess of 960 hours converted to a monetary value by using the employees base rate of pay for that year. Compensation time is also paid out upon termination. All hourly employees can earn compensation time for every hour of overtime they work. Each hour of overtime is accrued into 1.5 hours of compensation time. Also, a police employee who works any of the 11 holidays can accrue at a rate of 1.5 compensation hours per hour worked and be paid out for accruals over 80 hours. Vacation, sick, and compensation time pay are considered expenditures in the year paid in the governmental fund statements. This differs from the proprietary and government -wide statements where vacation, sick, and compensation pay are expensed when earned. The General fund is typically used to liquidate governmental compensated absences. Postemployment Benefits Other Than Pensions Under Minnesota statute 471.61, subdivision 2b., public employers must allow retirees and their dependents to continue coverage indefinitely in an employer -sponsored health care plan, under the following conditions: 1) Retirees must be receiving (or eligible to receive) an annuity from a Minnesota public pension plan, 2) Coverage must continue in group plan until age 65, and retirees must pay no more than the group premium, and 3) Retirees may obtain dependent coverage immediately before retirement. All premiums are funded on a pay-as-you-go basis. The liability was actuarially determined, in accordance with GASB Statement 75, at January 1, 2019. The General fund is typically used to liquidate the governmental liability. Long-term Obligations In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type statement of net position. Recognition of bond premiums and discounts are delayed and amortized over the life of the bonds using the straight line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as an expense in the period incurred. 53 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies (Continued) In the fund financial statements, governmental fund types recognized bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA's fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The General fund is typically used to liquidate the governmental net pension liability. General Employees Fund Police and Fire Fund $ 30,073 120,761 Total $ 150,834 Deferred inflows of Resources In addition to liabilities, the statement of net position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: delinquent taxes and special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Furthermore, the City has additional items which qualify for reporting in this category on the statement of net position. The items, deferred pension resources and deferred other postemployment benefit resources, are reported only in the statement of net position and results from actuarial calculations involving net differences between projected and actual earnings on plan investments and changes in proportions. Net Position Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources. Net position is displayed in three components: a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b. Restricted net position - Consists of net position balances restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. c. Unrestricted net position - All other net position that do not meet the definition of "restricted" or "net investment in capital assets". When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. 54 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies (Continued) Fund Balance In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of resources reported in the governmental funds. These classifications are defined as follows: Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items. Restricted - Amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of the City Council, which is the City's highest level of decision -making authority. Committed amounts cannot be used for any other purpose unless the City Council modifies or rescinds the commitment by resolution. Assigned - Amounts constrained for specific purposes that are internally imposed. In governmental funds other than the General fund, assigned fund balance represents all remaining amounts that are not classified as nonspendable and are neither restricted nor committed. In the General fund, assigned amounts represent intended uses established by the City Council itself or by an official to which the governing body delegates the authority. The City Council has adopted a fund balance policy which delegates the authority to assign amounts for specific purposes to the City Administrator. Unassigned - The residual classification for the General fund and also negative residual amounts in other funds. The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available. Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The City has formally adopted a fund balance policy for the General fund. The City's policy is to maintain an unrestricted fund balance in the General fund of the greater of (1) 50 percent of the next year's General fund property tax levy, or (2) a minimum of five months of the next year's budgeted expenditures of the General fund. Note 2: Stewardship, Compliance and Accountability A. Budgetary Information Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the General and all special revenue funds. All annual appropriations lapse at fiscal year-end. The City does not use encumbrance accounting. In July of each year, all departments of the City submit requests for appropriations to the City Administrator so that a budget may be prepared. Before September 30th, the proposed budget is presented to the City Council for review. The City Council holds public hearings and a final budget is prepared and adopted in December. The appropriated budget is prepared by fund, function and department. The City's department heads, with the approval of the City Administrator, may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the City Council. The legal level of budgetary control is the department level. Budgeted amounts are as originally adopted, or as amended by the City Council. There were no budget amendments during the year. 55 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 2: Stewardship, Compliance and Accountability (Continued) B. Excess of Expenditures Over Appropriations For the year ended December 31, 2020, expenditures exceeded appropriations in the following fund: Fund General Excess of Expenditures Over Budget Actual Appropriations 4.803,124 $ 5.294,176 $ 491,052 The excess expenditures were funded with greater than anticipated revenues. C. Deficit Fund Equity The following funds had deficit fund balances at December 31, 2020: Fund Amount Nonmajor $ 65,207 Tax increment 1-9 The City plans to fund these deficits with future revenues including tax increments and other revenues. Note 3: Detailed Notes on All Funds A. Deposits and Investments Deposits Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City's deposits and investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside party. In accordance with Minnesota statutes and as authorized by the City Council, the City maintains deposits at those depository banks, all of which are members of the Federal Reserve System. Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The fair value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, with the exception of irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral pledged equal to 100 percent of the deposits not covered by insurance or bonds. 56 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) Authorized collateral in lieu of a corporate surety bond includes: • United States government Treasury bills, Treasury notes, Treasury bonds; • Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; • General obligation securities of any state or local government with taxing powers which is rated "A" or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated "AA" or better by a national bond rating service; • General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; • Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's Investors Service, Inc., or Standard & Poor's Corporation; and • Time deposits that are fully insured by any federal agency. Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection should be approved by the government entity. As of December 31, 2020 the City's carrying amount of deposits was $797,035 and the bank balance was $913,064. Of the bank balance $250,000 was covered by federal depository insurance and the remaining amount was covered by collateral held by the City's agent in the City's name. Investments As of December 31, 2020, the City had the following investments that are insured or registered, or securities held by the City or its agent in the City's name. Investment Type Pooled Investments Broker money market 4M Money Market Fund Mutual Fund Non -pooled Investments U.S. Government Agencies U.S. Government Agencies Brokered Certificates of Deposit Brokered Certificates of Deposit Brokered Certificates of Deposit Total Investments Credit Quality/ Ratings (1) N/A N/A N/A AAA AAA N/A N/A N/A Segmented Time Distribution (2) less than 1 year less than 1 year less than 1 year 1 year to 5 years 5 year to 10 years less than 1 year 1 year to 5 years 5 year to 10 years Amount $ 783,193 9,113,646 2,854,107 Fair Value Measurement Using Level 1 Level 2 1,000,065 1,000,065 498,465 498,465 1,991,502 7,827,131 498,276 1,991,502 7,827,131 498,276 $ 24.566.385 $ 1.498,530 $ 10 316,909 (1) Ratings were provided by various rating agencies where applicable to indicate associated credit risk. (2) Interest rate risk disclosed using the segmented time distribution method. N/A Indicates not applicable or available. Level 3 57 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) The investments of the City are subject to the following risk: • Credit Risk: This is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law limits investments in commercial paper and corporate bonds to be in the top two ratings issued by nationally recognized statistical rating organizations. The City's investment policy states the instruments that the City will invest in will be consistent with the GFOA Policy Statement on the State and Local Laws Concerning Investment Practices and Minnesota statutes 118A. It also states investments in derivatives shall not be allowed. • Custodial Credit Risk - Deposits: For deposits, this is the risk that in the event of bank failure the City's deposits may not be returned to it. The City has a policy in place to address custodial credit risk for deposits, stating all demand deposit accounts, including checking accounts and nonnegotiable certificates of deposit, in accordance with the GFOA Recommended Practices on the Collateralization of Public Deposits and Minnesota statutes 118A will be required to be fully collateralized. • Interest Rate Risk: This is the risk that market values of securities in a portfolio would decrease due to changes in market interest rates. The City's investment policy states the City will minimize interest rate rise by structuring the portfolio so that securities mature to meet cash requirements for ongoing operations and investing operating funds primarily in shorter term securities, money market mutual funds or similar investment pools and limiting the average maturity of the portfolio. The policy states the City will not directly invest in securities maturing more than 10 years from the date of purchase or in accordance with the state and local statutes and ordinances unless matched to a specific cash flow. The policy also states the investments will be diversified by investing in securities with varying maturities, continuously investing at least 10 percent of the portfolio in readily available funds such as LGIPs, money market funds to ensure that appropriate liquidity is maintained and never investing more than 20 percent of the portfolio in securities with final maturities greater than five years. • Concentration of Credit Risk: This is the risk of loss attributed to the magnitude of an investment in a single issuer. The City's investment policy states the City will limit investments to avoid over concentration in securities from a specific issuer or business sector, excluding U.S. Treasury securities and limiting investments in securities that have higher credit risks and investing in securities with varying maturities. The policy also states the City will diversify the investment portfolio so the impact of potential losses from any one type of security or from any one individual issuer will be minimized. Cash Summary A reconciliation of cash as shown on the statement of net position for the City follows: Carrying Amount of Deposits $ 797,035 Investments 24,566,385 Cash on Hand 300 Total $ 25.363,720 Cash and Temporary Investments Government -wide $ 25,363,720 58 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) B. Capital Assets Capital asset activity for the year ended December 31, 2020 was as follows: Governmental Activities Capital Assets not Being Depreciated Land Construction in progress Total Capital Assets, not Being Depreciated Capital Assets Being Depreciated Infrastructure Buildings Improvements Machinery and equipment Total Capital Assets Being Depreciated Less Accumulated Depreciation for Infrastructure Buildings Improvements Machinery and equipment Total Accumulated Depreciation Total Capital Assets, Being Depreciated, Net Beginning Balance $ 813,779 1,402,749 Increases $ 1,364,415 Decreases Ending Balance $ $ 813,779 (1,404,710) 1,362,454 2,216,528 1,364,415 (1,404,710) 2,176,233 19,780,023 1,404,709 (715,723) 20,469,009 9,500,690 9,500,690 2,823,627 62,009 2,885,636 2,922,422 400,995 (192,276) 3,131,141 35,026,762 1,867,713 (907,999) 35,986,476 (6,322,288) (245,505) (6,567,793) (1,996,888) (674,363) (2,671,251) (860,027) (153,134) (1,013,161) (1,789,724) (240,378) 186,358 (1,843,744) (10,968,927) (1,313,380) 186,358 (12,095,949) 24,057,835 554,333 (721,641) 23,890,527 Governmental Activities Capital Assets, Net $ 26,274,363 $ 1,918,748 $ (2,126,351) $ 26,066,760 Depreciation expense was charged to functions/programs of the governmental activities as follows: Governmental Activities General government Public safety Streets and highways Culture and recreation Economic development $ 27,174 75,456 1,034,175 164,213 12,362 Total Depreciation Expense - Governmental Activities $ 1,313,380 59 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) Beginning Ending Balance Increases Decreases Balance Business -type Activities Capital Assets not Being Depreciated Land $ 56,393 $ 82,000 $ $ 138,393 Construction in progress 26,306 376,987 (11,908) 391,385 Total Capital Assets not Being Depreciated 82,699 458,987 (11,908) 529,778 Capital Assets Being Depreciated Infrastructure 8,915,807 944,803 - 9,860,610 Buildings 8,408,454 8,408,454 Improvements 1,417,397 45,948 - 1,463,345 Machinery and equipment 4,129,858 4,129,858 Total Capital Assets Being Depreciated 22,871,516 990,751 23,862,267 Less Accumulated Depreciation for Infrastructure (3,288,736) (191,461) (3,480,197) Buildings (3,615,263) (207,095) (3,822,358) Improvements (277,806) (73,167) (350,973) Machinery and equipment (3,178,895) (67,661) - (3,246,556) Total Accumulated Depreciation (10,360,700) (539,384) (10,900,084) Total Capital Assets Being Depreciated, Net Business -type Activities Capital Assets, Net 12,510,816 451,367 12,962,183 $ 12,593,515 $ 910,354 $ (11,908) $ 13,491,961 Depreciation expense was charged to functions/programs of the business -type activities as follows: Business -type Activities Water $ 363,846 Sewer 108,889 Storm Water 66,649 Total Depreciation Expense - Business -type Activities $ 539,384 60 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) C. Interfund Receivables, Payables and Transfers Interfund Balances The composition of interfund balances at December 31, 2020 is as follows: Receivable Fund Payable Fund Sewer Capital Improvements Fund Sewer Capital Improvements Fund Debt Service Nonmajor governmental Purpose Amount Cash flow purposes Cash flow purposes Total lnterfund Transfers The composition of interfund transfers for the year ended December 31, 2020 is as follows: Transfer in Fund Transfer Out General Debt Service Nonmajor governmental Water Sewer Storm Water $ 140,000 117,408 $ 257,408 General 82,888 77,961 59,935 Debt Service Nonmajor Governmental Water Total $ - $ 4,000 $ 7,389 256,400 42,870 52,396 $ 4,000 7,389 356,028 612,428 125,758 130,357 59,935 Total $ 220,784 $ 351,666 $ 11,389 $ 356,028 $ 939,867 During the year, transfers are used to 1) move revenues from the fund with collection authorization to the Debt Service fund as debt service principal and interest payments become due and 2) move General fund resources to provide an annual subsidy to the transit fund. The City made the following one-time transfers for the year ended December 31, 2020: • The General fund made a budgeted transfer of $4,000 to the nonmajor governmental fund. • The Debt Service fund transferred $7,389 to the nonmajor governmental funds to close fund 312. • The nonmajor governmental fund transferred $256,400 to the Debt Service fund for future debt service payments. • The Water fund ($82,888), Sewer fund ($77,961) and the Storm Water fund ($59,935) made budgeted transfers to the General fund for operating costs. • The Water fund ($42,870), and the Sewer fund ($52,396) made budgeted transfers to the Debt Service funds for debt service payments for the 2012 building bonds and for recharacterized water bonds. • The nonmajor governmental funds also transferred $356,028 to the Water fund for capital projects. 61 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) D. Long-term Debt General Obligation Improvement Bonds The City issues G.O. improvement bonds to finance various improvements and will be repaid from special assessments levied on the properties benefiting from the improvements, tax increment from the district and ad valorem tax levies. All special assessment debt is backed by the full faith and credit of the City. Each year the combined assessment and tax levy equals 105 percent of the amount required for debt service. The excess of 5 percent is to cover any delinquencies in tax or assessment payments. Description Authorized Interest Issue Maturity Balance at and Issued Rate Date Date Year End G.O. Improvement Bonds, Series 2012A $ 6,100,000 1.50 - 2.75 % 11/07/12 02/01/34 $ 5,060,000 G.O. Crossover Refunding Bonds, Series 2013A 1,170,000 1.75 - 2.00 04/25/13 02/01/23 465,000 G.O. Improvement Bonds, Series 2015A 1,765,000 2.00 - 3.00 06/24/15 02/01/31 1,280,000 G.O. Refunding Bond Series 2016A 1,220,000 2.00 08/11/16 02/01/24 720,000 G.O. Refunding Improvement Bonds, Series 2020A 980,000 1.35 - 2.00 12/10/20 02/01/31 5,720,000 Total General Obligation Improvement Bonds $ 13,245,000 Annual debt service requirements to maturity for the general obligation improvement bonds are as follows: Year Ending December 31, Governmental Activities Principal Interest Total 2021 $ 630,000 $ 224,879 $ 854,879 2022 875,000 246,624 1,121,624 2023 910,000 229,840 1,139,840 2024 1,115,000 209,958 1,324,958 2025 945,000 189,011 1,134,011 2026 - 2030 5,030,000 631,850 5,661,850 2031 - 2034 3,740,000 141,694 3,881,694 Total $ 13,245,000 $ 1,873,856 $ 15,118,856 Refunding Bonds On December 10, 2020 the City issued $5,720,000 of G.O. Refunding Bonds, Series 2020A. The bonds bear an average coupon rate of 1.608 percent and will be used to call $4,880,000 of the outstanding principal of the G.O. Improvement Bonds, Series 2012A on February 1, 2021, and $1,120,000 of the outstanding principal of the G.O. Improvement Bonds, Series 2017A on December 22, 2020. As a result of the refunding issues, the City will save a combined $512,133 in debt service payments and achieve an economic gain (the present value of the difference between the old and the new debt service) of $481,059. 62 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) G.O. Revenue Bonds The following bonds were issued to finance capital improvements, and finance acquisition and construction of capital facilities. They will be repaid from future net revenues pledged from the Water fund and are backed by the taxing power of the City. Annual principal and interest payments on the bonds are expected to require over 50 percent of net revenues from the Water fund. For 2020, principal and interest paid and total customer net revenues for the Water fund were $586,190 and $1,326,177, respectively creating a pledged revenue percentage of 44.2%. Authorized Interest Issue Maturity Balance at Description and Issued Rate Date Date Year End G.O. Water Revenue Crossover Refunding Bonds, Series 2013A $ 1,520,000 1.75 - 2.00 % 04/25/13 02/01/23 $ 600,000 Annual debt service requirements to maturity for the general obligation revenue bonds are as follows: Year Ending Business -type Activities December 31, Principal Interest Total 2021 $ 195,000 $ 9,038 $ 204,038 2022 200,000 5,338 205,338 2023 205,000 1,794 206,794 Total $ 600,000 $ 16,170 $ 616,170 63 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) Changes in Long-term Liabilities Long-term liability activity for the year ended December 31, 2020, was as follows: Governmental Activities Bonds Payable General obligation improvement bonds General obligation tax increment bonds Unamortized premium on bonds Total Bonds Payable Compensated Absences Payable Governmental Activities Long-term Liabilities Business -type Activities Bonds Payable General obligations Beginning Balance Increases Decreases $ 9,705,000 175,000 129,522 Ending Balance Due Within One Year $ 5,720,000 $ (2,180,000) $ 13,245,000 $ 630,000 (175,000) 281,458 (40,030) 370,950 10,009,522 6,001,458 (2,395,030) 13,615,950 359,356 239,734 (235,032) 364,058 630,000 47,793 $ 10,368,878 $ 6,241,192 $ (2,630,062) $ 13,980,008 $ 677,793 revenue bonds $ 1,170,000 $ Unamortized premium on bonds 20,833 Total Bonds Payable 1,190,833 Compensated Absences Payable 57,834 $ (570,000) $ 600,000 $ 195,000 (7,256) 13,577 (577,256) 613,577 195,000 24,425 (17,564) 64,695 6,672 Business -type Activities Long-term Liabilities $ 1,248,667 $ 24,425 $ (594,820) $ 678,272 $ 201,672 64 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) E. Components of Fund Balance At December 31, 2020, portions of the City's fund balance are not available for appropriation due to not being in spendable form (Nonspendable), legal restrictions (Restricted), City Council action (Committed), policy and/or intent (Assigned). The following is a summary of the components of fund balance: Nonspendable Prepaid items General $ _47,236 $ Other Debt Sewer Capital Governmental Service Improvements Funds Total $ $ 225 $ 47,461 Restricted for Park improvements $ $ - $ - $ 1,267,034 $ 1,267,034 Debt service - 6,144,522 - 6,144,522 Police expenditures _ 187,646 187,646 Total Restricted Committed to Park improvements Police expenditures Field house German liberal cemetary Community event Cable Environmental $ 6,144, 522 $ - $ 1,454,680 $ 7,599,202 $ - $ $ 781,375 $ 781,375 66,606 66,606 - 6,178 6,178 - 167,605 167,605 23,328 23,328 - 69,514 69,514 519,519 519,519 Total Committed $ $ $ - $ 1,634,125 $ 1,634,125 Assigned to Capital improvements $ - $ - $ 3,235,754 $ 2,072,701 $ 5,308,455 Future benefits 84,465 - 84,465 Equipment replacement - 25,051 25,051 Total Assigned 84.465 $ $ 3,235,754 $ 2,097,752 $ 5,417,971 65 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 4: Defined Benefit Pension Plans - Statewide A. Plan Description The City participates in the following cost -sharing multiple -employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA's defined benefit pension plans are established and administered in accordance with Minnesota statutes, chapters 353 and 356. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. General Employees Retiremen Plan All full-time and certain part-time employees of the City are covered by the General Employees Plan. General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. Public Employees Police and Fire Plan The Police and Fire Plan, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the Police and Fire Plan also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA. B. Benefits Provided PERA provides retirement, disability and death benefits. Benefit provisions are established by state statute and can only be modified by the state Legislature. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. General Employee Plan Benefits General Employees Plan benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989 receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2 percent of average salary for each of the first 10 years of service and 1.7 percent of average salary for each additional year. Under Method 2, the accrual rate for Coordinated members is 1.7 percent for average salary for all years of service. For members hired prior to July 1, 1989 a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989 normal retirement age is the age for unreduced Social Security benefits capped at 66. Benefit increases are provided to benefit recipients each January. Beginning in 2019, the postretirement increase will be equal to 50 percent of the cost -of -living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. Police and Fire Plan Benefits Benefits for Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50 percent after five years up to 100 percent after ten years of credited service. Benefits for Police and Fire Plan members first hired after June 30, 2014 vest on a prorated basis from 50 percent after ten years up to 100 percent after twenty years of credited service. The annuity accrual rate is 3 percent of average salary for each year of service. For Police and Fire Plan members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. 66 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Benefit increases are provided to benefit recipients each January. Beginning in 2019, the postretirement increase will be fixed at 1 percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase. C. Contributions Minnesota statutes chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state Legislature. General Em to ees Fund Contributions Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2020 and the City was required to contribute 7.50 percent for Coordinated Plan members. The City's contributions to the General Employees Fund for the years ending December 31, 2020, 2019 and 2018 were $87,115, $90,945 and $88,679, respectively The City's contributions were equal to the required contributions for each year as set by state statute. Police and Fire Fund Contributions Police and Fire member's contribution rates increased from 11.30 percent of pay to 11.80 percent and employer rates increased from 16.95 percent to 17.70 percent on January 1, 2020. The City's contributions to the Police and Fire Fund for the years ending December 31, 2020, 2019 and 2018 were $162,488, $152,505 and $139,304, respectively. The City's contributions were equal to the required contributions for each year as set by state statute. D. Pension Costs General Employees Fund Pension Costs At December 31, 2020, the City reported a liability of $1,001,241 for its proportionate share of the General Employees Fund's net pension liability. The City's net pension liability reflected a reduction due to the State of Minnesota's contribution of $16 million. The State of Minnesota is considered a non -employer contributing entity and the state's contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the City totaled $30,848. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2019 through June 30, 2020 relative to the total employer contributions received from all of PERA's participating employers. The City's proportionate share was 0.0167 percent which was a decrease of 0.0001 percent from its proportion measured as of June 30, 2019. City's Proportionate Share of the Net Pension Liability $ 1,001,241 State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 30,848 Total $ 1,032,089 For the year ended December 31, 2020, the City recognized pension expense of $27,388 1for its proportionate share of the General Employees Plan's pension expense. In addition, the City $2,685 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the General Employees Fund. 67 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 4: Defined Benefit Pension Plans - Statewide (Continued) At December 31, 2020, the City reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources, related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience $ 12,176 $ 4,131 Changes in Actuarial Assumptions 1,454 38,940 Net Difference Between Projected and Actual Earnings on Plan Investments 13,186 - Changes in Proportion 6,441 26,433 Contributions Paid to PERA Subsequent to the Measurement Date 43,055 - Total $ 76,312 $ 69,504 The $43,055 related to pensions resulting from the City's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 2021 $ (62,675) 2022 (15,256) 2023 17,494 2024 24,190 Police and Fire Fund Pension Costs At December 31, 2020, the City reported a liability of $1,063,712 for its proportionate share of the Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2019 through June 30, 2020 relative to the total employer contributions received from all of PERA's participating employers. The City's proportionate share was 0.0807 percent which was a decrease of 0.0031 percent from its proportionate share measured as of June 30, 2019. The State of Minnesota also contributed $13.5 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2020. The contribution consisted of $4.5 million in direct state aid that does meet the definition of a special funding situation and $9.0 million in fire state aid that does not meet the definition of a special funding situation. The $4.5 million direct state was paid on October 1, 2019. Thereafter, by October 1 of each year, the state will pay $9 million to the Police and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in fire state aid will continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whichever occurs later. 68 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 4: Defined Benefit Pension Plans - Statewide (Continued) As a result, the State of Minnesota is included as a non -employer contributing entity in the Police and Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules) for the $4.5 million in direct state aid. Police and Fire Plan employers need to recognize their proportionate share of the State of Minnesota's pension expense (and grant revenue) under GASB 68 special funding situation accounting and financial reporting requirements. For the year ended December 31, 2020, the City recognized pension of $113,094 for its proportionate share of Police and Fire Plan's pension expense. The State of Minnesota is not included as a non -employer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9 million in fire state aid. The City also recognized $7,667 for the year ended December 31, 2020 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on -behalf contributions to the Police and Fire Fund. At December 31, 2020, the City reported its proportionate share of Police and Fire Plan's deferred outflows of resources and deferred inflows of resources, related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience $ 52,412 $ 68,931 Changes in Actuarial Assumptions 423,943 733,381 Net Difference Between Projected and Actual Earnings on Plan Investments 36,416 Changes in Proportion 54,104 97,169 Contributions Paid to PERA Subsequent to the Measurement Date Total 82,100 $ 648,975 $ 899.481 The $82,100 reported as deferred outflows of resources related to pensions resulting from the City's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 2021 2022 $ (107,545) 2023 (312,592) 2024 44,923 2025 50,577 (7,969) E. Actuarial Assumptions The total pension liability in the June 30, 2020 actuarial valuation was determined using an individual entry -age normal actuarial cost method and the following actuarial assumptions: Inflation 2.50% per year Active Member Payroll Growth 3.25% per year Investment Rate of Return 7.50% 69 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Salary increases were based on a service -related table. Mortality rates for active members, retirees, survivors and disabilitants were based on RP -2014 tables for males or females, as appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25 percent per year for General Employees Plan and 1.0 percent per year for Police and Fire Plan. Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the General Employees Plan was completed in 2019. The assumption changes were adopted by the Board and become effective with the July 1, 2020 actuarial valuation. The most recent four-year experience study for the Police and Fire Plan was completed in 2020. The recommended assumptions for that plan were adopted by the Board and will be effective with the July 1, 2021 actuarial valuations if approved by the Legislature. The following changes in actuarial assumptions and plan provisions occurred in 2020: General Employees Fund Changes in Actuarial Assumptions • The price inflation assumption was decreased from 2.50% to 2.25%. • The payroll growth assumption was decreased from 3.25% to 3.00%. • Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25% less than previous rates. • Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. • Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter. • Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females. • The base mortality table for healthy annuitants and employees was changed from the RP -2014 table to the Pub - 2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP -2014 disabled annuitant mortality table to the PUB -2010 General/Teacher disabled annuitant mortality table, with adjustments. • The mortality improvement scale was changed from Scale MP -2018 to Scale MP -2019. • The assumed spouse age difference was changed from two years older for females to one year older. The assumed number of married male new retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly Changes in Plan Provisions • Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 70 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Police and Fire Fund Changes in Actuarial Assumptions • The mortality projection scale was changed from MP -2018 to MP -2019. Changes in Plan Provisions • There have been no changes since the prior valuation. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return basis using a building-block method in which best -estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Class Domestic Stocks Alternative Assets (Private Markets) Bonds (Fixed Income) International Equity Cash Total F. Discount Rate Target Allocation 36.0 % 25.0 20.0 17.0 2.0 100.0 % Long-term Expected Real Rate of Return 5.10 % 5.90 0.75 5.30 The discount rate used to measure the total pension liability in 2020 was 7.50 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees Fund and the Police and Fire Fund were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. Pension Liability Sensitivity The following presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: General Employees Fund Police and Fire Fund 71 1 Percent 1 Percent Decrease (6.50%) Current (7.50%) Increase (8.50%) $ 1,604,643 2,120,132 $ 1,001,241 $ 503,484 1,063,712 189,710 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 4: Defined Benefit Pension Plans - Statewide (Continued) H. Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in a separately -issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the internet at www.mnpera.orq. Note 5: Postemployment Benefits Other Than Pensions A. Plan Description The City operates a single -employer retiree benefit plan ("the Plan") that provides health, life and dental insurance to eligible employees and their families through the City's health insurance plan. The full cost of the benefits is covered by the plan. Benefit and eligibility provisions are established through negotiations between the City and various unions representing City employees and are renegotiated each two-year bargaining period. The Plan does not issue a publicly available report. At December 31, 2020, 25 active plan members were covered by the benefit terms B. Funding Policy Contribution requirements are also negotiated between the City and union representatives. The City contributes a predetermined portion of the cost of current -year premiums for eligible retired plan members and their spouses based on the employment contract in effect at the time of retirement. For the year ended December 31, 2020, the City's average contribution rate was 6.15 percent of covered -employee payroll. C. 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, consistent with the long-term perspective of the calculations. The City's total OPEB liability of $141,911 was measured as of December 31, 2020, and the total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation as of January 1, 2019. Roll forward procedures were used to roll forward the total OPEB liability to the measurement date. The total OPEB liability in the January 1, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Discount Rate 20 -Year Municipal Bond Yield Inflation Rate Salary Increases Medical Trend Rate 2.12% 2.12% 2.75% 3.25% 7.50% in 2020 decreasing 0.50% per year to ultimate rate of 5.0( The discount rate used to measure the total OPEB liability was 2.12 percent. The plan is not funded. Benefit payments are discounted at the 20 -year municipal bond rate. The equivalent single rate is the discount rate. Mortality rates were based on the RP -2014 White Collar Mortality Tables with MP -2016 Generational Improvement Scale. The actuarial assumptions used in the December 31, 2020 valuation were based on input from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source information as well as for consistency with the other economic assumptions. 72 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 5: Postemployment Benefits Other Than Pensions (Continued) D. Changes in the Total OPEB Liability Total OPEB Liability (a) Balances at December 31, 2019 Changes for the Year: Service cost Interset Differences between expected and actual experience Changes in assumptions or other inputs Benefit payments Net Changes Balances at December 31, 2020 $ 123,097 8,001 3,581 8,005 (773) 18,814 $ 141,911 In 2020, there were no benefit changes. E. Sensitivity of the Total OPEB Liability The following is designed to outline the City's total OPEB liability, and what the OPEB liability would be if it were calculated using a discount rate that is 1 -percentage point lower (1.12 percent) or 1 -percentage -point higher (3.12 percent) than the current discount rate. 1 Percent Decrease (1.12%) Current (2.12%) 1 Percent Increase (3.12%) $ 155,139 $ 141,911 $ 129,734 The following is also designed to outline the City's total OPEB liability, and what the OPEB liability would be if it were calculated using a Healthcare Cost Trent Rates that is 1 -percentage point lower (7.5 percent decreasing to 6.00 percent) or 1 -percentage -point higher (7.5 percent increasing to 8.50 percent) than the current discount rate. 1 Percent Decrease (6% Decreasing to 4%) Healthcare Cost Trend Rates (7.5% Decreasing to 5%) 1 Percent Increase (8.5% Decreasing to 6%) $ 123,139 $ 141,911 $ 164,182 73 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 5: Postemployment Benefits Other Than Pensions (Continued) F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2020, the City recognized OPEB expense of $12,236. At December 31, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Experience $ 6,904 $ Changes in Actuarial Assumptions 14,125 (4,720) Total $ 21,029 $ (4,720) December 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended December 31: 2021 $ 1,428 2022 1,428 2023 1,428 2024 1,428 2025 1,428 Thereafter 9,169 Note 6: Other Information A. 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 for which the City carries insurance. The City obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT), which is a risk sharing pool with approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self-sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City's coverage in any of the past three fiscal years. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City's management is not aware of any incurred but not reported claims. B. Legal Debt Margin In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of 3 percent of the market value of taxable property within the City. The City has no debt applicable to this limit at year end. C. Tax Increment Districts The City's tax increment district is subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which would have a material effect on the financial statements. 74 City of Medina, Minnesota Notes to the Financial Statements December 31, 2020 Note 7: Jointly Governed Organizations Pioneer - Sarah Creek Watershed Management Commission The Cities of Independence, Loretto, Maple Plain, Medina, Minnetrista, and Greenfield, Minnesota, as equal participants, are the members of the Pioneer - Sarah Creek Watershed Management Commission (the "Commission"). The purpose of the Commission is to preserve and use natural water management programs required by Minnesota Statutes 103B.201 to 1036.251. The Commission is governed by a board comprised of one representative and one alternate of each Member City. The City remitted $30,335 to the commission in 2020. The contribution as reported in the City's Water Resource Department fund. Complete financial statements for the Commission can be obtained at the City's Municipal Center. Note 8: Conduit Debt Obligations The City has issued revenue obligations to finance and refinance, in whole or in part, the cost of the acquisition, construction, reconstruction, improvement The financing authorized the issuance of $7,000,000. The City hereby authorizes the Note to be issued as a "tax-exempt bond" the interest on which is not includable in gross income for federal and State of Minnesota income tax purposes. At December 31, 2019, the balance of the bond outstanding was $5,282,796. Neither, the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. The City has issued revenue bonds to provide financial assistance to private -sector entities to finance multifamily housing developments. The financing authorized the issuance not to exceed $10,000,000. The City hereby authorizes the Note to be issued as a "tax-exempt bond" the interest on which is not includable in gross income for federal and State of Minnesota income tax purposes. At December 31, 2019, the balance of the bond outstanding was $10,000,000. Neither, the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Note 9: COVID-19 On January 30, 2020, the World Health Organization ("WHO") announced a global health emergency because of a new strain of coronavirus ("COVID-19") and the risks to the international community as virus spreads globally. On March 11, 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. In response to the pandemic, the State of Minnesota has issued stay-at-home orders and other measures aimed at slowing the spread of the coronavirus. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. Due to the rapid development and fluidity of this situation, the City cannot determine the ultimate impact that the COVID-19 pandemic will have on its financial condition, liquidity, and future revenue collection, and therefore any prediction as to the ultimate impact on the City's financial condition, liquidity, and future results of its revenue collections is uncertain. 75 THIS PAGE IS LEFT BLANK INTENTIONALLY 76 REQUIRED SUPPLEMENTARY INFORMATION CITY OF MEDINA MEDINA, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2020 77 City of Medina, Minnesota Required Supplemental Information For the Year Ended December 31, 2020 Schedule of Employer's Share of PERA Net Pension Liability - General Employees Fund Fiscal Year Ending City's Proportion of the Net Pension Liability 06/30/20 06/30/19 06/30/18 06/30/17 06/30/16 06/30/15 0.0167 °A) 0.0168 0.0175 0.0171 0.0178 0.0166 City's Proportionate Share of the Net Pension Liability State's Proportionate Share of the Net Pension Liability Associated with the City Total (b) (a+b) $ 1,001,241 928,834 970,828 1,091,653 1,445,272 860,298 City's Covered Payroll (c) $ 30,848 $ 1,032,089 28,999 957,833 31,891 1,002,719 13,726 1,091,653 18,946 1,464,218 860,298 $ 1,189,024 1,191,702 1,179,495 1,101,593 1,106,840 977,965 City's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll ((a+b)/c) $ 84.2 % 77.9 82.3 99.1 130.6 89.5 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Note: Schedule is intended to show 10 -year trend. Additional years will be reported as they become available. Schedule of Employer's PERA Contributions - General Employees Fund Year Ending 12/31/20 12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 Statutorily Required Contribution (a) Contributions in Relation to the Statutorily Required Contribution (b) Contribution Deficiency (Excess) (a -b ) $ 87,115 $ 87,115 $ 90,945 90,945 88,679 88,679 85,109 85,109 81,610 81,610 77,467 77,467 79.0 80.2 79.5 75.9 68.9 78.2 City's Contributions as Covered a Percentage of Payroll Covered Payroll (c) (b/c) $ 1,161,532 1,212,601 1,182,386 1,134, 782 1,088,133 1,032,893 Note: Schedule is intended to show 10 -year trend. Additional years will be reported as they become available. 78 7.50 % 7.50 7.50 7.50 7.50 7.50 City of Medina, Minnesota Required Supplemental Information (Continued) For the Year Ended December 31, 2020 Notes to the Required Supplementary Information - General Employee Fund Changes in Actuarial Assumptions 2020 - The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assumption was decreased from 3.25% to 3.00%. Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25% less than previous rates. Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter. Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females. The base mortality table for healthy annuitants and employees was changed from the RP -2014 table to the Pub -2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP - 2014 disabled annuitant mortality table to the PUB -2010 General/Teacher disabled annuitant mortality table, with adjustments. The mortality improvement scale was changed from Scale MP -2018 to Scale MP -2019. The assumed spouse age difference was changed from two years older for females to one year older. The assumed number of married male new retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. 2019 - The mortality projection scale was changed from MP -2017 to MP -2018. 2018 - The mortality projection scale was changed from MP -2015 to MP -2017. The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. 2017 - The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non -vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non -vested deferred member liability. The assumed post - retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. 2016 - The assumed post -retirement benefit increase rate was changed from 1.0 percent per year through 2035 and 2.5 percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 7.5 percent. Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. 2015 - The assumed post -retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5 percent per year thereafter to 1.0 percent per year through 2035 and 2.5 percent per year thereafter. 79 City of Medina, Minnesota Required Supplemental Information (Continued) For the Year Ended December 31, 2020 Notes to the Required Supplementary Information - General Employee Fund (Continued) Changes in Plan Provisions 2020 - Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The state's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031 2018 - The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer provisions were repealed. Postretirement benefit increases were changed from 1.00 percent per year with a provision to increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 - The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state's contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031. 2016 - No changes noted 2015 - On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions were revised. 80 City of Medina, Minnesota Required Supplemental Information (Continued) For the Year Ended December 31, 2020 Schedule of Employer's Share of PERA Net Pension Liability - Police and Fire Fund Fiscal Year Ending 06/30/20 06/30/19 06/30/18 06/30/17 06/30/16 06/30/15 City's Proportion of the Net Pension Liability 0.0807 % 0.0838 0.0791 0.0790 0.0870 0.0900 City's Proportionate Share of the Net Pension Liability (a) State's Proportionate Share of the Net Pension Liability Associated with the City (b) $ 1,063,712 $ 892,136 843,125 1,066,594 3,491,461 1,022,611 City's Covered Total Payroll (a+b) (c) $1,063,712 $ 952,165 892,136 892,136 843,125 833,645 1,066,594 813,313 3,491,461 841,198 1,022,611 822,038 City's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll ((a+b)/c) 111.7 % 100.9 101.1 131.1 415.1 124.4 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Note: Schedule is intended to show 10 -year trend. Additional years will be reported as they become available. Schedule of Employer's PERA Contributions - Police and Fire Fund Year Ending 12/31/20 12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 Statutorily Required Contribution (a) Contributions in Relation to the Statutorily Required Contribution (b) Contribution Deficiency (Excess) (a -b) $ 162,488 $ 162,488 $ 152,505 152,505 139,304 139,304 133,772 133,772 131,872 131,872 130,345 130,345 City's Covered Payroll (c) $ 958,628 899,735 859,900 825,751 814,025 804,599 87.2 % 89.3 88.8 85.4 63.9 86.6 Contributions as a Percentage of Covered Payroll (b/c) Note: Schedule is intended to show 10 -year trend. Additional years will be reported as they become available. 81 16.95 °A) 16.20 16.20 16.20 16.20 16.20 City of Medina, Minnesota Required Supplemental Information (Continued) For the Year Ended December 31, 2020 Notes to the Required Supplementary Information - Police and Fire Fund Chan es in Actuarial Assumptions 2020 - The mortality projection scale was changed from MP -2018 to MP -2019. 2019 - The mortality projection scale was changed from MP -2017 to MP -2018. 2018 - The mortality projection scale was changed from MP -2016 to MP -2017. As set by statute, the assumed post - retirement benefit increase was changed from 1.0 percent per year through 2064 and 2.5 percent per year, thereafter, to 1.0 percent for all years, with no trigger. 2017 - Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The Combined Service Annuity (CSA) load was 30 percent for vested and non -vested deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for non -vested members. The base mortality table for healthy annuitants was changed from the RP -2000 fully generational table to the RP -2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP -2016. The base mortality table for disabled annuitants was changed from the RP -2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female members was decreased from 65 percent to 60 percent. Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. The assumed percentage of female members electing joint and survivor annuities was increased. The assumed post -retirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. The single discount rate was changed from 5.6 percent to 7.5 percent. 2016 - The assumed post -retirement benefit increase rate was changed from 1.0 percent per year through 2037 and 2.5 percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 5.6 percent. The assumed future salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. 2015 - The assumed post -retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5 percent per year thereafter to 1.0 percent per year through 2037 and 2.5 percent per year thereafter. 82 City of Medina, Minnesota Required Supplemental Information (Continued) For the Year Ended December 31, 2020 Notes to the Required Supplementary Information - Police and Fire Fund (Continued) Changes in Plan Provisions 2020 - No changes noted 2019 - No changes noted 2018 - As set by statute, the assumed post -retirement benefit increase was changed from 1.0 percent per year through 2064 and 2.5 percent per year, thereafter, to 1.0 percent for all years, with no trigger. An end date of July 1, 2048 was added to the existing $9.0 million state contribution. New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier. Member contributions were changed from 10.80 percent to 11.30 percent of pay, effective January 1, 2019 and 11.80 percent of pay, effective January 1, 2020. Employer contributions were changed from 16.20 percent to 16.95 percent of pay, effective January 1, 2019 and 17.70 percent of pay, effective January 1, 2020. Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 - Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The combined service annuity (CSA) load was 30.00 percent for vested and non -vested, deferred members. The CSA has been changed to 33.00 percent for vested members and 2.00 percent for non -vested members. The base mortality table for healthy annuitants was changed from the RP -2000 fully generational table to the RP -2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP -2016. The base mortality table for disabled annuitants was changed from the RP -2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed termination rates were decreased to 3.00 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female members was decreased from 65.00 percent to 60.00 percent. Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. The assumed percentage of female members electing joint and survivor annuities was increased. The assumed postretirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. The single discount rate was changed from 5.60 percent per annum to 7.50 percent per annum. 2016 - No changes noted. 2015 - The post -retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed, from inflation up to 2.5 percent, to a fixed rate of 2.5 percent. 83 City of Medina, Minnesota Required Supplemental Information (Continued) For the Year Ended December 31, 2020 Schedule of Changes in the City's Total OPEB Liability 2020 2019 2018 Total OPEB Liability Service cost $ 8,001 $ 6,415 $ 6,650 Interest 3,581 4,208 3,467 Differences between expected and actual experience 8,257 - Changes in assumptions 8,005 8,104 (6,427) Benefit payments (773) (729) (1,956 Net Change in Total OPEB Liability 18,814 26,255 1,734 Total OPEB Liability - Beginning Total OPEB Liability - Ending Covered - Employee Payroll 123,097 96,842 95,108 141,911 $ 123,097 $ 96,842 $ 2,100,000 $ 2,000,000 $ 1,900,000 City's total OPEB liability as a percentage of covered employee payroll 6.8 Benefit Changes: In 2020, there were no benefit changes Changes in Assumptions: In 2020, there were no assumptions changes 6.2 % 5.1 % Note: Schedule is intended to show 10 -year trend. Additional years will be reported as they become available. 84 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF MEDINA MEDINA, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2020 85 City of Medina, Minnesota Nonmajor Governmental Funds Combining Balance Sheet December 31, 2020 Assets Cash and temporary investments Receivables Taxes Accounts Special assessments Due from other governments Prepaid items Total Assets Liabilities Accounts payable Due to other funds Due to other governments Unearned revenue Total Liabilities Deferred Inflows of Resources Unavailable revenue - taxes Unavailable revenue - assessments Total Deferred Inflows of Resources Fund Balances Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Special Revenue Capital Projects Total Nonmajor Governmental Funds $ 1,418,244 $ 3,823,267 $ 5,241,511 875 112,347 288,779 6,283 1,346 225 875 112,347 288,779 7,629 225 $ 1,419,815 A 4,231,551 $ 5,651,366 225 192,821 1,226,769 $ 8,914 $ 8,914 117,408 117,408 1,468 1,468 112,347 112,347 240,137 240,137 875 288,779 289,654 1,261,859 407,356 2,097,752 (65,207) 1,419,815 3,701,760 875 288,779 289,654 225 1,454,680 1,634,125 2,097,752 (65,207) 5,121,575 $ 1,419,815 $ 4,231,551 $ 5,651,366 86 City of Medina, Minnesota Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2020 Revenues Taxes Property taxes Tax increments Franchise fees Intergovernmental Charges for services Fines and forfeitures Special assessments Interest on investments Miscellaneous Total Revenues Expenditures Current Public safety Culture and recreation Capital outlay General government Public safety Streets and highways Culture and recreation Economic development Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Proceeds from sale of capital assets Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 87 Special Revenue Capital Projects Total Nonmajor Governmental Funds $ 111,324 $ 310,613 $ 421,937 523,716 523,716 60,506 60,506 1,600 1,600 10,465 387,298 397,763 14,487 - 14,487 166,823 166,823 31,078 94,026 125,104 73,043 _ 73,043 300,903 1,484,076 1,784,979 1,404 46,961 62,798 32,516 151,591 1,190, 775 72,000 19,719 214,525 1,404 46,961 62,798 184,107 1,190,775 91,719 214,525 152,881 1,639,408 1,792,289 148,022 1,451 4,000 (155,332) 18,105 7,389 (612,428) (7,310) 19,556 11,389 (612,428) 5,451 (586,934) (581,483) 153,473 (742,266) (588,793) 1,266,342 4,444,026 5,710,368 $ 1,419,81.5 $ 3„701,760 $ 5,121,575 City of Medina, Minnesota Nonmajor Special Revenue Funds Combining Balance Sheet December 31, 2020 204 226 227 235 Municipal Field Police Environmental Park House Forfeiture Assets Cash and temporary investments Due from other governments Prepaid items $ 519,519 $ 377,848 $ 6,178 $ 236,881 1,346 225 Total Assets _$ 519,744 $ 379,194 $ 6,178 $ 236,881 Fund Balances Nonspendable $ 225 $ $ $ Restricted 5,175 Committed 519,519 374,019 6,178 187,646 49,235 Total Fund Balances $ 519,744 $ 379,194 $ 6,178 $ 236.881 88 236 Police Reserve Equipment $ 17,371 238 German Liberal Cemetery 240 Community Event 250 Cable Franchise Total $ 167,605 $ 23,328 $ 69,514 $ 1,418,244 1,346 225 $ 17,371 $ 167 605 $ 23,328 $ 69.514 $ 1,419,815 $ - $ - $ 17,371 167,605 23,328 $ 225 192,821 69,514 1,226, 769 $ _ 17,371 $ 167,605 $ 235328 $ 69.514 $ 1,419,815 89 City of Medina, Minnesota Nonmajor Special Revenue Funds Combining Statement of Revenue, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2020 204 226 227 235 Municipal Field Police Environmental Park House Forfeiture Revenues Taxes 111,324 $ $ Property $ $ Franchise fees - Charges for services - 14,487 Fines and forfeitures 165 5,548 Interest on investments 12,302 7,234 Miscellaneous 8,633 63,316 894 — Total Revenues 20,935 181,874 1,059 20,035 Expenditures Current - 212 Public safety 2 919 - Culture and recreation 28,602 Capital outlay - 32,516 Public safety 72,000 Culture and recreation Total Expenditures 28,602 72,000 2,919 32,728 Excess (Deficiency) of Revenues Over (Under) Expenditures (7,6671 109,874 , (1,860) (12,693) Other Financing Sources (Uses) 1,451 Sale of capital assets Transfers in 1,451 Total Other Financing Sources (Uses) _ (7,667) 109,874 (1,860) (11,242) Net Change in Fund Balances Fund Balances, January 1 527,411 269,320 8,038 248,123 Fund Balances, December 31 $ 519,744 $ 379,194 $ 6,178 $ 236,881 90 236 238 240 250 Police Reserve German Liberal Community Cable Equipment Cemetery Event Franchise Total 10,465 424 3,817 200 624 14,282 1,192 1,976 1,192 1,976 $ $ 111,324 60,506 60,506 10,465 14,487 463 1,125 31,078 73,043 463 61,631 300,903 1,404 13,464 46,961 32,516 72,000 13,464 152,881 568} 12,306 463 48,167 148,022 1,451 _ 4,000 4,000 4,000 5,451 (568) 12,306 4,463 48,167 153,473 17,939 155,299 18,865 21,347 1,266,342 17,371 $ 167,605 $ 23,328 $ 69,514 p 1,419,815 91 City of Medina, Minnesota Nonmajor Capital Projects Funds Combining Balance Sheet December 31, 2020 225 401 402 406 General Water Tax Park Capital Capital Increment Dedication Improvement Improvement 1-9 Assets Cash and temporary investments $ 1,669,304 $ 262,126 $ 1,510,364 $ 52,135 Receivables Taxes 70,700 Accounts 41,647 Special assessments 1,534 Due from other governments Total Assets $ 1,710,951 $ 262,126 1,581 04 $ 53,669 Liabilities - $ $ Accounts payable $ 89 $ 117,408 Due to other funds - - 1,468 Due to other governments 70,700 - Unearned revenue 41,647 - Total Liabilities 41,736 70,700 118,876 Deferred Inflows of Resources Unavailable revenue - assessments Fund Balances Restricted 1,261,859 Committed 407,356 Assigned 262,126 1,510,364 (65,207) Unassigned Total Fund Balances 1,669,215 262,126 1,510,364 (65,207) Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 1,710,951 $ 262,126 $ 1,581,064 $ 53,669 92 411 420 Equipment Road Replacement Improvement Total $ 21,296 $ 308,042 $ 3,823,267 3,755 875 875 112,347 288,779 288,779 994 6,283 $ 25051 $ 598,690 $ 4,231551 $ - $ 8,825 $ 8,914 117,408 1,468 112,347 8,825 240,137 288,779 288,779 1,261,859 407,356 25,051 300,211 2,097,752 (65,207) 25,051 300,211 3,701,760 $ 25,051_ $ 598,690 $ 4,231,551 93 City of Medina, Minnesota Nonmajor Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2020 225 401 402 406 General Water Tax Park Capital Capital Increment Dedication Improvement Improvement 1-9 Revenues Taxes Property taxes Tax increments Intergovernmental Charges for services Special assessments Interest on investments Total Revenues Expenditures Capital outlay General government Public safety Streets and highways Culture and recreation Economic development Total Expenditures $ $ 42,888 38,367 81,255 19,719 19,719 Excess (Deficiency) of Revenues Over (Under) Expenditures 61,536 Other Financing Sources (Uses) Proceeds from sale of capital assets Transfers in Transfer out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 61,536 1,607,679 6,955 6,955 62,798 62,798 (55,843) $ - $ 344,410 38,321 382,731 523,716 523,716 214,525 214,525 382,731 309,191 (356,028) (256,400) (356,028) (256,400) (55,843) 26,703 52,791 317,969 1,483,661 (117,998) $ 1,669,215 $ 262 126 $ 1,510,364 $ 65 207 94 411 420 Equipment Road Replacement Im rovement Total $ 310,613 1,600 166,823 283 10,100 $ 310,613 523,716 1,600 387,298 166,823 94,026 312,496 176,923 1,484,076 - 62,798 151,591 - 151,591 255,140 935,635 1,190, 775 19,719 214,525 406,731 (94,235) 18,105 18,105 (76,130) 101,181 935,635 1,639,408 (758,712) (155,332) 7,389 7,389 18,105 7,389 (612,428) (586,934) (751,323) (742,266) 1,051,534 4,444,026 $_ 2.5,051 $ 300,211 $ 3,701,760 95 City of Medina, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued on the Following Pages) For the Year Ended December 31, 2020 (With Comparative Actual Amounts for the Year Ended December 31, 2019) 2020 2019 Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues Taxes Property taxes Licenses and permits $ 3,509,452 $ 3,509,452 $ 3,435,852 $ (73,600) $ 3,367,192 283,369 283,369 492,055 208,686 418,547 Intergovernmental Federal 27,000 27,000 512,132 485,132 22,576 State Local government aid - - 27,528 27,528 - Property tax credits 4,000 4,000 3,115 (885) 3,812 Police state aid 90,000 90,000 104,669 14,669 102,586 Fire state aid 50,000 50,000 48,116 (1,884) 49,886 PERAaid 1,773 1,773 - (1,773) 1,773 Other grants and aids 103,000 103,000 116,972 13,972 101,981 County Other grants and aids 13,000 13,000 12,107 (893) 12,853 Total intergovernmental 288,773 288,773 824,639 535,866 295,467 Charges for services General government 24,000 24,000 21,972 (2,028) 24,878 Public safety 179,987 179,987 292,780 112,793 256,690 Public works 4,400 4,400 3,465 (935) 4,777 Culture and recreation 37,000 37,000 6,394 (30,606) 48,744 Total charges for services 245,387 245,387 324,611 79,224 335,089 Fines and forfeitures 95,000 95,000 77,158 (17,842) 98,187 Special assessments 439 439 444 Interest on investments 30,000 30,000 93,011 63,011 116,324 Miscellaneous Contributions and donations 1,000 1,000 12,038 11,038 15,358 Other 133,359 133,359 198,120 64,761 91,896 Total miscellaneous 134,359 134,359 210,158 75,799 107,254 Total Revenues 4,586,340 4,586,340 5,457,923 _ 871,583 4,738,504 96 City of Medina, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued) For the Year Ended December 31, 2020 (With Comparative Actual Amounts for the Year Ended December 31, 2019) Expenditures Current General government Mayor and council Personal services Other services and charges Total mayor and council Administration Personal services Supplies Other services and charges Total administration Elections Personal services Supplies Other services and charges Total elections Assessing Supplies Other services and charges Total assessing Planning and zoning Personal services Supplies Other services and charges Total planning and zoning PW/PD facility Supplies Other services and changes Total PW/PD facility Budgeted Amounts 2020 Original Final $ 17,494 8,050 $ 17,494 8,050 Actual Amounts 2019 Variance with Actual Final Budget Amounts $ 17,224 $ 8,301 25,544 25,544 25,525 547,890 5,100 109,390 662,380 662,380 667,971 547,890 5,100 109,390 531,101 3,090 133,780 8,550 1,000 5,700 8,550 1,000 5,700 15,250 15,250 98,066 98,066 140,682 750 57,600 199,032 77,500 77,500 98,066 98,066 140,682 750 57,600 199,032 270 $ 17,494 (251) 8,770 19 26,264 16,789 2,010 (24,390) (5,591) 26,816 (18,266) 773 227 7,229 (1,529) 34,818 (19,568) 1,378 503,948 3,172 225,074 732,194 298 1,080 104,751 104,751 137,941 1,559 23,424 162,924 824 77,500 76,704 (6,685) (6,685) 2,741 (809) 34,176 36,108 (824) 101,144 101,144 133,991 (140) 50,642 184,493 814 796 71,967 77,500 77,528 (28) 72,781 97 City of Medina, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued) For the Year Ended December 31, 2020 (With Comparative Actual Amounts for the Year Ended December 31, 2019) 2020 2019 Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures (Continued) Current (continued) General government (continued) Other general government Supplies $ 21,300 $ Other services and changes 128,404 Total other general government 149,704 Total general government 128,404 112,432 149,704 131,528 18,176 130,996 21,300 $ 19,096 $ 2,204 $ 22,630 15,972 108,366 1,227,476 1,227,476 1,205,045 22,431 1,249,250 Public safety Police Personal services 1,511,542 1,511,542 1,620,548 Supplies 61,068 61,068 194,309 Other services and charges 183,800 183,800 159,964 Total police Building inspection Personal services Supplies Other services and charges Total building inspection 330,664 330,664 425,195 (94,531j 339,171 (109,006) (133,241) 23,836 1,436,687 62,943 161,921 1,756,410 1 756,410 1,974,821 _____(218,411) 1,661,551 Fire Other services and charges Total public safety 170,259 170,259 153,218 17,041 156,494 750 750 230 520 159,655 159,655 271,747 (112,092) 182,677 419,111 419,111 453,224 (34,113 425,597 2,506,185 2,506,185 2,853,240 (347,055) 2,426,319 Streets and highways Streets Personal services 298,971 298,971 283,691 15,280 361,589 Supplies 244,580 244,580 176,781 67,799 214,190 Other services and charges 207,850 207,850 179,645 28,205 176,648 Total streets and highways 751,401 751 401 640,117 111,284 752,427 Sanitation and recycling Personal services 12,156 12,156 12,065 91 11,222 Supplies 8,395 8,395 320 8,075 566 Other services and charges 5,450 5,450 1,415 4,035 3,245 Total sanitation and recycling 26,001 26,001 13,800 12,201 15,033 98 Expenditures (Continued) City of Medina, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued) For the Year Ended December 31, 2020 (With Comparative Actual Amounts for the Year Ended December 31, 2019) 2020 2019 Budgeted Amounts Actual Variance with Actual Original Final Amounts _Final Bud ecett Amounts Current (continued) Culture and recreation Personal services $ 79,806 $ 79,806 $ 78,753 $ 1,053 $ 96,534 Supplies 34,520 34,520 11,733 22,787 10,385 Other services and charges 120,855 120,855 114,673 6,182 116,038 Total culture and recreation 235,181 235,181 205,159 30,022 222,957 Economic development Other services and charges 56,880 56,880 56,880 Total Current 4,803,124 4,803,124 4,917,361 (114,237) 4,665,986 Capital outlay Streets and highways - 376,815 (376,815) Culture and recreation 18,000 - Total Capital Outlay Total Expenditures 376,815 (376,815) 18,000 4,803,124 4,803,124 5,294,176 (491,052) 4,683,986 Excess (Deficiency) of Revenues Over (Under) Expenditures (216,784) (216,7841. 163,747 380,531 54,518 Other Financing Sources (Uses) Transfers in 220,784 220,784 220,784 213,573 Transfers out (4,000) _ 0,000) (4,000) (404,000) Total Other Financing Sources (Uses) 216,784 216,784 216,784 (190,427) Net Change in Fund Balances 380,531 380,531 (135,909) Fund Balances, January 1 3,126,401 3,126,401 3,126,401 3,262,310 Fund Balances, December31 $ 3,126,401 $ 3,126,401 $ 3,506,932 $ 380,531 $ 3,126,401 99 City of Medina, Minnesota Debt Service Funds Combining Balance Sheet December 31, 2020 Assets Cash and temporary investments Receivables Taxes Special assessments Due from other governments Total Assets Liabilities Due to other funds Deferred Inflows of Resources Unavailable revenue - taxes Unavailable revenue - special assessments Total Deferred Inflows of Resources Fund Balances Restricted for debt service 312 G.O. Improvement Bonds 2010A 316 Hunter North Improvement Bonds 2011B (509) 1,699 721 319 G.O. Capital Improvement Bonds 2012A $ 5,350,833 7,313 2,929 1„911 $ 5,361,075 $ 50,000 $ 1,699 7,313 1,699 7,313 (49,788) 5,353,762 320 G.O. Refunding Bonds 2012B $ 11,609 7,602 19,211 $ 90,000 7,602 7,602 (78,391) Total Liabilities, Deferred Inflows of Resources and Fund Balances $ $ 1,911 $ 5,361,075 $ 19,211 100 321 G.O. Refunding Bonds 2013A 322 G.O. Improvement Bonds 2015A 323 G.O. Refunding Bonds 2016A 324 G.O. Improvement Bonds 2017A Total $ 171,808 $ 380,919 $ 41,471 317,525 $ 6,273,656 3,936 1,651 2,113 496,793 23,328 5,565 177,395 $ 885,390 3,936 3,936 173,459 2,113 496,793 498,906 386,484 15,061 708,293 1,236,016 10,866 64,799 $ 1,025,818 $ 7,535,599 23,328 23,328 41,471 708,293 708,293 317,525 $ 140,000 15,061 1,236,016 1,251,077 6,144, 522 $ 177,395 $ 885,390 $ 64,799 $ 1,025,818 $ 7,535.599 101 City of Medina, Minnesota Debt Service Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2020 Revenues Taxes Special assessments Interest on investments Total Revenues Expenditures Debt service Principal Interest and other charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfer in Bond issued Premium on bonds issued Transfer out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 312 G.O. Improvement Bonds 2010A $ 29,382 29,382 60,000 1,640 61,640 316 Hunter North Improvement Bonds 2011B $ 59,709 59,709 295,000 6,513 301,513 (32,258) 5241,804) (7,389) (7,389) (39,647) 39,647 $ 102 (241,804) 192,016 319 G.O. Capital Improvement Bonds 2012A $ 242,735 13,770 256,505 175,000 194,269 369,269 320 G.O. Refunding Bonds 2012B 8,716 8,716 175,000 1.956 176,956 (112,764) (168,240) 60,926 75,000 4,740,000 221,757 5,022,683 75,000 4,909,919 (93,240) 443,843 14,849 (49,788) $ 5,353.762 $ I78,39 _ 321 G.O. Refunding Bonds 2013A $ 75,922 2,500 78,422 150,000 10,620 160,620 (82,198) 34,340 34,340 (47,858) 221,317 322 G.O. Improvement Bonds 2015A 323 G.O. Refunding Bonds 2016A $ 123,899 $ 114,137 5,034 11,838 243,070 11,838 120,000 38,630 158,630 170,000 17,290 187,290 324 G.O. Improvement Bonds 2017A $ 192,551 9,746 Total $ 531,647 327,242 31,050 202,297 889,939 1,210,000 54,964 1,264,964 2,680,882 2,355,000 325,882 84,440 ( 175,452) (1,062,667) (1,790,943) 181,400 351,666 980,000 5,720,000 59,701 281,458 (7,389) 181,400 1,039,701 6,345,735 84,440 5,948 (22,966) 4,554,792 302,044 35,523 340,491 1,589,730 $ 173.459 $ 386,484 $ 41,471 $ 317,525 $ 6,144,522 103 City of Medina, Minnesota Summary Financial Report Revenues and Expenditures For General Operations Governmental Funds For the Years Ended December 31, 2020 and 2019 Percent Total Increase 2020 2019 (Decrease) Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest on investments Miscellaneous Total Revenues Per Capita Expenditures Current General government Public safety Streets and highways Sanitation and recycling Culture and recreation Capital outlay General government Public safety Streets and highways Culture and recreation Economic development Debt service Principal Interest and other Total Expenditures Per Capita Total Long-term Indebtedness Per Capita General Fund Balance - December 31 Per Capita $ 4,973,658 $ 4,602,747 8.1 % 492,055 418,547 17.6 826,239 339,667 143.3 764,313 1,022,894 (25.3) 91,645 220,605 (58.5) 494,504 676,053 (26.9) 320,427 431,793 (25.8) 283,201 817,780 (65.4) $ 8.246,042 $ 8,530,086 (3.3) % $ 1,215 $ 1,283 (5.4) % $ 1,205,045 2,854,644 640,117 13,800 252,120 62,798 184,107 1,567,698 91,719 214,525 2,355,000 325,882 $ 9,767,455 $ 1,439 $ 13,245,000 1,951 $ 1,249,250 2,435,794 752,427 15,033 303,509 13,716 320,274 928,067 81,631 190,872 820,000 238,347 $ 7,34.8.920 $ 1,106 $ 9,880,000 1,487 $ 3,506,932 $ 3,126,401 517 470 (3.5) % 17.2 (14.9) (8.2) (16.9) 357.8 (42.5) 68.9 12.4 12.4 187.2 36.7 32.9 % 30.1 % 34.1 % 31.3 12.2 9.8 The purpose of this report is to provide a summary of financial information concerning the City of Medina to interested citizens. The complete financial statements may be examined at City Hall, 2052 County Road 24, Medina, Minnesota 55340-9790. Questions about this report should be directed to the Finance Director at (763) 473-4643. 104 OTHER REQUIRED REPORT CITY OF MEDINA MEDINA, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2020 105 THIS PAGE IS LEFT BLANK INTENTIONALLY 106 ABDO EICK & MEYERS LLP Crrtifird Public Arrvunurmis & Consultants INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and City Council City of Medina, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the City of Medina, Minnesota (the City), as of and for the year ended December 31, 2020, and the related notes to the financial statements which collectively comprise the City's basic financial statements, and have issued our report thereon dated April 29, 2021. In connection with our audit, nothing came to our attention that caused us to believe that the City of Medina failed to comply with the provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions, insofar as they relate to accounting matters. This report is intended solely for the information and use of those charged with governance and management of the City of Medina and the State Auditor and is not intended to be, and should not be, used by anyone other than these specified parties. UL4rttattdo Lte ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota April 29, 2021 5201 Eden Avenue, Suite 250 Edina, MN 55436 952.835.9090 I Fax 952.835.3261 107 City of Medina, Minnesota Schedule of Findings and Reponses For the Year Ended December 31, 2020 Finding Description 2020-001 Preparation of Financial Statements Condition: As auditors, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Auditing standards require auditors to communicate this situation to the City Council as an internal control deficiency. Ultimately, it is management's responsibility to provide for the preparation of your statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. It is our responsibility to inform you that this deficiency could result in a material misstatement to the financial statements that could have been prevented or detected by your management. Essentially, the auditors cannot be part of your internal control process. Criteria: Internal controls should be in place to provide reasonable assurance over financial reporting. Cause: From a practical standpoint we do both for you at the same time in connection with our audit. This is not unusual for us to do with an organization of your size. Effect: The effectiveness of the internal control system relies on enforcement by management. The effect of deficiencies in internal controls can result in undetected errors in financial reporting. Recommendation: It is the responsibility of the City to make the decision to accept this degree of risk associated with this condition because of cost or other considerations. We have requested management to review a draft of the auditor prepared financials in detail for their accuracy; we have answered any questions they might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification of disclosure in your statements. We are satisfied that the appropriate steps have been taken to provide you with the completed financial statements. While the City is reviewing the financial statements we recommend that the City agree its financial software to the numbers reported in the financial statements. Management Response: The City's management accepts the degree of risk associated with this condition and thoroughly reviews a draft of the financial statements. 108 City of Medina, Minnesota Schedule of Findings and Reponses (Continued) For the Year Ended December 31, 2020 Finding Description 2020-002 Coronavirus Relief Fund Condition: During our Coronavirus Relief Fund (CRF) compliance testing procedures, we reviewed City costs applied to the program as reported to the State of Minnesota and identified questioned costs of $4,224. The questioned expenses were paid November 17, 2020, after the program end date. Criteria: Cause: Effect: The Department of the Treasury Coronavirus Relief Fund program guidance states revenue replacement is not a permissible use of Fund payments. The State of Minnesota required Cities to either spend CRF funds by November 15, 2020 or return any unspent funds by November 20, 2020. The City was aware of the program compliance requirement, however the checks were paid past the deadline due to the date of the City Council meeting date and approval of payments. The City is out of compliance with the CRF program Recommendation: We recommend City staff ensure future expenditures are spent withing the grant period. This may involve considering additional options or modifications to the purchasing policy. Management Response: The City considered the expense paid to the vendor via credit card within the grant spending period. The credit card statement was paid two days after the grant period due to the scheduling of the City Council meeting. The City amended the final report to the State of Minnesota, restating the expenses to remove the election expenses considered past the deadline to eligible public safety expenses that where within the grant period. The State of Minnesota accepted the amended final report. 109 I Chippewa Road – Arrowhead to Mohawk Page 1 of 2 May 18, 2021 Wetland Replacement City Council Meeting MEMORANDUM TO: Mayor Martin and Members of the City Council FROM: Dusty Finke, Planning Director DATE: May 13, 2021 MEETING: May 18, 2021 City Council SUBJ: Chippewa Road – Arrowhead Drive to Mohawk Drive – Wetland Replacement Background The City’s transportation plan identifies the need for the construction of Chippewa Road between Arrowhead Drive and Mohawk Drive. The City completed a study on this corridor in 2019 and established a preferred conceptual layout. There is a large wetland which the street will need to traverse. The City Council granted preliminary plat approval to the Weston Woods development in January 2021. The project includes construction of Chippewa Road as part of the improvements connected with the development. To allow for the construction, the City intended to complete permitting with various agencies related to the wetland impacts and also to pay for the costs of required wetland replacement. Permitting for the street included the US Corps of Engineers, Minnesota Department of Natural Resources, Minnesota Pollution Control Agency, and Elm Creek Watershed. The City of Medina is also the local government unit responsible for implementing the Minnesota Wetland Conservation Act. Construction of the roadway is projected to impact a total of 2.81 acres of the wetland. This includes 0.37 acre of DNR regulated wetlands and 2.44 acre of adjacent wetlands regulated by the Wetland Conservation Act. The City proposes to purchase credits from a wetland replacement bank at a 2:1 ratio to mitigate the wetland impacts. For the sake of the Wetland Conservation Act Replacement Plan, the City is both the applicant and the decision-making agency. As the regulatory authority, the City is advised by a Technical Evaluation Panel (TEP) which includes representatives from all the relevant agencies. The recommended decision accounts for the comments of the TEP to the extent possible. The primary comment from the TEP was a desire that ½ of the credits be purchased from a bank in Hennepin County. The City has secured just under ½ of the credits (2.25 acres) from a Hennepin County bank, but was not able to find additional credits from Hennepin County. Additional credits are available in Anoka County, a downstream watershed. Review by other agencies is still underway, but at this time staff has not received comments which would suggest the projected impacts and replacement will not be approved. Agenda Item # 8A Chippewa Road – Arrowhead to Mohawk Page 2 of 2 May 18, 2021 Wetland Replacement City Council Meeting Replacement Costs The cost of the wetland credits plus required fees is projected to be approximately $615,000. The City estimated $575,000-$650,000 for wetland replacement costs during the Chippewa Road Study and review of the Weston Woods development. In terms of funding the replacement costs, staff has identified a couple of options. The City Council does not need to decide how to finance the costs at this time, but staff wanted to provide the options: 1) Road Improvement Fund – Current balance: $917,000 2) Road Improvement Fund; consider issuing bonds 3) Road Improvement Fund + Developer contribution (in exchange for water fee reduction, see below) The Weston Woods development proposes to install a watermain between Arrowhead Drive and Mohawk Drive in addition to the roadway. The developer proposes to construct this at their cost because it is infrastructure necessary to support the Comprehensive Plan Amendment to allow development earlier than 2025. This will remove the watermain as a future City cost. Because the City’s connection fees were established based upon the assumption that the City would need to contribute to this cost, there is an opportunity to provide water connection fee credits to the developer if they provide funds towards replacement. This would be documented in the development agreement upon final plat review. The City’s CIP currently includes $400,000 for the watermain construction project. Recommended Actions 1) Move to authorize payment of wetland replacement costs related to the Chippewa Road Extension project. 2) Move to approve the Wetland Conservation Act Replacement Plan application for the Chippewa Road Extension Project. Bank ID County Acres Cost 1649 Hennepin 2.25 250,186.50 1664 Anoka 3.37 364,447.98 5.62 $614,634.48 https://medinamn.sharepoint.com/Shared Documents/Active Packets/CC PACKET - MAY 18/CA Approved/8A - Engineer memo - Medina Mayor & CC - Chippewa Road Extension NOD - 051021.docx 54 0 G A T E W A Y B L V D | BU R N S V I L L E , M N | 55 3 3 7 | 95 2 . 7 3 7 . 4 6 6 0 | WS B E N G . C O M The image part with relationship ID rId1 was not found in the file. Memorandum To: Honorable Mayor Martin and Medina City Council Members From: Alison Harwood, WSB Date: May 10, 2021 Re: Chippewa Road Extension Project Replacement Plan City Project No. WR-21-147 WSB Project No. 17510-000 The Chippewa Road Extension project consists of the extension of Chippewa Road by approximately 0.5 mile from its current termini at Mohawk Drive to Arrowhead Drive. The applicant proposes 2.44 acre of permanent impact to two WCA-regulated wetlands for construction of the roadway. Replacement for permanent impacts is proposed at a 2:1 ratio through purchase of wetland banking credits. To replace for the impacts to WCA-regulated wetlands, 4.88 acres of wetland credit will be purchased from two banks: 2.25 acres from Bank No. 1649 located in Hennepin County and 2.63 acres from Bank No. 1664 located in Anoka County. Both banks are located within Major Watershed 20 and Bank Service Area 7. An additional 0.74 acre of credit will be purchased to offset DNR Public Water impacts. The application was noticed to the Wetland Conservation Act Technical Evaluation Panel on April 6, 2021. Comments were allowed until April 30, 2021. Members of the TEP (LGU, Hennepin Conservation District, Elm Creek Watershed District, DNR, and BWSR) met on April 28, 2021 to discuss the replacement plan. One formal comment was received from Hennepin County requesting at least ½ of the replacement credits come from within Hennepin County. The City responded by obtaining 2.25 acres of credit from a bank within Hennepin County. These were the only USACE-approved credits within the county. The remaining credit will come from a bank in Anoka County. On behalf of the City of Medina, Local Government Unit for the Wetland Conservation Act, I recommend that the City Council approves the wetland replacement plan for the Chippewa Road Extension project. A Notice of Decision is attached for review. BWSR NOD Form – November 5, 2019 1 Minnesota Wetland Conservation Act Notice of Decision Local Government Unit: City of Medina County: Hennepin Applicant Name: City of Medina (Steve Scherer) Applicant Representative: WSB (Dustin Simonson) Project Name: Chippewa Road Extension LGU Project No. (if any): 17510 Date Complete Application Received by LGU: April 6, 2021 Date of LGU Decision: May 18, 2021 Date this Notice was Sent: WCA Decision Type - check all that apply ☐Wetland Boundary/Type ☐Sequencing ☒Replacement Plan ☐Bank Plan (not credit purchase) ☐No-Loss (8420.0415) ☐Exemption (8420.0420) Part: ☐ A ☐ B ☐ C ☐ D ☐ E ☐ F ☐ G ☐ H Subpart: ☐ 2 ☐ 3 ☐ 4 ☐ 5 ☐ 6 ☐ 7 ☐ 8 ☐ 9 Replacement Plan Impacts (replacement plan decisions only) Total WCA Wetland Impact Area: 2.44 acre permanent Wetland Replacement Type: ☐ Project Specific Credits: ☒ Bank Credits: 4.88 acre Bank Account Number(s): 1649 and 1664 Technical Evaluation Panel Findings and Recommendations (attach if any) ☒ Approve ☐ Approve w/Conditions ☐ Deny ☐ No TEP Recommendation LGU Decision ☒ Approved with Conditions (specify below)1 ☐ Approved1 ☐ Denied List Conditions: Confirmation of withdrawal of wetland credits Decision-Maker for this Application: ☐ Staff ☒ Governing Board/Council ☐ Other: Decision is valid for: ☒ 5 years (default) ☐ Other (specify): 1 Wetland Replacement Plan approval is not valid until BWSR confirms the withdrawal of any required wetland bank credits. For project- specific replacement a financial assurance per MN Rule 8420.0522, Subp. 9 and evidence that all required forms have been recorded on the title of the property on which the replacement wetland is located must be provided to the LGU for the approval to be valid. LGU Findings – Attach document(s) and/or insert narrative providing the basis for the LGU decision1. ☐ Attachment(s) (specify): Click here to enter text. ☒ Summary: The City of Medina submitted a replacement plan application for the Chippewa Road Extension project. The project proposes 2.44 acres of permanent fill to two WCA-regulated wetlands within the project area. Mitigation is proposed via purchase of wetland bank credits at a 2:1 ratio. The TEP reviewed the application on April 28, 2021. One comment was received from Hennepin County requesting at least ½ of the replacement credits come from within Hennepin County. The City responded by obtaining 2.25 acres of credit from a bank within Hennepin County. These were the only USACE-approved credits within the county. The remaining credit will come from a bank in Anoka County. Medina City Council approved the replacement plan at their May 18, 2021 Council meeting. 1 Findings must consider any TEP recommendations. The image part with relationship ID rId8 was not found in the file. BWSR NOD Form – November 5, 2019 2 Attached Project Documents ☒ Site Location Map ☐ Project Plan(s)/Descriptions/Reports (specify): Appeals of LGU Decisions If you wish to appeal this decision, you must provide a written request within 30 calendar days of the date you received the notice. All appeals must be submitted to the Board of Water and Soil Resources Executive Director along with a check payable to BWSR for $500 unless the LGU has adopted a local appeal process as identified below. The check must be sent by mail and the written request to appeal can be submitted by mail or e-mail. The appeal should include a copy of this notice, name and contact information of appellant(s) and their representatives (if applicable), a statement clarifying the intent to appeal and supporting information as to why the decision is in error. Send to: Appeals & Regulatory Compliance Coordinator Minnesota Board of Water & Soils Resources 520 Lafayette Road North St. Paul, MN 55155 travis.germundson@state.mn.us Does the LGU have a local appeal process applicable to this decision? ☒ Yes1 ☐ No 1If yes, all appeals must first be considered via the local appeals process. Local Appeals Submittal Requirements (LGU must describe how to appeal, submittal requirements, fees, etc. as applicable) Send petition and $500 to: City of Medina, 2052 County Road 24, Medina, MN 55340 Notice Distribution (include name) Required on all notices: ☒ SWCD TEP Member: Stacey Lijewski ☒ BWSR TEP Member: Ben Carlson ☐ LGU TEP Member (if different than LGU contact): ☒ DNR Representative: Lucas Youngsma, Melissa Collins ☒ Watershed District or Watershed Mgmt. Org.: Elm Creek Watershed District ☒ Applicant (notice only): Steve Scherer☒ Agent/Consultant (notice only): WSB (Dustin Simonson) Optional or As Applicable: ☒ Corps of Engineers: Eric White ☐ BWSR Wetland Mitigation Coordinator (required for bank plan applications only): ☐ Members of the Public (notice only): ☒ Other: Lisa DeMars, City of Medina; Dusty Finke, City of Medina Signature: Date: This notice and accompanying application materials may be sent electronically or by mail. The LGU may opt to send a summary of the application to members of the public upon request per 8420.0255, Subp. 3. 1 ME230-1A-721036.v1 Kennedy Fifth Street Towers 150 South Fifth Street, Suite 700 Minneapolis MN 55402-1299 (612) 337-9300 telephone (612) 337-9310 fax http://www.kennedy-graven.com Affirmative Action, Equal Opportunity Employer Graven C H A R T E R E D MEMORANDUM TO: Honorable Mayor and Council Members FROM: Ron Batty, city attorney DATE: May 13, 2021 RE: Terminating Local Emergency and Returning to In-Person Meetings This memo outlines matters the city should take into consideration when determining when and how to end the local emergency and transition back to in-person meetings. On May 6, 2021, Governor Walz signed Executive Order 21-21: Safely Sunsetting COVID-19 Public Health Restrictions. EO 21-21 provides the anticipated timeline for sunsetting COVID-19 restrictions, including most capacity restrictions by May 28, and almost all other restrictions by July 1 or when 70% of Minnesotans ages 16 or older have received at least one dose of a COVID-19 vaccine. It is important to note that Governor Walz has not announced an end date for the statewide emergency and is unlikely to do so until he decides how to wind down the remaining emergency regulations, such as the eviction moratorium. Nothing in EO 21-21 requires the city to end its local emergency or return to in-person meetings. LOCAL EMERGENCY Medina’s local emergency is not directly tied to the statewide emergency and therefore will need to be terminated independently. Mayor Martin issued Mayoral Declaration No. 2020-1 declaring a local emergency on March 16, 2020. The following day the city council extended the local emergency until further action by the city council. The continuation of the local emergency is within the discretion of the city council. The decision to terminate a local emergency should be based on the factors used to justify the initial declaration. Additionally, the city will want to consider the effects of terminating the local emergency, including the impact to mutual aid agreements and emergency operations plans, and any emergency regulations, such as administrative flexibility, enacted by the city based on the local emergency. REMOTE MEETINGS Minn. Stat. 13D.021 allows cities to conduct public meetings entirely remotely when an authorized official (generally the mayor) determines that an in-person meeting or a meeting conducted under Minn. Stat. 13D.02.1 is not practical or prudent because of a health pandemic or a local or statewide emergency declared under Minn. Stat. Ch. 12. On March 16, 2020 Mayor Martin issued a Statement and Determination Regarding Conducting 1 Minn. Stat. 13D.02 allows entities to conduct public meetings with members participating remotely. This includes governing bodies (e.g., city council or EDA) and any committee, subcommittee, board, department or commission of a public body. It is a tool that is always available, but members participating from remote locations must generally make that location open to the public. However, two new exceptions allow participation from a location that is not accessible to the public: (i) an unlimited number of times from December 31, 2020-July 1, 2021 (Laws of Minnesota 2021, chapter 14, section 7) and (ii) three times in a calendar year during a statewide emergency or within 60 days of termination, and a health care professional has advised against attending (Minn. Stat. 13D.02, subd 1(b)). Offices in Minneapolis Saint Paul St. Cloud & Agenda Item #9A 2 ME230-1A-721036.v1 Meetings by Telephone or Other Electronic Means which made the determination that all meetings would be virtual until further notice. To return to in-person meetings, the mayor needs to make a new determination that meetings will no longer be conducted under Minn. Stat. 13D.021 or modify the previous determination to provide for hybrid meetings. This decision belongs to the mayor alone.2 Returning to in-person meetings may occur at any time but must be done when none of the following exists: (i) statewide emergency; (ii) local emergency; or (iii) health pandemic. If both local and statewide emergencies are terminated, the only basis for conducting meetings under Minn. Stat. 13D.021 is the existence of a health pandemic. However, relying on a declared local or statewide emergency is the safer approach because there is no definition in state law of a ‘health pandemic” and no guidance as to whom has the authority to declare one. If and when the mayor makes the determination that virtual meetings are no longer required, all commissions of the city must follow suit. OTHER FACTORS TO CONSIDER Executive Order 20-55: The city should continue to offer to the public the ability to monitor meetings remotely until Executive Order 20-55 is rescinded on July 1 or when Minnesota reaches its vaccination goals. EO 20-55 strongly encourages “at-risk” persons (defined as persons 65 years and older, living in a nursing home or long- term care facility, or any age with certain medical conditions) to stay at home. COVID-19 Preparedness Plans: The city’s COVID-19 Preparedness Plans must be in place until EO 21-21 is rescinded on July 1 or when Minnesota meets it vaccination goals. The city must update its Plan if it changes any practices or procedures, including those related to ending the local emergency or returning to in-person meetings. CONCLUSION With Governor Walz’s announcement of the timeline for sunsetting public health restrictions, the city may want to begin planning how it will end its local emergency and transition back to in-person meetings. As the city adjusts its practices, it will also need to update its COVID-19 Plan accordingly until July 1 or when Minnesota reaches its vaccination goals. The following is a summary of the above: Local Emergency • The local emergency may only be terminated by the city council. • Termination should be based on the same factors used initially to declare the local emergency. • Terminating the local emergency might impact the city’s ability to utilize portions of its emergency operations plan, mutual aid agreements, and any emergency regulations implemented by the city. Conducting Meetings Under Minn. Stat. 13D.021 • May continue until there is no longer a local or statewide emergency or health pandemic. In practice, the city should not rely on there being a health pandemic if no local or statewide emergency is in effect. • The mayor has exclusive authority to determine that meetings will return to being in-person or a hybrid version. • After the determination has been made that meetings will no longer be conducted under Minn. Stat. 13D.021, all commissions must also return to the same form of meetings practiced by the city council. • Until EO 20-55 is rescinded, the city should continue to offer an option for remote participation by the public. 2 The paragraph in Executive Order 21-11 that strongly encourages public meetings be held remotely is set to expire on May 28. However, that paragraph’s expiration has no impact on the city’s ability to conduct meetings remotely. Planning Department Update Page 1 of 2 May 18, 2021 City Council Meeting MEMORANDUM TO: Mayor Martin and Members of the City Council FROM: Dusty Finke, Planning Director DATE: May 13, 2021 SUBJ: Planning Department Updates – May 18, 2021 City Council Meeting Land Use Application Review A) Fortin Site Plan Review – 215 Hamel Road – Connie Fortin has requested a site plan review for construction of a detached garage at 215 Hamel Road. The Uptown Hamel district requires a site plan review for accessory structures greater than 20% of the floor area of the principal structure. The Planning Commission reviewed and recommended approval at the May 11 meeting. Staff intends to present to the City Council on June 1. B) Pioneer Trail Preserve – 2325 Pioneer Tr. – James and Melissa Korin have requested a 3- lot subdivision of a 40-acre parcel. The Planning Commission held a public hearing and recommended approval at the May 11 meeting. Staff intends to present to the City Council on June 1. C) M/I Homes Comprehensive Plan Amendment – 1400 Hamel Road – M/I Home has requested a Comprehensive Plan Amendment to change the future land use from Business to Medium Density Residential and submitted a concept plan review for a potential development of 78 townhomes. The applicant has not completed the application, and a public hearing will be scheduled when complete, potentially at the June 8 meeting. D) Reserve of Medina 3rd Addn Final plat – south of Hackamore Road, east of CR116 – Pulte Homes has requested final plat approval for the final 31 lots in the Reserve of Medina. The City Council adopted a resolution of approval at the May 4 meeting. The applicant is working to meet the conditions of approval in order to begin construction. E) Ditterswind Final Plat – 2032-2052 Holy Name Drive – Tom and Jim Ditter have requested final plat approval of a 5-lot subdivision. The City granted preliminary plat approval during the fall of 2020. The City Council approved at the April 20 meeting. Staff will work with the applicant to prepare the plat for recording before construction begins. F) Holy Name Lake Estates Final Plat – north of County Road 24, northwest of Holy Name Lake - JD Dossier Holdings LLC has requested final plat approval for a six-lot rural subdivision on 90 acres. The City Council granted final plat approval at the March 16 meeting. The developer intends to start construction in July. G) Meadowview Commons 2nd Addition Final Plat – south of Meander Rd, west of Jubert Tr – US Home Corporation (Lennar) has requested final plat approval for development of the remaining 83 townhome lots in the project. The initial 42 townhome lots were approved in November 2020. The plat has been recorded and construction is scheduled to begin shortly. H) Weston Woods Preliminary Plat and PUD General Plan – east of Mohawk Drive, north of Highway 55 – Mark Smith (Mark of Excellence Homes) has requested a Preliminary Plat and PUD General Plan for development of 76 twinhomes, 42 single-family, and 33 townhomes on the Roy and Cavanaugh properties. The City Council adopted documents of approval at the January 5 meeting. Staff is coordinating permitting for construction of Chippewa Road and will await final plat application. I) Cates Ranch Comp Plan Amendment and Rezoning – 2575 and 2590 Cates Ranch Drive – Robert Atkinson has requested a change of the future land use from Future Development Planning Department Update Page 2 of 2 May 18, 2021 City Council Meeting Area to Business, a staging plan amendment to 2020, and a rezoning to Business Park. The application is incomplete for review, and the City has requested additional materials. J) Adam’s Pest Control Site Plan Review, Pre Plat, Rezoning – These projects have been preliminarily approved and the City is awaiting final plat application. K) Johnson ADU CUP, Hamel Brewery, St. Peter and Paul Cemetery – The City Council has adopted resolutions approving these projects, and staff is assisting the applicants with the conditions of approval in order to complete the projects. L) Hamel Haven subdivision – These subdivisions have received final approval. Staff is working with the applicants on the conditions of approval before the plat is recorded. Other Projects A) Floodplain Data updates – The Elm Creek Watershed and Minnehaha Creek Watershed completed watershed-wide analyses to establish base flood elevations for basins over the past years. They have released draft data for review by staff. Staff reviewed and noted a number of instances where the draft flood elevation was substantially higher (upwards of 7 feet higher for Elm Creek along Hamel Road) than previous studies. These elevations may impact property owners related to flood insurance and use of property. Staff raised the concerns and similar concern was raised by the City of Corcoran. Staff will await a response, but intends to have WSB review the model and potentially provide better information depending how the watersheds and DNR respond. B) Diamond Lake Regional Trail – Staff attended an open house on the project and consulted with Three Rivers staff on preparing the summary of the public engagement for Park Commission and City Council review. C) Zoning Enforcement – staff is working with corrections on one property and a second is proceeding to enforcement D) Hackamore Road – staff met with WSB and Corcoran staff related to the Hackamore Road 75% design. WSB intends to present at the May 18 worksession. E) Chippewa Road permitting – The Chippewa Road project has been submitted for review by relevant agencies. Staff intends to present the Wetland Conservation Act Replacement plan application for City Council approval at the May 18 meeting. F) Wolsfeld Woods Ravine Stabilization –WSB has prepared a scope of services to prepare the design for the project. WSB has also consulted with contractors on preliminary costs estimates and has projected that costs are likely significantly higher than estimated by Minnehaha Creek during the grant application. Staff intend to meet with WSB and Minnehaha Creek Watershed to confirm information and strategize on how to proceed. TO: Honorable Mayor and City Council FROM: Jason Nelson, Director of Public Safety DATE: May 13, 2021 RE: Department Updates As the summer months start to get close, we are seeing an uptick in calls for service. I am also noticing this week that it seems as though the morning and evening commutes are busier, and things appear that we are getting back to some form of normalcy. Everyone is healthy, and we are just happy to finally be fully staffed after a year and a half of trying to hire our 11th officer. We are happy to say that we have both our full time and part time administrative assistants working together very well. Nicole Jacobson has been a breath of fresh air and brings to our office a positive attitude and a smiling face every day that she is here. As for the CSO position, Justin Cook will be a great addition as things go forward. We wish Patrick Johnson the best of luck in his police career. We are finishing up our triannual audits with the Bureau of Criminal Apprehension. Administrative Assistant Klaers has been working on this for the past few weeks. We are also working on a 2021 Information Technology Audit for the Bureau of Criminal Apprehension that is being completed by Shawn Larson of Morris Communications and Mike Brocco. I received and approved an event application from the Hamel Lions. With the loosening of the restrictions by Governor Walz last week, they decided to move forward with the Hamel Parade. I met with organizers of the parade this week and they are excited to put on this event for the community. The date will coincide with the Hamel Rodeo as it always does on July 11th. Patrol: Patrol updates 04/28/2021 through 05/11/2021 The following are updates of Patrol Officers between April 28, 2021 and May 11, 2021. Officers issued 25 citations for various traffic offenses, 48 warnings, responded to 1 property damage accident, 10 medicals, 7 traffic/driving complaints, 19 assists to other agencies, 3 welfare checks, and 10 business/residential alarms. MEMORANDUM On 04/28/2021 an officer took a theft report from a residence in the 300 block of Lythrum Lane. A resident reported a package had been stolen after being delivered by the local post office. There have been other reports made in this area of packages being taken after delivery. On 05/03/2021 an officer was dispatched to a pursuit that was headed westbound on Highway 55 from Plymouth. Prior to entering Medina, the suspect vehicle was disabled, and multiple occupants were arrested. Several firearms were recovered from the vehicle as well. Our officer assisted with traffic control until the roadway could be reopened for traffic. On 05/06/2021 officers were dispatched to a domestic in the 400 block of Hamel Road. Upon arrival officers found a female bleeding from the face who said her husband smashed out the car window as she was trying to drive away. Officers made contact with the male who had large lacerations on one of his arms. He said he did not want his wife taking the car as she told him she was going drinking. He said he smashed the window so he could reach in and put the car in park to stop her from leaving, which caused the cuts to his arm. The female refused transport and was found to have superficial cuts from the shattering glass. The male was transported to the hospital to have his arm treated. The case will be forwarded to the Medina Prosecuting Attorney for charging considerations. On 05/07/2021 officers were dispatched to what was reported as a possible vehicle fire in the area of Highway 55 and County Road 101. A passerby reported it appeared a semi-truck may be on fire and witnessed the driver exit the truck with a fire extinguisher. Upon arrival officers made contact with the truck driver who said he was having an engine issue but there was no fire. On 05/07/2021 officers were dispatched to a reported fight at Inn Kahoots Bar. Upon arrival officers learned a patron had gotten into a minor altercation with the bouncer. The bouncer did not want to pursue assault charges and the patron was asked to leave the business. The patron was cited for disorderly conduct. On 05/08/2021 officers worked a traffic detail associated with the Automotorplex car show. Three vehicles were cited for driving 80 mph or more on Highway 55, all of whom had been at the car show. On 05/09/2021 an officer was dispatched to a possible juvenile runaway in the 2600 block of Morningside Road. A parent reported learning their juvenile son was possibly in the process of trying to purchase a bus ticket to go to Washington to meet a girl he had been corresponding with online. Officers were able to ping the juvenile’s phone which showed him to be in the Wayzata area. Wayzata officers checked the area and were able to locate the juvenile who was picked up and brought back home. On 05/11/2021 an officer assisted Hennepin County Sheriff’s Office with the arrest of a domestic assault suspect who was last seen at Lion’s Park in the city of Rockford. The suspect was believed to possibly be combative towards law enforcement. Officers located the subject who was taken into custody without incident and handed over to Hennepin County Sheriff’s Office. Investigations: Investigating a theft from a motor vehicle that was parked near the 700 block of Tower Drive. I was provided surveillance video from a business near the vehicle. The suspect vehicle involved is the same vehicle involved with a business burglary that occurred the following day. Investigation is on- going. A resident found a piece of jewelry in the ditch near the 800 block of Hamel Road. The piece of jewelry is of high value and appears to have been in the ditch for a long period of time. I sent out a crime alert with information about the piece of jewelry to area agencies. Conducted two background checks for solicitor permits. Received a report from the Minnesota Adult Abuse Reporting Center about an address in the city of Medina. I spoke with the reporting party for the incident and learned law enforcement services will not be needed for the residence. There are currently (11) cases assigned to Investigations. 1 TO: City Council, through City Administrator Scott Johnson FROM: Steve Scherer, Public Works Director DATE: May 12, 2021 MEETING: May 18, 2021 SUBJECT: Public Works Update STREETS • Public Works has been filling minor potholes around town. • Derek Reinking and I have been evaluating all of Medina’s streets. One thing for certain is we have some large overlay projects coming up in the near future. • The Hackamore Road 75% plan is complete and in your packet. Acceptance of this report will enable the cities to gain the ROW we need through the development process. • In the June 1st council meeting I will present a draft feasibility report for Shire Drive. The business owners and I have been in contact. So far, all agree the road work is needed. WATER/SEWER/STORMWATER • I have been doing a lot of research on how best to handle the media replacement in the water treatment filters. I have met and consulted with three companies and have two different options. • A valve will be replaced at Polaris this week. This is a service line and the responsibility of the business to repair. Staff will be on hand for the dig. The Wealshire will have to be shut down for a few hours. The work will be completed after the dinner hour. PARKS/TRAILS • Spring Cleanup in the parks is done. Irrigation is on, mowing has begun, and baseball is in full swing. • The Paul Fortin Baseball Field Lighting System Installation proposal is on the consent agenda for your approval. • Public Works has begun the Loram Trail connection. We hope to get the sub cut and base material installed during this nice stretch of weather. I am coordinating the curb installation and paving with other city projects. MEMORANDUM ORDER CHECKS MAY 4, 2021 – MAY 18, 2021 051512 DAMYAN, NATALIA ................................................................... $250.00 051513 LENDSERV - SPRING VALLEY................................................. $150.00 051514 SMITH, JENNIFER .................................................................... $350.00 051515 WSB & ASSOCIATES ........................................................... $59,617.00 051516 ZYLLA, PATRICIA ..................................................................... $500.00 051517 BLUE CROSS BLUE SHIELD OF MN ................................... $38,680.31 051518 BRENNER, MICHELLE .............................................................. $500.00 051519 UMESH JAIN ............................................................................. $850.00 051520 RAUDA MAHFOUZ .................................................................... $150.00 051521 MCLAY, BRIANNA ..................................................................... $500.00 051522 RASMUSSEN, KATHY & MARK ............................................. $1,050.00 051523 ABDO, EICK & MEYERS LLP ................................................. $5,500.00 051524 ADAM'S PEST CONTROL INC .................................................. $115.43 051525 AMERICAN MAILING MACHINES ............................................. $463.03 051526 ASPEN MILLS INC ................................................................. $1,085.84 051527 BAILEY NURSERIES, INC. ..................................................... $9,666.09 051528 BEAUDRY OIL & PROPANE .................................................. $4,770.88 051529 CANVAS SOLUTIONS, INC ....................................................... $260.00 051530 CORE & MAIN LP ................................................................. $11,035.09 051531 ECM PUBLISHERS INC ............................................................ $110.81 051532 FERGUSON ENTERPRISES INC ........................................... $2,939.71 051533 FLAGSHIP RECREATION LLC............................................... $5,701.34 051534 GOPHER STATE ONE CALL .................................................... $356.40 051535 GRAINGER................................................................................ $504.19 051536 HAKANSON ANDERSON ASSOCIATES I ................................ $500.00 051537 HAMEL LUMBER INC ................................................................ $276.36 051538 HAMEL LIONS CLUB ................................................................ $575.00 051539 HENN COUNTY INFO TECH .................................................. $2,289.83 051540 HENN COUNTY SHERIFF........................................................... $25.00 051541 HENN CTY RECORDER/REGISTRAR ........................................ $30.00 051542 JEREDS LAWN CARE INC ................................................... $10,500.00 051543 KD & COMPANY RECYCLING INC ........................................... $218.76 051544 KELLY'S WRECKER SERVICE INC .......................................... $385.50 051545 LANDFORM ............................................................................ $4,025.00 051546 LANO EQUIPMENT INC ............................................................ $223.96 051547 LAW ENFORCEMENT LABOR .................................................. $571.50 051548 LEAGUE OF MN CITIES INS.TRUST ..................................... $2,000.00 051549 LEXISNEXIS RISK DATA MGMT INC .......................................... $54.00 051550 CITY OF MAPLE PLAIN ............................................................ $932.38 051551 MCMA-MN CTY/CO MGMT ASSOC .......................................... $140.40 051552 METROPOLITAN COUNCIL ................................................. $33,322.64 051553 MID AMERICA METER INC ......................................................... $54.00 051554 MINNESOTA STREET WORKS INC ...................................... $5,700.00 051555 MN DEPT OF COMMERCE ....................................................... $364.00 051556 MOTLEY AUTO SERVICE LLC .............................................. $1,411.50 051557 NAPA OF CORCORAN INC ...................................................... $158.48 051558 NUTRIEN AG SOLUTIONS, INC ............................................ $4,580.00 051559 OFFICE DEPOT ........................................................................ $160.28 051560 CITY OF ORONO ................................................................... $1,262.77 051561 CITY OF PLYMOUTH ........................................................... $79,162.96 051562 STREICHER'S ............................................................................. $91.97 051563 SYMBOLARTS .......................................................................... $115.00 051564 TALLEN & BAERTSCHI .......................................................... $3,817.09 051565 TIMESAVER OFFSITE .............................................................. $546.25 051566 VIKING INDUSTRIAL CENTER ................................................... $92.00 051567 WESTSIDE WHOLESALE TIRE ................................................ $432.00 Total Checks $299,124.75 ELECTRONIC PAYMENTS MAY 04, 2021 – MAY 18, 2021 005925E PAYMENT SERVICE NETWORK INC .................................... $1,190.80 005926E CULLIGAN-METRO ..................................................................... $34.40 005927E ELAN FINANCIAL SERVICE .................................................. $4,983.01 005928E FURTHER ................................................................................. $388.81 005929E PR PERA .............................................................................. $18,204.92 005930E PR FED/FICA ....................................................................... $17,127.03 005931E PR MN Deferred Comp ........................................................... $3,590.00 005932E PR STATE OF MINNESOTA .................................................. $3,762.54 005933E CITY OF MEDINA ........................................................................ $23.00 005934E FURTHER .............................................................................. $2,305.20 005935E MN CHILD SUPPORT PAYMENT ............................................. $725.00 005936E PR FED/FICA .............................................................................. $83.38 005937E PR STATE OF MINNESOTA ....................................................... $19.27 005938E CENTURYLINK.......................................................................... $251.33 005939E CIPHER LABORATORIES INC. .............................................. $5,687.24 005940E CULLIGAN-METRO ..................................................................... $78.20 005941E FP MAILING SOL POSTAGE BY PHON ................................. $1,000.00 005942E FRONTIER .................................................................................. $57.74 005943E FURTHER ................................................................................. $309.50 005944E MEDIACOM OF MN LLC ........................................................... $845.79 005945E PAYMENT SERVICE NETWORK INC ....................................... $998.10 Total Electronic Checks $61,665.26 PAYROLL DIRECT DEPOSIT – MAY 12, 2021 0511011 BILLMAN, JACKSON CARROLL ............................................... $672.88 0511012 COOK, JUSTIN W ..................................................................... $184.44 0511013 JOHNSON, PATRICK M. ........................................................... $434.82 0511014 ALBERS, TODD M. .................................................................... $230.87 0511015 ALTENDORF, JENNIFER L. ...................................................... $682.60 0511016 BARNHART, ERIN A. ............................................................. $2,505.32 0511017 BOECKER, KEVIN D. ............................................................. $2,723.79 0511018 CAVANAUGH, JOSEPH ............................................................ $230.87 0511019 CONVERSE, KEITH A. ........................................................... $1,999.45 0511020 DEMARS, LISA ....................................................................... $1,421.33 0511021 DESLAURIES, DEAN ................................................................ $230.87 0511022 DION, DEBRA A. .................................................................... $1,990.75 0511023 ENDE, JOSEPH...................................................................... $1,940.26 0511024 FINKE, DUSTIN D. ................................................................. $2,623.23 0511025 GALLUP, JODI M. ................................................................... $2,206.96 0511026 GLEASON, JOHN M. .............................................................. $1,814.85 0511027 GREGORY, THOMAS ............................................................ $2,005.80 0511028 HALL, DAVID M. ..................................................................... $2,070.42 0511029 HANSON, JUSTIN .................................................................. $2,201.27 0511030 JACOBSON, NICOLE ................................................................ $846.23 0511031 JESSEN, JEREMIAH S. .......................................................... $2,398.09 0511032 JOHNSON, SCOTT T. ............................................................ $2,316.39 0511033 KLAERS, ANNE M. ................................................................. $1,485.11 0511034 LEUER, GREGORY J. ............................................................ $2,071.59 0511035 MARTIN, KATHLEEN M ............................................................ $327.07 0511036 MCGILL, CHRISTOPHER R. .................................................. $1,408.19 0511037 MCKINLEY, JOSHUA D .......................................................... $3,086.37 0511038 NELSON, JASON ................................................................... $2,598.37 0511039 REID, ROBIN ............................................................................. $230.87 0511040 REINKING, DEREK M ............................................................ $2,253.90 0511041 SCHARF, ANDREW ............................................................... $1,721.13 0511042 SCHERER, STEVEN T. .......................................................... $2,367.69 0511043 VINCK, JOHN J ...................................................................... $2,250.42 0511044 VOGEL, NICHOLE ..................................................................... $969.86 0511045 ZUMBUSCH, NICHOLAS P .................................................... $1,801.95 Total Payroll Direct Deposit $56,304.01 PAYROLL MANUAL CHECK – MAY 12, 2021 020448 JOHNSON, PATRICK M. ........................................................... $193.62 Total Payroll Manual Check $193.62