HomeMy Public PortalAbout05.19.2020 City Council Meeting Packet Posted 05/15/2020 Page 1 of 1
AGENDA FOR THE REGULAR MEETING
OF THE MEDINA CITY COUNCIL
Tuesday, May 19, 2020
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 5, 2020 Regular Council Meeting
V. CONSENT AGENDA
A. Resolution Granting Approval of Conditional Use Permit to Christine and James Stetler for
Accessory Structure Over 5,000 Square Feet at 1832 Medina Road
B. Approve First Amendment to Development Agreement between City of Medina and The
Wealshire, LLC
C. Approve Amendment to Upland Buffer Easement Agreement at 3153 Magnolia Drive
D. Resolution Approving and Authorizing Execution of Construction Cooperative Agreement with
Hennepin County for the Arrowhead Drive Railroad Improvement Project
E. Resolution Exhibit E for Grant Agreement to State Transportation Fund Local Road Improvement
Program Grant Terms and Conditions SAP 250-593-001 for the Arrowhead Drive Railroad
Improvement Project
F. Resolution Accepting Bids and Awarding the Contract for the Arrowhead Drive Railroad
Improvement Project
G. Resolution Accepting Resignation of Aaron Amic from the Planning Commission
VI. COMMENTS
A. From Citizens on Items Not on the Agenda
B. Park Commission
C. Planning Commission
VII. PRESENTATIONS
A. Abdo Eick & Meyers – 2019 Annual Financial Report
VIII. NEW BUSINESS
A. Tamarack Drive Corridor/Visioning Study – Concept Review and Update
B. 2020 Meeting & Event Calendar Updates
C. Public Safety COVID-19 Update
IX. CITY ADMINISTRATOR REPORT
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: 491 897 16#
MEMORANDUM
TO: Medina City Council
FROM: Scott Johnson, City Administrator
DATE OF REPORT: May 14, 2020
DATE OF MEETING: May 19, 2020
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: 491 897 16#
V. CONSENT AGENDA
A. Resolution Granting Approval of Conditional Use Permit to Christine and James Stetler
for Accessory Structure Over 5,000 Square Feet at 1832 Medina Road – The City Council
reviewed this request at their May 5th meeting and directed staff to prepare the attached
resolution for approval. Staff recommends approval of the resolution granting a conditional
use permit to Christine and James Stetler at 1832 Medina Road.
See attached resolution.
B. Approve First Amendment to Development Agreement between City of Medina and The
Wealshire, LLC – The Wealshire LLC has applied for permits to construct the 2nd Phase of
its building at 4555 Mohawk Drive. The City Council granted Site Plan Review approval
for this addition when the original building was approved. The City Attorney has drafted
an amendment to the Development Agreement which allows the use of the existing Letter
of Credit to cover the limited site improvements to be constructed with Phase II. The
amendment also establishes a deadline for completion of the site improvements. Staff
recommends approval of the First Amendment to Development Agreement and authorize
the Mayor and City Administrator to execute.
See attached agreement.
C. Approve Amendment to Upland Buffer Easement Agreement at 3153 Magnolia Drive –
The property owner has requested to amend the upland buffer on the property to provide
more space for a deck on the property. The upland buffer is proposed to be “averaged” on
the property, widened in one portion of the lot to make up for the narrower portion. This
averaging is allowed in the City’s wetland protection ordinance. The amended easement
agreement would document the new location. Staff will also be requiring an escrow to
guarantee that the wider portion of the buffer is planted as required. Staff recommends
2
approval of the Amendment to Upland Buffer Easement Agreement and authorize the
Mayor and City Administrator to execute.
See attached agreement.
D. Resolution Approving and Authorizing Execution of Construction Cooperative Agreement
with Hennepin County for the Arrowhead Drive Railroad Improvement Project – There are
two agreements required for the Arrowhead Drive Railroad Improvement Project. The first
is a two-party agreement between the City and Hennepin County that generally addresses
ownership, maintenance, and construction management of the proposed improvements.
Staff recommends adoption of the resolution approving and authorizing execution of this
agreement.
See attached memo, agreement and resolution.
E. Resolution Exhibit E for Grant Agreement to State Transportation Fund Local Road
Improvement Program Grant Terms and Conditions SAP 250-593-001 for the Arrowhead
Drive Railroad Improvement Project – The second agreement that is required for the
Arrowhead Drive Railroad Improvement Project is a three-party agreement between the
City, Hennepin County, and MnDOT which integrates the LRIP funding mechanism and
will allow the City to be reimbursed for project costs with these funds. Staff recommends
adoption of the resolution authorizing this agreement.
See attached agreement and resolution.
F. Resolution Accepting Bids and Awarding the Contract for the Arrowhead Drive Railroad
Improvement Project – Five bids were received with the apparent low bid submitted by
Minger Construction Company, Inc. in the amount of $426,969.10 (still under the LRIP
amount of $450,000). The low bid did come in above the engineer’s estimate of
$354,364.00. The major items that accounted for the increase in cost included mobilization,
railroad protective liability insurance, utility coordination, and storm sewer work. A
summary of the project bid abstract is enclosed. Staff recommends approval of the
resolution accepting bids and awarding the contract.
See attached bid tabulation and resolution.
G. Resolution Accepting Resignation of Aaron Amic from the Planning Commission –
Planning Commissioner Aaron Amic is planning to move out of the City in June and, as a
result, has submitted his resignation from the Planning Commission. Aaron’s resignation
is attached. Staff recommends approval of the resolution accepting his resignation.
See attached memo, letter and resolution.
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VII. PRESENTATIONS
A. Abdo Eick & Meyers – 2019 Annual Financial Report – A representative from Medina’s
auditing firm, Abdo, Eick, and Meyers, will present a report of the 2019 financial
statements at the City Council.
See attached financial report.
Recommended Motion: Accept the 2019 Audit from Abdo, Eick, and Meyers.
VIII. NEW BUSINESS
A. Tamarack Drive Corridor/Visioning Study – Concept Review and Update – Staff requests
input and direction from the City Council on a preferred option and consider an
endorsement of the need for a signal at TH 55. After review, the Council can consider the
following actions:
Recommended Motion #1: to proceed with Concept # as the preferred option, including a
full access with signal at Highway 55.
Recommended Motion # 2: to direct staff to take actions necessary to secure approval from
relevant agencies for the access at Highway 55 and to complete the Tamarack Drive Study.
See attached report.
B. 2020 Meeting & Event Calendar Updates – Due to COVID-19, staff is seeking council
direction on changes to Medina’s 2020 Meeting & Event Calendar. The attached memo
outlines recommendations for Medina Clean-up Day, Night to Unite, and Medina
Celebration Day.
See attached memo and calendar.
Recommended Action:
Discuss feasibility of holding a limited contact Clean-up Day Event
Discuss cancelling Medina Celebration Day in 2020
Adopt updated meeting calendar
C. Public Safety COVID-19 Update – Public Safety Director Jason Nelson will provide an
update at the meeting on COVID-19 and Public Safety.
See attached memo.
XI. APPROVAL TO PAY BILLS
Recommended Motion: Motion to approve the bills, EFT 005511E-005527E for $55,336.49
and order check numbers 050215-050250 for $76,543.78, payroll EFT 0510225-0510258 for
$52,177.99.
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INFORMATION PACKET:
Planning Department Update
Police Department Update
Public Works Department Update
Claims List
Medina City Council Meeting Minutes 1
May 5, 2020
DRAFT 1
2
MEDINA CITY COUNCIL MEETING MINUTES OF MAY 5, 2020 3
4
The City Council of Medina, Minnesota met in regular session on May 5, 2020 at 7:00 5
p.m. in the City Hall Chambers. Mayor Martin presided. 6
7
Martin read a statement explaining that it is not prudent at this time to hold in person 8
meetings because of the health risks of public gatherings due to COVID-19 and 9
therefore this meeting will be held telephonically. 10
11
I. ROLL CALL 12
13
Members present: Albers, Anderson, DesLauriers, Martin, and Pederson. 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 (7:09 p.m.) 23
24
III. ADDITIONS TO THE AGENDA (7:09 p.m.) 25
Johnson stated that staff is requesting to add an Item under New Business, Item C, 26
Public Works Maintenance Technician and Seasonal Position. 27
28
Moved by Martin, seconded by Anderson, to approve the agenda as amended. Motion 29
passed unanimously. 30
31
IV. APPROVAL OF MINUTES (7:10 p.m.) 32
33
A. Approval of the April 21, 2020 Regular City Council Meeting Minutes 34
Martin noted that changes provided by herself and Anderson were circulated prior to the 35
meeting for incorporation. 36
37
Moved by Anderson, seconded by Albers, to approve the April 21, 2020 regular City 38
Council meeting minutes as amended. Motion passed unanimously. 39
40
V. CONSENT AGENDA (7:12 p.m.) 41
42
A. Approve 2019 Annual Report 43
B. Approve Mill and Paving Services Agreement with Omann Brothers, Inc. 44
C. Approve Seal Coating Services Agreement with Pearson Brothers, Inc. 45
D. Approve Services Agreement for Lake Independence Shoreline 46
Stabilization Project with Hantho Outdoor Services 47
E. Approve Ardmore Culvert Replacement Agreement with Burchville 48
Construction, Inc. 49
Moved by Pederson, seconded by Anderson, to approve the consent agenda. Motion 50
passed unanimously. 51
Medina City Council Meeting Minutes 2
May 5, 2020
1
VI. COMMENTS (7:14 p.m.) 2
3
A. Comments from Citizens on Items not on the Agenda 4
There were none. 5
6
B. Park Commission 7
Scherer reported that the park spring cleanup was done the past week with the new 8
contractor and they are doing a good job. He provided an update on the parks including 9
improvements and increased activity. 10
11
Martin asked about social distancing within the parks. 12
13
Scherer reported that typically they are viewing a family with perhaps a neighbor, noting 14
that perhaps two families have decided to become a group. He stated that for the most 15
part people are respecting each other and maintaining space. He noted that as in other 16
locations, some people take it more seriously than others. 17
18
DesLauriers stated that he noticed four people playing basketball together at the park. 19
He stated that he also observed the fence installed to shorten the little league fence, 20
noting that originally, he had concern with parents and children close to the parking lot 21
but now seeing it in place, he believes the setup will work. 22
23
Anderson asked if the City has printed signage encouraging social distancing that could 24
be placed around the parks. 25
26
Scherer stated that they had laminated signs placed near the park equipment. He stated 27
that if desired, staff could place a few additional signs encouraging social distancing. 28
29
C. Planning Commission 30
Finke reported that the Planning Commission will meet the following week to conduct 31
public hearings regarding a request for a two-lot subdivision for property east of City Hall 32
along Medina Road and a request related to setback requirements for garden sheds. 33
34
VII. NEW BUSINESS 35
36
A. Stetler – Conditional Use Permit for Barn at 1832 Medina Road (7:22 p.m.) 37
Finke reported that the applicants are seeking a Conditional Use Permit for an accessory 38
structure of 14,600 square feet which will house an indoor riding arena, barn and staging 39
area. He noted that a CUP is required for accessory structures over 5,000 square feet in 40
size. He reviewed the location of the property, noting that the single-family home on the 41
property is currently under construction. He provided details on pasture and paddocks 42
areas along with the manure management plan. He reviewed the architectural details 43
and proposed materials for the structure. He stated that the Planning Commission held 44
a public hearing, noting that one comment of support was received, and the Commission 45
recommended approval subject to the conditions within the report. 46
47
Pederson commented that it appears that this will be an outstanding looking building. 48
He asked if there will be a requirement for sprinklers to be installed because the size of 49
the building exceeds 12,000 square feet, or whether that requirement is simply for 50
commercial use. 51
Medina City Council Meeting Minutes 3
May 5, 2020
1
Finke stated that this would be subject to building code requirements and review but did 2
not believe that sprinklers would be required for this type of use. 3
4
Pederson commented that he likes the architectural elements and colors proposed. 5
6
Martin commented that she also finds the design aesthetically pleasing. 7
8
Moved by Anderson, seconded by Pederson, to direct staff to prepare a resolution 9
approving the Conditional Use Permit for a barn at 1832 Medina Road per the conditions 10
noted in the staff report. 11
12
A roll call vote was performed: 13
14
Pederson aye 15
Anderson aye 16
DesLauriers aye 17
Albers aye 18
Martin aye 19
20
Motion passed unanimously. 21
22
B. City Attorney Update on Allowing a Return to In-Person Meetings (7:33 23
p.m.) 24
Batty stated that this is a follow up to the short discussion at the last Council meeting as 25
to what it could look like transitioning from the telephone meetings. He noted that his 26
memorandum provided background information on how the City got to this position and 27
what has occurred over the past seven weeks. He stated that the Governor’s Stay at 28
Home Order does not directly relate to public meetings, but the spirit is to prevent people 29
from gathering in large numbers. He stated that the City found that it was not prudent or 30
practical to hold public meetings and that is why the telephone meetings began. He 31
provided details on the Statute that is used to allow meetings to be held telephonically. 32
He noted that if the Local Emergency were ended, if the State Emergency were ended, 33
and if there were no longer a health pandemic, then the City would be forced to hold in 34
person meetings. He explained that it is difficult to say when those things would happen 35
and when COVID-19 will no longer be ruled a pandemic. 36
37
Martin stated that she misses seeing everyone in person but is surprised at how well the 38
telephonic meetings have gone. She stated that members of the public participating 39
have been cordial and courteous. She stated that she would continue to hold telephone 40
meetings until such time it is safe to hold in person meetings. 41
42
Anderson echoed the comments of Martin that he also misses seeing everyone in 43
person. He commented that as well run as the telephone meetings are, it is still better to 44
see people. He stated that the decision will have to be made in the future as the 45
Governor’s Stay at Home Order remains in place. 46
47
Pederson commented that he believes that it is important that the City continue to hold 48
telephonic meetings in order to continue public safety. He commented that as nice as it 49
is to see everyone, he would not want to risk anyone’s health, whether that is the 50
Council or City staff. 51
Medina City Council Meeting Minutes 4
May 5, 2020
1
DesLauriers stated that the decision is moot at this point. He stated that he misses 2
seeing everyone in person and the events that have been canceled, but this method is 3
going well, and the City is still able to accomplish its business. 4
5
Martin stated that she is also missing the City events. 6
7
Albers echoed the comments, noting that the City will remain on a wait and see 8
approach. He agreed that the meetings have been effective in this manner. 9
10
Martin applauded City staff for coordinating these meetings and helping them run 11
smoothly. 12
13
C. Public Works Maintenance Technician and Seasonal Position (7:43 p.m.) 14
Johnson stated that on May 4th the City received a resignation letter from an employee 15
that was hired one week prior. 16
17
Scherer echoed the comments that the employee resigned after just a few days. He 18
stated that the City has previous approval to solicit and bring on the seasonal employee 19
and he would like to bring that employee on board. He stated that he will bring back a 20
request to solicit and fill the maintenance technician position in the future. 21
22
Moved by Martin, seconded by Anderson, to adopt Resolution No. 2020-25 accepting 23
the resignation of Public Works Maintenance Technician Curtis Biegert and to authorize 24
the appointment of Seasonal Maintenance Technician. 25
26
A roll call vote was performed: 27
28
Albers aye 29
DesLauriers aye 30
Anderson aye 31
Pederson aye 32
Martin aye 33
34
Motion passed unanimously. 35
36
VIII. CITY ADMINISTRATOR REPORT (7:46 p.m.) 37
Johnson had nothing further to report. 38
39
IX. MAYOR & CITY COUNCIL REPORTS (7:46 p.m.) 40
Martin stated that she and Johnson will attend a Zoom meeting with Dean Phillips the 41
following day. 42
43
X. APPROVAL TO PAY THE BILLS (7:47 p.m.) 44
Moved by Anderson, seconded by DesLauriers, to approve the bills, EFT 005490E-45
005510E for $97,986.76, order check numbers 050167-050214 for $198,124.37, and 46
payroll EFT 0510198-0510224 for $50,775.35 and payroll check 0020445 for 47
$13,862.67. Motion passed unanimously. 48
49
Martin encouraged everyone to continue to socially distance, wear masks, wash their 50
hands and remain safe and healthy. 51
Medina City Council Meeting Minutes 5
May 5, 2020
1
XI. ADJOURN 2
Moved by Anderson, seconded by Albers, to adjourn the meeting at 7:49 p.m. 3
4
A roll call vote was performed: 5
6
Pederson aye 7
Anderson aye 8
DesLauriers aye 9
Albers aye 10
Martin aye 11
12
Motion passed unanimously. 13
14
15
16
__________________________________ 17
Kathleen Martin, Mayor 18
Attest: 19
20
____________________________________ 21
Jodi M. Gallup, City Clerk 22
Resolution No. 2020-
DATE
Member __________ introduced the following resolution and moved its adoption:
CITY OF MEDINA
RESOLUTION 2020-##
RESOLUTION GRANTING APPROVAL OF CONDITIONAL USE PERMIT TO
CHRISTINE AND JAMES STETLER FOR ACCESSORY STRUCTURE
OVER 5,000 SQUARE FEET
WHEREAS, the city of Medina (the “City”) is a municipal corporation, organized and
existing under the laws of Minnesota; and
WHEREAS, Christine and James Stetler (the “Owners”) own property located at 1832
Medina Road (the “Property”), which is legally described in Exhibit A, attached hereto; and
WHEREAS, on behalf of the Owners, Nor-Son Custom Builders has requested a
conditional use permit for construction of an accessory structure with a footprint size of 14,592
square feet on the Property; and
WHEREAS, Section 825.19 of the City Code states that the City may grant a conditional
use permit to allow for more accessory structures in excess of 5,000 square feet on properties
more than five acres; and
WHEREAS, the Planning Commission held a public hearing and reviewed the requested
conditional use permit on April 14, 2020, heard testimony from the Owners, City staff, and
interested parties, and recommended approval subject to certain conditions; and
WHEREAS, the City Council reviewed the request at the May 5, 2020 meeting,
reviewed the testimony and recommendation of the Planning Commission and took additional
testimony; and
WHEREAS, following such review, the City Council made the following findings:
1) The proposed accessory structures are consistent with the specific requirements for
the conditional use as described in Section 825.19 and 826.98 of the City Code,
subject to the conditions noted in this resolution.
2) The proposed uses are consistent with the general criteria described for conditional
uses in Section 825.39 of the City Code.
Agenda Item # 5A
Resolution No. 2020- 2
DATE
NOW, THEREFORE BE IT RESOLVED, that the City Council of Medina, Minnesota
hereby approves the conditional use permit for the accessory structure noted above, subject to the
following terms and conditions:
1) The Owners shall update plans in a manner approved by the City Engineer to direct
runoff from the accessory structure away from the paddock area.
2) The Owners shall obtain approval from the Elm Creek Watershed Commission.
3) The Owners shall install improvements as indicated on the civil plans received by the
City on 5/1/2020 and architectural plans received 3/20/2020, except as modified by the
conditions herein.
4) The Owners shall meet the requirements of the wetland protection ordinance, including
provisions for recordation of easements, planting of appropriate vegetation and
installation of required signs.
5) The Owners shall execute a stormwater maintenance agreement, in compliance with city
requirements, and maintain stormwater management practices as described in the
agreement.
6) Manure shall be managed in a manner which prevents nuisance and protects water
quality. The Owners shall actively manage the use of pastureland in a manner which
prevents overgrazing and erosion. The Owners shall implement manure and pasture
management plans in conformance with University of Minnesota Extension
guidance. The manure and pasture management shall be subject to periodic review by
city staff.
7) The number of animal units shall not exceed eight unless manure and pasture
management plans are approved by City staff for additional animals. In any event,
animal density on the Property shall not exceed the amount permitted in the Property’s
respective zoning district.
8) The Owners shall pay to the City a fee in the amount sufficient to pay for all costs
associated with the review of the application for the conditional use permit.
Dated: May 19, 2020.
By: ______________________
Kathleen Martin, Mayor
Attest:
By: ___________________________
Jodi M. Gallup, City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
________ and upon vote being taken thereon, the following voted in favor thereof:
And the following voted against same:
Whereupon said resolution was declared duly passed and adopted.
Resolution No. 2020- 3
DATE
EXHIBIT A
Legal Description of the Property
1
FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (the “First
Amendment”) is made this ____ day of _____________, 2020, by and between the city of Medina,
a municipal corporation under the laws of Minnesota (the “City”), and The Wealshire, LLC, a
Minnesota limited liability company (the “Developer”).
WITNESSETH:
WHEREAS, on June 8, 2016, the City and the Developer entered into that certain
development agreement, which was recorded on June 15, 2016 as Document Number A10322639
(the “Agreement”); and
WHEREAS, the Agreement contains the terms and conditions under which the Developer
is allowed to develop the real property legally described as follows:
The East 740 feet of the Southeast Quarter of the Northwest Quarter of Section 3, Township
118 North, Range 23 West, Hennepin County, Minnesota
(the “Property”); and
WHEREAS, the Agreement contemplates that the development of the Property would
occur in two phases and the Developer recently submitted a new building permit application for
the second phase; and
WHEREAS, the original set of Plans, as that term is defined in the Agreement, needs to be
revised due to updated engineering and constructions plans related to the second phase of the
development; and
WHEREAS, the Agreement also needs to reflect an updated cost estimate for the
Improvements based on the recently updated Plans, and further needs to establish a completion
deadline for those Improvements associated with Phase II.
NOW, THEREFORE, in consideration of the covenants and the mutual obligations
Agenda Item # 5B
2
contained herein, the City and the Developer hereby covenant and agree that the following sections
of the Agreement are hereby amended and revised as follows:
Section 1. Section 2a) of the Agreement is hereby deleted in its entirety and replaced
with the following:
2. Plans; Improvements. a) The Developer agrees to develop the Property in accordance
with the City Approvals, as detailed in City ordinance No. 597, and City resolution No. 2016-33,
which ordinance and resolution are hereby incorporated into this Agreement, and to construct all
improvements on the Property in accordance with the approved final engineering and construction
plans dated as of ______________, 2016, and most recently revised on _______________, 2020
(collectively, the “Plans”). The documents which constitute the Plans are those on file with and
approved by the City and are listed on Exhibit B attached hereto. The Plans may not be modified by
the Developer without the prior written approval of the City.
Section 2. Section 5b) of the Agreement is hereby deleted in its entirety and replaced
with the following:
b) Within 30 days after the completion of the Improvements, the Developer shall
supply the City with a complete set of reproducible “as constructed” plans and three complete sets
of paper “as constructed” plans, each prepared in accordance with City standards and in
AutoCADD format based on Hennepin County coordinates. Sanitary sewer, water and stormwater
“as constructed” plans shall also be submitted to the City in GIS format compatible with Arc Map
10.3 in the coordinates and with the attributes directed by the city engineer. Iron monuments must
be installed on the Property in accordance with state law. The Developer’s surveyor shall submit
a written notice to the City certifying that the monuments have been installed. All Improvements
required by this Agreement shall be completed by no later than September 30, 2017, except that
those Improvements identified in the Plans as being part of Phase II shall be completed no later
than June 30, 2021.
Section 3. Exhibit B of the Agreement, which is intended to contain a list of the
documents constituting the Plans, shall be removed from the Agreement in its entirety and replaced
with the new Exhibit B attached hereto.
Section 4. Exhibit F, which contains a site improvement cost estimate prepared by the
city engineer, shall be removed from the Agreement in its entirety and replaced with the new
Exhibit F attached hereto.
Section 5. Except as specifically modified in this First Amendment, all terms and
conditions of the Agreement shall remain the same and in full force and effect.
**************************
3
IN WITNESS WHEREOF, the City and the Developer have caused this First Amendment
to be duly executed in their names and behalves on or as of the date first above written.
CITY OF MEDINA
By: __________________________________
Kathleen Martin, Mayor
By: __________________________________
Scott T. Johnson, City Administrator
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ___ day of __________, 2020,
by Kathleen Martin and Scott T. Johnson, the mayor and city administrator, respectively, of the city
of Medina, a Minnesota municipal corporation, on behalf of the municipal corporation.
____________________________________
Notary Public
4
THE WEALSHIRE, LLC
By__________________________________
Thomas A. Wiskow, Manager
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ___ day of _______________,
2020, by ___________________, the Manager of The Wealshire, LLC, a Minnesota limited liability
company, on behalf of the company.
____________________________________
Notary Public
B-1
EXHIBIT B TO
DEVELOPMENT AGREEMENT
[to be inserted]
F-1
EXHIBIT F TO
DEVELOPMENT AGREEMENT
Site Improvement Cost Estimate
[to be inserted]
1
AMENDMENT TO UPLAND BUFFER EASEMENT AGREEMENT
THIS AMENDMENT TO UPLAND BUFFER EASEMENT AGREEMENT (the
“Amendment”) is made this ____ day of ___________, 2020, by and between the city of
Medina, a Minnesota municipal corporation (the “City”), and Parin A. Winter and Jeffrey C.
Winter as Trustees of the Parin A. Winter Revocable Trust dated November 30, 2017 (the
“Grantor”).
RECITALS
A. Grantor is the fee owner of property located in Hennepin County, Minnesota, legally
described in Exhibit A attached hereto (the “Property”).
B. The Property is subject to an Upland Buffer Easement (the “Upland Buffer Easement”),
which was created by the Upland Buffer Easement Agreement (the “Agreement”). The
Agreement was recorded in the office of the Hennepin County Recorder on July 8, 2011
as doc. no. A9672811. The Upland Buffer Easement is also referenced in the Master
Declaration of Covenants for The Enclave recorded September 20, 2012 as doc. no.
A9844055 and the Annexation Amendment to Amended and Restated Master Declaration
of Covenants for The Enclave recorded on May 30, 2013 as doc. no. A09969201.
C. City regulations permit the width of the Upland Buffer Easement to vary, provided
certain requirements are met.
D. Grantor desires to alter the location of the Upland Buffer Easement on the Property.
E. The City has reviewed the request and determined that the proposed Amended Upland
Buffer Easement is consistent with City regulations and agrees to the new location.
Agenda Item # 5C
2
PROVISIONS
In consideration of the mutual promises of the parties contained herein, the parties agree
as follows:
1. Grantor hereby grants to the City a non-exclusive easement for upland buffer purposes, as
such purposes are more fully described in the Agreement. The legal description of the
Amended Upland Buffer Easement on the Property is included in Exhibit B, attached
hereto.
2. The location of the Amended Upland Buffer Easement is depicted in Exhibit C, attached
hereto.
3. The location of the Upland Buffer Easement shall be hereby amended to be located as
described in this Amended Upland Buffer Easement instead of the location originally
described. Except as explicitly noted in this Amendment, all other terms and conditions
of the Agreement shall remain in full force and effect.
4. Grantor represents that Grantor owns the Property in fee simple, subject only to the
encumbrances of record and has the right and authority to amend the Agreement as set
forth herein.
5. Any notice required in this Amendment shall be delivered personally or sent by U.S.
certified mail, return receipt requested:
a) as to Grantor: Parin A. Winter and Jeffrey C. Winter
3153 Magnolia Drive
Medina, MN 55340
b) as to City: City of Medina
2052 County Road 24
Medina, MN 55340
ATTN: City Administrator
with a copy to: Ronald H. Batty
Kennedy & Graven
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
or at such other address as either party may from time to time notify the other in writing
in accordance with this paragraph.
6. The Agreement recorded as doc. no. A9672811 was also recorded against other parcels in
addition to the Property. This Amendment affects only the Upland Buffer Easement on
the Property and does not affect any other parcel against which the Agreement was
originally recorded.
3
IN WITNESS WHEREOF, the parties to this Amended Upland Buffer Easement
Agreement have caused these presents to be executed as of the day and year aforesaid.
Parin A. Winter
______________________________
Jeffrey C. Winter
STATE OF MINNESOTA )
) ss.
COUNTY OF ___________ )
This instrument was acknowledged before me this ____ day of ______________, 2020, by
Parin A. Winter, Trustee of the Parin A. Winter Revocable Trust dated November 30, 2017.
____________________________________
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF ___________ )
This instrument was acknowledged before me this ____ day of ______________, 2020, by
Jeffrey C. Winter, Trustee of the Parin A. Winter Revocable Trust dated November 30, 2017
____________________________________
Notary Public
4
CITY OF MEDINA
By:
Kathleen Martin, Mayor
By:
Scott T. Johnson, City Administrator
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ____ day of _______________,
2020, by Kathleen Martin and Scott T. Johnson, the mayor and city administrator, respectively,
of the city of Medina, a Minnesota municipal corporation, on behalf of the municipal
corporation.
Notary Public
This instrument drafted by:
City of Medina (DDF)
2052 County Road 24
Medina, MN 55340
A-1
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
Lot 12, Block 5, THE ENCLAVE AT MEDINA 2ND ADDITION, Hennepin County, Minnesota,
according to the recorded plat thereof.
B-1
EXHIBIT B
LEGAL DESCRIPTION OF THE
AMENDED UPLAND BUFFER EASEMENT
An upland buffer easement over, under, and across that part of Lot 12, Block 5, ENCLAVE AT MEDINA
2ND ADDITION, described as beginning at the westerly corner of said Lot 12, thence on an assumed
bearing North 61 degrees 02 minutes 16 seconds East along the northwesterly line of said Lot 12, a
distance of 24.42 feet; thence South 16 degrees 06 minutes 08 seconds East, a distance of 19.44 feet;
thence South 27 degrees 29 minutes 37 seconds West, a distance of 11.79 feet; thence South 06 degrees
24 minutes 56 seconds East, a distance of 18.81 feet; thence South 19 degrees 17 minutes 36 seconds
East, a distance of 22.68 feet; thence South 47 degrees 27 minutes 46 seconds East, a distance of 6.98
feet; thence South 77 degrees 53 minutes 53 seconds East, a distance of 8.26 feet; thence South 27
degrees 31 minutes 19 seconds East, a distance of 3.32 feet to the southerly line of said Lot 12; thence
South 84 degrees 02 minutes 38 seconds West along said southerly line, a distance of 15.23 feet to the
westerly line of said Lot 12; thence North 24 degrees 02 minutes 41 seconds West along said westerly
line, a distance of 74.88 feet to the point of beginning.
C-1
EXHIBIT C
DEPICTION OF AMENDED UPLAND BUFFER EASEMENT
MEMORANDUM
TO: City Council, through City Administrator Scott Johnson
FROM: Jim Stremel, City Engineer
DATE: May 14, 2020
MEETING: May 19, 2020
SUBJECT: Arrowhead Drive Railroad Improvement Project – Agreements and Project
Award
Background:
On January 21, 2020 the City Council adopted a resolution approving the Arrowhead Drive Railroad
Improvement Project plans/specifications and authorized advertisement for bids. Bids were received
electronically and opened at 10:00 AM on Friday, March 6, 2020. Since this time, staff have been
working with both Hennepin County and MnDOT to finalize the two agreements required for this
project.
Project Bidding:
Five bids were received with the apparent low bid submitted by Minger Construction Company, Inc.
in the amount of $426,969.10. The low bid did come in above the engineer’s estimate of
$354,364.00. The major items that accounted for the increase in cost included mobilization, railroad
protective liability insurance, utility coordination, and storm sewer work. A summary of the project
bid abstract is enclosed.
Project Cost & Funding Review:
The LRIP grant awarded to the City was in the amount of $450,000. The grant can cover the actual
cost of construction for the implementation of the quiet zone and railroad crossing improvements
with respect to the multi-use trail up to this amount, but overhead costs are not eligible such as
engineering or legal cannot be reimbursed by this funding mechanism.
An update to the major cost groupings based on the low bid amount along with the proposed method
of payment has been provided in the table below.
Description Amount Funding Source
Surface Improvements $ 325,897.35 LRIP
Storm Sewer $ 79,451.00 LRIP
Trail Improvements $ 21,620.75 LRIP
Contingency (5%) $ 21,348.46 LRIP Eligible CO
Railroad Crossing Panels $ 18,000.00 LRIP
Subtotal $ 466,317.56 Total LRIP Eligible
Overhead (Eng/Legal) (Approx. 22%) $ 98,000.00 City Funds*
Grand Total $ 564,317.56 LRIP/City Funds
Agenda Items #5D, 5E, 5F
2
Although the bids came in higher than estimated, the total bid cost plus railroad crossing panels is
within the $450,000 allotted to the City by the LRIP grant funding. After adding in a 5%
contingency to cover unforeseen costs (change orders), the total amount has the potential to be above
the allotted LRIP amount. The City has a balance of $92,000 of allocated funds for quiet zones.
Anything in addition to $92,000 will be expended from the road fund or engineering funds.
Agreements:
There are two agreements required for this project. The first is a two-party agreement between the
City and Hennepin County that generally addresses ownership, maintenance, and construction
management of the proposed improvements. The second is a three-party agreement between the
City, Hennepin County, and MnDOT which integrates the LRIP funding mechanism and will allow
the City to be reimbursed for project costs with these funds. A separate resolution for each of these
agreements has been included with this memo for City Council consideration.
Next Steps:
Assuming the City Council awards the project and approves both agreements as recommended,
construction would likely start in June or July and be substantially complete in September. Once a
pre-construction meeting is held, a more detailed construction schedule will be available.
City Council Action Requested:
There are three resolutions included with this memo for consideration:
1. Adopt the resolution approving the two-party agreement between the City and Hennepin
County
2. Adopt the resolution approving the three-party agreement between the City, Hennepin
County, and MnDOT (Exhibit E for Grant Agreement to State Transportation Fund Local
Road Improvement Program Grant Terms and Conditions SAP 250-593-001 for the
Arrowhead Drive Railroad Improvement Project)
3. Adopt the resolution accepting the low bid and awarding the contract to Minger
Construction Co., Inc. for the Arrowhead Drive Railroad Improvement Project in the
amount of $426,969.10.
Agreement No. PW 22-36-20
County Project No. 2193100
County Road No. 118
City of Medina
County of Hennepin
1 _____
CONSTRUCTION COOPERATIVE AGREEMENT
This Agreement is made between the County of Hennepin, a body politic and corporate under the
laws of the State of Minnesota, hereinafter referred to as the “County,” and the City of Medina, a
Minnesota municipal corporation, hereinafter referred to as the “City.” The County and the City
collectively are referred to as the “Parties.”
Recitals
The following Recitals are incorporated into this Agreement:
1. The City, in coordination with the Minnesota Department of Transportation (MnDOT) and the
County, is planning to widen a segment of County Road (CR) 118 (Arrowhead Drive) at Trunk
Highway (TH) 55 to incorporate railroad crossing safety improvements, a multi-use trail
railroad crossing surface, raised medians within the roadway to facilitate the implementation
of a whistle-less crossing (quiet zone), under County Project (CP) No. 2193100, City Project
No. 13211-000, and which shall hereinafter be referred to as the “Project.”
2. The Parties have entered into a separate Agreement PW 17-40-20 (State Contract No.
1036577) with the Minnesota Department of Transportation to accept Local Road
Improvement Program (LRIP) grant funds for the Project.
3. The Parties have agreed to enter into this Agreement to memorialize the partnership and to
outline each party’s financial and maintenance responsibilities, and associated costs for the
Project.
4. The City shall be the lead agency in design engineering, construction, and construction
administration of the Project, and be responsible for acquiring all governmental permits
required for the Project.
5. The City shall be responsible for obtaining a separate agreement with the Canadian Pacific
(CP) Railway for right of way access and meeting other requirements of CP Railway for Project
construction.
6. The Project will be carried out by the Parties under the provisions of Minnesota Statutes,
Section 162.17, Subdivision 1, and Section 471.59.
Agreement No. PW 22-36-20
CR 118; C.P. 2193100
2 _____
Agreement
NOW, THEREFORE, the Parties agree as follows:
1. Term of Agreement and Survival of Terms.
Effective Date. This Agreement is effective as of the date of the final signature.
Expiration Date. This Agreement will expire after all obligations have been
satisfactorily fulfilled.
Survival of Terms. Provisions that by their nature are intended to survive the term,
cancellation or termination of this Agreement do survive such term, cancellation or
termination. Such provisions include but are not limited to: Maintenance
Responsibilities, Records/Audits, Indemnification, Insurance, Worker Compensation
Claims, Cancellation, Termination, and Minnesota Laws Govern.
2. The City’s Construction Responsibilities.
Contract Award and Administration. The City or its agents shall prepare the
necessary plans, specifications, and proposal; obtain approval of the plans and
specifications from the Minnesota Department of Transportation (MnDOT), and the
County; advertise for bids for the work and construction; receive and open bids
pursuant to the advertisement; enter into a contract with the successful bidder at the
unit prices specified in the bid of such bidder; administer the contract; and perform the
required engineering and inspection; all in accordance with the plans and specifications
set forth below.
Plans and Specifications.
2.2.1. All design work performed by the City and its agents that is to be incorporated
into the bidding documents for the Project shall be prepared and certified by a
Professional Engineer licensed in the State of Minnesota. All designs which affect
County facilities shall conform to the MnDOT Design Standards applicable to County
State Aid Highways and be approved by the County Engineer.
2.2.2. The plans and specifications are referenced and identified as:
S.A.P. 250-593-001, S.A.P. 250-593-002 and approved by MnDOT.
2.2.3. The City shall furnish the County with plans and specifications for review and
approval as follows: electronic submittals at 60%, 90%, and 100%; comment response
letter with 90% and 100% package; hard copy of plans at 100% with title sheet for
county signature. Title sheet for county signature must arrive two weeks prior to Project
advertisement and include the City signature. Upon completion of the Project, the City
or its agents shall furnish the County with a complete set of as-built plans certified as
Agreement No. PW 22-36-20
CR 118; C.P. 2193100
3 _____
to their accuracy by the City Engineer. The as-designed plans, specifications and as-
built plans for the Project shall be provided by the City at no cost to the County. All
designs and plans shall be submitted to Public Works Transportation Project Delivery
Design Division Manager.
2.2.4. Permits and Approvals. The City shall obtain, and comply with, any and all
permits and approvals required from other governmental or regulatory agencies to
accomplish the Project. The permits and approvals shall be obtained prior to the start
of any construction and made available to the County upon request.
Construction Supervision and Inspection. The City or its agents will administer the
construction contract, and perform all necessary engineering, inspection and testing of
all the contract work. All work for the Project shall be completed in compliance with
the County approved plans and specifications. The County Highway Engineer or
designated representatives shall have the right, as the work progresses, to enter upon
the job site to make any inspections deemed necessary and shall cooperate with the
City Engineer and staff at their request to the extent necessary, but will have no
responsibility for the supervision of the work.
Plan Changes and Additional Construction.
2.4.1. The County agrees that the City may make changes in the plans or in the
character of the contract construction that are reasonably necessary to cause the
construction to be in all things performed and completed in a satisfactory manner. It is
further agreed by the County that the City may, subject to the County’s rights under
Section 2.2, enter into any change orders or supplemental agreements with the City’s
contractor for the performance of any additional construction or construction
occasioned by any necessary, advantageous or desirable changes in plans, within the
original scope of the Project.
2.4.2. The County shall have the right to review any proposed changes to the plans and
specifications prior to the work being performed, and in those instances where the
proposed changes necessitate a re-engineering of the design and/or specifications, the
City shall submit the re-engineered design and/or specifications to the County. The
County Highway Engineer or designated representatives shall respond to the City’s
request for approval to authorize the issuance of any negotiated change orders or
supplemental agreements prepared by the City within a reasonable time frame.
3. The City’s Maintenance Responsibilities. Upon completion of the Project, the City shall
provide for maintenance of the improvements as follows:
Multi-use Trail. Maintenance of the newly constructed multi-use trail. Maintenance
includes, but is not limited to, snow, ice and debris removal, patching, crack repair, and
any other maintenance activities according to accepted city maintenance practices.
4. The County’s Maintenance Responsibilities. Upon completion of the Project, the County
Agreement No. PW 22-36-20
CR 118; C.P. 2193100
4 _____
shall provide for maintenance of the improvements as follows:
Roadways. Maintenance of CR 118 reconstructed under the Project. Maintenance
includes, but is not limited to sweeping, snow, ice and debris removal, resurfacing and
seal coating, and any other maintenance activities according to accepted county
maintenance practices.
County Road Pavement Striping. The County shall thereafter maintain and repair
all pavement striping for roadway users installed as a part of the Project at the
expense of the County.
Raised Medians. The County shall thereafter maintain and repair the raised medians
constructed as a part of the Project at the expense of the County.
Storm Sewers. Maintenance of catch basins and associated lead pipes within or
between the outermost curb lines of the County roadways and those within the radius
return limits of intersecting municipal streets, at the expense of the County.
5. The County’s Cost Participation. There will not be any cost participation from the County
for this Project. The City is the lead agency in the Project design and construction and shall
assume all financial responsibilities of the Project.
6. Authorized Representatives. In order to coordinate the services of the County with the
activities of the City, and vice versa so as to accomplish the purposes of this Agreement, the
Hennepin County Highway Engineer and the City Engineer, or their designated representatives
shall manage this Agreement on behalf of the County and the City.
County of Hennepin, Public Works Transportation
Carla Stueve
County Highway Engineer
1600 Prairie Drive, Medina, MN 55340
Office: 612-596-0356
Carla.Stueve@hennepin.us
City of Medina:
Scott Johnson
City Administrator
2052 County Rd 24, Medina, MN 55340
Office: 763-473-8840
scott.johnson@medinamn.gov
7. Assignment, Amendments, Default, Waiver, Agreement Complete, Cancellation or
Termination.
Assignment. The City shall not assign, subcontract, transfer or pledge this Agreement
Agreement No. PW 22-36-20
CR 118; C.P. 2193100
5 _____
and/or the services to be performed hereunder, whether in whole or in part, without the
prior written consent of the County.
Amendments. Any alterations, variations, modifications or waivers of provisions of
this Agreement shall only be valid when they have been reduced to writing as an
amendment to this Agreement and signed by the Parties hereto.
Default. If a party fails to perform any of the provisions of this Agreement or so fails
to administer the work as to endanger the performance of the Agreement, this shall
constitute a default. Unless the default is excused by the non-defaulting parties, the
Parties may upon written notice immediately cancel this Agreement in its entirety.
Waiver. The Parties’ failure to insist upon strict performance of any provision or to
exercise any right under this Agreement shall not be deemed a relinquishment or waiver
of the same, unless consented to in writing. Such consent shall not constitute a general
waiver or relinquishment throughout the entire term of the Agreement.
Agreement Complete. The entire Agreement between the Parties is contained herein
and in the separate Agreement PW 17-40-20 (State Contract No. 1036577) with
MnDOT, which supersedes all oral agreements and negotiations between the Parties
relating to the subject matter hereof. All items referred to in this Agreement are
incorporated or attached and are deemed to be part of this Agreement.
Cancellation or Termination. This Agreement may be terminated or cancelled by
each party with or without cause upon thirty (30) day written notice. This Agreement
shall be terminated or cancelled by any party upon a material breach by the other party
that is not waived by the non-breaching party.
8. Indemnification. The Parties agree to defend, indemnify and hold each other harmless,
including their officials, officers, agents, volunteers, and employees from any liability, claims,
causes of action, judgments, damages, losses, costs or expenses, including reasonable
attorneys’ fees, resulting directly or indirectly from any act or omission of either party or either
party’s consultant or sub consultant, anyone directly or indirectly employed by them, and/or
anyone for whose acts and/or omissions they may be liable in the performance of the services
required by this contract, and against all loss by reason of the failure of either party to perform
fully, in any respect, all obligations under this contract. The Parties’ liability shall be governed
by the provisions of Minnesota Statutes, Chapter 466 or other applicable law.
9. Insurance. The City agrees that any future contract let by the City for the performance of any
of the work included hereunder shall include clauses that will: 1) Require the contractor to
indemnify and hold the County, its commissioners, officers, agents and employees harmless
from any liability, claim, demand, judgments, expenses, action or cause of action of any kind
or character arising out of any act or omission of the contractor, its officers, employees, agents
or subcontractors; 2) Require the contractor to be an independent contractor for the purposes
of completing the work provided for in this Agreement; and 3) Require the Contractor to
provide and maintain the following insurance so as to assure the performance of its
Agreement No. PW 22-36-20
CR 118; C.P. 2193100
6 _____
indemnification and hold harmless obligation:
Limits
(1) Commercial General Liability on an occurrence
Basis with contractual liability coverage:
General Aggregate $2,000,000
Products - Completed Operations Aggregate $2,000,000
Personal and Advertising Injury $1,500,000
Each Occurrence - Combined Bodily Injury
and Property Damage $1,500,000
Hennepin County shall be named as an additional insured for the
Commercial General Liability coverage with respect to operations
Covered under this Agreement.
(2) Automobile Liability:
Combined Single limit each occurrence coverage or the
equivalent covering owned, non-owned, and hired
automobiles: $1,500,000
(3) Workers’ Compensation and employer’s Liability:
Work Workers’ Compensation: Statutory
If the Contractor is based outside the State of
Minnesota, coverage must apply to Minnesota laws.
Employer’s Liability. Bodily injury by:
Accident – Each Accident $500,000
Disease – Policy Limit $500,000
Disease - Each Employee $500,000
(4) Professional Liability – Per Claim and Aggregate: $2,000,000
The above listed Professional Liability insurance will not be required in any
construction contract let by the City if the City’s Contractor is not required to
perform design engineering as part of the construction contract.
An umbrella or excess policy over primary liability coverages is an acceptable
method to provide the required insurance limits.
Agreement No. PW 22-36-20
CR 118; C.P. 2193100
7 _____
The above subparagraphs establish minimum insurance requirements. It is the
sole responsibility of the City's Contractor to determine the need for and to
procure additional insurance which may be needed in connection with the Project
and any subsequent maintenance work covered under this Agreement.
All insurance policies shall be open to inspection by the County and copies of
policies shall be submitted to the County upon written request.
10. Worker Compensation Claims.
Any and all employees of the City and all other persons engaged by the City in the
performance of any work or services required or provided for herein to be performed by
the City shall not be considered employees of the County, and any and all claims that
may or might arise under the Workers' Compensation Act or the Unemployment
Compensation Act of the State of Minnesota on behalf of the employees while so
engaged and any and all claims made by any third parties as a consequence of any act
or omission on the part of the employees while so engaged on any of the work or services
provided to be rendered herein shall in no way be the obligation or responsibility of the
County.
Any and all employees of the County and all other persons engaged by the County in
the performance of any work or services required or provided for herein to be performed
by the County shall not be considered employees of the City, and any and all claims that
may or might arise under the Workers' Compensation Act or the Unemployment
Compensation Act of the State of Minnesota on behalf of the employees while so
engaged and any and all claims made by any third parties as a consequence of any act
or omission on the part of the employees while so engaged on any of the work or services
provided to be rendered herein shall in no way be the obligation or responsibility of the
City.
11. Records/Audits. The City agrees that the County, the State Auditor or any of their duly
authorized representatives at any time during normal business hours, and as often as they may
reasonably deem necessary, shall have access to and the right to examine, audit, excerpt and
transcribe any books, documents, papers, records, etc., which are pertinent to the Project and
maintenance work, and the accounting practices and procedures of the City which involve
transactions relating to this Agreement.
12. Nondiscrimination. The provisions of Minnesota Statute Section 181.59 and of any
applicable local ordinance relating to civil rights and discrimination and the Affirmative Action
Policy statement of Hennepin County shall be considered a part of this Agreement as though
fully set forth herein.
13. Minnesota Laws Govern. The laws of the State of Minnesota shall govern all questions and
interpretations concerning the validity and construction of this Agreement and the legal
relations between the Parties and their performance. The appropriate venue and jurisdiction
for any litigation will be those courts located within the County of Hennepin, State of
Agreement No. PW 22-36-20
CR 118; C.P. 2193100
8 _____
Minnesota. Litigation, however, in the federal courts involving the Parties will be in the
appropriate federal court within the State of Minnesota.
(This space left intentionally blank)
Agreement No. PW 22-36-20
CR 118; C.P. 2193100
9 _____
IN TESTIMONY WHEREOF, The Parties hereto have caused this Agreement to be executed
by their respective duly authorized officers as of the day and year first above written.
CITY OF MEDINA
Seal
By:
Mayor
Date: ___________________________________
And:
City Administrator
Date:
COUNTY OF HENNEPIN
ATTEST:
By: By:__________________________________
Deputy/Clerk of the County Board Chair of its County Board
Date: Date: ________________________________
And: ________________________________
County Administrator
Date: ________________________________
REVIEWED BY
THE COUNTY ATTORNEY’S OFFICE: And:_________________________________
Assistant County Administrator, Public Works
By: Date:________________________________
Assistant County Attorney
Date:
RECOMMENDED FOR APPROVAL
By:_________________________________
County Highway Engineer
Date:________________________________
RECOMMENDED FOR APPROVAL
By:_________________________________
Department Director, Transportation
Operations
Date:________________________________
Resolution No. 2020-##
May 19, 2020
Member _________ introduced the following resolution and moved its adoption:
CITY OF MEDINA
RESOLUTION NO. 2020-##
A RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF
CONSTRUCTION COOPERATIVE AGREEMENT WITH HENNEPIN COUNTY
WHEREAS, the City of Medina (the “City”), in coordination with the Minnesota Department
of Transportation and the County of Hennepin (the “County”), is planning to widen a segment of
County Road 118 (Arrowhead Drive) at Trunk Highway 55 to incorporate railroad crossing
safety improvements, a multi-use trail railroad crossing surface, raised medians within the
roadway to facilitate the implementation of a whistle-less crossing (the “Project”); and
WHEREAS, the City and County have prepared a Construction Cooperative Agreement to
memorialize the partnership and to outline each party’s financial and maintenance
responsibilities, and associated costs for the Project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Medina,
Minnesota, as follows:
1. The Construction Cooperative Agreement as presented at the May 19, 2020 City
Council meeting is hereby approved.
2. The City Council hereby authorizes the Mayor and City Administrator to execute the
Construction Cooperative Agreement on behalf of the City of Medina.
Dated: May 19, 2020.
_________________________
Kathleen Martin, Mayor
Attest:
___________________________________
Jodi M. Gallup, City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member _________
and upon a vote being taken thereon, the following voted in favor thereof:
Resolution No. 2020-## 2
May 19, 2020
And the following voted against same:
Whereupon said resolution was declared duly passed and adopted.
MnDOT Agreement No. 1036577
LOCAL ROAD IMPROVEMENT PROGRAM (LRIP)
GRANT AGREEMENT
This Agreement between the Minnesota Department of Transportation (“MnDOT”), the
Grantee named below, and the County named below is made pursuant to Minnesota Statutes
Section 174.52 and pursuant to Minn. Laws 2018, Chapter 214- H.F. 4425. The provisions in that
section and the Exhibits attached hereto and incorporated by reference constitute this Agreement
and the persons signing below agree to fully comply with all of the requirements of this Agreement.
This Agreement will be effective on the date State obtains all required signatures under Minnesota
Statutes §16C.05, subdivision 2.
1. Public Entity (Grantee) name, address and contact person:
City of Medina
2052 County Road 24
Medina, MN 55340
Contact: Scott Johnson, City Administrator
scott.johnson@medinamn.gov
763-473-8840
2. County (County) name, address and contact person:
County of Hennepin
1600 Prairie Drive
Medina, MN 55340
Contact: Tim Bruers
Timothy.Bruers@hennepin.us
612-596-0393
3. Project(s):
Name of Project & Project
Number
(See Exhibit C for location)
Amount of
LRIP Funds
Amount of Required
Matching Funds
Completion Date
Medina Arrowhead Dr. Rail
Improvements
SAP 250-593-001;
SAP 250-593-002
$444,969.10
$0
9/30/2021
4. Total Amount of LRIP Grant for all projects under this Agreement: $444,969.10
MnDOT Agreement No. 1036577
5. The following Exhibits for each project are attached and incorporated by reference as part of
this Agreement:
Exhibit A Completed Sources and Uses of Funds Schedule
Exhibit B Project Completion Schedule
Exhibit C Bond Financed Property Certification
Exhibit D Grant Application
Exhibit E Grantee and County Resolutions Approving Grant Agreement
Exhibit F General Terms and Conditions
6. Additional requirements, if any:
7. Any modification of this Agreement must be in writing and signed by all parties.
(The remaining portion of this page was intentionally left blank.)
MnDOT Agreement No. 1036577
COUNTY
By:
Title:
Date:______________________________
By:______________________________
Title:______________________________
Date:______________________________
CITY OF MEDINA (GRANTEE)
By:
Title:
Date:______________________________
By:
Title:
Date:______________________________
DEPARTMENT OF TRANSPORTATION
Approval and Certifying Encumbrance
By:
Title: State Aid Programs Engineer
Date:
Office of Financial Management, Grant Unit
By:___________________________________
Agency Grant Supervisor
Date:_________________________________
OFFICE OF CONTRACT MANAGEMENT
By: _________________________________
Contract Administrator
Date:_________________________________
MnDOT Agreement No. 1036577
EXHIBIT A
SOURCES AND USES OF FUNDS SCHEDULE
SOURCES OF FUNDS USES OF FUNDS
Entity Supplying Funds Amount Expenses Amount
State Funds: Items Paid for with LRIP
LRIP Grant (SAP 250-593-001) $426,969.10 Grant Funds:
Force Accnt (SAP 250-593-002) $ 18,000.00 Railroad Crossing $ 37,500.00
Trail Improvements $ 21,620.75
Roadway Improvements__ $367,848.35
Pedestrian Crossing Impr. $ 18,000.00
Subtotal $ 444,969.10 Subtotal $444,969.10
Public Entity Funds: Items paid for with Non-
Matching Funds LRIP Grant Funds:
Grantee Funds
Subtotal $0 Subtotal $0
TOTAL FUNDS $444,969.10 = TOTAL PROJECT COSTS $444,969.10
MnDOT Agreement No. 1036577
EXHIBIT B
PROJECT COMPLETION SCHEDULE
(Provide for enough time to final the project through the MnDOT state aid pay request process.)
Completion Date : September 30, 2021
MnDOT Agreement No. 1036577
EXHIBIT C
BOND FINANCED PROPERTY CERTIFICATION
State of Minnesota
General Obligation Bond Financed Property
The undersigned states that it has a fee simple, leasehold and/or easement interest in the
real property located in the County of Hennepin, State of Minnesota that is generally described or
illustrated graphically in Attachment 1 attached hereto and all improvements thereon (the
“Restricted Property”) and acknowledges that the Restricted Property is or may become State
bond-financed property. To the extent that the Restricted Property is or becomes State bond-
financed property, the undersigned acknowledges that:
A. The Restricted Property is State bond-financed property under Minn. Stat. Sec.
16A.695, is subject to the requirements imposed by that statute, and cannot be
sold, mortgaged, encumbered or otherwise disposed of without the approval of
the Commissioner of Minnesota Management and Budget; and
B. The Restricted Property is subject to the provisions of the Local Road
Improvement Program Grant Agreement between the Minnesota Department of
Transportation and the undersigned dated ________________, 20___; and
C. The Restricted Property shall continue to be deemed State bond-financed
property for 37.5 years or until the Restricted Property is sold with the written
approval of the Commissioner of Minnesota Management and Budget.
Date: __________________, 20____
_____________________________________
County of Hennepin, a political subdivision of
the State of Minnesota
By: ________________________________
Name: _______________________________
Title: _______________________________
By: ________________________________
Name: _______________________________
Title: _______________________________
MnDOT Agreement No. 1036577
Attachment 1 to Exhibit C
GENERAL DESCRIPTION OF RESTRICTED PROPERTY
(Insert a narrative or graphic description of the Restricted Property for the project. It need not be
a legal description if a legal description is unavailable.)
PROPOSED SECTION
13'
THRU LANE
13'
THRU LANE
- 2
5'
MEDIAN
12.5'
TURN LANE
0%
CP RAILROAD TO FURNISH AND INSTALL TWO
1219' CROSSING SURFACE PANELS (TOTAL OF
IT OF CROSSING SURFACE EXTENSION)
APPROX EX '
GATE LOCATION
11'
THRU LANE
12.5'
TURN LANE
13'
THRU LANE
EXISTING SECTION
12'
THRU LANE
2.0%
12'
TURN LANE
20%-
12'
THRU LANE
13'
TURN LANE
wsb
ARROWHEAD DRIVE RAILROAD QUIET ZONE PROJECT
CITY OF MEDINA, MINNESOTA
FIGURE 1
5' MEDIAN OPTION
2/12/2019
MnDOT Agreement No. 1036577
EXHIBIT D
GRANT APPLICATION
Attach the grant application for the project
Local Road Improvement Program
2019 Application Form
State Aid For Local Transportation
Page 1 of 4
A. Applicant Information
1. Name (First & Last):2. Phone Number:
3. E-mail:4. Agency Name:
5. Street Address:
6. City:7. State:8. Zip Code:
9. Is the applicant a sponsor on this project?
B. Project Location
1. MnDOT District:2. County:
3. City:4. Township:
5. Name of Road:6. Type of Road:
7.Road Authority (who owns and has jurisdiction of the road):
8. Project Termini: From 9. To:
C. Project Description
1. Select type of project.
2.Provide a description and summary of the proposed project.
Local Road Improvement Program
2019 Application Form
State Aid For Local Transportation
Page 2 of 4
D.Eligibility
1.Select the LRIP Account your project is eligible under.
2.Does your project meet one or more of the Routes of Regional Significance Criteria (select all that apply)?
Farm to Market route
Part of an economic development plan
Provides capacity or congestion relief to a parallel
trunk highway system or county road
Part of a 10-ton route network
Connect to regional tourist destination
Is a connection to the IRC system, trunk highway
or a county road
3. Describe the project contribution to the local, regional or state economic development or redevelopment
efforts.
E.Project Readiness
1.Construction Year:
2.Are there railroad impacts (railroad crossings or railroad tracks within 600’ of the project)?
3.What is the status of the engineering and design work on the project?
Local Road Improvement Program
2019 Application Form
State Aid For Local Transportation
Page 3 of 4
F. Safety
1. Is this project or components of this project identified in a County Safety Plan?
2.Select the appropriate focus area your project/safety strategy align with in the Minnesota Strategic
Highway Safety Plan.
3.Identify the transportation deficiency, type of crash, or safety hazard this project is trying to address.
Respond even if project is in a county safety plan or the Minnesota Strategic Highway Safety Plan.
4. Describe how this project improves safety, reduce traffic crashes, fatalities, injuries, and property
damages. Respond even if project is in a county safety plan or the Minnesota Strategic Highway Safety Plan.
Local Road Improvement Program
2019 Application Form
State Aid For Local Transportation
Page 4 of 4
G.Multimodal/Complete Street
Identify infrastructure improvements for non-motorized users on this project.
H. Estimated Project Cost
Source of Funding
1.LRIP Request:
2.Federal Funds:
3.State Aid Funds:
4.Local/Other Funds:
5.Total Project Cost:
I. Attachments
At least one project location map with routes labeled
Engineer’s Estimate with an itemized breakdown
Project schedule
Local agency resolution
Sponsor agency resolution (if applicable)
Letters of concurrence or support
When you are ready to submit the application, save the application form with LRIP, agency and road in the name
of the document; e.g. LRIP_RamseyCounty_CSAH30.pdf.
The application and attachments are due March 1, 2019. Applications and attachments should be submitted
electronically to saltirhelp.dot@state.mn.us.
More information on the program is available on the Local Road Improvement Program
website, http://www.dot.state.mn.us/stateaid/lrip.html. If you have questions regarding this solicitation,
contact Patti Loken at 651-366-3803 or patti.loken@state.mn.us.
MnDOT Agreement No. 1036577
EXHIBIT E
GRANTEE AND COUNTY RESOLUTIONS APPROVING GRANT AGREEMENT
MnDOT Agreement No. 1036577
EXHIBIT F
GENERAL TERMS AND CONDITIONS FOR
LOCAL ROAD IMPROVEMENT PROGRAM (LRIP) GRANTS
Article I
DEFINITIONS
Section 1.01 Defined Terms. The following terms shall have the meanings set out respectively after
each such term (the meanings to be equally applicable to both the singular and plural forms of the terms
defined) unless the context specifically indicates otherwise:
“Advance(s)” - means an advance made or to be made by MnDOT to the Public Entity and disbursed
in accordance with the provisions contained in Article VI hereof.
“Agreement” - means the Local Road Improvement Program Grant Agreement between the Public
Entity, the County, and the Minnesota Department of Transportation to which this Exhibit is attached.
“Certification” - means the certification, in the form attached as Exhibit C, in which the County
acknowledges that its interest in the Real Property is bond financed property within the meaning of Minn.
Stat. Sec. 16A.695 and is subject to certain restrictions imposed thereby.
“Code” - means the Internal Revenue Code of 1986, as amended, and all treasury regulations, revenue
procedures and revenue rulings issued pursuant thereto.
“Commissioner” - means the Commissioner of Minnesota Management & Budget.
“Commissioner’s Order” - means the “Fourth Order Amending Order of the Commissioner of
Minnesota Management & Budget Relating to Use and Sale of State Bond Financed Property” dated July
30, 2012, as it may be amended or supplemented.
“Completion Date” - means the projected date for completion of the Project as indicated in the
Agreement.
“Construction Contract Documents” - means the document or documents, in form and substance
acceptable to MnDOT, including but not limited to any construction plans and specifications and any
exhibits, amendments, change orders, modifications thereof or supplements thereto, which collectively
form the contract between the Public Entity and the Contractor(s) for the completion of the Construction
Items on or before the Completion Date for either a fixed price or a guaranteed maximum price.
“Construction Items” - means the work to be performed under the Construction Contract Documents.
“Contractor” - means any person engaged to work on or to furnish materials and supplies for the
Construction Items including, if applicable, a general contractor.
“Draw Requisition” - means a draw requisition that the Public Entity, or its designee, submits to
MnDOT when an Advance is requested, as referred to in Section 4.02.
MnDOT Agreement No. 1036577
“G.O. Bonds” - means the state general obligation bonds issued under the authority granted in Article
XI, Sec. 5(a) of the Minnesota Constitution, the proceeds of which are used to fund the LRIP Grant, and
any bonds issued to refund or replace such bonds.
“Grant Application” - means the grant application that the Public Entity submitted to MnDOT which
is attached as Exhibit D.
“LRIP Grant” - means a grant from MnDOT to the Public Entity under the LRIP in the amount
specified in the Agreement, as such amount may be modified under the provisions hereof.
“LRIP” - means the Local Road Improvement Program pursuant to Minn. Stat. Sec. 174.52 and rules
relating thereto.
“MnDOT” - means the Minnesota Department of Transportation.
“Outstanding Balance of the LRIP Grant” - means the portion of the LRIP Grant that has been
disbursed to the Public Entity minus any amounts returned to the Commissioner.
“Project” - means the Project identified in the Agreement to be totally or partially funded with a LRIP
grant.
“Public Entity” - means the grantee of the LRIP Grant and identified as the Public Entity in the
Agreement.
“Real Property” - means the real property identified in the Agreement on which the Project is located.
Article II
GRANT
Section 2.01 Grant of Monies. MnDOT shall make the LRIP Grant to the Public Entity and disburse
the proceeds in accordance with the terms and conditions herein.
Section 2.02 Public Ownership, The Public Entity and the County acknowledge and agree that the
LRIP Grant is being funded with the proceeds of G.O. Bonds, and as a result all of the Real Property must
be owned by one or more public entities. The County represents and warrants to MnDOT that it has one or
more of the following ownership interests in the Real Property: (i) fee simple ownership, (ii) an easement
that is for a term that extends beyond the date that is 37.5 years from the Agreement effective date, or such
shorter term as authorized by statute, and which cannot be modified or terminated early without the prior
written consent of MnDOT and the Commissioner; and/or (iii) a prescriptive easement for a term that
extends beyond the date that is 37.5 years from the Agreement effective date.
Section 2.03 Use of Grant Proceeds. The Public Entity shall use the LRIP Grant solely to reimburse
itself for expenditures it has already made, or will make, to pay the costs of one of the following applicable
activities: (i) preliminary, final construction and engineering and administration (ii) constructing or
reconstructing city streets, county highways, or town roads with statewide or regional significance that
have not been fully funded through other state, federal, or local funding sources; or (iii) capital
improvement projects on county state-aid highways that are intended primarily to reduce traffic crashes,
deaths, injuries, and property damage. The Public Entity shall not use the LRIP Grant for any other purpose,
including but not limited to, any work to be done on a state trunk highway or within a trunk highway
easement.
MnDOT Agreement No. 1036577
Section 2.04 Operation of the Real Property. The Real Property must be used by the Public Entity
or the County in conjunction with or for the operation of a county highway, county state-aid highway, town
road, or city street and for other uses customarily associated therewith, such as trails and utility corridors,
and for no other purposes or uses. The Public Entity and the County shall have no intention on the effective
date of the Agreement to use the Real Property as a trunk highway or any part of a trunk highway. The
Public Entity and the County must annually determine that the Real Property is being used for the purposes
specified in this Section and, upon written request by either MnDOT or the Commissioner, shall supply a
notarized statement to that effect.
Section 2.05 Sale or Lease of Real Property. The County shall not (i) sell or transfer any part of
its ownership interest in the Real Property, or (ii) lease out or enter into any contract that would allow
another entity to use or operate the Real Property without the written consent of both MnDOT and the
Commissioner. The sale or transfer of any part of the County’s ownership interest in the Real Property, or
any lease or contract that would allow another entity to use or operate the Real Property, must comply with
the requirements imposed by Minn. Stat. Sec. 16A.695 and the Commissioner’s Order regarding such sale
or lease.
Section 2.06 Public Entity’s and County’s Representations and Warranties. The Public Entity
and the County, where applicable, represent and warrant to MnDOT that:
A. It has legal authority to execute, deliver and perform the Agreement and all documents referred
to therein, and it has taken all actions necessary to its execution and delivery of such documents.
B. It has the ability and a plan to fund the operation of the Real Property for the purposes specified
in Section 2.04 and will include in its annual budget all funds necessary for the operation of
the Real Property for such purposes.
C. The Agreement and all other documents referred to therein are the legal, valid and binding
obligations of the Public Entity and County enforceable against the Public Entity and County
in accordance with their respective terms.
D. It will comply with all of the provisions of Minn. Stat. Sec. 16A.695, the Commissioner’s Order
and the LRIP. It has legal authority to use the G.O. Grant for the purpose or purposes described
in this Agreement.
E. All of the information it has submitted or will submit to MnDOT or the Commissioner relating
to the LRIP Grant or the disbursement of the LRIP Grant is and will be true and correct.
F. It is not in violation of any provisions of its charter or of the laws of the State of Minnesota,
and there are no actions or proceedings pending, or to its knowledge threatened, before any
judicial body or governmental authority against or affecting it relating to the Real Property, or
its ownership interest therein, and it is not in default with respect to any order, writ, injunction,
decree, or demand of any court or any governmental authority which would impair its ability
to enter into the Agreement or any document referred to herein, or to perform any of the acts
required of it in such documents.
G. Neither the execution and delivery of the Agreement or any document referred to herein nor
compliance with any of the provisions or requirements of any of such documents is prevented
by, is a breach of, or will result in a breach of, any provision of any agreement or document to
which it is now a party or by which it is bound.
MnDOT Agreement No. 1036577
H. The contemplated use of the Real Property will not violate any applicable zoning or use statute,
ordinance, building code, rule or regulation, or any covenant or agreement of record relating
thereto.
I. The Project will be completed and the Real Property will be operated in full compliance with
all applicable laws, rules, ordinances, and regulations of any federal, state, or local political
subdivision having jurisdiction over the Project and the Real Property.
J. All applicable licenses, permits and bonds required for the performance and completion of the
Project and for the operation of the Real Property as specified in Section 2.04 have been, or
will be, obtained.
K. It reasonably expects to possess its ownership interest in the Real Property described in Section
2.02 for at least 37.5 years, and it does not expect to sell such ownership interest.
L. It does not expect to lease out or enter into any contract that would allow another entity to use
or operate the Real Property.
M. It will supply whatever funds are needed in addition to the LRIP Grant to complete and fully
pay for the Project.
N. The Construction Items will be completed substantially in accordance with the Construction
Contract Documents by the Completion Date and all such items will be situated entirely on the
Real Property.
O. It will require the Contractor or Contractors to comply with all rules, regulations, ordinances,
and laws bearing on its performance under the Construction Contract Documents.
P. It shall furnish such satisfactory evidence regarding the representations and warranties
described herein as may be required and requested by either MnDOT or the Commissioner.
Q. It has made no material false statement or misstatement of fact in connection with its receipt of
the G.O. Grant, and all the information it has submitted or will submit to the State Entity or
Commissioner of MMB relating to the G.O. Grant or the disbursement of any of the G.O. Grant
is and will be true and correct.
Section 2.07 Event(s) of Default. The following events shall, unless waived in writing by MnDOT
and the Commissioner, constitute an Event of Default under the Agreement upon either MnDOT or the
Commissioner giving the Public Entity and the County 30 days’ written notice of such event and the Public
Entity’s or County’s failure to cure such event during such 30-day time period for those Events of Default
that can be cured within 30 days or within whatever time period is needed to cure those Events of Default
that cannot be cured within 30 days as long as the Public Entity or the County is using its best efforts to
cure and is making reasonable progress in curing such Events of Default; however, in no event shall the
time period to cure any Event of Default exceed six (6) months unless otherwise consented to, in writing,
by MnDOT and the Commissioner.
A. If any representation, covenant, or warranty made by the Public Entity or the County herein or
in any other document furnished pursuant to the Agreement, or to induce MnDOT to disburse
the LRIP Grant, shall prove to have been untrue or incorrect in any material respect or
materially misleading as of the time such representation, covenant, or warranty was made.
MnDOT Agreement No. 1036577
B. If the Public Entity or the County fails to fully comply with any provision, covenant, or
warranty contained herein.
C. If the Public Entity or the County fails to fully comply with any provision, covenant or warranty
contained in Minn. Stat. Sec. 16A.695, the Commissioner’s Order, or Minn. Stat. Sec. 174.52
and all rules related thereto.
D. If the Public Entity fails to use the proceeds of the LRIP Grant for the purposes set forth in
Section 2.03, the Grant Application, and in accordance with the LRIP.
E. If the Public Entity or the County fails to operate the Real Property for the purposes specified
in Section 2.04.
F. If the Public Entity fails to complete the Project by the Completion Date.
G. If the County sells or transfers any portion of its ownership interest in the Real Property without
first obtaining the written consent of both MnDOT and the Commissioner.
H. If the Public Entity fails to provide any additional funds needed to fully pay for the Project.
I. If the Public Entity or the County fails to supply the funds needed to operate the Real Property
in the manner specified in Section 2.04.
Notwithstanding the foregoing, any of the above events that cannot be cured shall, unless waived in writing
by MnDOT and the Commissioner, constitute an Event of Default under the Agreement immediately upon
either MnDOT or the Commissioner giving the Public Entity and the County written notice of such event.
Section 2.08 Remedies. Upon the occurrence of an Event of Default and at any time thereafter until
such Event of Default is cured to the satisfaction of MnDOT, MnDOT or the Commissioner may enforce
any or all of the following remedies.
A. MnDOT may refrain from disbursing the LRIP Grant; provided, however, MnDOT may make
such disbursements after the occurrence of an Event of Default without waiving its rights and
remedies hereunder.
B. If the Event of Default involves a sale of the County’s interest in the Real Property in violation
of Minn. Stat. Sec. 16A.695 or the Commissioner’s Order, the Commissioner, as a third party
beneficiary of the Agreement, may require that the County pay the amounts that would have
been paid if there had been compliance with such provisions. For other Events of Default by
Public Entity or the County, the Commissioner may require that the Outstanding Balance of
the LRIP Grant be returned to it.
C. Either MnDOT or the Commissioner, as a third-party beneficiary of the Agreement, may
enforce any additional remedies it may have in law or equity.
The rights and remedies specified herein are cumulative and not exclusive of any rights or remedies that
MnDOT or the Commissioner would otherwise possess.
If the Public Entity does not repay the amounts required to be paid under this Section or under any other
provision contained herein within 30 days of demand by the Commissioner, or any amount ordered by a
court of competent jurisdiction within 30 days of entry of judgment against the Public Entity and in favor
MnDOT Agreement No. 1036577
of MnDOT and/or the Commissioner, then such amount may, unless precluded by law, be offset against
any aids or other monies that the Public Entity is entitled to receive from the State of Minnesota.
Section 2.09 Notification of Event of Default. The Public Entity or the County shall furnish to
MnDOT and the Commissioner, as soon as possible and in any event within seven (7) days after it has
obtained knowledge of the occurrence of each Event of Default, a statement setting forth details of each
Event of Default and the action which the Public Entity or the County proposes to take with respect thereto.
Section 2.10 Effect of Event of Default. The Agreement shall survive Events of Default and remain
in full force and effect, even upon full disbursement of the LRIP Grant, and shall only be terminated under
the circumstances set forth in Section 2.11.
Section 2.11 Termination of Agreement and Modification of LRIP Grant.
A. If the Project is not started within five (5) years after the effective date of the Agreement or the
LRIP Grant has not been disbursed within four (4) years after the date the Project was started, MnDOT’ s
obligation to fund the LRIP Grant shall terminate. In such event, (i) if none of the LRIP Grant has been
disbursed by such date, MnDOT shall have no obligation to fund the LRIP Grant and the Agreement will
terminate, and (ii) if some but not all of the LRIP Grant has been disbursed by such date, MnDOT shall
have no further obligation to provide any additional funding for the LRIP Grant and the Agreement shall
remain in force but shall be modified to reflect the amount of the LRIP Grant that was actually disbursed
and the Public Entity is still obligated to complete the Project by the Completion Date.
B. The Agreement shall terminate upon the County’s sale of its interest in the Real Property and
transmittal of the required portion of the proceeds of the sale to the Commissioner in compliance with Minn.
Stat. Sec. 16A.695 and the Commissioner’s Order, or upon the termination of the County’s ownership
interest in the Real Property if such ownership interest is an easement.
Section 2.12 Excess Funds. If the full amount of the G.O. Grant and any matching funds referred to
in Section 5.13 are not needed to complete the Project, then, unless language in the G.O. Bonding
Legislation indicates otherwise, the G.O. Grant shall be reduced by the amount not needed.
Article III
COMPLIANCE WITH MINNESOTA STATUTE, SEC. 16A.695
AND THE COMMISSIONER’S ORDER
Section 3.01 State Bond Financed Property. The County acknowledges that its interest in the Real
Property is, or when acquired by it will be, “state bond financed property”, as such term is used in Minn.
Stat. Sec. 16A.695 and the Commissioner’s Order and, therefore, the provisions contained in such statute
and order apply, or will apply, to its interest in the Real Property, even if the LRIP Grant will only pay for
a portion of the Project.
Section 3.02 Preservation of Tax Exempt Status. In order to preserve the tax-exempt status of the
G.O. Bonds, the Public Entity and the County, where applicable, agree as follows:
A. It will not use the Real Property or use or invest the LRIP Grant or any other sums treated as
“bond proceeds” under Section 148 of the Code (including “investment proceeds,” “invested
sinking funds” and “replacement proceeds”) in such a manner as to cause the G.O. Bonds to be
classified as “arbitrage bonds” under Code Section 148.
MnDOT Agreement No. 1036577
B. It will deposit and hold the LRIP Grant in a segregated non-interest-bearing account until such
funds are used for payments for the Project.
C. It will, upon written request, provide the Commissioner all information required to satisfy the
informational requirements set forth in the Code, including Sections 103 and 148, with respect
to the G.O. Bonds.
D. It will, upon the occurrence of any act or omission by the Public Entity or the County that could
cause the interest on the G.O. Bonds to no longer be tax exempt and upon direction from the
Commissioner, take such actions and furnish such documents as the Commissioner determines
to be necessary to ensure that the interest to be paid on the G.O. Bonds is exempt from federal
taxation, which such action may include: (i) compliance with proceedings intended to classify
the G.O. Bonds as a “qualified bond” within the meaning of Code Section 141(e), or (ii)
changing the nature of the use of the Real Property so that none of the net proceeds of the G.O.
Bonds will be deemed to be used, directly or indirectly, in an “unrelated trade or business” or
for any “private business use” within the meaning of Code Sections 141(b) and 145(a).
E. It will not otherwise use any of the LRIP Grant or take, permit or cause to be taken, or omit to
take, any action that would adversely affect the exemption from federal income taxation of the
interest on the G.O. Bonds, and if it should take, permit or cause to be taken, or omit to take,
as appropriate, any such action, it shall take all lawful actions necessary to correct such actions
or omissions promptly upon obtaining knowledge thereof.
Section 3.03 Changes to G.O. Compliance Legislation or the Commissioner’s Order. If Minn.
Stat. Sec. 16A.695 or the Commissioner’s Order is amended in a manner that reduces any requirement
imposed against the County, or if the County’s interest in the Real Property becomes exempted from Minn.
Stat. Sec. 16A.695 and the Commissioner’s Order, then upon written request by the County, MnDOT shall
execute an amendment to the Agreement to implement such amendment or exempt the County’s interest in
the Real Property from Minn. Stat. Sec. 16A.695 and the Commissioner’s Order.
Article IV
DISBURSEMENT OF GRANT PROCEEDS
Section 4.01 The Advances. MnDOT agrees, on the terms and subject to the conditions set forth
herein, to make Advances of the LRIP Grant to the Public Entity from time to time in an aggregate total
amount not to exceed the amount of the LRIP Grant. If the amount of LRIP Grant that MnDOT
cumulatively disburses hereunder to the Public Entity is less than the amount of the LRIP Grant delineated
in Section 1.01, then MnDOT and the Public Entity shall enter into and execute whatever documents
MnDOT may request in order to amend or modify this Agreement to reduce the amount of the LRIP Grant
to the amount actually disbursed. Provided, however, in accordance with the provisions contained in
Section 2.11, MnDOT’s obligation to make Advances shall terminate as of the dates specified in Section
2.11 even if the entire LRIP Grant has not been disbursed by such dates.
Advances shall only be for expenses that (i) are for those items of a capital nature delineated in Source
and Use of Funds that is attached as Exhibit A, (ii) accrued no earlier than the effective date of the
legislation that appropriated the funds that are used to fund the LRIP Grant, or (iii) have otherwise been
consented to, in writing, by the Commissioner.
It is the intent of the parties hereto that the rate of disbursement of the Advances shall not exceed the rate
of completion of the Project or the rate of disbursement of the matching funds required, if any, under Section
5.13. Therefore, the cumulative amount of all Advances disbursed by the State Entity at any point in time
MnDOT Agreement No. 1036577
shall not exceed the portion of the Project that has been completed and the percentage of the matching funds
required, if any, under Section 5.13 that have been disbursed as of such point in time. This requirement is
expressed by way of the following two formulas:
Formula #1:
Cumulative Advances < (Program Grant) × (percentage of matching funds, if any, required under
Section 5.13 that have been disbursed)
Formula #2:
Cumulative Advances < (Program Grant) × (percentage of Project completed)
Section 4.02 Draw Requisitions. Whenever the Public Entity desires a disbursement of a portion
of the LRIP Grant the Public Entity shall submit to MnDOT a Draw Requisition duly executed on behalf
of the Public Entity or its designee. Each Draw Requisition with respect to construction items shall be
limited to amounts equal to: (i) the total value of the classes of the work by percentage of completion as
approved by the Public Entity and MnDOT, plus (ii) the value of materials and equipment not incorporated
in the Project but delivered and suitably stored on or off the Real Property in a manner acceptable to
MnDOT, less (iii) any applicable retainage, and less (iv) all prior Advances.
Notwithstanding anything herein to the contrary, no Advances for materials stored on or off the Real
Property will be made by MnDOT unless the Public Entity shall advise MnDOT, in writing, of its intention
to so store materials prior to their delivery and MnDOT has not objected thereto.
At the time of submission of each Draw Requisition, other than the final Draw Requisition, the Public
Entity shall submit to MnDOT such supporting evidence as may be requested by MnDOT to substantiate
all payments which are to be made out of the relevant Draw Requisition or to substantiate all payments
then made with respect to the Project.
The final Draw Requisition shall not be submitted before completion of the Project, including any
correction of material defects in workmanship or materials (other than the completion of punch list items).
At the time of submission of the final Draw Requisition the Public Entity shall submit to MnDOT: (I) such
supporting evidence as may be requested by MnDOT to substantiate all payments which are to be made
out of the final Draw Requisition or to substantiate all payments then made with respect to the Project, and
(ii) satisfactory evidence that all work requiring inspection by municipal or other governmental authorities
having jurisdiction has been duly inspected and approved by such authorities and that all requisite
certificates and other approvals have been issued.
If on the date an Advance is desired the Public Entity has complied with all requirements of this
Agreement and MnDOT approves the relevant Draw Requisition, then MnDOT shall disburse the amount
of the requested Advance to the Public Entity.
Section 4.03 Additional Funds. If MnDOT shall at any time in good faith determine that the sum
of the undisbursed amount of the LRIP Grant plus the amount of all other funds committed to the Project
is less than the amount required to pay all costs and expenses of any kind which reasonably may be
anticipated in connection with the Project, then MnDOT may send written notice thereof to the Public
Entity specifying the amount which must be supplied in order to provide sufficient funds to complete the
Project. The Public Entity agrees that it will, within 10 calendar days of receipt of any such notice, supply
or have some other entity supply the amount of funds specified in MnDOT's notice.
Section 4.04 Condition Precedent to Any Advance. The obligation of MnDOT to make any
Advance hereunder (including the initial Advance) shall be subject to the following conditions precedent:
MnDOT Agreement No. 1036577
A. MnDOT shall have received a Draw Requisition for such Advance specifying the amount of
funds being requested, which such amount when added to all prior requests for an Advance
shall not exceed the amount of the LRIP Grant set forth in Section 1.01.
B. No Event of Default under this Agreement or event which would constitute an Event of Default
but for the requirement that notice be given or that a period of grace or time elapse shall have
occurred and be continuing.
C. No determination shall have been made by MnDOT that the amount of funds committed to the
Project is less than the amount required to pay all costs and expenses of any kind that may
reasonably be anticipated in connection with the Project, or if such a determination has been
made and notice thereof sent to the Public Entity under Section 4.03, then the Public Entity has
supplied, or has caused some other entity to supply, the necessary funds in accordance with
such section or has provided evidence acceptable to MnDOT that sufficient funds are available.
D. The State Entity shall have received evidence, in form and substance acceptable to the State
Entity, that the Public Entity has sufficient funds to fully and completely pay for the Project
and all other expenses that may occur in conjunction therewith.
E. The Public Entity and the County have supplied to the State Entity all other items that the State
Entity may reasonably require
Section 4.05 Processing and Disbursement of Advances. The Public Entity acknowledges and
agrees as follows:
A. Advances are not made prior to completion of work performed on the Project.
B. All Advances are processed on a reimbursement basis.
C. The Public Entity must first document expenditures to obtain an Advance.
D. Reimbursement requests are made on a partial payment basis or when the Project is completed.
E. All payments are made following the “Delegated Contract Process or State Aid Payment Request”
as requested and approved by the appropriate district state aid engineer.
Section 4.06 Construction Inspections. The Public Entity and the County shall be responsible for
making their own inspections and observations regarding the completion of the Project, and shall determine
to its own satisfaction that all work done or materials supplied have been properly done or supplied in
accordance with all contracts that the Public Entity has entered into regarding the completion of the Project.
Article V
MISCELLANEOUS
Section 5.01 Insurance. If the Public Entity or the County elect to maintain general comprehensive
liability insurance regarding the Real Property, then the Public Entity or the County shall have MnDOT
named as an additional named insured therein.
MnDOT Agreement No. 1036577
Section 5.02 Condemnation. If, after the County has acquired the ownership interest set forth in
Section 2.02, all or any portion of the Real Property is condemned to an extent that the County can no
longer comply with Section 2.04, then the County shall, at its sole option, either: (i) use the condemnation
proceeds to acquire an interest in additional real property needed for the County to continue to comply with
Section 2.04 and to provide whatever additional funds that may be needed for such purposes, or (ii) submit
a request to MnDOT and the Commissioner to allow it to sell the remaining portion of its interest in the
Real Property. Any condemnation proceeds which are not used to acquire an interest in additional real
property shall be applied in accordance with Minn. Stat. Sec. 16A.695 and the Commissioner’s Order as if
the County’s interest in the Real Property had been sold. If the County elects to sell its interest in the
portion of the Real Property that remains after the condemnation, such sale must occur within a reasonable
time period after the date the condemnation occurred and the cumulative sum of the condemnation and sale
proceeds applied in accordance with Minn. Stat. Sec. 16A.695 and the Commissioner’s Order.
If MnDOT receives any condemnation proceeds referred to herein, MnDOT agrees to or pay over to the
County all of such condemnation proceeds so that the County can comply with the requirements of this
Section.
Section 5.03 Use, Maintenance, Repair and Alterations. The Public Entity and the County shall
not, without the written consent of MnDOT and the Commissioner, (i) permit or allow the use of any of the
Real Property for any purpose other than the purposes specified in Section 2.04, (ii) substantially alter any
of the Real Property except such alterations as may be required by laws, ordinances or regulations, or such
other alterations as may improve the Real Property by increasing its value or which improve its ability to
be used for the purposes set forth in Section 2.04, (iii) take any action which would unduly impair or
depreciate the value of the Real Property, (iv) abandon the Real Property, or (v) commit or permit any act
to be done in or on the Real Property in violation of any law, ordinance or regulation.
If the Public Entity or the County fails to maintain the Real Property in accordance with this Section,
MnDOT may perform whatever acts and expend whatever funds necessary to so maintain the Real Property,
and the Public Entity and the County irrevocably authorize MnDOT to enter upon the Real Property to
perform such acts as may be necessary to so maintain the Real Property. Any actions taken or funds
expended by MnDOT shall be at its sole discretion, and nothing contained herein shall require MnDOT to
take any action or incur any expense and MnDOT shall not be responsible, or liable to the Public Entity,
the County, or any other entity, for any such acts that are performed in good faith and not in a negligent
manner. Any funds expended by MnDOT pursuant to this Section shall be due and payable on demand by
MnDOT and will bear interest from the date of payment by MnDOT at a rate equal to the lesser of the
maximum interest rate allowed by law or 18% per year based upon a 365-day year.
Section 5.04 Recordkeeping and Reporting. The Public Entity and the County shall maintain books
and records pertaining to Project costs and expenses needed to comply with the requirements contained
herein, Minn. Stat. Sec. 16A.695, the Commissioner’s Order, and Minn. Stat. Sec. 174.52 and all rules
related thereto, and upon request shall allow MnDOT, its auditors, the Legislative Auditor for the State of
Minnesota, or the State Auditor for the State of Minnesota, to inspect, audit, copy, or abstract all of such
items. The Public Entity and the County shall use generally accepted accounting principles in the
maintenance of such items, and shall retain all of such books and records for a period of six years after the
date that the Project is fully completed and placed into operation.
Section 5.05 Inspections by MnDOT. The Public Entity and the County shall allow MnDOT to
inspect the Real Property upon reasonable request by MnDOT and without interfering with the normal use
of the Real Property.
MnDOT Agreement No. 1036577
Section 5.06 Liability. The Public Entity, the County, and MnDOT agree that each will be
responsible for its own acts and the results thereof to the extent authorized by law, and no party shall be
responsible for the acts of another party and the results thereof. The liability of MnDOT and the
Commissioner is governed by the provisions of Minn. Stat. Sec. 3.736. The liability of the County is
governed by the provisions of Chapter 466. If the Public Entity is a “municipality” as that term is used in
Minn. Stat. Chapter 466, then the liability of the Public Entity is governed by the provisions of Chapter
466. The Public Entity’s liability hereunder shall not be limited to the extent of insurance carried by or
provided by the Public Entity, or subject to any exclusion from coverage in any insurance policy.
Section 5.07 Relationship of the Parties. Nothing contained in the Agreement is to be construed as
establishing a relationship of co-partners or joint venture among the Public Entity, the County, MnDOT, or
the Commissioner, nor shall the Public Entity or the County be considered to be an agent, representative,
or employee of MnDOT, the Commissioner, or the State of Minnesota in the performance of the Agreement
or the Project.
No employee of the Public Entity, the County, or other person engaging in the performance of the
Agreement or the Project shall be deemed have any contractual relationship with MnDOT, the
Commissioner, or the State of Minnesota and shall not be considered an employee of any of those entities.
Any claims that may arise on behalf of said employees or other persons out of employment or alleged
employment, including claims under the Workers’ Compensation Act of the State of Minnesota, claims of
discrimination against the Public Entity, the County, or their officers, agents, contractors, or employees
shall in no way be the responsibility of MnDOT, the Commissioner, or the State of Minnesota. Such
employees or other persons shall not require nor be entitled to any compensation, rights or benefits of any
kind whatsoever from MnDOT, the Commissioner, or the State of Minnesota, including tenure rights,
medical and hospital care, sick and vacation leave, disability benefits, severance pay and retirement
benefits.
Section 5.08 Notices. In addition to any notice required under applicable law to be given in another
manner, any notices required hereunder must be in writing and personally served or sent by prepaid,
registered, or certified mail (return receipt requested), to the address of the party specified below or to such
different address as may in the future be specified by a party by written notice to the others:
To the Public Entity or the County: At the addresses indicated on the first page of the Agreement.
To MnDOT at: Minnesota Department of Transportation
Office of State Aid
395 John Ireland Blvd., MS 500
Saint Paul, MN 55155
Attention: Patti Loken, State Aid Programs Engineer
To the Commissioner at: Minnesota Management & Budget
400 Centennial Office Bldg.
658 Cedar St.
St. Paul, MN 55155
Attention: Commissioner
Section 5.09 Assignment or Modification. Neither the Public Entity, the County, nor MnDOT may
assign any of its rights or obligations under the Agreement without the prior written consent of the other
party.
MnDOT Agreement No. 1036577
Section 5.10 Waiver. Neither the failure by the Public Entity, the County, MnDOT, or the
Commissioner, as a third party beneficiary of the Agreement, in one or more instances to insist upon the
complete observance or performance of any provision hereof, nor the failure of the Public Entity, the
County, MnDOT, or the Commissioner to exercise any right or remedy conferred hereunder or afforded by
law shall be construed as waiving any breach of such provision or the right to exercise such right or remedy
thereafter. In addition, no delay by any of the Public Entity, the County, MnDOT, or the Commissioner in
exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right or remedy preclude other or further exercise thereof or the exercise of any other right
or remedy.
Section 5.11 Choice of Law and Venue. All matters relating to the validity, interpretation,
performance, or enforcement of the Agreement shall be determined in accordance with the laws of the State
of Minnesota. All legal actions arising from any provision of the Agreement shall be initiated and venued
in the State of Minnesota District Court located in St. Paul, Minnesota.
Section 5.12 Severability. If any provision of the Agreement is finally judged by any court to be
invalid, then the remaining provisions shall remain in full force and effect and they shall be interpreted,
performed, and enforced as if the invalid provision did not appear herein.
Section 5.13 Matching Funds. Any matching funds as shown on Page 1 of the Grant Agreement
that are required to be obtained and supplied by the Public Entity must either be in the form of (i) cash
monies, (ii) legally binding commitments for money, or (iii) equivalent funds or contributions, including
equity, which have been or will be used to pay for the Project. The Public Entity shall supply to MnDOT
whatever documentation MnDOT may request to substantiate the availability and source of any matching
funds.
Section 5.14 Sources and Uses of Funds. The Public Entity represents to MnDOT and the
Commissioner that the Sources and Uses of Funds Schedule attached as Exhibit A accurately shows the
total cost of the Project and all of the funds that are available for the completion of the Project. The Public
Entity will supply any other information and documentation that MnDOT or the Commissioner may request
to support or explain any of the information contained in the Sources and Uses of Funds Schedule. If any
of the funds shown in the Sources and Uses of Funds Schedule have conditions precedent to the release of
such funds, the Public Entity must provide to MnDOT a detailed description of such conditions and what
is being done to satisfy such conditions.
Section 5.15 Project Completion Schedule. The Public Entity represents to MnDOT and the
Commissioner that the Project Completion Schedule attached as Exhibit B correctly and accurately sets
forth the projected schedule for the completion of the Project.
Section 5.16 Third-Party Beneficiary. The Governmental Program will benefit the State of
Minnesota and the provisions and requirements contained herein are for the benefit of both the State Entity
and the State of Minnesota. Therefore, the State of Minnesota, by and through its Commissioner of MMB,
is and shall be a third-party beneficiary of this Agreement.
Section 5.17 Public Entity Tasks. Any tasks that the Agreement imposes upon the Public Entity or
the County may be performed by such other entity as the Public Entity or the County may select or
designate, provided that the failure of such other entity to perform said tasks shall be deemed to be a failure
to perform by the Public Entity or the County.
Section 5.18 Data Practices. The Public Entity and the County agree with respect to any data that
they possess regarding the G.O. Grant or the Project to comply with all of the provisions and restrictions
MnDOT Agreement No. 1036577
contained in the Minnesota Government Data Practices Act contained in Minnesota Statutes Chapter 13, as
such may subsequently be amended or replaced from time to time.
Section 5.19 Non-Discrimination. The Public Entity and the County agree to not engage in
discriminatory employment practices regarding the Project and they shall fully comply with all of the
provisions contained in Minnesota Statutes Chapters 363A and 181, as such may subsequently be amended
or replaced from time to time.
Section 5.20 Worker’s Compensation. The Public Entity and the County agree to comply with all
of the provisions relating to worker’s compensation contained in Minn. Stat. Secs. 176.181 subd. 2 and
176.182, as they may be amended or replaced from time to time with respect to the Project.
Section 5.21 Antitrust Claims. The Public Entity and the County hereby assign to MnDOT and the
Commissioner of MMB all claims they may have for over charges as to goods or services provided with
respect to the Project that arise under the antitrust laws of the State of Minnesota or of the United States of
America.
Section 5.22 Prevailing Wages. The Public Entity and the County agree to comply with all of the
applicable provisions contained in Minnesota Statutes Chapter 177, and specifically those provisions
contained in Minn. Stat.§. 177.41 through 177.435 as they may be amended or replaced from time to time
with respect to the Project. By agreeing to this provision, the Public Entity and the County are not
acknowledging or agreeing that the cited provisions apply to the Project.
Section 5.23 Entire Agreement. The Agreement and all of the exhibits attached thereto embody the
entire agreement between the Public Entity, the County, and MnDOT, and there are no other agreements,
either oral or written, between the Public Entity, the County, and MnDOT on the subject matter hereof.
Section 5.24 E-Verification. The Public Entity and the County agree and acknowledge that they are
aware of Minn.Stat. § 16C.075 regarding e-verification of employment of all newly hired employees to
confirm that such employees are legally entitled to work in the United States, and that they will, if and when
applicable, fully comply with such order.
MnDOT Agreement No. 1036577
Resolution No. ________
May 19, 2020
Member ___________ introduced the following resolution and moved its adoption:
CITY OF MEDINA
RESOLUTION NO. _______
EXHIBIT E FOR GRANT AGREEMENT TO STATE TRANSPORTATION FUND
LOCAL ROAD IMPROVEMENT PROGRAM
GRANT TERMS AND CONDITIONS
SAP 250-593-001
WHEREAS, the City of Medina has applied to the Commissioner of Transportation for a grant
from the Minnesota State Transportation Fund for Local Road Improvement; and
WHEREAS, the Commissioner of Transportation has given notice that funding for this project is
available; and
WHEREAS, the amount of the grant has been determined to be $444,969.10 by reason of the
lower responsible bid;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Medina, Minnesota,
as follows:
1. The City of Medina does hereby agree to the terms and conditions of the grant consistent
with Minnesota Statutes, section 174.52 and will pay any additional amount by which the
cost exceeds the estimate and will return to the Minnesota State Transportation Fund any
amount appropriated for the project but not required.
2. The City Council hereby authorizes the Mayor and City Administrator to execute a grant
agreement on behalf of the City of Medina and any amendments thereto with the
Commissioner of Transportation concerning the above-referenced grant.
Dated: May 19, 2020
_________________________
Kathleen Martin, Mayor
Attest:
___________________________________
Jodi M. Gallup, City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
___________ and upon a vote being taken thereon, the following voted in favor thereof:
Resolution No. ________
May 19, 2020
2
And the following voted against same:
Whereupon said resolution was declared duly passed and adopted.
PROJECT:
Arrowhead Drive Railroad Crossing Improvements
S.A.P. 250-593-001
OWNER:
City of Medina, MN
WSB PROJECT NO.:
013211-000
BIDS OPENED: Friday, March 6, 2020, at 10:00 a.m. Local Time
Contractor Bid Bond (5%)
Add. Nos. 1, 2, & 3
Rec'd.Grand Total Bid
1 Minger Construction Co., Inc. X X $426,969.10
2 New Look Contracting, Inc. X X $444,318.00
3 Meyer Contracting, Inc. X X $444,752.50
4 Urban Companies X X $477,369.00
5 GL Contracting, Inc. X X $509,437.90
Engineer's Estimate $354,364.00
Denotes corrected figure
James L. Stremel, PE, Sr. Project Manager
BID TABULATION SUMMARY
I hereby certify that this is a true and correct tabulation of the bids as received on March 6, 2020.
K:\013211-000\Admin\Construction Admin\Bidding & Contracts\013211-000 CST Bid Tab Summary-030620
Resolution No. ________
May 19, 2020
Member ___________ introduced the following resolution and moved its adoption:
CITY OF MEDINA
RESOLUTION NO. _______
RESOLUTION ACCEPTING BIDS AND AWARDING THE CONTRACT
WHEREAS, pursuant to an advertisement for bids for the Arrowhead Drive Railroad
Improvement Project, the improvement of Arrowhead Drive south of TH 55 by constructing a
raised concrete median, pedestrian railroad crossing panels and other improvements, bituminous
pavement patching, installation of storm sewer, and pavement striping, bids were received, opened
electronically, and tabulated according to the law, and the following three bids were received
complying with the advertisement:
Company Grand Total Bid
Minger Construction Co., Inc. $426,696.10
New Look Contracting, Inc. $444,318.00
Meyer Contracting, Inc. $444,752.50
Urban Companies $477,369.00
GL Contracting, Inc. $509,437.90
AND WHEREAS, it appears that Minger Construction Co., Inc. of Jordan, MN is the lowest
responsible bidder for the Grand Total Bid.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Medina, Minnesota,
as follows:
1. The Mayor and City Administrator are hereby authorized and directed to enter into the
attached contract with Minger Construction Co., Inc. in the name of the City of Medina
for the improvement of a city roadway on Arrowhead Drive south of TH 55 by
constructing a raised concrete median, pedestrian railroad crossing panels and other
improvements, bituminous pavement patching, installation of storm sewer, and pavement
striping, according to the plans and specifications therefor approved by the City Council
and on file in the office of the City Administrator.
2. The City Administrator is hereby authorized and directed to return forthwith to all
bidders the deposits made with their bids, except that the deposits of the successful bidder
and the next lowest bidder shall be retained until a contract has been signed.
Resolution No. ________
May 19, 2020
2
Dated: May 19, 2020.
_________________________
Kathleen Martin, Mayor
Attest:
___________________________________
Jodi M. Gallup, City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
___________ and upon a vote being taken thereon, the following voted in favor thereof:
And the following voted against same:
Whereupon said resolution was declared duly passed and adopted.
Planning Commission Page 1 of 1 May 19, 2020
Resignation City Council Meeting
MEMORANDUM
TO: Mayor Martin and Members of the City Council
FROM: Dusty Finke, Planning Director; through City Administrator Scott Johnson
DATE: May 14, 2020
MEETING: May 19, 2020 City Council
SUBJ: Planning Commission Resignation
Resignation
Planning Commissioner Aaron Amic is planning to move out of the City in June and, as a result,
has submitted his resignation from the Planning Commission. Aaron’s resignation is attached.
Filling Vacancy
Staff has consulted with Mayor Martin, City Council liaison Todd Albers, and Planning
Commission Chair Robin Reid related to filling the vacancy in the term, which expires at the end
of 2020.
The group intends to review applications for the appointments at the beginning of the year, some
of which were not able to be appointed. After review and confirming interest, the group will
either recommend appointment of a previous candidate or seek additional applicants.
Recommended Action
Motion to adopt a resolution accepting resignation of Aaron Amic from the Planning
Commission.
Attachments
1. Resolution
2. Resignation Letter
Agenda Item # 5G
Resolution No. 2020-##
DATE
Member __________ introduced the following resolution and moved its adoption:
CITY OF MEDINA
RESOLUTION NO. 2020-##
RESOLUTION ACCEPTING RESIGNATION OF AARON AMIC
FROM THE PLANNING COMMISSION
WHEREAS, on January 2, 2018, the City Council appointed Aaron Amic to the Planning
Commission, with a term to expire on December 31, 2020; and
WHEREAS, on May 13, 2020, Mr. Amic submitted a letter of resignation from his position
on the Planning Commission.
NOW, THEREFORE, BE IT RESOLVED by the city council of the city of Medina that
Aaron Amic’s letter of resignation from the Planning Commission is hereby accepted.
Dated:
______________________________
Kathleen Martin, Mayor
ATTEST:
_______________________________
Jodi M. Gallup, City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member _____ and
upon vote being taken thereon, the following voted in favor thereof:
And the following voted against same:
Whereupon said resolution was declared duly passed and adopted.
1
Dusty Finke
From:Aaron Amic <aaronjamic@gmail.com>
Sent:Wednesday, May 13, 2020 4:46 PM
To:Dusty Finke
Subject:Resignation
Hi Dusty,
As discussed and finalized over the past couple months, I will be moving and while we looked around Medina, the house
that jumped out at us is in Orono. I love the city of Medina and will continue of course to be a business owner here. It is
a special city and the people who work for the city and serve on the commission and council are amazing people who I
will miss working with on city issues.
I am very sorry to send this resignation letter but I am sure we’ll cross paths again. You are the best city planner a city
could ever hope for and I have often been in awe of your preparation and knowledge. Thanks for letting me serve these
past three years!
Thank you,
Aaron Amic
612‐281‐7014
City of Medina
Medina, Minnesota
For the Year Ended
December 31, 2019
Annual Financial Report
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City of Medina, Minnesota
Annual Financial Report
Table of Contents
For the Year Ended December 31, 2019
Page No.
Introductory Section
Elected and Appointed Officials 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 29
Statement of Activities 30
Fund Financial Statements
Governmental Funds
Balance Sheet 34
Reconciliation of the Balance Sheet to the Statement of Net Position 35
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 40
Statement of Revenues, Expenses and Changes in Net Position 43
Statement of Cash Flows 44
Notes to the Financial Statements 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 80
Schedule of Employer’s Public Employees Retirement Association Contributions -
Public Employees Police and Fire Fund 80
Notes to the Required Supplementary Information - Public Employees Police and Fire Fund 81
Schedule of Changes in the City’s Total OPEB Liability 83
3
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4
City of Medina, Minnesota
Annual Financial Report
Table of Contents (Continued)
For the Year Ended December 31, 2019
Page No.
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 86
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 87
Nonmajor Special Revenue Funds
Combining Balance Sheet 88
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 90
Nonmajor Capital Projects Funds
Combining Balance Sheet 92
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 94
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 96
Debt Service Funds
Combining Balance Sheet 100
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 102
Summary Financial Report
Revenues and Expenditures for General Operations - Governmental Funds 104
Other Required Report
Independent Auditor’s Report
on Minnesota Legal Compliance 107
5
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6
INTRODUCTORY SECTION
CITY OF MEDINA
MEDINA, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2019
7
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8
City of Medina, Minnesota
Elected and Appointed Officials
For the Year Ended December 31, 2019
Name Title Term Expires
Kathleen Martin Mayor 12/31/20
John Anderson Council Member 12/31/20
Jeff Pederson Council Member 12/31/20
Todd Albers Council Member 12/31/22
Dino DesLauriers Council Member 12/31/22
Name Title
Scott Johnson City Administrator
Erin Barnhart Finance Director
Jodi Gallup Assistant City Administrator/City Clerk
ELECTED
APPOINTED
9
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10
FINANCIAL SECTION
CITY OF MEDINA
MEDINA, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2019
11
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12
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, 2019, 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, 2019, 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.
13
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14
Change in Accounting Standards
As described in Note 10 to the financial statements, the City adopted the provisions of Governmental Accounting
Standard Board (GASB) Statement No. 84, Fiduciary Activities, for the year ended December 31, 2019. Adoption of the
provisions of these statements results in changes to the classifications of the components of the financial statements. Our
opinion is not modified with respect to this m atter.
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 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 May 12, 2020, 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.
ABDO, EICK & MEYERS, LLP
Minneapolis, Minnesota
May 12, 2020
15
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16
Management’s Discussion and Analysis
As management of the City of Medina, Minnesota (the City), we offer readers of the City’s financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2019.
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 $45,418,136 (net position). Of this amount, $13,110,724
(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 $2,745,814 and total net position of the business-
type activities increased by $1,854,996. This resulted in an increase to total net position of $4,600,810 for the
City. The increase is mainly due to capital contributions from developers totaling $2,553,000.
• As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances
of $13,549,160, an increase of $1,164,873 in comparison with the prior year.
• At the end of the current fiscal year, unassigned fund balance for the General fund was $2,933,435, or 57.7
percent of total General fund expenditures and transfers out.
• The City’s total debt decreased $1,420,657, or 11.3 percent during the current fiscal year mainly due to regularly
scheduled principal payments made on outstanding debt.
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
Basic
Financial
Statements
Required
Supplementary
Information
Government-
wide Financial
Statements
Fund
Financial
Statements
Notes to the
Financial
Statements
Summary Detail
18
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
Fund Financial Statements
Government-wide
Statements
Governmental Funds Proprietary Funds
Scope Entire City government
(except fiduciary
funds)
The activities of the City that
are not proprietary or fiduciary,
such as police, fire and parks
Activities of the City that
operates similar to private
businesses, such as the
water and sewer systems
Required financial
statements • Statement of Net
Position
• Statement of
Activities
• Balance Sheet
• Statement of Revenues,
Expenditures, and
Changes in Fund Balances
• Statements of Net
Position
• Statements of
Revenues, Expenses
and Changes in Fund
Net Position
• Statements of Cash
Flows
Accounting basis
and measurement
focus
Accrual accounting
and economic
resources focus
Modified accrual accounting
and current financial resources
focus
Accrual accounting and
economic resources focus
Type of
asset/liability
information
All assets and
liabilities, both financial
and capital, as well as
short-term and long-
term
Only assets expected to be
used up and liabilities that
come due during the year or
soon thereafter; no capital
assets included
All assets and liabilities,
both financial and capital,
as well as short-term and
long-term
Type of deferred
outflows/inflows of
resources
information
All deferred
outflows/inflows of
resources, regardless
of when cash is
received or paid
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
All deferred
outflows/inflows of
resources, regardless of
when cash is received or
paid
Type of
inflow/outflow
information
All revenues and
expenses during the
year, regardless of
when cash is received
or paid
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
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, nine 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 $45,418,136
at the close of the most recent fiscal year.
By far, the largest portion of the City’s net position (61.3 percent) reflects its investment in capital assets (e.g., land,
buildings, machinery and equipment), less any related debt used to acquire those assets that is still outstanding. The City
uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.
Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
City of Medina’s Summary of Net Position
Increase Increase
2019 2018 (Decrease) 2019 2018 (Decrease)
Assets
Current and other assets 17,263,227$ 15,808,067$ 1,455,160$ 5,315,109$ 4,734,941$ 580,168$
Capital assets 26,274,363 25,089,057 1,185,306 12,593,515 11,914,762 678,753
Total Assets 43,537,590 40,897,124 2,640,466 17,908,624 16,649,703 1,258,921
Deferred Outflows of Resources 1,104,251 1,349,562 (245,311) 20,889 42,383 (21,494)
Liabilities
Noncurrent liabilities
outstanding 12,110,504 12,876,608 (766,104) 1,451,108 2,056,802 (605,694)
Other liabilities 1,834,134 1,153,143 680,991 45,989 46,338 (349)
Total Liabilities 13,944,638 14,029,751 (85,113) 1,497,097 2,103,140 (606,043)
Deferred Inflows of Resources 1,667,293 1,932,839 (265,546) 44,190 55,716 (11,526)
Net Position
Net investment in
capital assets 16,439,841 14,239,264 2,200,577 11,402,682 10,143,543 1,259,139
Restricted 4,464,889 4,482,055 (17,166) - - -
Unrestricted 8,125,180 7,562,777 562,403 4,985,544 4,389,687 595,857
Total Net Position 29,029,910$ 26,284,096$ 2,745,814$ 16,388,226$ 14,533,230$ 1,854,996$
Governmental Activities Business-type Activities
An additional portion of the City’s net position (9.8 percent) represents resources that are subject to external restrictions
on how they may be used. The remaining balance of unrestricted net position $13,110,724 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 $2,745,814. Key elements of this
increase are as follows:
City of Medina’s Changes in Net Position
Increase Increase
2019 2018 (Decrease) 2019 2018 (Decrease)
Revenues
Program Revenues
Charges for services 1,254,827$ 983,365$ 271,462$ 2,103,976$ 2,105,158$ (1,182)$
Operating grants and contributions 420,950 366,506 54,444 439 1,586 (1,147)
Capital grants and contributions 2,809,171 1,883,427 925,744 1,259,302 11,555 1,247,747
General Revenues
Property taxes 4,063,049 3,914,577 148,472 - - -
Tax increments 491,715 436,528 55,187 - - -
Franchise taxes 61,648 57,688 3,960 - - -
Grants and contributions not
restricted to specific programs 31,331 17,869 13,462 - - -
Unrestricted investment earnings 431,793 153,109 278,684 143,725 48,816 94,909
Gain on sale of capital assets 35,880 39,173 (3,293) - - -
Total Revenues 9,600,364 7,852,242 1,748,122 3,507,442 2,167,115 1,340,327
Expenses
General government 1,319,665 1,133,831 185,834 - - -
Public safety 2,755,337 2,563,683 191,654 - - -
Streets and highways 1,803,752 1,239,728 564,024 - - -
Sanitation and recycling 15,311 12,415 2,896 - - -
Culture and recreation 471,625 499,008 (27,383) - - -
Economic development 203,234 208,617 (5,383) - - -
Interest on long-term debt 211,132 226,983 (15,851) - - -
Water - - - 840,718 983,624 (142,906)
Sewer - - - 691,716 888,224 (196,508)
Storm water - - - 194,506 180,344 14,162
Total Expenses 6,780,056 5,884,265 895,791 1,726,940 2,052,192 (325,252)
Change in Net Position Before Transfers 2,820,308 1,967,977 852,331 1,780,502 114,923 1,665,579
Transfers - Capital Assets (22,321) (132,082) 109,761 22,321 132,082 (109,761)
Transfers (52,173) 179,440 (231,613) 52,173 (179,440) 231,613
Change in Net Position 2,745,814 2,015,335 730,479 1,854,996 67,565 1,787,431
Net Position, January 1 26,284,096 24,268,761 2,015,335 14,533,230 14,465,665 67,565
Net Position, December 31 29,029,910$ 26,284,096$ 2,745,814$ 16,388,226$ 14,533,230$ 1,854,996$
Governmental Activities Business-type Activities
Capital contributions increased $925,744 mainly due to contributions from developers. Charges for services increased
$271,462 mainly due to public safety and streets and highways. Property taxes represent 42.3 percent of total revenues in
2019 in governmental activities.
22
The following graph depicts various governmental activities and shows the revenue and expenses directly related to those
activities.
Expenses and Program Revenue - Governmental Activities
$-
$300,000
$600,000
$900,000
$1,200,000
$1,500,000
$1,800,000
$2,100,000
$2,400,000
$2,700,000
$3,000,000
Expenses Revenues Revenue by Source - Governmental Activities
Charges for
Services
13.0%
Operating Grants
and Contributions
4.4%
Capital Grants and
Contributions
29.3%
Taxes
48.1%
Grants and
Contributions Not
Restricted to
Specific Programs
0.3%
Unrestricted
Investment
Earnings
4.5%
Gain on Sale of
Capital Assets
0.4%
23
Business-type Activities. Business-type activities increased the City’s net position by $1,854,996. The increase from
prior year is mainly due to capital contributions from developers of $1,134,000.
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
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
$1,100,000
$1,200,000
$1,300,000
$1,400,000
$1,500,000
$1,600,000
$1,700,000
$1,800,000
Water Sewer Storm Water
Expenses Revenues
Revenue by Source - Business-type Activities
Charges for
Services
60.0%
Grants and
Contributions
35.9%
Unrestricted
Investment
Earnings
4.1%
24
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows
and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In
particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for
spending at the end of the fiscal year.
Increase
Major Funds 2019 2018 (Decrease)
General 3,126,401$ 3,262,310$ (135,909)$
Debt Service 1,589,730$ 1,457,144$ 132,586$
Sewer Capital Improvements 3,122,661$ 2,868,180$ 254,481$
Fund Balance December 31,
The fund balance of the General fund decreased by $135,909 as a result of transfers out of the general fund that were
greater than budgeted.
The Sewer Capital Improvement fund balance increased $254,481 mainly due to an increase in interest revenue from
investments and special assessment revenue received in the current year.
The Debt Service fund balance increased $130,747 mainly due to transfers in during 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 $4,985,544. The total increase in net
position for the funds was $1,854,996. 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 $379,739, primarily due to licenses and permits and charges for services exceeding
the budget by $148,447 and $104,643, respectively. Expenditures were over budget by $115,648 during the year. The
budget variance can be attributed mainly to general government, streets and highways, and capital outlay of $68,969,
$24,550, and $18,000, 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, 2019, amounts to $27,842,523 (net of accumulated depreciation). This investment in capital assets
includes land, structures, improvements, machinery and equipment, park facilities, and roads.
Major capital asset events during the current fiscal year included the following:
• Hickory Drive reconstruction
• Brockton Lane reconstruction
• New ballfield dugouts
• Public works loader
25
Additional information on the City’s capital assets can be found in Note 3B starting on page 59 of this report.
City of Medina’s Capital Assets
(Net of Depreciation)
Increase Increase
2019 2018 (Decrease) 2019 2018 (Decrease)
813,779$ 813,779$ -$ 56,393$ 56,393$ -$
13,457,735 12,663,785 793,950 5,627,071 4,637,000 990,071
7,503,802 7,749,307 (245,505) 4,793,191 4,984,902 (191,711)
1,963,600 2,029,013 (65,413) 1,139,591 1,214,707 (75,116)
1,132,698 902,000 230,698 950,963 1,019,733 (68,770)
Medina
Land
Infrastructure
Buildings
Improvements
Machinery and Equipment
Construction in Progress 1,402,749 931,173 471,576 26,306 2,027 24,279
Total 26,274,363$ 25,089,057$ 1,185,306$ 12,593,515$ 11,914,762$ 678,753$
Governmental Activities Business-type Activities
Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $13,810,000.
City of Medina’s Outstanding Debt
Increase Increase
2019 2018 (Decrease) 2019 2018 (Decrease)
General Obligation
Improvement Bonds 9,705,000$ 10,445,000$ (740,000)$ -$ -$ -$
G.O. Tax Increment Bonds 175,000 255,000 (80,000) - - -
General Obligation Revenue Bonds - - - 1,170,000 1,735,000 (565,000)
Unamortized Premium on Bonds 129,522 149,793 (20,271) 20,833 36,219 (15,386)
Total 10,009,522$ 10,849,793$ (840,271)$ 1,190,833$ 1,771,219$ (580,386)$
Governmental Activities Business-type Activities
The City’s total debt decreased $1,420,657 (11.3 percent) during the current fiscal year mainly due to regularly schedule
principal payments. Additional information on the City’s long-term debt can be found in Note 3D starting on page 62 of this
report.
Economic Factors and Next Year’s Budgets and Rates
•The unemployment rate for Hennepin County is currently 2.6 percent (Apr 2020). This compares favorably to the
State of Minnesota’s average unemployment rate of 3.1 percent and the national average rate of 3.5 percent.
•Property valuations increased 4.8 percent within the City from 2019 to 2020.
The City’s total property tax levy will increase in 2020 by 9.7 percent. The General fund levy increase amounts to 2.7%,
with the remaining increase attributable to the addition of the Municipal Park fund levy and Capital Equipment levy. The
City’s tax capacity rate decreased from 21.50% for 2019 to 22.48% for 2020.
A water rate increase of 1.5 percent was approved for the three individual water systems for 2020. Sanitary sewer a 2%
increase and storm water utility rates also increased 3.0 percent.
All of these factors were considered in preparing the City’s budget for the 2020 fiscal year.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the
City’s finances. Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Finance Director, City of Medina, 2052 County Road 24, Medina, MN 55340-9790.
26
GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF MEDINA
MEDINA, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2019
27
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28
City of Medina, Minnesota
Statement of Net Position
December 31, 2019
Governmental Business-type
Activities Activities Total
Assets
Cash and temporary investments 15,134,488$ 5,102,769$ 20,237,257$
Receivables
Accounts 42,047 133,430 175,477
Taxes 98,601 - 98,601
Special assessments 1,872,475 32,779 1,905,254
Due from other governments 42,814 11,853 54,667
Prepaid items 72,802 34,278 107,080
Capital assets
Nondepreciable 2,216,528 82,699 2,299,227
Depreciable, net of accumulated depreciation 24,057,835 12,510,816 36,568,651
Total Assets 43,537,590 17,908,624 61,446,214
Deferred Outflows of Resources
Deferred pension resources 1,091,038 19,082 1,110,120
Deferred other postemployment benefits 13,213 1,807 15,020
Total Deferred Outflows of Resources 1,104,251 20,889 1,125,140
Liabilities
Accounts payable 213,198 25,936 239,134
Due to other governments 17,367 5,514 22,881
Salaries payable 150,426 6,002 156,428
Accrued interest payable 91,143 8,537 99,680
Deposits payable 1,308,236 - 1,308,236
Unearned revenue 53,764 - 53,764
Noncurrent liabilities
Due within one year 1,022,477 582,687 1,605,164
Due in more than one year 9,346,401 665,980 10,012,381
Net pension liability 1,633,495 187,475 1,820,970
Other postemployment benefits liability 108,131 14,966 123,097
Total Liabilities 13,944,638 1,497,097 15,441,735
Deferred Inflows of Resources
Deferred pension resources 1,671,955 44,817 1,716,772
Deferred other post employment benefits (4,662) (627) (5,289)
Total Deferred Inflows of Resources 1,667,293 44,190 1,711,483
Net Position
Net investment in capital assets 16,439,841 11,402,682 27,842,523
Restricted for
Debt service 3,021,763 - 3,021,763
Park improvements 1,238,690 - 1,238,690
Police expenditures 204,436 - 204,436
Unrestricted 8,125,180 4,985,544 13,110,724
Total Net Position 29,029,910$ 16,388,226$ 45,418,136$
The notes to the financial statements are an integral part of this statement.
29
City of Medina, Minnesota
Statement of Activities
For the Year Ended December 31, 2019
Operating Grants Capital Grants
Charges for and and
Expenses Services Contributions Contributions
Governmental Activities
General government 1,319,665$ 112,016$ -$ 444$
Public safety 2,755,337 964,375 193,601 150
Streets and highways 1,803,752 12,142 - 2,755,523
Sanitation and recycling 15,311 - 25,238 -
Culture and recreation 471,625 166,294 202,111 53,054
Economic development 203,234 - - -
Interest on long-term debt 211,132 - - -
Total Governmental Activities 6,780,056 1,254,827 420,950 2,809,171
Business-type Activities
Water 840,718 1,055,766 194 576,400
Sewer 691,716 799,379 166 614,152
Storm water 194,506 248,831 79 68,750
Total Business-type Activities 1,726,940 2,103,976 439 1,259,302
Total 8,506,996$ 3,358,803$ 421,389$ 4,068,473$
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
Functions/Programs
Program Revenues
The notes to the financial statements are an integral part of this statement.
30
Governmental Business-type
Activities Activities Total
(1,207,205)$ -$ (1,207,205)$
(1,597,211) - (1,597,211)
963,913 - 963,913
9,927 - 9,927
(50,166) - (50,166)
(203,234) - (203,234)
(211,132) - (211,132)
(2,295,108) - (2,295,108)
- 791,642 791,642
- 721,981 721,981
- 123,154 123,154
- 1,636,777 1,636,777
(2,295,108) 1,636,777 (658,331)
3,530,087 - 3,530,087
532,962 - 532,962
491,715 - 491,715
61,648 - 61,648
31,331 - 31,331
431,793 143,725 575,518
35,880 - 35,880
(22,321) 22,321 -
(52,173) 52,173 -
5,040,922 218,219 5,259,141
2,745,814 1,854,996 4,600,810
26,284,096 14,533,230 40,817,326
29,029,910$ 16,388,226$ 45,418,136$
Changes in Net Position
Net (Expenses) Revenues and
The notes to the financial statements are an integral part of this statement.
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32
FUND FINANCIAL STATEMENTS
CITY OF MEDINA
MEDINA, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2019
33
City of Medina, Minnesota
Balance Sheet
Governmental Funds
December 31, 2019
101 403 Other Total
Debt Sewer Capital Governmental Governmental
General Service Improvements Funds Funds
Assets
Cash and temporary investments 4,684,924$ 1,580,513$ 3,014,082$ 5,854,969$ 15,134,488$
Receivables
Accounts 5,717 - 4,515 31,815 42,047
Taxes 84,313 14,288 - - 98,601
Special assessments 43,885 1,508,888 - 319,702 1,872,475
Due from other governments 30,555 9,217 - 3,042 42,814
Due from other funds - - 117,408 - 117,408
Prepaid items 72,802 - - - 72,802
Total Assets 4,922,196$ 3,112,906$ 3,136,005$ 6,209,528$ 17,380,635$
Liabilities
Accounts payable 177,844$ -$ 8,829$ 26,525$ 213,198$
Due to other funds - - - 117,408 117,408
Due to other governments 15,924 - - 1,443 17,367
Salaries payable 150,426 - - - 150,426
Deposits payable 1,308,236 - - - 1,308,236
Unearned revenue 15,167 - 4,515 34,082 53,764
Total Liabilities 1,667,597 - 13,344 179,458 1,860,399
Deferred Inflows of Resources
Unavailable revenue - taxes 84,313 14,288 - - 98,601
Unavailable revenue - assessments 43,885 1,508,888 - 319,702 1,872,475
Total Deferred Inflows of Resources 128,198 1,523,176 - 319,702 1,971,076
Fund Balances
Nonspendable 72,802 - - - 72,802
Restricted - 1,589,730 - 1,443,126 3,032,856
Committed - - - 1,430,895 1,430,895
Assigned 120,164 - 3,122,661 2,954,345 6,197,170
Unassigned 2,933,435 - - (117,998) 2,815,437
Total Fund Balances 3,126,401 1,589,730 3,122,661 5,710,368 13,549,160
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 4,922,196$ 3,112,906$ 3,136,005$ 6,209,528$ 17,380,635$
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, 2019
Amounts reported for governmental activities in the statement of net position are different because
Total Fund Balances - Governmental Funds 13,549,160$
Capital assets used in governmental activities are not financial
resources and therefore are not reported as assets in governmental funds.
Cost of capital assets 37,243,290
Less accumulated depreciation (10,968,927)
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 (9,880,000)
Plus premium on bonds (129,522)
Compensated absences payable (359,356)
Other postemployment benefits payable (108,131)
Pension liability (1,633,495)
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are unavailable in the funds.
Taxes receivable 98,601
Special assessments receivable 1,872,475
Governmental funds do not report long-term amounts related to pensions
and other postemployment benefits.
Deferred outflows of pension resources 1,091,038
Deferred inflows of pension resources (1,671,955)
Deferred outflows of other postemployment benefits resources 4,662
Deferred inflows of other postemployment benefits resources 13,213
Governmental funds do not report a liability for accrued interest until due and payable.(91,143)
Total Net Position - Governmental Activities 29,029,910$
The notes to the financial statements are an integral part of this statement.
35
City of Medina, Minnesota
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2019
101 403 Other Total
Debt Sewer Capital Governmental Governmental
General Service Improvements Funds Funds
Revenues
Taxes 3,367,192$ 532,962$ -$ 702,593$ 4,602,747$
Licenses and permits 418,547 - - - 418,547
Intergovernmental 295,467 - - 44,200 339,667
Charges for services 335,089 - 87,290 600,515 1,022,894
Fines and forfeitures 98,187 - - 122,418 220,605
Special assessments 444 291,365 100,000 284,244 676,053
Interest on investments 116,324 26,259 89,513 199,697 431,793
Miscellaneous 107,254 - - 710,526 817,780
Total Revenues 4,738,504 850,586 276,803 2,664,193 8,530,086
Expenditures
Current
General government 1,249,250 - - - 1,249,250
Public safety 2,426,319 - - 9,475 2,435,794
Streets and highways 752,427 - - - 752,427
Sanitation and recycling 15,033 - - - 15,033
Culture and recreation 222,957 - - 80,552 303,509
Capital outlay
General government - - - 13,716 13,716
Public safety - - - 320,274 320,274
Streets and highways - - 22,322 905,745 928,067
Culture and recreation 18,000 - - 63,631 81,631
Economic development - - - 190,872 190,872
Debt service
Principal - 820,000 - - 820,000
Interest and other charges - 238,347 - - 238,347
Total Expenditures 4,683,986 1,058,347 22,322 1,584,265 7,348,920
Excess (Deficiency) of Revenues
Over (Under) Expenditures 54,518 (207,761) 254,481 1,079,928 1,181,166
Other Financing Sources (Uses)
Proceeds from sale of capital assets - - - 35,880 35,880
Transfers in 213,573 340,347 - 404,000 957,920
Transfers out (404,000) - - (606,093) (1,010,093)
Total Other Financing Sources (Uses)(190,427) 340,347 - (166,213) (16,293)
Net Change in Fund Balances (135,909) 132,586 254,481 913,715 1,164,873
Fund Balances, January 1 3,262,310 1,457,144 2,868,180 4,796,653 12,384,287
Fund Balances, December 31 3,126,401$ 1,589,730$ 3,122,661$ 5,710,368$ 13,549,160$
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, 2019
Amounts reported for governmental activities in the statement of activities are different because
Total Net Change in Fund Balances - Governmental Funds 1,164,873$
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 1,086,147
Depreciation expense (1,243,350)
A gain or loss on the disposal 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.(54,171)
Capital assets constructed in capital projects funds but intended for enterprise fund use
are transferred in the government-wide financial statements.(22,321)
Donations of capital assets increase net position in the statement of activities,
but do not appear in the governmental funds because they are not financial resources.1,419,000
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.
Amortization of bond premium 20,271
Principal repayments 820,000
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.6,944
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 13,665
Special assessments (411,313)
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 (78)
Compensated absences (23,573)
Long-term pension activity is not reported in governmental funds.
Pension expense (43,326)
Pension revenue 13,046
Change in Net Position - Governmental Activities 2,745,814$
The notes to the financial statements are an integral part of this statement.
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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, 2019
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes 3,358,897$ 3,358,897$ 3,367,192$ 8,295$
Licenses and permits 270,100 270,100 418,547 148,447
Intergovernmental 263,910 263,910 295,467 31,557
Charges for services 230,446 230,446 335,089 104,643
Fines and forfeitures 110,000 110,000 98,187 (11,813)
Special assessments 1,715 1,715 444 (1,271)
Interest on investments 20,000 20,000 116,324 96,324
Miscellaneous 103,697 103,697 107,254 3,557
Total Revenues 4,358,765 4,358,765 4,738,504 379,739
Expenditures
Current
General government 1,180,281 1,180,281 1,249,250 (68,969)
Public safety
Police 1,663,425 1,663,425 1,661,551 1,874
Building inspection 318,343 318,343 339,171 (20,828)
Fire 446,242 446,242 425,597 20,645
Streets and highways 727,877 727,877 752,427 (24,550)
Sanitation and recycling 20,080 20,080 15,033 5,047
Culture and recreation 212,090 212,090 222,957 (10,867)
Capital outlay - - 18,000 (18,000)
Total Expenditures 4,568,338 4,568,338 4,683,986 (115,648)
Excess (Deficiency) of Revenues
Over (Under) Expenditures (209,573) (209,573) 54,518 264,091
Other Financing Sources (Uses)
Transfers in 213,573 213,573 213,573 -
Transfers out (4,000) (4,000) (404,000) (400,000)
Total Other Financing Sources (Uses)209,573 209,573 (190,427) (400,000)
Net Change in Fund Balances - - (135,909) (135,909)
Fund Balances, January 1 3,262,310 3,262,310 3,262,310 -
Fund Balances, December 31 3,262,310$ 3,262,310$ 3,126,401$ (135,909)$
Budgeted Amounts
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, 2019
Nonmajor
601 602 603
Water Sewer Storm Water Totals
Assets
Current Assets
Cash and temporary investments 2,793,160$ 1,812,088$ 497,521$ 5,102,769$
Receivables
Accounts 51,014 75,536 6,880 133,430
Special assessments 14,804 14,804 3,171 32,779
Due from other governments 7,632 3,871 350 11,853
Prepaid items 1,874 32,066 338 34,278
Total Current Assets 2,868,484 1,938,365 508,260 5,315,109
Noncurrent Assets
Capital assets
Land 7,393 49,000 - 56,393
Infrastructure 6,111,534 2,756,462 47,811 8,915,807
Buildings 8,216,454 192,000 - 8,408,454
Improvements 330,082 - 1,087,315 1,417,397
Machinery and equipment 1,164,212 2,921,472 44,174 4,129,858
Construction in progress - 22,374 3,932 26,306
Less accumulated depreciation (6,833,352) (3,232,426) (294,922) (10,360,700)
Total Noncurrent Assets 8,996,323 2,708,882 888,310 12,593,515
Total Assets 11,864,807 4,647,247 1,396,570 17,908,624
Deferred Outflows of Resources
Deferred pension resources 8,441 7,209 3,432 19,082
Deferred other postemployment benefits 821 661 325 1,807
Total Deferred Outflows of Resources 9,262 7,870 3,757 20,889
Business-type Activities - Enterprise funds
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, 2019
601 602 603
Water Sewer Storm Water Totals
Liabilities
Current Liabilities
Accounts payable 21,911$ 3,381$ 644$ 25,936$
Accrued interest payable 8,537 - - 8,537
Salaries payable 2,636 2,393 973 6,002
Due to other governments 4,576 938 - 5,514
Compensated absences payable - current 5,428 4,946 2,313 12,687
Bonds payable - current 570,000 - - 570,000
Total Current Liabilities 613,088 11,658 3,930 628,676
Noncurrent Liabilities
Other postemployment benefits payable 6,940 5,321 2,705 14,966
Compensated absences payable 18,662 17,621 8,864 45,147
Pension liability 82,931 70,823 33,721 187,475
Bonds payable 620,833 - - 620,833
Total Noncurrent Liabilities 729,366 93,765 45,290 868,421
Total Liabilities 1,342,454 105,423 49,220 1,497,097
Deferred Inflows of Resources
Deferred pension resources 19,825 16,931 8,061 44,817
Deferred other post employment benefits (276) (239) (112) (627)
Total Deferred Inflows of Resources 19,549 16,692 7,949 44,190
Net Position
Net investment in capital assets 7,805,490 2,708,882 888,310 11,402,682
Unrestricted 2,706,576 1,824,120 454,848 4,985,544
Total Net Position 10,512,066$ 4,533,002$ 1,343,158$ 16,388,226$
Business-type Activities - Enterprise funds
The notes to the financial statements are an integral part of this statement.
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City of Medina, Minnesota
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2019
Nonmajor
601 602 603
Water Sewer Storm Water Totals
Operating Revenues
Charges for services 1,055,766$ 799,379$ 248,831$ 2,103,976$
Operating Expenses
Wages and salaries 159,929 144,097 70,154 374,180
Materials and supplies 91,394 8,576 1,561 101,531
Professional services 44,803 34,544 46,165 125,512
Repairs and maintenance 103,365 13,882 15,015 132,262
Insurance 7,178 5,343 437 12,958
Utilities 91,023 7,447 - 98,470
Depreciation 335,758 86,271 61,174 483,203
Sewer treatment charges - 391,556 - 391,556
Total Operating Expenses 833,450 691,716 194,506 1,719,672
Operating Income 222,316 107,663 54,325 384,304
Nonoperating Revenues (Expenses)
Interest on investments 72,205 55,669 15,851 143,725
Miscellaneous income 194 166 79 439
Interest and service charges (7,268) - - (7,268)
Total Nonoperating Revenues (Expenses)65,131 55,835 15,930 136,896
Income Before Contributions and Transfers 287,447 163,498 70,255 521,200
Capital Contributions from Other Funds - 22,321 - 22,321
Capital Contributions 576,400 614,152 68,750 1,259,302
Transfers In 360,093 - - 360,093
Transfers Out (122,149) (127,582) (58,189) (307,920)
Change in Net Position 1,101,791 672,389 80,816 1,854,996
Net Position - January 1 9,410,275 3,860,613 1,262,342 14,533,230
Net Position, December 31 10,512,066$ 4,533,002$ 1,343,158$ 16,388,226$
Business-type Activities - Enterprise funds
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, 2019
Nonmajor
601 602 603
Water Sewer Storm Water Totals
Cash Flows from Operating Activities
Receipts from customers and users 1,040,460$ 792,470$ 245,849$ 2,078,779$
Payments to suppliers (325,431) (460,348) (69,971) (855,750)
Payments to employees (170,148) (146,122) (71,255) (387,525)
Net Cash Provided (Used)
by Operating Activities 544,881 186,000 104,623 835,504
Cash Flows from Noncapital
Financing Activities
Transfers from other funds 360,093 - - 360,093
Transfers to other funds (122,149) (127,582) (58,189) (307,920)
Net Cash Provided (Used) by
Noncapital Financing Activities 237,944 (127,582) (58,189) 52,173
Cash Flows from Capital and
Related Financing Activities
Acquisition of capital assets - (7,976) (1,905) (9,881)
Connection fees 9,400 - - 9,400
Intergovernmental - 47,152 68,750 115,902
Principal paid on bonds (565,000) - - (565,000)
Interest paid on bonds (26,581) - - (26,581)
Net Cash Provided (Used) by Capital
and Related Financing Activities (582,181) 39,176 66,845 (476,160)
Cash Flows from Investing Activities
Interest received on investments 72,207 55,670 15,851 143,728
Net Increase in
Cash and Cash Equivalents 272,851 153,264 129,130 555,245
Cash and Cash Equivalents, January 1 2,520,309 1,658,824 368,391 4,547,524
Cash and Cash Equivalents, December 31 2,793,160$ 1,812,088$ 497,521$ 5,102,769$
Business-type Activities - Enterprise funds
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, 2019
Nonmajor
601 602 603
Water Sewer Storm Water Totals
Reconciliation of Operating Income to Net
Cash Provided (Used) by Operating Activities
Operating income 222,316$ 107,663$ 54,325$ 384,304$
Adjustments to reconcile operating income to
net cash provided by operating activities
Other items related to operations 194 166 79 439
Depreciation 335,758 86,271 61,174 483,203
(Increase) decrease in assets and deferred outflows
Accounts receivable (10,426) (3,449) (2,856) (16,731)
Due from other governments (5,319) (3,871) (285) (9,475)
Special assessments receivable 245 245 80 570
Prepaid items (452) 1,165 - 713
Pension resources 10,836 8,424 4,041 23,301
Other postemployment benefits (821) (661) (325) (1,807)
Increase (decrease) in liabilities and deferred inflows
Accounts payable 10,471 (442) (6,468) 3,561
Due to other governments 3,134 938 - 4,072
Salaries payable (15) 234 (31) 188
Compensated absences payable (5,021) (2,105) (860) (7,986)
Pension liability (11,654) (5,885) (2,941) (20,480)
Pension resources (5,191) (3,358) (1,636) (10,185)
Other postemployment benefits payable 826 665 326 1,817
Net Cash Provided (Used) by
Operating Activities 544,881$ 186,000$ 104,623$ 835,504$
Schedule of Noncash
Capital Financing Activities
Contribution of assets from developers 567,000$ 567,000$ -$ 1,134,000$
Contribution of assets from other funds -$ 22,321$ -$ 22,321$
Amortization of bond premium 15,386$ -$ -$ 15,386$
Business-type Activities - Enterprise funds
The notes to the financial statements are an integral part of this statement.
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City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
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, 2019
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 government 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 judgments, 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, 2019
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.
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, 2019
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, 2019
Note 1: Summary of Significant Accounting Policies (Continued)
The City has the following recurring fair value measurements as of December 31, 2019:
• U.S. Government Agency securities of $1,189,200 are valued using quoted market prices (Level 1 inputs)
• Negotiable certificates of deposit of $10,939,119 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, 2019, 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 2019. 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, 2019
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.
Interest incurred during the construction phase of capital assets of business-type activities is included as part of the
capitalized value of the assets constructed. 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:
Useful Lives
Assets 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, 2019
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, 2019
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 122,762$
Police and Fire Fund 171,381
Total 294,143$
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, 2019
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, 2019
Note 2: Stewardship, Compliance and Accountability (Continued)
B. Excess of Expenditures Over Appropriations
For the year ended December 31, 2019, expenditures exceeded appropriations in the following fund:
Excess of
Expenditures
Over
Fund Budget Actual Appropriations
General 4,568,338$ 4,683,986$ 115,648$
The excess expenditures were funded with greater than anticipated revenues.
C. Deficit Fund Equity
The following funds had deficit fund balances at December 31, 2019:
Amount
Nonmajor
Tax increment 1-9 117,998$
Fund
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, 2019
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, 2019 the City’s carrying amount of deposits was $680,824 and the bank balance was $748,171. Of
the bank balance $250,000 was covered by federal depository insurance and the remaining amount was covered by
collateral held by the City’s agent in the City’s name.
Investments
As of December 31, 2019, the City had the following investments that are insured or registered, or securities held by the
City or its agent in the City’s name.
Credit Segmented
Quality/Time
Ratings (1) Distribution (2)Amount Level 1 Level 2 Level 3
Pooled Investments
Broker money market N/A less than 6 months 1,227,407$ -$ -$ -$
4M Money Market Fund N/A less than 6 months 5,026,876 - - -
Mutual Fund N/A less than 6 months 1,173,531 - - -
Non-pooled Investments
U.S. Government Agencies AAA 5 year to 10 years 1,189,200 1,189,200 - -
Brokered Certificates of Deposit N/A less than 1 year 2,727,715 - 2,727,715 -
Brokered Certificates of Deposit N/A 1 year to 5 years 7,717,463 - 7,717,463 -
Brokered Certificates of Deposit N/A 5 year to 10 years 493,941 - 493,941 -
Total Investments 19,556,133$ 1,189,200$ 10,939,119$ -$
Investment Type
Fair Value Measurement Using
(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.
57
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
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 680,824$
Investments 19,556,133
Cash on Hand 300
Total 20,237,257$
Cash and temporary investments
Government-wide 20,237,257$
58
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 3: Detailed Notes on All Funds (Continued)
B. Capital Assets
Capital asset activity for the year ended December 31, 2019 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities
Capital Assets not Being Depreciated
Land 813,779$ -$ -$ 813,779$
Construction in progress 931,173 492,566 (20,990) 1,402,749
Total Capital Assets,
not Being Depreciated 1,744,952 492,566 (20,990) 2,216,528
Capital Assets Being Depreciated
Infrastructure 18,361,023 1,419,000 - 19,780,023
Buildings 9,500,690 - - 9,500,690
Improvements 2,739,006 84,621 - 2,823,627
Machinery and equipment 2,590,688 507,629 (175,895) 2,922,422
Total Capital Assets
Being Depreciated 33,191,407 2,011,250 (175,895) 35,026,762
Less Accumulated Depreciation for
Infrastructure (5,697,238) (625,050) - (6,322,288)
Buildings (1,751,383) (245,505) - (1,996,888)
Improvements (709,993) (150,034) - (860,027)
Machinery and equipment (1,688,688) (222,761) 121,725 (1,789,724)
Total Accumulated
Depreciation (9,847,302) (1,243,350) 121,725 (10,968,927)
Total Capital Assets,
Being Depreciated, Net 23,344,105 767,900 (54,170) 24,057,835
Governmental Activities
Capital Assets, Net 25,089,057$ 1,260,466$ (75,160)$ 26,274,363$
Depreciation expense was charged to functions/programs of the governmental activities as follows:
Governmental Activities
General government 27,174$
Public safety 74,570
Streets and highways 964,745
Culture and recreation 164,499
Economic development 12,362
Total Depreciation Expense - Governmental Activities 1,243,350$
59
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
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$ -$ -$ 56,393$
Construction in progress 2,027 24,279 - 26,306
Total Capital Assets
not Being Depreciated 58,420 24,279 - 82,699
Capital Assets Being Depreciated
Infrastructure 7,773,884 1,141,923 - 8,915,807
Buildings 8,408,454 - - 8,408,454
Improvements 1,421,643 - (4,246) 1,417,397
Machinery and equipment 4,129,858 - - 4,129,858
Total Capital Assets
Being Depreciated 21,733,839 1,141,923 (4,246) 22,871,516
Less Accumulated Depreciation for
Infrastructure (3,136,884) (151,852) - (3,288,736)
Buildings (3,423,552) (191,711) - (3,615,263)
Improvements (206,936) (70,870) - (277,806)
Machinery and equipment (3,110,125) (68,770) - (3,178,895)
Total Accumulated
Depreciation (9,877,497) (483,203) - (10,360,700)
Total Capital Assets
Being Depreciated, Net 11,856,342 658,720 (4,246) 12,510,816
Business-type Activities
Capital Assets, Net 11,914,762$ 682,999$ (4,246)$ 12,593,515$
Depreciation expense was charged to functions/programs of the business-type activities as follows:
Business-type Activities
Water 335,758$
Sewer 86,271
Storm Water 61,174
Total Depreciation Expense - Business-type Activities 483,203$
60
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 3: Detailed Notes on All Funds (Continued)
C. Interfund Receivables, Payables and Transfers
Interfund Balances
The composition of interfund balances at December 31, 2019 is as follows:
Purpose Amount
Sewer Capital Improvements Fund Nonmajor governmental Cash flow purposes 117,408$
Payable FundReceivable Fund
Interfund Transfers
The composition of interfund transfers for the year ended December 31, 2019 is as follows:
Debt Nonmajor
General Service Governmental Water Total
Transfer Out
General -$ -$ 404,000$ -$ 404,000$
Nonmajor governmental - 246,000 - 360,093 606,093
Water 79,693 42,456 - - 122,149
Sewer 75,691 51,891 - - 127,582
Storm Water 58,189 - - - 58,189
Total 213,573$ 340,347$ 404,000$ 360,093$ 1,318,013$
Transfer in
Fund
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, 2019:
• The non-major governmental fund transferred $246,000 to the Debt Service fund for future debt service
payments. The non-major governmental fund also transferred $360,093 to the Water fund for future debt service
payments.
• The Water fund ($79,693), Sewer fund ($75,691) and the Storm Water fund ($58,189) made budgeted transfers
to the General fund for operating costs.
• The Water fund ($42,456), and the Sewer fund ($51,891) made budgeted transfers to the Debt Service funds for
debt service payments for the 2012 building bonds and for recharacterized water bonds.
• The General fund made a budgeted transfer of $404,000 to the nonmajor governmental funds for future capital
improvements.
61
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 3: Detailed Notes on All Funds (Continued)
D. Long-term Debt
General Obligation Improvement Bonds
The City issues G.O. improvement bonds to finance various improvements and will be repaid from special assessments
levied on the properties benefiting from the improvements, tax increment from the district and ad valorem tax levies. All
special assessment debt is backed by the full faith and credit of the City. Each year the combined assessment and tax
levy equals 105 percent of the amount required for debt service. The excess of 5 percent is to cover any delinquencies in
tax or assessment payments.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
G.O. Improvement Bonds,
Series 2011B 870,000$ 0.75 - 4.00 %07/12/11 02/01/22 295,000$
G.O. Improvement Bonds,
Series 2010A 315,000 1.50 - 3.85 07/07/10 02/01/21 60,000
G.O. Improvement Bonds,
Series 2012A 6,100,000 1.50 - 2.75 11/07/12 02/01/34 5,235,000
G.O. Crossover Refunding Bonds,
Series 2013A 1,170,000 1.75 - 2.00 04/25/13 02/01/23 615,000
G.O. Improvement Bonds,
Series 2015A 1,765,000 2.00 - 3.00 06/24/15 02/01/31 1,400,000
G.O. Refunding Bond
Series 2016A 1,220,000 2.00 08/11/16 02/01/24 890,000
G.O. Improvement Bonds,
Series 2017A 1,210,000 2.00 - 3.00 06/24/15 02/01/31 1,210,000
Total General Obligation Improvement Bonds 9,705,000$
Interest
RateDescription
Annual debt service requirements to maturity for the general obligation improvement bonds are as follows:
Year Ending
December 31,Principal Interest Total
2020 830,000$ 207,561$ 1,037,561$
2021 855,000 190,049 1,045,049
2022 820,000 172,716 992,716
2023 735,000 157,591 892,591
2024 760,000 143,244 903,244
2025 - 2029 3,030,000 514,947 3,544,947
2030 - 2034 2,675,000 158,688 2,833,688
Total 9,705,000$ 1,544,796$ 11,249,796$
Governmental Activities
62
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 3: Detailed Notes on All Funds (Continued)
General Obligation Tax Increment Bonds
The G.O Refunding Bonds, Series 2012B were issued to refund tax increment bonds which were originally issued for
storm water mitigation and road work within phase one of the TIF district. The bonds will be repaid with future tax
increments collections.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
G.O. Refunding Bonds,
Series 2012B 650,000$ 1.50 %11/07/12 02/01/21 175,000$
Rate
Interest
Description
Annual debt service requirements to maturity for the general obligation tax increment bonds are as follows:
Year Ending
December 31,Principal Interest Total
2020 85,000$ 1,988$ 86,988$
2021 90,000 675 90,675
Total 175,000$ 2,663$ 177,663$
Governmental Activities
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 2019, principal and interest paid and total customer net revenues for the Water fund were
$591,581 and $1,055,766, respectively creating a pledged revenue percentage of 56.0%.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
G.O. Water Revenue Crossover
Refunding Bonds, Series 2012B 2,195,000$ 1.50 %11/07/12 02/01/20 380,000$
G.O. Water Revenue Crossover
Refunding Bonds, Series 2013A 1,520,000 1.75 - 2.00 04/25/13 02/01/23 790,000
Total G.O. Revenue Bonds 1,170,000$
Rate
Interest
Description
Annual debt service requirements to maturity for the general obligation revenue bonds are as follows:
Year Ending
December 31,Principal Interest Total
2020 570,000$ 15,738$ 585,738$
2021 195,000 9,038 204,038
2022 200,000 5,338 205,338
2023 205,000 1,792 206,792
Total 1,170,000$ 31,906$ 1,201,906$
Business-type Activities
63
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 3: Detailed Notes on All Funds (Continued)
Changes in Long-term Liabilities
Long-term liability activity for the year ended December 31, 2019, was as follows:
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Governmental Activities
Bonds Payable
General obligation
improvement bonds 10,445,000$ -$ (740,000)$ 9,705,000$ 830,000$
General obligation tax
increment bonds 255,000 - (80,000) 175,000 85,000
Unamortized premium on bonds 149,793 - (20,271) 129,522 -
Total Bonds Payable 10,849,793 - (840,271) 10,009,522 915,000
Compensated Absences
Payable 335,783 249,010 (225,437) 359,356 107,477
Governmental Activities
Long-term Liabilities 11,185,576$ 249,010$ (1,065,708)$ 10,368,878$ 1,022,477$
Business-type Activities
Bonds Payable
General obligations
revenue bonds 1,735,000$ -$ (565,000)$ 1,170,000$ 570,000$
Unamortized premium on bonds 36,219 - (15,386) 20,833 -
Total Bonds Payable 1,771,219 - (580,386) 1,190,833 570,000
Compensated Absences
Payable 65,820 30,258 (38,244) 57,834 12,687
Business-type Activities
Long-term Liabilities 1,837,039$ 30,258$ (618,630)$ 1,248,667$ 582,687$
64
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 3: Detailed Notes on All Funds (Continued)
E. Components of Fund Balance
At December 31, 2019, 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:
Other
Debt Sewer Capital Governmental
General Service Improvements Funds Total
Nonspendable
Prepaid items $ 72,802 $ - $ - $ - $ 72,802
Restricted for
Park improvements $ - $ - $ - $ 1,238,690 $ 1,238,690
Debt service - 1,589,730 - - 1,589,730
Police expenditures - - - 204,436 204,436
Total Restricted $ - $ 1,589,730 $ - $ 1,443,126 $ 3,032,856
Committed to
Park improvements $ - $ - $ - $ 638,309 $ 638,309
Police expenditures - - - 61,626 61,626
Field house - - - 8,038 8,038
German liberal cemetary - - - 155,299 155,299
Community event - - - 18,865 18,865
Cable - - - 21,347 21,347
Environmental - - - 527,411 527,411
Total Committed $ - $ - $ - $ 1,430,895 $ 1,430,895
Assigned to
Capital improvements $ - $ - $ 3,122,661 $ 2,853,164 $ 5,975,825
Future benefits 120,164 - - - 120,164
Equipment replacement - - - 101,181 101,181
Total Assigned $ 120,164 $ - $ 3,122,661 $ 2,954,345 $ 6,197,170
65
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
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 Retirement Plan (GERP)
All full-time and certain part-time employees of the City are covered by the General Employees Retirement Plan (GERP).
GERP members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security.
Public Employees Police and Fire Plan (PEPFP)
The PEPFP, 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 PEPFP 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.
GERP Benefits
GERP 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.
Annuities, disability benefits and survivor benefits are increased effective every January 1. Beginning January 1, 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.
PEPFP Benefits
Benefits for the PEPFP 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 PEPFP 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 3.0 percent of average salary for each year of service. A full, unreduced
pension is earned when members are age 55 and vested, or for members who were first hired prior to July 1, 1989, when
age plus years of service equal at least 90.
66
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
Annuities, disability benefits and survivor benefits are increased effective every January 1. Beginning January 1, 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 Employees Fund Contributions
Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2019 and
the City was required to contribute 7.50 percent for Coordinated Plan members. The City’s contributions to the GERP for
the years ending December 31, 2019, 2018 and 2017 were $90,945, $88,679 and $85,109, 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 10.80 percent of pay to 11.30 percent and employer rates
increased from 16.20 percent to 16.95 percent on January 1, 2019. The City’s contributions to the Police and Fire Fund
for the years ending December 31, 2019, 2018 and 2017 were $152,505, $139,304 and $133,772, respectively. The City’s
contributions were equal to the required contributions for each year as set by Minnesota statute.
D. Pension Costs
GERP Pension Costs
At December 31, 2019, the City reported a liability of $928,834 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 to the fund in 2017. 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 $28,999. The net pension liability was measured as of
June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions
received by PERA during the measurement period for employer payroll paid dates from July 1, 2018 through
June 30, 2019 relative to the total employer contributions received from all of PERA’s participating employers. At
June 30, 2019, the City’s proportionate share was 0.0168 percent which was a decrease of 0.0007 percent from its
proportion measured as of June 30, 2018.
City's Proportionate Share of the Net Pension Liability 928,834$
State of Minnesota's Proportionate Share of the Net Pension
Liability Associated with the City 28,999
Total 957,833$
For the year ended December 31, 2019, the City recognized pension expense of $120,590 for its proportionate share of
the General Employees Plan’s pension expense. In addition, the City $2,172 as pension expense (and grant revenue) for
its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund.
67
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
At December 31, 2019, the City reported its proportionate share of the General Employees Plan’s deferred outflows of
resources and deferred inflows of resources, and its contributions subsequent to the measurement date, from the
following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and
Actual Economic Experience 32,218$ 2,554$
Changes in Actuarial Assumptions 4,322 77,891
Net Difference Between Projected and
Actual Earnings on Plan Investments - 98,260
Changes in Proportion 12,881 43,340
Contributions Paid to PERA Subsequent
to the Measurement Date 45,117 -
Total 94,538$ 222,045$
The $45,117 related to pensions resulting from the City’s contributions subsequent to the measurement date will be
recognized as a reduction of the net pension liability in the year ended December 31, 2020. Other amounts reported as
deferred outflows and inflows of resources related to GERP pensions will be recognized in pension expense as follows:
(64,195)$
(78,673)
(31,253)
1,497
2020
2021
2022
2023
Police and Fire Fund Pension Costs
At December 31, 2019, the City reported a liability of $892,136 for its proportionate share of the Police and Fire Fund’s net
pension liability. The net pension liability was measured as of June 30, 2019, 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, 2018 through June 30, 2019 relative to the total employer contributions received
from all of PERA’s participating employers. At June 30, 2019, the City’s proportionate share was 0.0838 percent which
was an increase of 0.0047 percent from its proportionate share measured as of June 30, 2018.
For the year ended December 31, 2019, the City recognized pension expense of $160,068 for its proportionate share of
Police and Fire Plan’s pension expense. The City also recognized $11,313 for the year ended
December 31, 2019, 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. Legislation passed in 2013 required the State of
Minnesota to begin contributing $9 million to the Police and Fire Fund each year until the plan is 90 percent funded or until
the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whichever occurs
later. In addition, the state will pay $4.5 million on October 1, 2018 and October 1, 2019 in direct state aid. Thereafter, by
October 1 of each year, the state will pay $9 million until full funding is reached or July 1, 2048, whichever is earlier.
68
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
At December 31, 2019, the City reported its proportionate share of Police and Fire Plan’s deferred outflows of resources
and deferred inflows of resources, and its contributions subsequent to the measurement date, from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and
Actual Economic Experience 48,875$ 161,435$
Changes in Actuarial Assumptions 821,583 1,082,354
Net Difference Between Projected and
Actual Earnings on Plan Investments - 167,645
Changes in Proportion 67,704 83,293
Contributions Paid to PERA Subsequent
to the Measurement Date 77,420 -
Total 1,015,582$ 1,494,727$
The $77,420 reported as deferred outflows of resources related to pensions resulting from the City’s contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to GERP pensions will
be recognized in pension expense as follows:
(79,783)$
(145,582)
(350,628)
6,886
12,542
2020
2021
2022
2023
2024
E. Actuarial Assumptions
The total pension liability in the June 30, 2019 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%
F. 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, 2019 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 most recent four-year
experience study for the Police and Fire Plan was completed in 2016. Economic assumptions were updated in 2018
based on a review of inflation and investment return assumptions.
69
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
The following changes in actuarial assumptions and plan provisions occurred in 2019:
General Employees Fund
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
• 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.
Police and Fire Fund
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2017 to MP-2018.
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 Equity 35.5 %5.10 %
Private Markets 25.0 5.90
Fixed Income 20.0 0.75
International Equity 17.5 5.90
Cash Equivalents 2.0 -
Total 100.0 %
Target Expected Real
Allocation Rate of Return
Long-term
F. Discount Rate
The discount rate used to measure the total pension liability in 2019 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.
70
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
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:
1 Percent 1 Percent
Decrease (6.50%) Current (7.50%) Increase (8.50%)
General Employees Fund 1,526,954$ 928,834$ 434,968$
Police and Fire Fund 1,950,043 892,136 17
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.org.
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, 2019, 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, 2019, 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 $123,097 was measured as of December 31, 2018, and the total OPEB liability used to
calculate the total OPEB liability was determined by an actuarial valuation as of January 1, 2019. Roll forward procedures
were used to roll forward the total OPEB liability to the measurement date.
71
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 5: Postemployment Benefits Other Than Pensions (Continued)
The total OPEB liability in the January 1, 2017 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement, unless otherwise specified:
Discount Rate
20-Year Municipal Bond Yield
Inflation Rate
Salary Increases
2.74%
2.74%
2.75%
3.50%
Medical Trend Rate 8.00% in 2019 decreasing 0.50% per year to ultimate rate of 5.00
The discount rate used to measure the total OPEB liability was 2.74 percent. The plan is not funded. Benefit payments are
discounted at the 20-year municipal bond rate. The equivalent single rate is the discount rate. Mortality rates were based
on the RP-2014 White Collar Mortality Tables with MP-2016 Generational Improvement Scale.
The actuarial assumptions used in the December 31, 2019 valuation were based on input from a variety of published
sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the
source information as well as for consistency with the other economic assumptions.
D.Changes in the Total OPEB Liability
Total OPEB
Liability
(a)
Balances at December 31, 2018 96,841$
Changes for the Year:
Service cost 6,415
Interset 4,208
Differences between expected and actual experience 8,257
Changes in assumptions or other inputs 8,104
Benefit payments (728)
Net Changes 26,256
Balances at December 31, 2019 123,097$
In 2019, there were no benefit changes.
72
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 5: Postemployment Benefits Other Than Pensions (Continued)
E. Sensitivity of the Total OPEB Liability
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were
calculated using a discount rate that is 1-percentage point lower (1.74 percent) or 1-percentage-point higher (3.74
percent) than the current discount rate:
1 Percent 1 Percent
Decrease (1.74%)Current (2.74%)Decrease (3.74%)
135,145$ 123,097$ 112,056$
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were
calculated using a Healthcare Cost Trent Rates that is 1-percentage point lower (8 percent decreasing to 6.00 percent) or
1-percentage-point higher (8 percent increasing to 9.00 percent) than the current discount rate:
Healthcare Cost
1 Percent Decrease Trend Rates 1 Percent Increase
(6% Decreasing (8% Decreasing (9% Decreasing
to 4%)to 5%)to 6%)
107,328$ 123,097$ 141,699$
F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended December 31, 2019, the City recognized OPEB expense of $11,395. At December 31, 2019, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences Between Expected and
Actual Experience 7,580$ -$
Changes in Actuarial Assumptions 7,440 (5,289)
15,020$ (5,289)$
73
City of Medina, Minnesota
Notes to the Financial Statements
December 31, 2019
Note 5: Postemployment Benefits Other Than Pensions (Continued)
December 31, 2020. 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:
2020 772$
2021 772
2022 772
2023 772
2024 772
Thereafter 5,871
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, 2019
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
103B.251. The Commission is governed by a board comprised of one representative and one alternate of each Member
City. The City remitted $14,839 to the commission in 2019. 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 $6,770,259. 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 $10,000,000. Neither, the City, the State, nor any political subdivision thereof is obligated in any
manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying
financial statements.
Note 9: Subsequent Event
In December 2019, a novel strain of coronavirus (COVID-19) surfaced. The spread of COVID-19 around the world in the
first quarter of 2020 has caused significant volatility in U.S. and international markets. There is significant uncertainty
around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and
international economies and, as such, the City is unable to determine if it will have a material impact to its operations.
Note 10: Change in Accounting Principle
During fiscal year 2019, the City implemented a new accounting pronouncement issued by the Government Accounting
Standards Board (GASB), Statement No. 84, Fiduciary Activities. This standard required a retroactive implementation
which resulted in the restatement of beginning balances in the December 31, 2019 financial statements. Changes related
to this standard are reflected in the financial statements and related disclosures.
75
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76
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF MEDINA
MEDINA, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2019
77
City of Medina, Minnesota
Required Supplemental Information
For the Year Ended December 31, 2019
Schedule of Employer’s Share of PERA Net Pension Liability - General Employees Fund
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net Pension Associated with Covered
Year Liability the City Total Payroll
Ending (a)(b)(a+b)(c)
06/30/19 0.0168 %928,834$ 28,999$ 957,833$ 1,191,702$ 80.4 %80.2 %
06/30/18 0.0175 970,828 31,891 1,002,719 1,179,495 85.0 79.5
06/30/17 0.0171 1,091,653 13,726 1,091,653 1,101,593 100.3 75.9
06/30/16 0.0178 1,445,272 18,946 1,464,218 1,106,840 132.3 68.9
06/30/15 0.0166 860,298 - 860,298 977,965 88.0 78.2
City's
Proportionate
Share of the
Net Pension
City's
Liability as a Plan Fiduciary
the Net Pension Payroll of the Total
Liability ((a+b)/c)Pension Liability
Net Position
Proportion of
Percentage of
as a PercentageCovered
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
Contributions in
Relation to the
Statutorily Statutorily Contribution City's
Required Required Deficiency Covered
Year Contribution Contribution (Excess)Payroll
Ending (a)(b)(a-b)(c)
12/31/19 90,945$ 90,945$ -$ 1,212,601$ 7.50 %
12/31/18 88,679 88,679 - 1,182,386 7.50
12/31/17 85,109 85,109 - 1,134,782 7.50
12/31/16 81,610 81,610 - 1,088,133 7.50
12/31/15 77,467 77,467 - 1,032,893 7.50
(b/c)
Contributions as
a Percentage of
Covered Payroll
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
78
City of Medina, Minnesota
Required Supplemental Information (Continued)
For the Year Ended December 31, 2019
Notes to the Required Supplementary Information - General Employee Fund
Changes in Actuarial Assumptions
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.
Changes in Plan Provisions
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.
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 $892 million.
Upon consolidation, state and employer contributions were revised.
79
City of Medina, Minnesota
Required Supplemental Information (Continued)
For the Year Ended December 31, 2019
Schedule of Employer’s Share of PERA Net Pension Liability - Police and Fire Fund
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net Pension Associated with Covered
Year Liability the City Total Payroll
Ending (a)(b)(a+b)(c)
06/30/19 0.0838 %892,136$ -$ 892,136$ 892,136$ 100.9 %89.3 %
06/30/18 0.0791 843,125 - 843,125 833,645 101.1 88.8
06/30/17 0.0790 1,066,594 - 1,066,594 813,313 131.1 85.4
06/30/16 0.0870 3,491,461 - 3,491,461 841,198 415.1 63.9
06/30/15 0.0900 1,022,611 - 1,022,611 822,038 124.4 86.6
Liability as a Plan Fiduciary
City's
Proportionate
Share of the
Net Pension
City's Percentage of Net Position
Proportion of Covered as a Percentage
the Net Pension Payroll of the Total
Liability ((a+b)/c)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
Contributions in
Relation to the
Statutorily Statutorily Contribution City's
Required Required Deficiency Covered
Year Contribution Contribution (Excess)Payroll
Ending (a)(b)(a-b)(c)
12/31/19 152,505$ 152,505$ -$ 899,735$ 16.95 %
12/31/18 139,304 139,304 - 859,900 16.20
12/31/17 133,772 133,772 - 825,751 16.20
12/31/16 131,872 131,872 - 814,025 16.20
12/31/15 130,345 130,345 - 804,599 16.20
(b/c)
Contributions as
a Percentage of
Covered Payroll
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
80
City of Medina, Minnesota
Required Supplemental Information (Continued)
For the Year Ended December 31, 2019
Notes to the Required Supplementary Information - Police and Fire Fund
Changes in Actuarial Assumptions
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.
81
City of Medina, Minnesota
Required Supplemental Information (Continued)
For the Year Ended December 31, 2019
Notes to the Required Supplementary Information - Police and Fire Fund (Continued)
Changes in Plan Provisions
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.
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.
82
City of Medina, Minnesota
Required Supplemental Information (Continued)
For the Year Ended December 31, 2019
Schedule of Changes in the City’s Total OPEB Liability
2019 2018
Total OPEB Liability
Service cost 6,415$ 6,650$
Interest 4,208 3,467
Differences between expected and actual experience 8,257 -
Changes in assumptions 8,104 (6,427)
Benefit payments (729) (1,956)
Net Change in Total OPEB Liability 26,255 1,734
Total OPEB Liability - Beginning 96,842 95,108
Total OPEB Liability - Ending 123,097$ 96,842$
Covered - Employee Payroll 2,000,000$ 1,900,000$
City's total OPEB liability as a percentage of
covered employee payroll 6.2 %5.1 %
Benefit Changes:
In 2019, there wer no benefit changes
Changes in Assumptions:
In 2019, there were no assumptions changes
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
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84
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF MEDINA
MEDINA, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2019
85
City of Medina, Minnesota
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2019
Total
Nonmajor
Special Capital Governmental
Revenue Projects Funds
Assets
Cash and temporary investments 1,268,495$ 4,586,474$ 5,854,969$
Receivables
Accounts - 31,815 31,815
Special assessments - 319,702 319,702
Due from other governments 114 2,928 3,042
Total Assets 1,268,609$ 4,940,919$ 6,209,528$
Liabilities
Accounts payable -$ 26,525$ 26,525$
Due to other funds - 117,408 117,408
Due to other governments - 1,443 1,443
Unearned revenue 2,267 31,815 34,082
Total Liabilities 2,267 177,191 179,458
Deferred Inflows of Resources
Unavailable revenue - assessments - 319,702 319,702
Fund Balances
Restricted 204,436 1,238,690 1,443,126
Committed 1,061,906 368,989 1,430,895
Assigned - 2,954,345 2,954,345
Unassigned - (117,998) (117,998)
Total Fund Balances 1,266,342 4,444,026 5,710,368
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 1,268,609$ 4,940,919$ 6,209,528$
86
City of Medina, Minnesota
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended December 31, 2019
Total
Nonmajor
Special Capital Governmental
Revenue Projects Funds
Revenues
Taxes
Property taxes 14,069$ 135,161$ 149,230$
Tax increments - 491,715 491,715
Franchise fees 61,648 - 61,648
Intergovernmental - 44,200 44,200
Charges for services 4,960 595,555 600,515
Fines and forfeitures 122,418 - 122,418
Special assessments - 284,244 284,244
Interest on investments 40,143 159,554 199,697
Miscellaneous 318,303 392,223 710,526
Total Revenues 561,541 2,102,652 2,664,193
Expenditures
Current
Public safety 9,475 - 9,475
Culture and recreation 80,552 - 80,552
Capital outlay
General government - 13,716 13,716
Public safety 61,102 259,172 320,274
Streets and highways - 905,745 905,745
Culture and recreation 16,355 47,276 63,631
Economic development - 190,872 190,872
Total Expenditures 167,484 1,416,781 1,584,265
Excess of Revenues
Over Expenditures 394,057 685,871 1,079,928
Other Financing Sources (Uses)
Proceeds from sale of capital assets - 35,880 35,880
Transfers in 4,000 400,000 404,000
Transfers out - (606,093) (606,093)
Total Other Financing Sources (Uses)4,000 (170,213) (166,213)
Net Change in Fund Balances 398,057 515,658 913,715
Fund Balances, January 1 868,285 3,928,368 4,796,653
Fund Balances, December 31 1,266,342$ 4,444,026$ 5,710,368$
87
City of Medina, Minnesota
Nonmajor Special Revenue Funds
Combining Balance Sheet
December 31, 2019
204 226 227 235
Municipal Field Police
Environmental Park House Forfeiture
Assets
Cash and temporary investments 527,411$ 271,473$ 8,038$ 248,123$
Due from other governments - 114 - -
Total Assets 527,411$ 271,587$ 8,038$ 248,123$
Liabilities
Unearned revenue -$ 2,267$ -$ -$
Fund Balances
Restricted - - - 204,436
Committed 527,411 269,320 8,038 43,687
Total Fund Balances 527,411 269,320 8,038 248,123
Total Liabilities and
Fund Balances 527,411$ 271,587$ 8,038$ 248,123$
88
236 238 240 250
Police Reserve German Liberal Community Cable
Equipment Cemetery Event Franchise Total
17,939$ 155,299$ 18,865$ 21,347$ 1,268,495$
- - - - 114
17,939$ 155,299$ 18,865$ 21,347$ 1,268,609$
-$ -$ -$ -$ 2,267$
- - - - 204,436
17,939 155,299 18,865 21,347 1,061,906
17,939 155,299 18,865 21,347 1,266,342
17,939$ 155,299$ 18,865$ 21,347$ 1,268,609$
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, 2019
204 226 227 235
Municipal Field Police
Environmental Park House Forfeiture
Revenues
Taxes
Property -$ 14,069$ -$ -$
Franchise fees - - - -
Charges for services - - - -
Fines and forfeitures - - - 122,418
Interest on investments 13,618 6,620 299 7,697
Miscellaneous 165,476 123,782 1,668 2,227
Total Revenues 179,094 144,471 1,967 132,342
Expenditures
Current
Public safety - - - 7,687
Culture and recreation 45,630 - 4,285 -
Capital outlay
Public safety - - - 61,102
Culture and recreation - 16,355 - -
Total Expenditures 45,630 16,355 4,285 68,789
Excess (Deficiency) of Revenues
Over (Under) Expenditures 133,464 128,116 (2,318) 63,553
Other Financing Sources
Transfers in - - - -
Net Change in Fund Balances 133,464 128,116 (2,318) 63,553
Fund Balances, January 1 393,947 141,204 10,356 184,570
Fund Balances, December 31 527,411$ 269,320$ 8,038$ 248,123$
90
236 238 240 250
Police Reserve German Liberal Community Cable
Equipment Cemetery Event Franchise Total
-$ -$ -$ -$ 14,069$
- - - 61,648 61,648
1,125 3,835 - - 4,960
- - - - 122,418
566 4,908 634 5,801 40,143
350 - 24,800 - 318,303
2,041 8,743 25,434 67,449 561,541
1,788 - - - 9,475
- 4,149 13,024 13,464 80,552
- - - - 61,102
- - - - 16,355
1,788 4,149 13,024 13,464 167,484
253 4,594 12,410 53,985 394,057
- - 4,000 - 4,000
253 4,594 16,410 53,985 398,057
17,686 150,705 2,455 (32,638) 868,285
17,939$ 155,299$ 18,865$ 21,347$ 1,266,342$
91
City of Medina, Minnesota
Nonmajor Capital Projects Funds
Combining Balance Sheet
December 31, 2019
225 401 402 406
General Water Tax
Park Capital Capital Increment
Dedication Improvement Improvement 1-9
Assets
Cash and temporary investments 1,607,679$ 317,969$ 1,483,661$ -$
Receivables
Accounts - - 31,815 -
Special assessments - - - -
Due from other governments - - - 1,438
Total Assets 1,607,679$ 317,969$ 1,515,476$ 1,438$
Liabilities
Accounts payable -$ -$ -$ 585$
Due to other funds - - - 117,408
Due to other governments - - - 1,443
Unearned revenue - - 31,815 -
Total Liabilities - - 31,815 119,436
Deferred Inflows of Resources
Unavailable revenue - assessments - - - -
Fund Balances
Restricted 1,238,690 - - -
Committed 368,989 - - -
Assigned - 317,969 1,483,661 -
Unassigned - - - (117,998)
Total Fund Balances 1,607,679 317,969 1,483,661 (117,998)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 1,607,679$ 317,969$ 1,515,476$ 1,438$
92
411 420
Equipment Road
Replacement Improvement Total
102,935$ 1,074,230$ 4,586,474$
- - 31,815
- 319,702 319,702
1,096 394 2,928
104,031$ 1,394,326$ 4,940,919$
2,850$ 23,090$ 26,525$
- - 117,408
- - 1,443
- - 31,815
2,850 23,090 177,191
- 319,702 319,702
- - 1,238,690
- - 368,989
101,181 1,051,534 2,954,345
- - (117,998)
101,181 1,051,534 4,444,026
104,031$ 1,394,326$ 4,940,919$
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, 2019
225 401 402 406
General Water Tax
Park Capital Capital Increment
Dedication Improvement Improvement 1-9
Revenues
Taxes
Property taxes -$ -$ -$ -$
Tax increments - - - 491,715
Intergovernmental 44,200 - - -
Charges for services 8,854 - 586,701 -
Special assessments - - 100,000 -
Interest on investments 50,608 7,947 47,938 -
Miscellaneous - 4,200 - -
Total Revenues 103,662 12,147 734,639 491,715
Expenditures
Capital outlay
General government - 4,338 - -
Public safety - - - -
Streets and highways - - 23 -
Culture and recreation 27,016 20,260 - -
Economic development - - - 190,872
Total Expenditures 27,016 24,598 23 190,872
Excess (Deficiency) of Revenues
Over (Under) Expenditures 76,646 (12,451) 734,616 300,843
Other Financing Sources (Uses)
Proceeds from sale of capital assets - - - -
Transfers in - 200,000 - -
Transfer out - - (360,093) (246,000)
Total Other Financing Sources (Uses)- 200,000 (360,093) (246,000)
Net Change in Fund Balances 76,646 187,549 374,523 54,843
Fund Balances, January 1 1,531,033 130,420 1,109,138 (172,841)
Fund Balances, December 31 1,607,679$ 317,969$ 1,483,661$ (117,998)$
94
411 420
Equipment Road
Replacement Improvement Total
135,161$ -$ 135,161$
- - 491,715
- - 44,200
- - 595,555
- 184,244 284,244
6,526 46,535 159,554
88,957 299,066 392,223
230,644 529,845 2,102,652
9,378 - 13,716
259,172 - 259,172
357,543 548,179 905,745
- - 47,276
- - 190,872
626,093 548,179 1,416,781
(395,449) (18,334) 685,871
35,880 - 35,880
200,000 - 400,000
- - (606,093)
235,880 - (170,213)
(159,569) (18,334) 515,658
260,750 1,069,868 3,928,368
101,181$ 1,051,534$ 4,444,026$
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, 2019
(With Comparative Actual Amounts for the Year Ended December 31, 2018)
2018
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Taxes
Property taxes 3,358,897$ 3,358,897$ 3,367,192$ 8,295$ 3,206,239$
Licenses and permits 270,100 270,100 418,547 148,447 409,983
Intergovernmental
Federal 27,000 27,000 22,576 (4,424) 22,701
State
Property tax credits 4,000 4,000 3,812 (188) 4,059
Police state aid 85,000 85,000 102,586 17,586 88,354
Fire state aid 40,000 40,000 49,886 9,886 45,332
PERA aid 1,773 1,773 1,773 - 1,773
Other grants and aids 93,137 93,137 101,981 8,844 93,592
County
Other grants and aids 13,000 13,000 12,853 (147) 16,154
Total intergovernmental 263,910 263,910 295,467 31,557 271,965
Charges for services
General government 22,200 22,200 24,878 2,678 19,617
Public safety 178,846 178,846 256,690 77,844 248,948
Public works 4,400 4,400 4,777 377 4,593
Culture and recreation 25,000 25,000 48,744 23,744 39,283
Total charges for services 230,446 230,446 335,089 104,643 312,441
Fines and forfeitures 110,000 110,000 98,187 (11,813) 88,044
Special assessments 1,715 1,715 444 (1,271) 1,761
Interest on investments 20,000 20,000 116,324 96,324 45,460
Miscellaneous
Contributions and donations 31,000 31,000 15,358 (15,642) 30,250
Other 72,697 72,697 91,896 19,199 139,835
Total miscellaneous 103,697 103,697 107,254 3,557 170,085
Total Revenues 4,358,765 4,358,765 4,738,504 379,739 4,505,978
2019
Budgeted Amounts
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, 2019
(With Comparative Actual Amounts for the Year Ended December 31, 2018)
2018
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures
Current
General government
Mayor and council
Personal services 19,694$ 19,694$ 17,494$ 2,200$ 17,494$
Other services and charges 8,050 8,050 8,770 (720) 7,780
Total mayor and council 27,744 27,744 26,264 1,480 25,274
Administration
Personal services 522,623 522,623 503,948 18,675 485,876
Supplies 5,100 5,100 3,172 1,928 4,043
Other services and charges 103,005 103,005 225,074 (122,069) 109,417
Total administration 630,728 630,728 732,194 (101,466) 599,336
Elections
Personal services 6,000 6,000 - 6,000 10,039
Supplies 800 800 298 502 939
Other services and charges 4,450 4,450 1,080 3,370 4,257
Total elections 11,250 11,250 1,378 9,872 15,235
Assessing
Supplies 250 250 - 250 -
Other services and charges 93,590 93,590 101,144 (7,554) 91,229
Total assessing 93,840 93,840 101,144 (7,304) 91,229
Planning and zoning
Personal services 137,111 137,111 133,991 3,120 131,486
Supplies 800 800 (140) 940 249
Other services and charges 59,500 59,500 50,642 8,858 38,156
Total planning and zoning 197,411 197,411 184,493 12,918 169,891
PW/PD facility
Supplies - - 814 (814) 690
Other services and changes 76,915 76,915 71,967 4,948 80,843
Total PW/PD facility 76,915 76,915 72,781 4,134 81,533
Budgeted Amounts
2019
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, 2019
(With Comparative Actual Amounts for the Year Ended December 31, 2018)
2018
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2019
Expenditures (Continued)
Current (continued)
General government (continued)
Other general government
Supplies 18,800$ 18,800$ 22,630$ (3,830)$ 21,680$
Other services and changes 123,593 123,593 108,366 15,227 98,961
Total other general government 142,393 142,393 130,996 11,397 120,641
Total general government 1,180,281 1,180,281 1,249,250 (68,969) 1,103,139
Public safety
Police
Personal services 1,428,125 1,428,125 1,436,687 (8,562) 1,446,047
Supplies 60,150 60,150 62,943 (2,793) 58,506
Other services and charges 175,150 175,150 161,921 13,229 155,621
Total police 1,663,425 1,663,425 1,661,551 1,874 1,660,174
Building inspection
Personal services 171,193 171,193 156,494 14,699 147,638
Supplies - - - - 606
Other services and charges 147,150 147,150 182,677 (35,527) 261,121
Total building inspection 318,343 318,343 339,171 (20,828) 409,365
Fire
Other services and charges 446,242 446,242 425,597 20,645 413,375
Total public safety 2,428,010 2,428,010 2,426,319 1,691 2,482,914
Streets and highways
Streets
Personal services 307,747 307,747 361,589 (53,842) 296,210
Supplies 214,080 214,080 214,190 (110) 216,163
Other services and charges 206,050 206,050 176,648 29,402 129,341
Total streets and highways 727,877 727,877 752,427 (24,550) 641,714
Sanitation and recycling
Personal services 11,130 11,130 11,222 (92) 10,558
Supplies 4,500 4,500 566 3,934 580
Other services and charges 4,450 4,450 3,245 1,205 1,430
Total sanitation and recycling 20,080 20,080 15,033 5,047 12,568
98
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, 2019
(With Comparative Actual Amounts for the Year Ended December 31, 2018)
2018
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2019
Expenditures (Continued)
Current (continued)
Culture and recreation
Personal services 83,315$ 83,315$ 96,534$ (13,219)$ 126,349$
Supplies 29,420 29,420 10,385 19,035 47,044
Other services and charges 99,355 99,355 116,038 (16,683) 105,994
Total culture and recreation 212,090 212,090 222,957 (10,867) 279,387
Total current 4,568,338 4,568,338 4,665,986 (97,648) 4,519,722
Capital outlay
Culture and recreation - - 18,000 (18,000) 15,132
Total Expenditures 4,568,338 4,568,338 4,683,986 (115,648) 4,534,854
Excess (Deficiency) of Revenues
Over (Under) Expenditures (209,573) (209,573) 54,518 264,091 (28,876)
Other Financing Sources (Uses)
Transfers in 213,573 213,573 213,573 - 208,110
Transfers out (4,000) (4,000) (404,000) (400,000) (53,362)
Total Other Financing
Sources (Uses)209,573 209,573 (190,427) (400,000) 154,748
Net Change in Fund Balances - - (135,909) (135,909) 125,872
Fund Balances, January 1 3,262,310 3,262,310 3,262,310 - 3,136,438
Fund Balances, December 31 3,262,310$ 3,262,310$ 3,126,401$ (135,909)$ 3,262,310$
99
City of Medina, Minnesota
Debt Service Funds
Combining Balance Sheet
December 31, 2019
312 313 316 319
G.O. Hunter South Hunter North G.O. Capital
Improvement Improvement Improvement Improvement
Bonds 2010A Bonds 2011A Bonds 2011B Bonds 2012A
Assets
Cash and temporary investments 39,397$ -$ 191,514$ 441,788$
Receivables
Taxes 765 - 1,779 6,400
Special assessments 5,024 - - -
Due from other governments 250 - 502 2,055
Total Assets 45,436$ -$ 193,795$ 450,243$
Deferred Inflows of Resources
Unavailable revenue - taxes 765$ -$ 1,779$ 6,400$
Unavailable revenue - special assessments 5,024 - - -
Total Deferred Inflows of Resources 5,789 - 1,779 6,400
Fund Balances
Restricted for debt service 39,647 - 192,016 443,843
Total Deferred Inflows
of Resources and Fund Balances 45,436$ -$ 193,795$ 450,243$
100
320 321 322 323 324
G.O. Refunding G.O. Refunding G.O. G.O. Refunding G.O.
Bonds Bonds Improvement Bonds Improvement
2012B 2013A Bonds 2015A 2016A Bonds 2017A Total
14,824$ 220,160$ 297,019$ 35,320$ 340,491$ 1,580,513$
- 3,453 1,891 - - 14,288
15,381 - 581,763 33,159 873,561 1,508,888
25 1,157 5,025 203 - 9,217
30,230$ 224,770$ 885,698$ 68,682$ 1,214,052$ 3,112,906$
-$ 3,453$ 1,891$ -$ -$ 14,288$
15,381 - 581,763 33,159 873,561 1,508,888
15,381 3,453 583,654 33,159 873,561 1,523,176
14,849 221,317 302,044 35,523 340,491 1,589,730
30,230$ 224,770$ 885,698$ 68,682$ 1,214,052$ 3,112,906$
101
City of Medina, Minnesota
Debt Service Funds
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances
For the Year Ended December 31, 2019
312 313 316 319
G.O. Hunter South Hunter North G.O. Capital
Improvement Improvement Improvement Improvement
Bonds 2010A Bonds 2011A Bonds 2011B Bonds 2012A
Revenues
Taxes 29,729$ 45$ 59,453$ 243,703$
Special assessments - - 1,052 -
Interest on investments 607 1,839 4,793 8,042
Total Revenues 30,336 1,884 65,298 251,745
Expenditures
Debt service
Principal 25,000 20,000 90,000 175,000
Interest and other charges 2,724 3,270 13,409 114,991
Total Expenditures 27,724 23,270 103,409 289,991
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,612 (21,386) (38,111) (38,246)
Other Financing Sources
Transfer in - - - 60,427
Net Change in Fund Balances 2,612 (21,386) (38,111) 22,181
Fund Balances, January 1 37,035 21,386 230,127 421,662
Fund Balances, December 31 39,647$ -$ 192,016$ 443,843$
102
320 321 322 323 324
G.O. Refunding G.O. Refunding G.O. G.O. Refunding G.O.
Bonds Bonds Improvement Bonds Improvement
2012B 2013A Bonds 2015A 2016A Bonds 2017A Total
-$ 136,842$ 63,190$ -$ -$ 532,962$
9,327 - 92,014 11,240 177,732 291,365
- 3,243 - - 7,735 26,259
9,327 140,085 155,204 11,240 185,467 850,586
80,000 145,000 120,000 165,000 - 820,000
3,915 13,665 38,278 22,629 25,466 238,347
83,915 158,665 158,278 187,629 25,466 1,058,347
(74,588) (18,580) (3,074) (176,389) 160,001 (207,761)
75,000 33,920 - 171,000 - 340,347
412 15,340 (3,074) (5,389) 160,001 132,586
14,437 205,977 305,118 40,912 180,490 1,457,144
14,849$ 221,317$ 302,044$ 35,523$ 340,491$ 1,589,730$
103
City of Medina, Minnesota
Summary Financial Report
Revenues and Expenditures For General Operations
Governmental Funds
For the Years Ended December 31, 2019 and 2018
2019 2018
Revenues
Taxes 4,602,747$ 4,368,247$ 5.4 %
Licenses and permits 418,547 409,983 2.1
Intergovernmental 339,667 271,965 24.9
Charges for services 1,022,894 911,839 12.2
Fines and forfeitures 220,605 121,917 81.0
Special assessments 676,053 283,360 138.6
Interest on investments 431,793 153,109 182.0
Miscellaneous 817,780 322,500 153.6
Total Revenues 8,530,086$ 6,842,920$ 24.7 %
Per Capita 1,283$ 1,080$ 18.8 %
Expenditures
Current
General government 1,249,250$ 1,103,139$ 13.3 %
Public safety 2,435,794 2,486,143 (2.0)
Streets and highways 752,427 641,714 17.3
Sanitation and recycling 15,033 12,568 19.6
Culture and recreation 303,509 351,819 (13.7)
Capital outlay
General government 13,716 47,427 (71.1)
Public safety 320,274 251,886 27.2
Streets and highways 928,067 886,421 4.7
Culture and recreation 81,631 291,359 (72.0)
Economic development 190,872 196,255 (2.7)
Debt service
Principal 820,000 825,000 (0.6)
Interest and other 238,347 251,246 (5.1)
Total Expenditures 7,348,920$ 7,344,977$ 0.1 %
Per Capita 1,106$ 1,159$ (4.6) %
Total Long-term Indebtedness 9,880,000$ 10,700,000$ (7.7) %
Per Capita 1,487 1,689 (12.0)
General Fund Balance - December 31 3,126,401$ 3,262,310$ (4.2) %
Per Capita 470 515 (8.7)
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.
Percent
Increase
(Decrease)
Total
104
OTHER REQUIRED REPORT
CITY OF MEDINA
MEDINA, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2019
105
THIS PAGE IS LEFT
BLANK INTENTIONALLY
106
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, 2019, and the related
notes to the financial statements which collectively comprise the City’s basic financial statements, and have issued our
report thereon dated May 12, 2020.
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.
ABDO, EICK & MEYERS, LLP
Minneapolis, Minnesota
May 12, 2020
107
City of
Medina
2019
Financial
Statement
Audit
Introduction Audit Opinion and Responsibility
General Fund Results
Other Governmental Funds
Enterprise Funds
Key Performance Indicators
2
Audit Results
Auditor’s Opinion
Minnesota Legal Compliance
3
Audit Results
2019 Audit
Findings •Adjustment related to capital asset infrastructure additions contributed by developers.
Internal Control Finding -Material Audit Adjustment
4
General Fund
Comparing
Unassigned Fund
Balance to Future
Year Budget
50.9%50.3%
65.3%63.4%61.0%
$4,119,507 $4,309,741 $4,426,643 $4,572,338 $4,807,123
50%50%50%50%50%
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$5,500,000
2015 2016 2017 2018 2019 2020
Unassigned Fund Balance Budget Minimum Fund Balance Policy
5
General Fund
Budget to
Actual
Final
Budgeted Actual Variance with
Amounts Amounts Final Budget
Revenues 4,358,765$ 4,738,504$ 379,739$
Expenditures 4,568,338 4,683,986 (115,648)
Excess (Deficiency) of Revenues (209,573) 54,518 264,091
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers in 213,573 213,573 -
Transfers out (4,000) (404,000) (400,000)
Total Other Financing Sources (Uses)209,573 (190,427) (400,000)
Net Change in Fund Balances - (135,909) (135,909)
Fund Balances, January 1 3,262,310 3,262,310 -
Fund Balances, December 31 3,262,310$ 3,126,401$ (135,909)$
6
General Fund
Revenues and
Expenditures
by Type $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
Taxes Intergovernmental Charges for
Services
Other
2017 2018 2019
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
General Government Public Safety Streets and Highways Other
2017 2018 20197
Special
Revenue Fund
Balances
$(200,000)
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Restricted Committed Unassigned
2017 2018 2019
Increase
2019 2018 (Dec rease)
Nonmajor
Environmental 527,411$ 393,947$ 133,464$
Municipal Park 269,320 141,204 128,116
Field House 8,038 10,356 (2,318)
Police Forfeiture 248,123 184,570 63,553
Police Reserve Equipment 17,939 17,686 253
German Liberal Cemetery 155,299 150,705 4,594
Community Event 18,865 2,455 16,410
Cable Franchise 21,347 (32,638) 53,985
Total 1,266,342$ 868,285$ 398,057$
December 31,
Fund Balances
Fund
8
Capital Projects
Fund Balances
$(1,000,000)
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Restricted Committed Assigned Unassigned
2017 2018 2019
Increase
2019 2018 (Decrease)
Major
Sewer Capital Improvements 3,122,661$ 2,868,180$ 254,481$
Nonmajor
Park Dedication 1,607,679 1,531,033 76,646
General Capital Improvement 317,969 130,420 187,549
Tax Increment 1-9 (117,998) (172,841) 54,843
Water Capital Improvements 1,483,661 1,109,138 374,523
Road Improvement 1,051,534 1,069,868 (18,334)
Equipment Replacement 101,181 260,750 (159,569)
Total Nonmajor 4,444,026 3,928,368 515,658
Total 7,566,687$ 6,796,548$ 770,139$
December 31,
Fund Balances
Fund
9
Debt Service
Cash Total Bonds Maturity
Balance Assets Outstanding Date
312 G.O. Improvement Bonds 2010A 39,397$ 45,436$ 60,000$ 2021
316 Hunter North Improvement Bonds 2011B 191,514 193,795 295,000 2022
319 G.O. Capital Improvement Bonds 2012A 441,788 450,243 5,235,000 2034
320 G.O. Refunding Bonds 2012B 14,824 30,230 175,000 2021
321 G.O. Refunding Bonds 2013A 220,160 224,770 615,000 2023
322 G.O Refunding Bonds 2015A 297,019 885,698 1,400,000 2024
323 G.O. Improvements Bonds 2016A 35,320 68,682 890,000 2024
324 G.O. Improvements Bonds 2017A 340,491 1,214,052 1,210,000 2031
Total 1,580,513$ 3,112,906$ 9,880,000$
Total Remaining Interest Payments 1,547,459$
Debt Description
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Principal Interest
10
Water Fund -
Cash Flows from
Operations and
Cash Balances
$2,052,731
$2,360,985 $2,520,309
$2,793,160
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2016 2017 2018 2019
Cash BalanceMinimum Target Balance (Following Year Debt Service Plus 6 Months of Operating Costs)
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
2016 2016 2017 2017 2018 2018 2019 2019
Operating Disbursements Debt Payments (Including Related Transfers)Operating Receipts
11
Sewer Fund -
Cash Flows from
Operations and
Cash Balances
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
2016 2016 2017 2017 2018 2018 2019 2019
Operating Disbursements Operating Receipts
$1,885,856 $1,816,475
$1,658,824
$1,812,088
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
2016 2017 2018 2019
Cash Balance Minimum Target Balance (Following Year Debt Service Plus 6 Months of Operating Costs)
12
Storm Water
Fund -
Cash Flows from
Operations and
Cash Balances $-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
2016 2016 2017 2017 2018 2018 2019 2019
Operating Disbursements Operating Receipts
$380,008
$529,812
$368,391
$497,521
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2016 2017 2018 2019
Cash Balance
Minimum Target Balance (Following Year Debt Service Plus 6 Months of Operating Costs)
13
Cash and
Investments
Balances by
Fund Type
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2017 2018 2019
General Fund Capital Projects Funds Special Revenue Funds
Debt Service Funds Enterprise Funds
14
Key
Performance
Indicators
2016 2017 2018 2019
Class 4 Cities 59.1%59.8%58.5%N/A
Cities in Hennepin County 43.5%43.7%41.9%N/A
City of Medina 23.3%22.3%20.1%21.5%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Tax Rates
15
Key
Performance
Indicators
2016 2017 2018 2019
Class 4 Cities $507 $524 $549 N/A
Cities in Hennepin County $706 $727 $752 N/A
City of Medina $715 $714 $696 $695
$-
$100
$200
$300
$400
$500
$600
$700
$800
Taxes Per Capita
16
Key
Performance
Indicators
2016 2017 2018 2019
Class 4 Cities $2,860 $2,693 $2,697 N/A
Cities in Hennepin County $2,094 $2,040 $1,942 N/A
City of Medina $2,584 $2,289 $1,992 $1,685
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Debt Per Capita
2016 2017 2018 2019
Class 4 Cities 22.69%21.79%20.55%N/A
Cities in Hennepin County 16.93%18.84%16.40%N/A
City of Medina 17.51%20.79%18.98%18.20%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Debt Service Expenditures as a Percent of
Current Expenditures
17
Key
Performance
Indicators
2016 2017 2018 2019
Class 4 Cities 137%167%174%N/A
Cities in Hennepin County 102%164%168%N/A
City of Medina 118%119%81%92%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
Water Fund Debt Service Coverage
18
Key
Performance
Indicators
2016 2017 2018 2019
Class 4 Cities $713 $730 $753 N/A
Cities in Hennepin County $793 $809 $825 N/A
City of Medina $824 $693 $690 $693
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
Current Expenditures Per Capita
2016 2017 2018 2019
Class 4 Cities $377 $418 $400 N/A
Cities in Hennepin County $338 $391 $336 N/A
City of Medina $424 $195 $264 $231
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
Capital Expenditures Per Capita
19
Questions?
Audit Team
Steve McDonald
Justin Nilson
Greta Pudas
Erik Wagner
Jill Knutson
Tomi McDonald
20
City of Medina
Medina, Minnesota
For the Year Ended
December 31, 2019
Management Communication
Agenda Item # 7A
May 12, 2020
Management, Honorable Mayor and City Council
City of Medina, Minnesota
We have audited the financial statements of the governmental activities, the business-type activities, each major fund and
the aggregate remaining fund information of the City of Medina, Minnesota (the City), for the year ended
December 31, 2019. 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 16, 2019. 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) to determine the audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness
of the 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 2019-001.
2
2019-001 Material Audit Adjustments
Condition: During our audit, adjustments were needed to record capital asset additions for developer
contributed infrastructure.
Criteria: Such adjustments were needed to correct year end balances. Amounts reported in the District’s
accounting system need to agree to the underlying supporting documentation.
Cause: The City has not prepared a year-end trial balance reflecting all necessary accounting entries.
Effect: This indicates that misstatements may occur and not be detected by the City’s system of internal
control.
Recommendation: We recommend management review the related journal entries, obtain an understanding of why
the entries were necessary and modify current procedure to ensure that future corrections are not
needed.
Management Response:
Management has reviewed the journal entry and implemented a process to ensure that this will not be recurring.
Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we
performed tests of compliance with certain provisions of Minnesota statutes. 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.
While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the City’s
compliance with those requirements. We noted no instances of noncompliance with Minnesota statues.
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. The City changed accounting policies during
the year related to accounting for fiduciary activities (GASB 84). 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.
3
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.
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 May 12, 2020.
4
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, 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, 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 reporting periods beginning after December 15, 2019. Earlier
application is encouraged.
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.
6
Future Accounting Standard Changes (Continued)
Effective Date and Transition
The requirements of this Statement are effective for reporting periods beginning after December 15, 2019. Earlier
application is encouraged. The requirements of this Statement should be applied prospectively.
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, 2020. Earlier
application is encouraged.
7
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.
(1) Note. From GASB Pronouncements Summaries. Copyright 2019 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.
ABDO, EICK & MEYERS, LLP
Minneapolis, Minnesota
May 12, 2020
8
MEMORANDUM
TO: City Council, through City Administrator Scott Johnson
FROM: Jim Stremel, City Engineer
DATE: May 14, 2020
MEETING: May 19, 2020
SUBJECT: Tamarack Drive Corridor/Visioning Study – Concept Review & Update
Background:
The City’s 2040 Comprehensive Plan anticipates residential, institutional, and commercial growth
within the Tamarack Drive corridor. The study corridor is located from Hamel Road to the south up
to Meander Road to the north. There has been development interest on the north side of Trunk
Highway (TH) 55, and on the south side of TH 55 where the Wayzata School District recently
purchased property. Although no specific plans are underway for construction of a school on this site,
staff believes it is appropriate to anticipate the potential after 2025, when the property is staged for
development. It is anticipated that the development along the corridor will likely be completed by
multiple parties at different times.
The Tamarack Drive Visioning Study was initiated to develop a cohesive plan that can be provided
to property owners and developers guiding the transportation needs, right-of-way, public utilities,
access points/spacing, pedestrian mobility, and other parameters adjacent to their properties within
the Tamarack Drive corridor. The Study will provide a guide to the City for the following as
development occurs:
1. Requiring right-of-way to allow construction of the improvements
2. Require construction of portions of the roadway as part of the required improvements by
adjacent developments.
3. Provide a framework for securing financial contributions for certain portions of the roadway
which benefit all of the adjacent developments and may not be able to be constructed until a
future time.
The intent of this memo is to provide an update to the City Council as to what has been completed to
date with the study including traffic forecasting/analysis, traffic operations review, concept plan
development, public engagement, and coordination with stakeholders. City staff and the engineering
team are asking for City Council comments, questions, and direction in development of the vision
and preparation of the final study report.
Existing Conditions:
Currently, there is no connection between TH 55 and Meander Road or between TH 55 and Hamel
Road. A prescriptive easement does exist for the current unmaintained roadway south of TH 55, but
not to the north. The proposed roadway corridor is a combination of agricultural land, floodplains,
and wetlands. There is no existing paved (improved) roadway or city utilities within the proposed
corridor. There is an access off of TH 55 in both the north and south directions including eastbound
Agenda Item # 8A
2
and westbound turn lanes. Just to the south of TH 55, CP Railroad owns and operates a single track
and a narrow crossing exists.
Traffic Forecasting Analysis:
Traffic forecasts were prepared for the twenty-year design (year 2040) condition, representing the
full development of the area using the land uses in the City’s 2040 Comprehensive Plan. The traffic
forecasts were prepared by adding the projected annual background traffic growth and anticipated
area development site traffic generation to determine the 2040 Build traffic conditions in and around
the immediate area. The estimated existing and projected 2040 traffic volumes are listed below:
Location Existing ADT Projected 2040
ADT
Tamarack Drive south of Meander Road NA 1,750
Tamarack Drive north of TH 55 NA 8,300
Tamarack Drive south of TH 55 NA 3,300
Tamarack Drive north of Hamel Road NA 1,000
TH 55 west of Arrowhead Drive 16,600 22,300
TH 55 west of future Tamarack Drive 18,800 24,800
TH 55 west of Pinto Drive (CSAH 116) 18,800 27,200
TH 55 east of Pinto Drive (CSAH 116) 25,000 33,500
Meander Road east of Arrowhead Drive 400 1,200
Meander Road west of Pinto Drive
(CSAH 116) 900 2,200
Arrowhead Drive north of Meander Road 1,050 7,100
Arrowhead Drive south of TH 55 2,200 2,500
Pinto Drive (CSAH 116) north of
Meander Road 9,600 12,200
Pinto Drive (CSAH 116) north of TH 55 9,600 11,000
Pinto Drive (CSAH 116) south of TH 55 2,200 2,600
Hamel Road east of Arrowhead Drive 1,200 1,400
Hamel Road west of Pinto Drive (CSAH
116) 1,600 2,100
3
Traffic Operations Analysis:
Tamarack Drive has been identified by the City of Medina as a future Collector roadway between
Meander Road and Hamel Road that would provide access to the development area north and south
of TH 55. The access of Tamarack Drive at TH 55 is included in the MnDOT Access Management
Guidelines as a future full movement signalized intersection. In addition, left and right turn lanes are
currently provided for both eastbound and westbound TH 55 at the future Tamarack Drive
intersection.
The City has been guiding development of the areas adjacent to TH 55 based on the current City
2040 Comprehensive Plan assuming a full movement signalized access on TH 55 at Tamarack Drive.
However, in order to verify the need for this access, two roadway access alternatives were included
as part of this analysis including:
1. A full movement signalized intersection with northbound and southbound left and right turn
lanes, and;
2. A partial access, right-in/right-out stop-controlled intersection with northbound and
southbound right turn lanes.
The traffic analysis evaluated the operations for the existing and projected 2040 conditions at the
impacted area intersections with the proposed Tamarack Drive corridor improvements. The
following table shows the level of service comparison of the existing and 2040 build conditions with
both access alternatives.
Co
n
t
r
o
l
Intersection
Existing Projected 2040
Full Access
Projected 2040
Right-in/Right-out
AM
Peak
Hour
PM
Peak
Hour
AM
Peak
Hour
PM
Peak
Hour
AM
Peak
Hour
PM
Peak
Hour
Si
g
n
a
l
TH 55 at
Arrowhead Dr D (E) C (E) E (F) D (E) F (F) E (F)
Si
g
n
a
l
TH 55 at
Pinto Dr (CSAH 116) E (F) D (E) F (F) F (F) F (F) F (F)
Th
r
u
-
St
o
p
Meander Rd at
Arrowhead Dr A (A) A (A) A (A) A (A) A (B) A (B)
Th
r
u
-
St
o
p
Meander Rd at
Pinto Dr (CSAH 116) A (F) A (C) F (F) A (F) F (F) C (F)
Th
r
u
-
St
o
p
Hamel Rd (CSAH 115 at
Arrowhead Dr A (A) A (A) A (A) A (A) A (A) A (A)
Th
r
u
-
St
o
p
Hamel Rd (CSAH 115) at
Pinto Dr (CSAH 116) A (A) A (A) A (B) A (A) A (B) A (B)
Th
r
u
-
St
o
p
Meander Rd at
Development Access NA NA A (A) A (A) A (A) A (A)
Th
r
u
-
St
o
p
Meander Rd at
Tamarack Dr NA NA A (A) A (A) A (A) A (A)
Th
r
u
-
St
o
p
Tamarack Dr at
Development Access NA NA A (B) A (B) A (A) A (B)
4
Si
g
n
a
l
TH 55 at
Tamarack Dr NA NA D (E) D (E) C (E) C (E)
Th
r
u
-
St
o
p
Hamel Rd at
Tamarack Dr NA NA B (C) A (A) C (D) A (A)
C = Overall LOS, (D) = Worst movement LOS Source: WSB & Associates, Inc
Based on the analysis conducted, WSB has concluded the following:
• The City of Medina identified the need to prepare a preliminary plan and vision for the future
Tamarack Drive corridor from Meander Road to Hamel Road (CSAH 115). The corridor has
been included in the City’s 2040 Comprehensive Plan.
• The access to TH 55 at Tamarack Drive is included in the MnDOT Access Management
Guidelines. In addition, MnDOT completed a preliminary corridor design concept for TH 55
from I-494 to the Crow River in 2007 and an EA/EAW in 2008. These documents both
identified a future controlled intersection access at the TH 55 and Tamarack Drive.
• The areas north and south of TH 55 adjacent to the future Tamarack Drive corridor is planned
for commercial and residential development north of TH 55 and could potentially be
developed for Wayzata School District use south of TH 55.
• The future area development is anticipated to generate up to 10,307 daily, 752 AM peak hour
and 1,030 PM peak hour trips north of TH 55 and; 3,079 daily, 955 AM peak hour and 260
PM peak hour trips south of TH 55.
• Two roadway access alternatives were prepared and analyzed including: a full movement
signalized intersection with northbound and southbound left and right turn lanes, and; a
partial access, right-in/right-out stop-controlled intersection with northbound and southbound
right turn lanes.
• Based on comparison of the two access alternatives, the right-in/right-out access alternative
would divert traffic to the adjacent roadways and would have significant traffic operation
impacts specifically at the adjacent intersections of: TH 55 at Arrowhead Drive; TH 55 at
Pinto Drive (CSAH 116), and; Pinto Drive (CSAH 116) at Meander Road. In addition, there
is a safety concern with vehicles turning out from Tamarack Drive merging with vehicles on
TH 55 traveling at 55mph.
Based on these conclusions the following is recommended.
1. Provide a full movement intersection at TH 55 and Tamarack Drive to provide access to the
existing and future development area north and south of TH 55, as identified by the City of
Medina and in the current MnDOT Access Management Guidelines for the TH 55 corridor.
2. The construction of Tamarack Drive including the full movement access connection to TH 55
should be completed as development continues to occur in the area north of TH 55. It is
recommended that should Meander Road reach a level of 3,100vpd, which would be a level
5
to warrant a traffic signal at the Meander Road and Pinto Drive (CSAH 116) intersection, the
connection to TH 55 should be completed.
Assuming the existing traffic volume on Meander Road (900vph) with the full development
of the Meadow View Townhomes (1,010vpd), a portion of the commercial development
(1,190vpd) or approximately 12% of the development could be completed prior to the need
for the construction of Tamarack Drive.
3. As the area adjacent to TH 55 and Tamarack Drive is developed, continue to review the
warrants for installation of a traffic signal system at the intersection. When warrants are met
work with MnDOT for approval and construction of the traffic signal system.
Based on review of the Minnesota Manual on Uniform Traffic Control (MnMUTCD) traffic
signal warrants, it is estimated that the required traffic volume currently exist on TH 55
(>15,000vpd) to warrant a traffic control signal system, however, it is anticipated that
approximately 35% of the development on the north side of TH 55 or the school development
on the south side of TH 55 or a combination of both (>3,100vpd) would need to be completed
to warrant the traffic signal system.
4. As traffic grows in the area work with MnDOT and Hennepin County on possible
improvements at the intersections of TH 55 at Arrowhead Drive; TH 55 at Pinto Drive
(CSAH 116), and; Pinto Drive (CSAH 116) at Meander Road to improve future traffic
operations
Public Engagement & Concept Plan Development:
In order to gather input and engage the public on a vision for the Tamarack Drive corridor, City Staff
prepared a survey, mapping activity (currently underway), and held an open house. Initially, when
the scope of the project was prepared, and in-person open house was proposed to engage the pubic on
this project. Due to the current COVID-19 pandemic and to respect the CDC guidelines limiting
public gatherings, the public engagement strategy needed to be in a virtual format that did not require
direct in-person contact. With that challenge at hand, the City ultimately decided to use Social
Pinpoint, an online public engagement platform that where surveys and a mapping interface can be
developed. Here is a summary of the virtual public engagement activities utilized for this study,
which generally focused on the portion of the corridor north of TH 55.
• A survey was developed asking for input on various hard-scape design elements and street
sections that would be feasibility in the corridor. These included a center median (parkway)
street section, typical undivided street section, round-about/traditional intersection designs,
landscaping ideas, and pedestrian access options. Those who participated were able to vote
on these various options and provide other input on the “ideas wall”. Enclosed with this
memo are the survey results and comments placed on the ideas wall.
• A virtual open house through a webinar platform was held on April 14, 2020 that included
general information on the corridor and study elements, a commercial site analysis/mapping,
review comments provided on the initial online survey, and live resident feedback (voice
calls and written questions) from residents during the meeting. The intent was to mimic what
would normally have been available at an in-person meeting.
6
• Based on the initial survey results and the virtual open house, two final concepts were created
(Concepts A & B) utilizing both a parkway roadway design and a traditional undivided
roadway section with various commercial site alternatives. The concepts are currently posted
on Social Pinpoint and open for comments until May 28th. Staff believe the best way for the
Council to review the feedback is to visit the site here:
https://wsb.mysocialpinpoint.com/tamarackdrive
WSB’s Land Development team also analyzed the commercial areas north of TH 55 for potential site
layouts and access points to the proposed Tamarack Drive extension. This included a site-fit analysis
to maximize potential commercial uses with current City ordinance guidelines for setbacks, parking
areas. The uses considered included a convenience store/gas station, hotel, single/multi-tenant retail,
and a single tenant retail (with loading dock), with various access options to both Tamarack Drive
and at Meander Road. These concepts were included with the virtual open house presentation and
integrated into the final concepts for the current Social Pinpoint mapping activity (Concepts A & B).
Based on the traffic forecasting and analysis, a concept plan for the entire corridor was prepared that
includes geometric improvements, preliminary intersection control design (stop condition or
roundabout), signal improvements at TH 55, and right-of-way needs. The street section considered
for each of the concepts includes a divided roadway/parkway design with both sidewalks and multi-
use trails. Enclosed is a draft concept for review and comment.
Next Steps:
Based on City Council input and direction, WSB will proceed with further geometric refinement,
prepare right-of-way files and linework (available for developers), include a water/sewer utility
review, finalize the feasibility study for the signalized intersection and related improvements, and
complete a more refined cost estimating of the preferred option. A final report is planned to be
brought forth at the June 16th Council Meeting. Results of the final public engagement activity will
also be available at that time.
City Council Action Requested:
Staff requests input and direction from the City Council on a preferred option and consider an
endorsement of the need for a signal at TH 55. After review, the Council can consider the following
actions:
1. Motion to proceed with Concept # as the preferred option, including a full access with signal
at Highway 55.
2. Motion to direct staff to take actions necessary to secure approval from relevant agencies for
the access at Highway 55 and to complete the Tamarack Drive Study.
1
Tamarack Drive Corridor Visioning Study: Social Pinpoint Activity Results
Survey (22 responses as of 04/21/20)
Section 1: Example Roadways Ranking
1 = most preferred choice, 6 = least preferred choice
Summary
Votes for Each Rank by Example
Rank Example 1 Example 2 Example 3 Example 4 Example 5 Example 6
1 6 0 12 1 1 2
2 2 3 5 0 9 2
3 4 3 1 5 3 4
4 0 5 3 5 4 3
5 3 4 0 7 3 2
6 5 5 0 2 0 7
6
0
12
1 1
22
3
5
0
9
2
4
3
1
5
3
4
0
5
3
5
4
33
4
0
7
3
2
5 5
0
2
0
7
0
2
4
6
8
10
12
14
Example 1 Example 2 Example 3 Example 4 Example 5 Example 6
Ranking Distribution Overview
1 2 3 4 5 6
2
Example 1
6
2
4
0
3
5
0
1
2
3
4
5
6
7
1 2 3 4 5 6
Example 1 Ranking Distribution
3
Example 2
0
3 3
5
4
5
0
1
2
3
4
5
6
1 2 3 4 5 6
Example 2 Ranking Distribution
4
Example 3
12
5
1
3
0 0
0
2
4
6
8
10
12
14
1 2 3 4 5 6
Example 3 Ranking Distribution
5
Example 4
1
0
5 5
7
2
0
1
2
3
4
5
6
7
8
1 2 3 4 5 6
Example 4 Ranking Distribution
6
Example 5
1
9
3
4
3
0
0
1
2
3
4
5
6
7
8
9
10
1 2 3 4 5 6
Example 5 Ranking Distribution
7
Example 6
2 2
4
3
2
7
0
1
2
3
4
5
6
7
8
1 2 3 4 5 6
Example 6 Ranking Distribution
8
Section 2: Roadway Features
Summary
Yes Votes by Feature
Feature Yes Votes Percent
Trees/Vegetation 18 82%
Sidewalks and/or Trails 18 82%
Grass or Landscaped Median 14 64%
Decorative Lighting 13 59%
Roundabout 5 23%
Bump-Out (Curb Extension) 2 9%
Concrete Median 2 9%
Sidewalks and/or Trails
Yes, this feature fits my vision for Tamarack Drive: 18/22 (82%)
Comments:
· Trails will be nice. Combination of this with natural landscaped median.
· Trails are a good idea.
· It would be nice to extend the trails in the area along both sides of Tamarack Drive.
· Trail/sidewalk is great for families and kids to be able to walk and bike the area
· Making the neighborhoods connected with bike trails wold be ideal.
· Walking, jogging and biking trail
· Trails or wide sidewalks are a must. Lots of pedestrians in high residential areas and for
commercial business.
· Adding trails is always positive in my opinion.
2
2
5
13
14
18
18
0 5 10 15 20
Concrete Median
Bump-Out (Curb Extension)
Roundabout
Decorative Lighting
Grass or Landscaped Median
Sidewalks and/or Trails
Trees/Vegetation
Number of Yes Votes
9
Trees/Vegetation
Yes, this feature fits my vision for Tamarack Drive: 18/22 (82%)
Comments:
· This would be an ideal scenario.
· I prefer trees and vegetation.
· The more trees/vegetation the better as far as I'm concerned.
· We need WAY MORE TREES in Medina so that along with other vegetation, that gets manicured
and taken care of would be great to see.
· Mature trees and beautiful flowers like hanging baskets...
· Whether trees/bushes are located on street sides or the median, they fit that location of Medina
well and make it a greener more luxurious look than just roadway.
Grass or Landscaped Median
Yes, this feature fits my vision for Tamarack Drive: 14/22 (64%)
Comments:
· Aesthetically pleasing.
· Landscaped is nice. Grass, if not maintained, will be aesthetically unappealing.
· I like the look of landscaped medians.
· Would prefer this over concrete median, but a median is needed.
· Landscaping will be key to make this look upscale and nice.
Decorative Lighting
Yes, this feature fits my vision for Tamarack Drive: 13/22 (59%)
Comments:
· Optional - but not necessary.
· I would prefer to not have any additional lights/streetlights added.
· I like the idea of decorative lighting as long as it doesn't increase the overall light pollution near
residences. Would be nice along trails for safety in the evening, but it does have a more
commercial/retail feel to me.
· We don't have enough lighting in general in our current neighborhood in the Fields of Medina
on Jubert Trail. Also on Meander there is hardly any lighting. For community safety I would like
to see more lighting in general.
· Well lit roads to take safe evening walks.
· I'm not in favor of adding light pollution to our neighborhood.
Roundabout
Yes, this feature fits my vision for Tamarack Drive: 5/22 (23%)
Comments:
· Just doesn't feel right for the area.
· No roundabout, too much road, not necessary for this plan and future road.
10
Concrete Median
Yes, this feature fits my vision for Tamarack Drive: 2/22 (9%)
Comments:
· Maintenance issues with this. Not ideal or sustainable long term.
· I don't like concrete.
· I prefer landscaped medians to concrete.
· concrete is so ugly and does not provide an upscale look
· One of the reasons I love living in Medina is because of the wildlife and natural beauty. I don't
believe that a concrete median would be consistent with the current landscape.
Bump-out (Curb Extension)
Yes, this feature fits my vision for Tamarack Drive: 2/22 (9%)
Comments:
· I would not want to encourage parking along Tamarack Drive. I think there should be other,
dedicated parking areas.
· I think that will slow traffic which will be great. Traffic on Meander drives WAY too fast.
Other Features (What other features would you like to see that were not included in the examples above?)
Comments:
· I think that the combination of the trails with natural landscaping is an ideal scenario.
· A stop light at 55/Tamarak is critical to manage egress and release pressure on the
meander/116/arrowhead egress that will come from future development
· Please ensure Tamarack and ideally, Arrowhead becomes whistle free crossings for train track
parallel to 55. Thank you! The whistle free crossings create a better environment for families to
enjoy the growing neighborhoods, the ability to play outside without interruption and sleep with
windows open.
· Would like to see Many Tall evergreens planted on the North side of Meander to separate the
Fields of Medina Neighborhood to what will be the newly developed space.
· benches, small grass areas for walking, sitting.
· I live in the Fields of Medina - West neighborhood, and my biggest concern is the volume and
speed of cars on Meander road. Because of how the road straightens out, cars often exceed the
40 mph speed limit, which makes me nervous to have my children playing in the back yard.
Thank you for consulting the community for this project!
11
Ideas Wall (14 comments as of 04/21/20)
Within each comment type, responses are sorted from most likes to least.
Things I would like to see (7 comments)
1. If townhomes are built the city should leverage Meander Rd for an outlet to both 116 and
Arrowhead. Meander can be expanded with a median to 4 lanes. No railroad crossing req.
There will be minimal traffic northbound to Hamel Rd.
We’ve been told by Medina city officials numerous times that the county will not allow an
intersection with a light at Mohawk and now somehow it is appropriate to add another
intersection and a light on hwy 55. I can’t see any logic or rationale with this decision.
[5 Likes, 3 Dislikes]
2. We need to very mindful of walkable areas from Meander onto 116. This walkway does not go
through and is very dangerous - especially for those turning right from the southbound lane.
We need to be able to mitigate future issues that limit sight lines for those that walk this route.
From my standpoint, we cannot move forward with this project until we address the potential
density issues that will impact this area. [3 Likes, 0 Dislikes]
3. Need to have a traffic light at 116/meander and/or tamarack/55. Currently it's very dangerous
making a left or right turn off of meander to 116. Meander can't support additional traffic from
this new development at this intersection without a light. [3 Likes, 0 Dislikes]
4. Please consider traffic and safety along all of Meander Road with the addition of this proposed
neighborhood and new road. There is significant pedestrian traffic from the current residential
areas along Meander and traffic controls such as roundabouts at the existing roads of Jubert Dr
and Cavanaugh Dr as well as the proposed intersection of Tamarak could assist with slowing
traffic and keeping families safe [2 Likes, 0 Dislikes]
5. If we do need to better link parts of Medina north and south of Hwy 55, could we add a bike and
pedestrian tunnel or tasteful access bridge?
Always concerning seeing people try to cross the Hwy & hoping drivers follow the traffic lights.
Would be nice for the retail and restaurant space to have a very walkable almost park like feel
with benches, landscape, fountains, etc. that encourage community vs. a typical strip mall.
Adding the biking & pedestrian access could help encourage that vibe. [1 Likes, 0 Dislikes]
6. *If increasing residential density, will need a plan to mitigate light pollution.
*A nice to have for the residents in the area would be an off leash dog park.
*Meander Road will need to be expanded into a total of 4 lanes (2 lanes in each direction) to
accommodate traffic, with a median in between.
*And please refrain from using any roundabouts!
*When evaluating restaurant ideas, prioritize local eateries/breweries and fast casual (like
Chipotle and Punch Pizza). [1 Likes, 0 Dislikes]
7. first choice would be to see an upscale retail / restaurant development use the entire space to
compliment an upscale community like Medina. Using the entire space would allow ample
room to keep a country like feeling and draw people from neighboring cities.
12
Second choice would be to move the proposed neighborhood to Meander and Arrowhead
where they would already have access to 2 exits eliminating the additional traffic on Meander.
[0 Likes, 0 Dislikes]
Things I would not like to see (4 comments)
1. I fail to see how 138 new townhomes, an additional traffic restricting light on hwy 55 and a new
railroad crossing aligns with the council’s stated mission statement; “Keep Medina Rural”.
Perhaps a business park with small retail shops, restaurants and coffee shops, and maybe a
soccer pitch accessible via Meander Rd to 116 and Arrowhead would be less invasive and serve
the neighborhoods in the area better without further restricting traffic on hwy 55.
[9 Likes, 2 Dislikes]
2. Agree with all other comments. This proposed neighborhood and new road do not make sense
in this location. This does not fall in line at all with the vision of Medina and why residents move
here. If you need to bring down the average home price in Medina, please don't do it at the
expense of other residents. There is PLENTY of space in Medina to add a massive townhouse
development that would not be adjacent to an another established neighborhood. Put this
development on the other side of 55 [2 Likes, 0 Dislikes]
3. I have concerns that the existing park that already accommodates, both East and West Fields of
Medina, Bridgewater and the Foxberry neighborhoods would not be large enough to
accommodate another 100+ homes. [0 Likes, 0 Dislikes]
4. For safety reason's I would not want a hotel overlooking the park. [0 Likes, 0 Dislikes]
Other comments (3 comments)
1. It would be nice to get public comments on if adding another through road across 55 is the
correct design plan vs. just the aesthetics; which I imagine to be ignored regardless. I totally
understand new access points to the proposed development area will need to be created off of
55, but I don’t understand why it’s seen as necessary for it to go all the way through to Meander
or across the highway to connect to Hamel road. Agreed with another poster that a light at
Meander/116 would be better. [6 Likes, 0 Dislikes]
2. If Medina is committed to keeping a rural feeling, they should take a hard look at allowing 130
plus town homes and determine if that really fits the vision of Medina. One of the most
attractive qualities of this area is Wayzata schools without the congesting and constant building
like Plymouth. What does this mean for our schools that are already filled to the max? Will this
result in redistricting yet again? I think this is a slippery slope. [5 Likes, 0 Dislikes]
3. As Medina expands the neighborhoods near Pinto and Arrowhead, it would be ideal to ensure
Tamarack and Arrowhead become whistle free train intersections. To enjoy the peace of the
countryside and allow residents to sleep with windows open - whistle free train intersections
are a must as Medina expands developments. [3 Likes, 0 Dislikes]
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Tamarack Drive Study - Commercial Area Concepts
Tamarack Drive Study - Medina, Minnesota
April 29, 2020 | WSB Project number: 015599-000
Concept A Concept B
Scale in Feet
800’0’200’400’North
Scale in Feet
800’0’200’400’North
WET
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FUTURE
MEDIUM DENSITY
RESIDENTIAL
FUTURE
MEDIUM DENSITY
RESIDENTIAL
Undivided Roadway Section - 66’ R.O.W.Parkway Section - 80’ R.O.W.
Tamarack Drive - Undivided Road Tamarack Drive - Parkway
Alternate Intersection at
Commercial Entrance
Alternate Intersection at
Commercial Entrance
Note: Commercial uses are illustrative only to show context for potential street orientations.
LEGEND
PROPOSEDTAMARACK DR ALIGNMENT
COMMERCIAL OR RETAIL DEVELOPMENT
LANDSCAPESCREENING
STORMWATERMANAGEMENT AREA
FRONTAGEROAD
DRIVEWAY ACCESS TO COMMERCIAL
SIGNALIZED INTERSECTION
ROUNDABOUT
RESIDENTIAL DEVELOPMENT
wetland wetland
wetland wetland
wetland wetland
RETAIL
3.0 ac. +/-
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MEANDER ROAD
RETAIL
2.3 ac. +/-
RETAIL
1.5 ac. +/-
RETAIL
3.0 ac. +/-
COMMERCIAL
2.5 ac. +/-COMMERCIAL
5.5 ac. +/-
City Park
Fields of Medina City Park
Fields of Medina
COMMERCIAL
5.0 ac.+/-
CO
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Paved Trail Paved Trail
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RETAIL
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RETAIL
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RETAIL
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RETAIL
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COMMERCIAL
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City of Medina
May 2020
Tamarack Drive Corridor Study
REQUIREMENTS
PLANS AND SIGHT DISTANCE
BASED ON DEVELOPMENT
ROAD INTERSECTION WILL BE
FINAL LOCATION OF HAMEL
BASE ON DEVELOPMENT
ACCESS TO BE DETERMINED
EXACT ALIGNMENT AND
Legend
ROADWAY
SHOULDERS (PAVED)
CURB
SIDEWALK
INPLACE SIGNAL
PROPOSED SIGNAL
DELINEATED WETLAND
EXISTING R/W
PROPOSED R/W
S
TO
P
ROUNDABOUT OPTION
S
TO
P
STOP
STOP
N
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SCALE IN FEET
150 300
Figure X
Proposed Roadway Geometics and Alignments
S
TO
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EXISTING ADT
PROJECTED 2040 ADT
XXX
(XXX)
MINNESOTA
55
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400
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900
(2200)
1200
(1400)
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(24,800)
0
(1000)
0
(3300)
0
(8300)
0
(1750)
18,800
(27,200)
1600
(2100)
Rural Street Section
Urban Undivided Street Section - 66' ROW Urban Divided (Parkway) Street Section - 80' ROW
S M T W T F S S M T W T F S
1 2 3 4 1 2 3 4
5 6 7 8 9 10 11 5 6 7 8 9 10 11
12 13 14 15 16 17 18 12 13 14 15 16 17 18
19 20 21 22 23 24 25 19 20 21 22 23 24 25
26 27 28 29 30 31 26 27 28 29 30 31 1
S M T W T F S S M T W T F S
1 2 3 4 5 6 7 8
2 3 4 5 6 7 8 9 10 11 12 13 14 15
9 10 11 12 13 14 15 16 17 18 19 20 21 22
16 17 18 19 20 21 22 23 24 25 26 27 28 29
23 24 25 26 27 28 29 30 31
S M T W T F S S M T W T F S
1 2 3 4 5 6 7 1 2 3 4 5
8 9 10 11 12 13 14 6 7 8 9 10 11 12
15 16 17 18 19 20 21 13 14 15 16 17 18 19
22 23 24 25 26 27 28 20 21 22 23 24 25 26
29 30 31 27 28 29 30
S M T W T F S S M T W T F S
1 2 3 4 1 2 3
5 6 7 8 9 10 11 4 5 6 7 8 9 10
12 13 14 15 16 17 18 11 12 13 14 15 16 17 CITY COUNCIL - 7:00 pm
19 20 21 22 23 24 25 18 19 20 21 22 23 24 1st Tuesdays*
26 27 28 29 30 1 2 25 26 27 28 29 30 31
WORK SESSION - 6:00 pm
CITY COUNCIL - 7:00 pm
S M T W T F S S M T W T F S 3rd Tuesdays*
3 4 5 6 7 8 9 1 2 3 4 5 6 7
10 11 12 13 14 15 16 8 9 11 12 13 14 PLANNING COMMISSION - 7:00 pm
17 18 19 20 21 22 23 15 16 17 18 19 20 21 2nd Tuesdays*
24 25 26 27 28 29 30 22 23 24 25 26 27 28
31 29 30 PARK COMMISSION - 7:00 pm
3rd Wednesdays*
S M T W T F S S M T W T F S HOLIDAYS
1 2 3 4 5 6 1 2 3 4 5
7 8 9 10 11 12 13 6 7 8 9 10 11 12 ELECTION DAYS
14 15 16 17 18 19 20 13 14 15 16 17 18 19
21 22 23 24 25 26 27 20 21 22 23 24 25 26 CITY EVENTS
28 29 30 27 28 29 30 31
*unless otherwise noted
January 7th: 5 PM City Council Goal Setting Session
February 25th: Precinct Caucuses
March 3rd: Presidential Primary (Council moved to Wednesday)
April 8th: 6:30 PM Board of Appeal and Equalization Meeting
April 21st: 6 PM - Continuation of Board of Appeal Meeting
April 25th: 8 AM to Noon Clean-up Day
August 11th: Primary Election Day (Planning moved to Wednesday)
September 1st: 6 PM Budget Open House
September 19th: 4 PM to 8 PM Medina Celebration Day
October 6th: Night to Unite (Council moved to Wednesday)
November 3rd: General Election Day (Council moved to Wednesday)
November 10th: 6PM City Council Special Meeting: Canvass Election Results (Planning Starts at 7PM)
December 24th: Employees will use personal leave accrual to close City Hall
JUNE
NOVEMBER
DECEMBER
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JULY
AUGUST
SEPTEMBER
OCTOBER
2020
MEETING
CALENDAR
10
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1
TO: Medina City Council
FROM: Jodi Gallup, Assistant City Administrator
Jason Nelson, Public Safety Director
Steve Scherer, Public Works Director
DATE: May 14, 2020
RE: 2020 Meeting & Event Calendar Updates
Clean-up Day
Medina’s annual Clean-up Day was originally scheduled for April 25th but had to be
postponed due to the Governor’s stay-at-home order. We have received feedback from
the community that they would still like to see this event happen to be able to dispose of
their unwanted bulky items/garbage/etc., especially since people are at home and have
had more time to clean out their garages, basements, and storage areas. Staff is proposing
we move the event date to Saturday, July 11th or 18th. We will change the event layout to
have a single-file drop off, advertise that people dropping off items must unload their
own items (so no additional volunteers are needed), and have staff wear personal
protective gear (facemasks and gloves) to accept money and direct residents on where to
unload their items. We will not serve food or sell trees at this year’s event.
Night to Unite
The annual Night to Unite neighborhood gatherings have been postponed nationally from
August 4th to October 6th. The original event date was scheduled for the first Tuesday in
August, which we had adjusted the City Council meeting calendar to move the Council
meeting to Wednesday evening to not conflict with this event. Since the event will no
longer interfere with the first Tuesday in August, staff recommends updating the meeting
calendar to move the first August Council meeting back to Tuesday evening (August 4th)
instead of Wednesday evening. Similarly, the newly scheduled October 6th Night to Unite
celebration is scheduled on the first Tuesday in October, so staff recommends moving the
October 6th City Council meeting to Wednesday, October 7th. These changes have been
reflected on the attached calendar.
Medina Celebration Day
Medina Celebration Day is scheduled for Saturday, September 19th. This event is our
city’s main community festival, which has been drawing over 1,000 people each year.
The city staff facilitate the community planning committee each year and coordinate the
fundraising, business vendors, food vendors, fireworks contracts, promotional materials,
volunteers, entertainment, and event set-up and clean-up. This event takes many months
to plan, but we have not yet started planning this year’s event with the uncertainty of
COVID-19 and the ability to hold large public gatherings. Staff greatly enjoys this
community event but recognizes the need to consider proactively cancelling it for the
MEMORANDUM
Agenda Item # 8B
2
safety of our residents and employees and to save on city resources in planning an event
that may not be able to happen.
Additionally, from the perspective of Public Safety, our police officers have not been
able to take vacations for two months due to COVID-19 scheduling, therefore there is a
lack of personnel that can assist with the event due to the need to schedule weekends off.
As for our reserve officers, we again are trying to be very mindful of how we utilize them
and not put them into compromising situations as over half fall into the risk category for
one reason or another. We are also being mindful that there is a good potential for a
second wave of COVID this fall, and it is important for using police personnel only when
essential. We are really trying to eliminate large group gatherings where there will be an
issue with social distancing and trying to regulate those gatherings. Staff believes it is
important that we error on the side of caution by cancelling Medina Celebration Day in
2020.
Recommended Actions:
• Discuss feasibility of holding a limited contact Clean-up Day Event
• Discuss cancelling Medina Celebration Day in 2020
• Adopt updated meeting calendar
POLICE DEPARTMENT COVID-19 UPDATE
CHIEF JASON NELSON
The Lakes Area Emergency Management group continues to meet online weekly and all have
reported little or no COVID-19 related illness to personal.
The Governor issued three Executive Orders (20-54, 20-55, 20-56) on 5/13/2020. Executive Order
20-56 details the reopening of businesses except for bars and restaurants. EO 20-56 address
gatherings including drive-in type gatherings. I have fielded several calls or emails the past few
weeks about businesses wanting to reopen, or people wanting to have graduation parties, etc. I am
providing those individuals with documentation and information in trying to answer their questions.
Most people want to be compliant with the orders and do not want to do anything to violate them.
Individuals call with stories about how they are trying to keep their small business open and not lose
their vehicles, homes, businesses, etc. It is heart wrenching listening to these stories, and I inform
them that I am listening, and we as the Minnesota Chiefs of Police Association, along with the
Minnesota Sheriff’s Association, are forwarding our concerns to the Governor’s Office. We will
continue to attempt to uphold the orders from the Governor and we will do this through education
with the hopes to not take enforcement action.
We are always looking to add to our personal protection equipment (PPE). The current goal is to
have at least a 30 supply for each employee if the pandemic hits our area. We are currently sitting
ok with PPE; the officers have done a great job in preserving them. As of today, we have had very
few COVID-19 related medical calls but are aware of some COVID cases in the community and
within our congregant care facilities. These numbers continue to rise daily. For example, just
yesterday there were a total of 2,926 positive cases in congregate settings which was up 164 cases
from the day before. There are 498 congregate facilities with a least one COVID case reported,
which is up 23 overnight.
Agenda Item # 8C
Planning Department Update Page 1 of 2 May 19, 2020
City Council Meeting
MEMORANDUM
TO: Mayor Martin and Members of the City Council
FROM: Dusty Finke, Planning Director; through City Administrator Scott Johnson
DATE: May 14, 2020
SUBJ: Planning Department Updates – May 19, 2020 City Council Meeting
Land Use Application Review
A) Stetler Barn CUP – 1832 Medina Road – Chris and Jim Stetler have requested a
Conditional Use Permit for construction of a 12,300 square foot barn and riding arena. The
Planning Commission held a public hearing at the April 14 meeting and recommended
approval. The City Council reviewed on May 5 and directed staff to prepare a resolution of
approval, which will be presented to the City Council on May 19.
B) Roehl Preliminary Plat – 1735 Medina Road – The Estate of Robert Roehl has requested a
preliminary plat to subdivide 28 acres into two lots. The Planning Commission held a
public hearing on May 12 and recommended approval. Staff intends to present to the City
Council on May 19.
C) Meadow View Townhomes– north of Highway 55, west of CR116 – Lennar has indicated
that they will likely proceed with a development under the R3 standards and incorporating
as many comments received during previous concept review that they can.
D) OSI Expansion – Arrowhead Drive, north of Highway 55 – Arrowhead Holdings (real estate
company for OSI) has requested final plat approval for Cavanaughs Meadowwoods Park 3rd Addn.
The City Council previously granted approval of a site plan review and preliminary plat to construct
an expansion to the existing building and parking lot at 4101 Arrowhead Drive. Staff is awaiting
final construction plan, and will present the final plat to the City Council when complete.
E) 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 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.
F) Mark of Excellence Comp Plan Amendment, PUD Concept Plan – east of Mohawk Drive,
north of Highway 55 – Mark Smith (Mark of Excellence Homes) has requested a Comp
Plan Amendment and PUD Concept Plan for development of 76 twinhomes, 41 single-
family, and 32 townhomes on the Roy and Cavanaugh properties. The Council adopted a
resolution granting conditional approval and authorizing submission to the Met Council.
Staff is preparing the submission.
G) Adam’s Pest Control Site Plan Review, Pre Plat, Rezoning – Jan-Har, LLP (dba Adam’s
Pest Control) has requested various approvals for development of a 35,000 s.f. office
building, restaurant, and 13,000 s.f. warehouse/repair shop north of Highway 55, west of
Willow Drive (PIDs 04-118-23-21-0001 and 04-118-23-24-0001). The Planning
Commission held a public hearing at the November 12 and March 10 meetings and
recommended approval. The City Council adopted approval documents on March 17.
H) 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.
I) 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.
Planning Department Update Page 2 of 2 May 19, 2020
City Council Meeting
Other Projects
A) Tamarack Drive study – The City Engineer intends to present the feedback received and draft
concepts for review at the May 19 council meeting.
B) Hackamore Road Preliminary Design – Online engagement is currently underway on two concepts
for the Hackamore Road Improvements. Planning staff prepared a postcard, newsletter article and
webpage within formation. WSB has created an online activity that is available and a virtual open
house will be held from 5-6:45 on May 19. Both available at https://medinamn.us/hackamore
C) Wealshire Phase II – Staff is reviewing plans for construction of Phase II of the Wealshire, to
include an additional 56 residents. Construction is anticipated to begin soon.
D) Hennepin County Climate Change Partnership – I attended a meeting hosted by Hennepin County
to discuss potential partnerships and resources related to policies that the County, cities, watershed,
and state agencies can work together to address climate change.
TO: City Council
FROM: Jason Nelson, Director of Public Safety,
Through City Administrator Scott Johnson
DATE: May 15, 2020
RE: Police Department Updates
The past two weeks have filled with ups and downs within the department.
First and foremost, I want to thank the City Council and City Administrator for the support during
these unprecedented times. The entire staff at the police department appreciates everything you do
for us. We have been lucky that COVID-19 has not reached our staff or its family members,
however, this does not mean that it does not have impacts on us both personally and professionally
as it has for the rest of the community. The staff has been doing an excellent job with the constant
changing mandates, schedule changes in these trying times.
Long time Reserve Officer Jeffery Kordiak has turned in his resignation. Jeff has been with the
department for the past ten years as a Community Service Officer and a Reserve Officer. Jeff has
decided on a career path change into nursing and informed the department that he has enrolled in
nursing school and as a result does not have the time to commit to the Reserve organization. We
will miss Jeff but wish him the best of luck in his future endeavors.
On May 14, 2020 I learned of the passing of Reserve Officer Todd Larson’s father in Rochester,
Minnesota. Our condolences go out to Todd and his family as they are all in my thoughts and
prayers.
Officer Justin Hanson has completed his fourth phase of Field Officer Training and will be out on
his own. He will be an excellent addition to our department as he comes with 8 years of experience
from Oklahoma. We were extremely lucky to find such a good candidate in our last hiring process.
We are still one officer short from what was authorized; more to come next month on that.
I have decided that we are going to go back to our normal patrol schedule as of May 19th. There are
several other area departments that are doing the same. We will continue using our new standard
operating procedures as far as responding to calls for service, everyday patrol operations, cleaning of
squads and the police department. The Reserve Officers will be allowed to come back after the
holiday weekend and will resume their role as well. We will continually monitor the status of the
MEMORANDUM
schedule and if needed switch back. All employees have been extremely flexible in doing this but
are ready to come back to a normal work schedule.
Patrol:
Patrol Updates 04/29/2020 through 05/12/2020
Patrol Activities – Between the dates of April 29, 2020 through May 12, 2020 our officers issued 32
citations and 37 warnings for various traffic violations. There were 3 property damage accidents
reported, 6 medicals, 7 business alarms, 2 residential alarms, 8 suspicious calls, and 10 assists to
other agencies. Rush hour traffic has been picking up in the morning and late afternoon as the
Executive Order has been modified to allow more people to go to work.
With the Reserves being asked to stay home, Officers have also been conducting additional
house/business checks for the residents that have requested additional checks. During this time
period 70 house/business checks were conducted.
On 05/02/2020 Officers were made aware of a pursuit involving a stolen vehicle was heading
towards the Medina border southbound on County Road 116. The pursuit had been initiated in
Wright County by Wright County Deputies. Officers assisted with the pursuit which ended up
eastbound on Highway 55 into Plymouth where MN State Patrol used spike strips to deflate the
vehicle’s tires. The vehicle finally came to a stop on Vicksburg Lane and the suspect was taken into
custody without incident.
On 05/02/2020 at approximately 10:30 pm a 69-year-old female was arrested for DWI after being
stopped for lane violations. The arrested party was brought to West Health in Plymouth where a
search warrant was executed and a blood sample was obtained. Charges are pending the results of
the blood test.
On 05/04/2020 the sewer construction project began along County Road 19 in the southwest area of
the city. Numerous complaints were received of north and southbound traffic disobeying the road
closed signs and cutting through the Sycamore neighborhood to bypass the closed section of the
roadway. Officers conducted extra patrol in the area and stopped 38 vehicles cutting through the
Sycamore neighborhood, issuing 28 warnings and 10 citations for driving past the barricades.
On 05/07/2020 three suspicious vehicles were reported by a neighbor on a property along the 3000
block of Hamel Road where a home had been torn. Officers arrived and found three teens hanging
out on the property. Officers learned that the teens had learned of this spot on social media that it
was a good place to hang out. Officers observed a lot of trash laying around indicating that
numerous people have been hanging out on the property. The property owner was contacted who
was unaware of the issue. Since that incident several other teens have been found on the property
who also indicated they had heard of the property on social media. Extra patrol continues at the
property and the property owner is working on putting a gate or no trespassing signs on his property
to deter further incidents.
On 05/10/2020 Officer was dispatched to a welfare check at the Holiday on Baker Park Road. It was
reported a male was rolling around in the grass and looked confused. Officers made contact with the
individual who was found to possibly be having a mental health crisis. The individual agreed to go
to the hospital to be seen by doctors.
On 05/12/2020 Officer stopped two off road vehicles for driving on the roadway. Both drivers were
found to have revoked driver’s licenses and were cited for those offenses. They were advised to
push the vehicles back to their residence.
Investigations:
In March of 2020, I executed a search warrant and obtained a buccal swab from a suspect. The
suspects DNA was found at the scene of a burglary in August of 2019. I recently received the results
from the buccal swab, and it was confirmed to be the same DNA that was found at the scene of the
burglary. I have submitted my report to the Hennepin County Attorney’s office and requesting the
suspect be charged with 3rd Burglary.
I completed a theft investigation from a local business. The suspect has been responsible for
numerous from area businesses. The case was submitted to the city attorney’s office for charging.
Received a report from Hennepin County Child Protection about possible physical abuse at a
residence. I have been in contact with a social worker from the child protection about the incident.
Investigation is ongoing.
Completed some background checks for solicitor permits in the city.
MEMORANDUM
TO: City Council, through City Administrator Scott Johnson
FROM: Steve Scherer, Public Works Director
DATE: May 14, 2020
MEETING: May 19, 2020
SUBJECT: Public Works Update
STREETS
• Public Works graded the gravel streets in town and we have been replacing signs along
the roadways.
• The streets are in good condition. There are a few potholes that need to be repaired but
we are focused on culvert repairs while the stream waters are low.
• WSB has been working closely with both Public Works and Planning on visioning for
both the Tamarack and Hackamore street projects. There are currently public input
opportunities on the website for both projects.
WATER/SEWER/STORMWATER
• Public Works flushed the hydrants in the Independence Beach area as we do every
second Thursday of the month. This schedule seems to keep water complaints to a
minimum.
• Inflow and infiltration have been halted with the dryer weather. It is difficult to identify
problems when sources dry up.
• A weekly progress meeting was held with the Metropolitan Council Environmental
Services and their construction partners. The project is well on its way, with the first
County Road 19 crossing complete already. There will be one more closure when they
get to the east end and need to cross County Road 19 one more time.
• Public Works completed the work with Burschville Construction to install a large pipe on
Ardmore Ave. Public Works assisted in the material handling and reconstruction work.
The street was closed for two days.
PARKS/TRAILS
• The parks are being utilized even more and so it is great to have our seasonal employee
on board to assist with the maintenance.
• We have been working to secure easements with Loram for the extension of the
Arrowhead Trail project. Once the paperwork is done, Public Works plans on starting
construction from the railroad crossing to the south, to tie into the existing trail. Dusty
Finke plans on drafting the easement for the project.
PERSONNEL
• Our part time Public Works Maintenance Technician, Nate Dingmann, started and we are
glad to have him on board.
ORDER CHECKS MAY 5, 2020 – MAY 20, 2020
050215 CHETTIAR, MOHAN ............................................................... $1,150.00
050216 IMMADISETTY, PRATAPKUMAR .............................................. $440.00
050217 MN DEPT OF LABOR/IND(BLDGPERM) ................................ $5,226.23
050218 VOID .............................................................................................. $0.00 PRINTING ISSUE
050219 ADAMS PEST CONTROL INC .................................................... $89.84
050220 ASPEN MILLS INC .................................................................... $225.60
050221 BAILEY NURSERIES, INC. ........................................................ $641.95
050222 BEAUDRY OIL & PROPANE .................................................. $2,019.61
050223 BLUE CROSS BLUE SHIELD OF MN ................................... $33,117.46
050224 BOYER FORD TRUCKS INC ....................................................... $59.99
050225 CAREFREE SERVICES INC .................................................. $6,869.00
050226 CIRCLE V SPECIALTIES, INC................................................... $250.00
050227 D FENCE ................................................................................ $1,900.00
050228 DITTER COOLING & HEATING.............................................. $6,842.79
050229 DPC INDUSTRIES INC ........................................................... $2,059.73
050230 ECM PUBLISHERS INC .............................................................. $94.98
050231 GRAFIX SHOPPE ...................................................................... $111.41
050232 GRAINGER................................................................................ $132.22
050233 HAKANSON ANDERSON ASSOCIATES I ................................ $838.00
050234 HAMEL BUILDING CENTER ..................................................... $203.45
050235 HAMEL LIONS CLUB ................................................................ $525.00
050236 JIMMYS JOHNNYS INC ............................................................ $775.36
050237 LAW ENFORCEMENT LABOR SERVICES ............................... $496.00
050238 LEXISNEXIS ................................................................................ $55.00
050239 MAPLE PLAIN, CITY OF ........................................................... $735.36
050240 MATRIX CONSULTING GROUP ............................................ $3,200.00
050241 MORRIS ELECTRONICS INC. .................................................... $40.00
050242 NAPA OF CORCORAN INC ...................................................... $107.04
050243 NELSON ELECTRIC MOTOR REPAIR ..................................... $375.00
050244 OFFICE DEPOT ........................................................................ $128.35
050245 ORONO, CITY OF .................................................................. $1,277.47
050246 SENSUS METERING SYSTEMS INC ..................................... $1,949.94
050247 STEVES OUTDOOR SERVICES ............................................... $650.00
050248 TALLEN & BAERTSCHI .......................................................... $3,438.00
050249 TIME SAVER OFFSITE SEC SVCS IN ...................................... $509.00
050250 WESTSIDE WHOLESALE TIRE .................................................. $10.00
Total Checks $76,543.78
ELECTRONIC PAYMENTS MAY 5, 2020 – MAY 19, 2020
005511E FURTHER .............................................................................. $1,544.47
005512E CENTURYLINK.......................................................................... $234.10
005513E PR PERA .............................................................................. $15,671.11
005514E PR FED/FICA ....................................................................... $16,223.33
005515E PR MN Deferred Comp ........................................................... $1,850.00
005516E PR STATE OF MINNESOTA .................................................. $3,504.56
005517E FURTHER .............................................................................. $1,749.29
005518E CITY OF MEDINA ........................................................................ $21.00
005519E FARMERS STATE BANK OF HAMEL ....................................... $150.00
005520E AFLAC ....................................................................................... $375.36
005521E CIPHER LABORATORIES INC. ............................................ $10,973.05
005522E CULLIGAN-METRO ..................................................................... $33.70
005523E FURTHER ................................................................................. $577.53
005524E FRONTIER .................................................................................. $56.91
005525E MEDIACOM OF MN LLC ........................................................... $522.24
005526E VALVOLINE FLEET SERVICES ................................................ $198.63
005527E VERIZON WIRELESS ............................................................. $1,651.21
Total Electronic Checks $55,336.49
PAYROLL DIRECT DEPOSIT MAY 19, 2020
0510225 BOEDDEKER, KAYLEN ............................................................ $628.35
0510226 JOHNSON, PATRICK M. ........................................................... $633.53
0510227 ALBERS, TODD M. .................................................................... $230.87
0510228 ALTENDORF, JENNIFER L. ................................................... $1,521.00
0510229 ANDERSON, JOHN G. .............................................................. $230.87
0510230 BARNHART, ERIN A. ............................................................. $2,514.01
0510231 BOECKER, KEVIN D. ............................................................. $2,724.82
0510232 CONVERSE, KEITH A. ........................................................... $1,978.15
0510233 DESLAURIES, DEAN ................................................................ $230.87
0510234 DION, DEBRA A. .................................................................... $1,880.14
0510235 ENDE, JOSEPH...................................................................... $1,721.91
0510236 FINKE, DUSTIN D. ................................................................. $2,594.12
0510237 GALLUP, JODI M. ................................................................... $2,119.18
0510238 GLEASON, JOHN M. .............................................................. $2,417.55
0510239 GREGORY, THOMAS ............................................................ $1,950.75
0510240 HALL, DAVID M. ..................................................................... $2,039.87
0510241 HANSON, JUSTIN .................................................................. $1,956.64
0510242 JACOBSON, NICOLE ................................................................ $949.86
0510243 JESSEN, JEREMIAH S. .......................................................... $2,258.13
0510244 JOHNSON, SCOTT T. ............................................................ $2,286.94
0510245 JONES, KATRINA M............................................................... $1,467.04
0510246 KLAERS, ANNE M. ................................................................. $1,427.39
0510247 LEUER, GREGORY J. ............................................................ $1,947.76
0510248 MARTIN, KATHLEEN M ............................................................ $327.07
0510249 MCGILL, CHRISTOPHER R. .................................................. $1,533.81
0510250 MCKINLEY, JOSHUA D .......................................................... $2,014.46
0510251 NELSON, JASON ................................................................... $2,531.59
0510252 PEDERSON, JEFF .................................................................... $230.87
0510253 REINKING, DEREK M ............................................................ $2,149.90
0510254 SCHARF, ANDREW ............................................................... $1,882.65
0510255 SCHERER, STEVEN T. .......................................................... $2,372.90
0510256 SCHNEIDER, BENJAMIN .......................................................... $599.09
0510257 BIEGERT, CURTIS .................................................................... $569.38
0510258 DINGMANN, NATHAN ............................................................... $256.52
Total Payroll Direct Deposit $52,177.99