Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
_06 07 2021 City Council Agenda Packet
INFORMATION SHEET MINNESOTA Some cities have imposed franchise fees on their energy providers as part of utility franchise agreements. As allowed by the Minnesota Public Utilities Commission, franchise fees levied on us are passed on directly to our customers within a city. This fee is itemized on our customer bills as a City Fee. A franchise fee can only be implemented if it is allowed by the city’s existing franchise agreement with us. If a community determines that a franchise fee is appropriate, there are several guiding principles that we follow in discussing fee options. •Franchise fees are set forth in a fee ordinance authorized by, but separate from, the franchise agreement. •An equivalent fee must be placed on all energy suppliers serving the city. •We will not be subject to permit fees while franchise fees are in effect. •We will prepare fee schedule options for the amount of revenue sought by the city. •The fee is calculated as a flat fee, per premise and is applied equally for all customers in a given rate class. •Fees are paid to the city on a quarterly basis. Franchise Fee Considerations As in any case where a city is considering a new revenue source, we urge careful consideration of the possible negative impacts of a franchise fee since they increase the cost of energy for all customers in that city. Timeline Implementing franchise fees is a complex process that requires adequate time for system programming and testing. Here’s a typical sequence of events: •City provides us with written notice of intent to enact a fee prior to formal consideration. •City and Xcel Energy negotiate the fee. •In order to meet the PUC’s requirements, the approved fee ordinance must be received by us at least 90 days before the anticipated start of fee collection. •We collect the fee from our customers monthly and transfer it to the city on a quarterly basis. Sample Timeline Utility Franchise Fees Day 1 Day 90 Day 120 Day 210 Day 240 City adopts ordinance Xcel Energy implements fee on customers’ bills Fee collection (Xcel Energy pays the city quarterly) Xcel Energy pays the city at the end of the month after the quarter’s fees have been collected Xcel Energy receives proposed ordinance xcelenergy.com | © 2016 Xcel Energy Inc. | Xcel Energy is a registered trademark of Xcel Energy Inc. Northern States Power Company-Minnesota | 16-01-638 CHECK REGISTER FOR CITY OF PRIOR LAKE 1/8Page: 05/27/2021 01:55 PM User: Janet DB: Prior Lake CHECK DATE FROM 05/08/2021 - 05/27/2021 AmountDescriptionVendor NameVendorCheckBankCheck Date Bank 1 General Bank 4,454.40 OSHA Load TestsALL TEST & INSPECTION INC000279597177(A)105/14/2021 823.00 Sycamore Trail Stormwater Basin ImprovemBOLTON & MENK INC000026377178(A)105/14/2021 72.15 756 Strobe lamp lensEMERGENCY AUTOMOTIVE TECH INC000054807179(A)105/14/2021 4,119.65 Fire Hose TestingFIRECATT000064547180(A)105/14/2021 408.65 LaborFLEXIBLE PIPE TOOL CO000066607181(A)105/14/2021 142.35 O-Rings & Plug 551.00 184.98 Misc UniformsGALLS LLC000070757182(A)105/14/2021 9,840.54 Water Treatment ChemicalsHAWKINS INC000083127183(A)105/14/2021 343.75 Apr 2021 Sprint at Tower StHOFF BARRY PA000273877184(A)105/14/2021 412.50 Apr 2021 Verizon at Cedarwood St 756.25 243.04 Misc Office SuppliesINNOVATIVE OFFICE SOLUTIONS LLC000271497185(A)105/14/2021 553.10 #10 & Window Envelopes 796.14 709.45 Rip RapKRAEMER MINING & MATERIALS INC000053657186(A)105/14/2021 138,394.50 #1 Fish Pt Road Phase I TRN20-0000001MCNAMARA CONTRACTING INC000132867187(A)105/14/2021 1,058.17 PartsMTI DISTRIBUTING INC000139517188(A)105/14/2021 810.06 Apr 2021 Repair PartsO'REILLY AUTO PARTS000150887189(A)105/14/2021 400.00 May 2021 ROWay AppPERRILL000065027190(A)105/14/2021 210.00 Mower tires ROYAL TIRE INC000187327191(A)105/14/2021 47,870.59 ROW Easement - CR 21 Between Duluth and SCOTT COUNTY000192127192(A)105/14/2021 146.88 AsphaltWM MUELLER & SONS INC000236457193(A)105/14/2021 216.72 Asphalt 363.60 700.36 7104 HeadlampWOLF MOTOR CO INC000236757194(A)105/14/2021 231.34 7104 Headlamp 931.70 758.32 2021 Dental ClaimsDELTA DENTAL000272137195(E)105/10/2021 720.66 Apr 2021 Merchant Card FeesTRANSFIRST000206937196(E)105/10/2021 46.00 Filing Fee - Res 21-04PCSCOTT COUNTY000192127197(E)105/14/2021 46.00 Filing Fee 21-05PC 46.00 Filing Fee - Res 21-03PC 138.00 1,784.00 May 2021 Office 365COMPUTER INTEGRATION TECH000037607198(A)105/19/2021 1,125.00 Jun 2021 CIT Managed Backup 1,762.50 Jun 2021 Managed Services 4,671.50 153.96 Magnetic Mic Clip for Fire Squads EMERGENCY AUTOMOTIVE TECH INC000054807199(A)105/19/2021 2,683.91 PesticidesFARMERS MILL & ELEVATOR INC000276327200(A)105/19/2021 862.16 Apr 2021 UniformsHUEBSCH000275367201(A)105/19/2021 CHECK REGISTER FOR CITY OF PRIOR LAKE 2/8Page: 05/27/2021 01:55 PM User: Janet DB: Prior Lake CHECK DATE FROM 05/08/2021 - 05/27/2021 AmountDescriptionVendor NameVendorCheckBankCheck Date 35.00 Mayer - Business CardsINNOVATIVE OFFICE SOLUTIONS LLC000271497202(A)105/19/2021 146.01 Misc Office Supplies 181.01 73.25 503 Upper radiator hose MTI DISTRIBUTING INC000139517203(A)105/19/2021 96.97 ApparelNORTH AMERICAN SAFETY000145747204(A)105/19/2021 (48.49)Price Credit 48.48 55.57 9280 Tire repair ROYAL TIRE INC000187327205(A)105/19/2021 31.01 Electrical Repair PartsVIKING ELECTRIC SUPPLY000226307206(A)105/19/2021 489.94 Switch & Hole Saw Kit 31.14 Electrical Repair Parts 3.10 Reuse Connector 555.19 48.00 Apr 2021 COBRA Admin FeeALERUS000013757207(E)105/20/2021 344.85 Apr 2021 Fuel TaxMN DEPT OF REVENUE000136127208(E)105/20/2021 3,061.00 Apr 2021 Sales Tax 3,405.85 7.50 Apr 2021 Transaction FeesPOINT & PAY000276217209(E)105/20/2021 1,158.50 2021 Dental ClaimsDELTA DENTAL000272137210(E)105/17/2021 223.00 2021 Dental Claims 1,381.50 1,054.52 May 2021 Electric BillsSHAKOPEE PUBLIC UTILITIES000193887211(E)105/17/2021 77,890.10 Jun 2021 Health Insurance PremiumsMN PEIP000279097212(E)105/25/2021 1,065.61 Apr 2021 Admin FeesDELTA DENTAL000272137213(E)105/21/2021 58.55 Apr 2021 COBRA Admin Fees 1,124.16 1,813.14 May 2021 Phone BillsNUVERA000193047214(E)105/21/2021 27,596.00 Ponds Park DugoutsBEACON ATHLETICS000021707215(A)105/27/2021 13,966.00 2021 Downtown ReconstructionBOLTON & MENK INC000026377216(A)105/27/2021 6,032.50 General Engineering 378.00 Cardinal Overlook Addition 225.00 CR 21 Entry Monument 5,109.00 21/13 Improvements 315.00 Distinctive Shores 634.00 2021 Downtown Reconstruction - LRIP Appl 252.00 DEV20-000010 Haven Ridge 4th Addition 252.00 DEV19-000017 Haven Ridge 3rd Addn 252.00 DEV18-000002 Majestic 315.00 DEV19-000006 Meadow of Cleary Lake 756.00 Trillium Cove 4th Const Obsv DEV19-00000 258.00 Platting of City Hall & Adjoining Lots 1,034.00 Traffic Conrtol & Pedestrian Signing Pol 38,283.50 Towering Woods 68,062.00 CHECK REGISTER FOR CITY OF PRIOR LAKE 3/8Page: 05/27/2021 01:55 PM User: Janet DB: Prior Lake CHECK DATE FROM 05/08/2021 - 05/27/2021 AmountDescriptionVendor NameVendorCheckBankCheck Date 3,294.72 Adobe SubscriptionsCOMPUTER INTEGRATION TECH000037607217(A)105/27/2021 136.00 Latch FingerCRYSTEEL TRUCK EQUIPMENT000039557218(A)105/27/2021 147.00 US FlagDISPLAY SALES COMPANY000044937219(A)105/27/2021 9,465.00 Lift Station InspectionsELECTRIC PUMP000231207220(A)105/27/2021 1,630.00 Sludge Pump #3 Repair - WTF 11,095.00 2,583.00 PesticidesFARMERS MILL & ELEVATOR INC000276327221(A)105/27/2021 253.92 Pesticides 2,836.92 79.30 Uniform RepairFIRE EQUIPMENT SPECIALTIES INC000064557222(A)105/27/2021 101.98 UndervestGALLS LLC000070757223(A)105/27/2021 58.87 532 Trailer decal GRAFIX SHOPPE000076157224(A)105/27/2021 125.00 Safety Boots 2021GREG SKLUZACEK000195587225(A)105/27/2021 4,874.50 Water Treatment ChemicalsHAWKINS INC000083127226(A)105/27/2021 11,105.50 Summit Ridge Park Concept & Stakeholder HOISINGTON KOEGLER GROUP INC000087307227(A)105/27/2021 3,411.25 Ponds & Memorial Park Improvements 532.70 Pickleball Court Design Additional Svcs 15,049.45 102.52 Misc Office SuppliesINNOVATIVE OFFICE SOLUTIONS LLC000271497228(A)105/27/2021 18.33 Bieder - Name Plate 31.16 AA Batteries 152.01 22,052.50 South Water Tower ReconditioningKLM ENGINEERING INC000115207229(A)105/27/2021 150.00 Apr 2021 PD Counseling ServicesLEAST SERVICES/COUNSELING LLC000276137230(A)105/27/2021 9,500.00 2020 YE AuditMMKR & CO000137497231(A)105/27/2021 132.56 PartsMTI DISTRIBUTING INC000139517232(A)105/27/2021 2,397.30 ApparelNORTH AMERICAN SAFETY000145747233(A)105/27/2021 1,403.25 Apparel 527.70 Apparel 4,328.25 318.00 Pump HandleNOVAK COMPANIES000149007234(A)105/27/2021 229.89 519 Sander stand steel 31.80 519 Sander stand steel 579.69 99.90 488 and 519 AntennaPROFESSIONAL WIRELESS COMM000168577235(A)105/27/2021 89.97 457 Light bar RIGID HITCH INC000184757236(A)105/27/2021 216.25 Textbook ReimbursementROBERT FREIBERG000276967237(A)105/27/2021 125.00 Safety Boots 2021STEVE KORBEL000274787238(A)105/27/2021 301.04 PartsVIKING ELECTRIC SUPPLY000226307239(A)105/27/2021 10.74 Steel 311.78 626.98 Leak Locate - Inguadana Beach & Fox RunWATER CONSERVATION SVCS INC000232007240(A)105/27/2021 576.72 AsphaltWM MUELLER & SONS INC000236457241(A)105/27/2021 CHECK REGISTER FOR CITY OF PRIOR LAKE 4/8Page: 05/27/2021 01:55 PM User: Janet DB: Prior Lake CHECK DATE FROM 05/08/2021 - 05/27/2021 AmountDescriptionVendor NameVendorCheckBankCheck Date 1,009.44 Asphalt 363.60 Asphalt 1,949.76 23.87 508 Blend door motorWOLF MOTOR CO INC000236757242(A)105/27/2021 8.66 Windshield washer nozzle 189.95 450 Front end alignment 290.62 452 Rear brakes 158.86 452 Rear seals 81.18 452 Brake caliper (12.98)452 Rear seals 740.16 11,601.75 City Wide Stormwater ModelWSB & ASSOCIATES INC000237807243(A)105/27/2021 977.25 Markley Lake Monitoring 1,379.00 Pavement Management Program 656.00 2021 WCA LGU March 2021 1,106.25 TMDL Assessment 117.00 2020/2021 MSAS Assistance 301.00 2020/2021 MSAS Assistance 23,564.75 TRN20-000001 Fish Pt Road Eng Svcs 98.50 2020 Standard City Specification Update 1,140.00 14756 Cove Ave SE EAW 40,941.50 308.43 Franklin trail lift repair ZIEGLER INC000265007244(A)105/27/2021 352.00 May 2021 HSA Admin FeesALERUS000013757245(E)105/26/2021 1,765.04 2021 Dental ClaimsDELTA DENTAL000272137246(E)105/24/2021 69.60 May 2021 Admin FeesFURTHER000135047247(E)105/24/2021 16,789.19 May 2021 Electric BillsMN VALLEY ELECTRIC000137387248(E)105/24/2021 35.38 536 Spray wand couplerALTEC INDUSTRIES INC00027400108121105/14/2021 214.55 CoffeeARAMARK REFRESHMENT SERVICES00001772108122105/14/2021 130.50 Battery RecyclingBATTERIES PLUS00002130108123105/14/2021 86,332.93 #519 ChassisBOYER FORD TRUCKS INC00002710108124105/14/2021 32.92 503 A/C Hose BTR OF MINNESOTA00002914108125105/14/2021 35.28 503 A/C Hose 68.20 381.60 Recycle Microwaves, Misc ElectronicsCERTIFED RECYCLING00027967108126105/14/2021 592.13 Apr 2021 UB Billing FinalsCSG SYSTEMS INC00027506108127105/14/2021 191.67 Memorial Plaque - Ahmadzadeh-HoseiniEXECUTIVE OCEAN00005947108128105/14/2021 276.94 549 Batteries FACTORY MOTOR PARTS COMPANY00006020108129105/14/2021 (29.00)Batteries 247.94 1,727.34 Water MetersFERGUSON WATERWORKS #251600006231108130105/14/2021 75.00 Black DirtGALLAGHER'S INC00007078108131105/14/2021 13,370.49 Willow Beach Stormwater Basin ImprovemenGF JEDLICKI INC00027552108132105/14/2021 461.71 Cleary Lift Station Service CallHAYES ELECTRIC INC00008315108133105/14/2021 215.00 Golf Cart/ATV/UTV PermitsIMPRINTS LABEL & DECAL00027961108134105/14/2021 485.99 Custom BadgesJACK'S UNIFORMS & EQUIPMENT00027636108135105/14/2021 22,673.40 Rescue equipment for new engine 9221JEFFERSON FIRE & SAFETY INC00010359108136105/14/2021 4,450.00 Emergency Water Main Repair - Inguadona KRUEGER EXCAVATING00011828108137105/14/2021 25,567.50 Sunset Trl Culvert Replacement CHECK REGISTER FOR CITY OF PRIOR LAKE 5/8Page: 05/27/2021 01:55 PM User: Janet DB: Prior Lake CHECK DATE FROM 05/08/2021 - 05/27/2021 AmountDescriptionVendor NameVendorCheckBankCheck Date 30,017.50 14,761.00 #8532 Felling TrailerLANO EQUIPMENT INC00012255108138105/14/2021 2,542.00 531 Trailer Winch Upgrade 17,303.00 5,939.00 WC AdjLEAGUE MN CITIES INS TRUS00012435108139105/14/2021 1,000.00 MS4 Program - MCSC MembershipLEAGUE OF MINN CITIES00012450108140105/14/2021 200.42 Kobalt SprayerLOWE'S00012754108141105/14/2021 67.00 Repair PartsMENARDS LUMBER CO00013318108142105/14/2021 62.98 Parks Supplies 300.72 Concrete Mix 430.70 365.59 Hazardous Waste FeesMN POLLUTION CONTROL AGCY00013850108143105/14/2021 12.00 Credit Check - Parks PatrolMULTIHOUSING CREDIT CONTROL00013968108144105/14/2021 830.14 Apr 2021 Repair PartsNAPA AUTO PARTS00014060108145105/14/2021 41.52 Apr 2021 Parts - Fire 871.66 100.00 Down Pmt - 7/1/2021 Club Prior Pizza parPARTY PIZZA00027534108146105/14/2021 1,500.00 2021 July 4th Fire WorksPRIOR LAKE ASSOCIATION INC00016602108147105/14/2021 2,535.00 TreesPRIOR LAKE LANDSCAPE00016665108148105/14/2021 126.19 Pressure Wash RentalPRIOR LAKE RENTAL CENTER00016700108149105/14/2021 809.00 Turf ProductsRAMY TURF PRODUCTS00018173108150105/14/2021 76.00 Mulch 885.00 8,025.00 2021 Annual Siren MtceREADY WATT ELECTRIC00018235108151105/14/2021 1,800.00 Safety ChipROCK HARD LANDSCAPE SUPPLY00018571108152105/14/2021 38.94 Employee Engagement SAM'S CLUB00019036108153105/14/2021 30.00 2004 Jeep Liberty #161791SCOTT COUNTY ATTORNEY00019232108154105/14/2021 21,945.71 Apr 2021 Water PurchasesSMSC00019384108155105/14/2021 399.48 Apr 2021 Legal AdsSOUTHWEST NEWS MEDIA00019676108156105/14/2021 1,780.00 PL American Inserts 2,179.48 42.00 May 2021 Portable ToiletsSPECIALIZED SANITATION00019703108157105/14/2021 199.75 Baton HoldersSTREICHERS00019900108158105/14/2021 1,488.56 Schaefer - Body Armor 1,688.31 24.64 464 Marker lamp harnessTRUCK CENTER COMPANIES00027878108159105/14/2021 98.10 464 Marker lamp 122.74 85.00 Elbon - 2021 Membership DuesUS BANK00002105108160105/14/2021 36.89 Memory - Detective Computer 45.99 Ink - ID Tag Printer 172.46 Logitech WebCams CHECK REGISTER FOR CITY OF PRIOR LAKE 6/8Page: 05/27/2021 01:55 PM User: Janet DB: Prior Lake CHECK DATE FROM 05/08/2021 - 05/27/2021 AmountDescriptionVendor NameVendorCheckBankCheck Date 32.97 Plaque Holders 33.95 iPhone Chargers 78.88 New Employee Welcome Lunch 372.00 2021 Subscription 160.96 Olson - Annual License 2,315.00 Apr 2021 Background Checks (Seasonals) 25.00 Wedel - Membership Meeting 220.00 Stat Books 20.55 Traffic Direction Wand 48.52 Garage Clenaing Supplies 10.00 Snyder - ATV Safety Certificate 4.07 Dish Soap 13.00 Trail Camera Subscription 597.00 3 Search & Seizzure Training 5.00 Test - Purchase Sandpoint Parking Pass 34.34 Misc Supplies 25.00 Mayer - Training 25.00 Mayer - Training 309.24 Digital Camera 16.09 Apr 2021 Subscription 16.09 Apr 2021 Video Conferencing 75.00 Lewis - DMT Recert 75.00 Steinhaus - DMT-G Recertification 75.00 Hageman - DMT-G Recertification 100.00 Prom, Karfa 2021 Mempbership Dues 195.00 Custom Embroidered Badge Patches 26.79 ATV Training 26.79 Snyder - ATV Training 840.00 Horn, Erickson - Virtual Conference 26.57 Envelopes, Tag Loops 29.99 Traffic Wands 6,173.14 39.98 USB DrivesUS BANK00002105108161105/14/2021 428.85 EMS Supplies 29.49 Cell Phone Car Mount 125.56 Flowers - Joachim Funeral 75.37 Boat, ATV Fuel 22.08 Gas Rig Fuel 0.99 50GB iCloud Storage 157.66 BVM Filters 520.00 Spring Conference 303.01 PW Staff Meeting 30.00 Theisen - Race & Equity Workshop 529.83 Sewer PPE 33.76 Mouse Pad, Tire Gauge 44.99 iPad Table Mount 154.23 Corrosion Inhibitor 29.88 Bluetooth Headset 129.26 Fluke Meter, Eartip Replacements 25.76 USB Cable 164.21 Pond Cleaner Refills 188.74 7299 A/C Line Set 131.62 Boat Carb Kit 40.00 Mn Pumps & Motors Course 60.00 Mn Pipelines Course 434.88 Program Flags 54.74 Club Prior Garden Supplies 6.43 Club Prior - Movie Download CHECK REGISTER FOR CITY OF PRIOR LAKE 7/8Page: 05/27/2021 01:55 PM User: Janet DB: Prior Lake CHECK DATE FROM 05/08/2021 - 05/27/2021 AmountDescriptionVendor NameVendorCheckBankCheck Date 6.43 Club Prior - Movie Download 310.00 1500 Wooden Nickels - Club Prior Promoti 1,993.00 Club Prior Tables and Chairs 230.86 City Council Work Session 15.00 Orlofsky - Data Practices for City Clerk 160.90 City Council Work Session 295.00 Franklin Lift station generator fuel sen 6,772.51 210.06 Apr 2021 Investigative ServicesWEST PAYMENT CENTER00023420108162105/14/2021 109.00 21-0833 16308 Park Avenue SEWS&D PERMIT SERVICES INCMISC-CD108163105/14/2021 70.00 May 2021 Technology Time ClassAMANDA FAY00027666108164105/19/2021 21.58 Natural Gas - 4664 Dakota St SECENTERPOINT ENERGY00013570108165105/19/2021 773.49 Air Compressor Service - FS #1HAYES ELECTRIC INC00008315108166105/19/2021 60.00 Feb 2021 Foot Care SessionsHEALING HANDS FOR FEET00027618108167105/19/2021 360.00 Apr 2021 Foot Care Sessions 420.00 2,500.00 20-1330 17867 Meadows Way SEKEYLAND HOMESMISC-CD108168105/19/2021 2,500.00 20-1577 17861 Meadows Way SE 5,000.00 3,642.45 Contract Base Charge ChangeMARCO TECHNOLOGIES LLC00027647108169105/19/2021 33.17 UB REFUND # 101638-02MATHEW & MELISSA TORSCH REFUND-UB108170105/19/2021 2,000.00 5/21/2021 Music in the Park PerformerSALLYCAT MUSIC LLC00027978108171105/19/2021 2,520.00 Freiberg - TuitionST MARY'S UNIVERSITY00019724108172105/19/2021 49.20 May 2021 Phone BillT-MOBILE00026962108173105/19/2021 1,966.24 Arts & Culture Committee ConsultantURBANE DRK CONSULTING00027976108174105/19/2021 1,025.97 532 Felling Trailer RegistrationDEPUTY REGISTRAR #16000004400108175105/19/2021 59.53 CoffeeARAMARK REFRESHMENT SERVICES00001772108176105/27/2021 187.50 Road GraderART JOHNSON TRUCKING INC00001840108177105/27/2021 6,510.00 Hydrant PaintingB&B COMMERCIAL COATING LLC00027672108178105/27/2021 173.91 ToolsCAPITAL ONE TRADE CREDIT00027963108179105/27/2021 906.25 Software UpdateDELEGARD TOOL CO00004333108180105/27/2021 95.00 Pavilion RefundDOUGLAS STEVENSREFUND-REC108181105/27/2021 64.00 471 Rocker switch seal ENVIRONMENTAL EQUIPMENT00005584108182105/27/2021 21.00 471 Rocker switch 85.00 1,852.75 Water MetersFERGUSON WATERWORKS #251600006231108183105/27/2021 295.00 Jensen - FTO BasicFIELD TRAINING SOLUTIONS 00027778108184105/27/2021 126.44 519 Sander stand wheels GARLAND'S INC00027818108185105/27/2021 1,168.08 Squad tires GOODYEAR COMMERCIAL TIRE00007510108186105/27/2021 300.00 May 2021 Foot Care SessionsHEALING HANDS FOR FEET00027618108187105/27/2021 5,418.88 Compass UpgradeHUMERATECH00027184108188105/27/2021 2,022.80 PartsINDELCO PLASTICS CORP00009440108189105/27/2021 32.03 Club Prior SuppliesKATHY VOMACKAREFUND-REC108190105/27/2021 2,500.00 20-1429 17784 Meadows Way SEKEYLAND HOMES MISC-CD108191105/27/2021 5,400.00 AT&T Cedarwood St Inspection A1120-00000KLM ENGINEERING INC00011520108192105/27/2021 853.46 452 Rear leaf spring KREMER SERVICES LLC00011800108193105/27/2021 242.00 532 Trailer wireless remoteLANO EQUIPMENT INC00012255108194105/27/2021 35.00 55 gal Used FiltersLOE'S OIL COMPANY00012728108195105/27/2021 191.63 Wedel - 2021 Membership DuesMN CITY/COUNTY MGMT ASSN00027619108196105/27/2021 300.00 Bunny Yoga ProgramMN COMPANION RABBIT SOCIETY00027332108197105/27/2021 22,645.00 2nd Qtr 2021 State SurchargeMN DEPT OF HEALTH00013618108198105/27/2021 1,275.00 Mpls/St Paul Mag AdMSP COMMUNICATIONS00027300108199105/27/2021 CHECK REGISTER FOR CITY OF PRIOR LAKE 8/8Page: 05/27/2021 01:55 PM User: Janet DB: Prior Lake CHECK DATE FROM 05/08/2021 - 05/27/2021 AmountDescriptionVendor NameVendorCheckBankCheck Date 41,281.68 Seal CoatingNORTHWEST ASPHALT INC00014785108200105/27/2021 69.50 Interpreter ServicesOFFICE OF MN IT SERVICES00004396108201105/27/2021 156,265.35 #3 Pickleball Court ConstructionPETERSON COMPANIES INC00027860108202105/27/2021 36,407.74 Police ATVPOLARIS SALES INC00026898108203105/27/2021 1,600.00 Double Ground HardwoodROCK HARD LANDSCAPE SUPPLY00018571108204105/27/2021 38,730.49 1st Quarter 2021 Court FinesSCOTT COUNTY ATTORNEY00019232108205105/27/2021 448.91 2020 I&I Grant ApplicationSEH INC00019339108206105/27/2021 1,877.32 2020 I&I Grant Application 2,326.23 1,160.00 40 - Central Intercept X AdvancedSHI INTERNATIONAL CORP00027975108207105/27/2021 211.21 533 Oak deck boards SIWEK LUMBER & MILLWORK INC00019538108208105/27/2021 42.99 Trailer deck board screws 254.20 345.28 May 2021 Legal AdsSOUTHWEST NEWS MEDIA00019676108209105/27/2021 162.00 May 2021 Portable Toilets - Sand Point &SPECIALIZED SANITATION00019703108210105/27/2021 2,974.00 June 2021 Portable Toilets 3,136.00 305.98 Erickson - Vest CarrierSTREICHERS00019900108211105/27/2021 1,245.00 Freiberg - Body Armor 1,550.98 100.00 Water Efficiency RebateTHOMAS ABRAHAMREFUND-MSC108212105/27/2021 65.00 Pest Control - FS #1XTREME PEST SOLUTIONS INC00027116108213105/27/2021 65.00 Pest Control - Mtce Center 130.00 121.83 Chain, Hook, TowelsZACKS INCORPORATED00026100108214105/27/2021 1 TOTALS: 1,136,013.69 Total of 166 Disbursements: 0.00 Less 0 Void Checks: 1,136,013.69 Total of 166 Checks: MEMORANDUM 1795 St. Clair Avenue St. Paul, MN 55105 (651) 696-5186 www.oertelarchitects.com DATE: 5-24-2021 TO: Jake Theisen City of Prior Lake FROM: Deb Brandwick RE: Prior Lake City Hall Boiler Replacement Project Please note the following relative to the bids: 1. As you know, bids were received for the project on Thursday, May 20, 2021. A total of 5 bids were received for the project. The low base bid, submitted by NAC, was $154,000.00. The next high bid was only 3% higher, suggesting a straightforward and tight bidding situation for this size of project. 2. I spoke with Josh, with NAC the next morning. He has reviewed his bid and the anticipated schedule and indicated he is comfortable moving forward with both. 3. Our firm has worked with NAC in the past, as has the mechanical engineer from Paulson and Clark Engineering, and we have had a good experience with the company. 4. In short, I have no trouble recommending NAC to perform the work. 5. Please feel free to contact me with any questions. Sincerely, Deb Brandwick, Principal Page 1 of 2 Public Works Consultant Pool Work Order for Sewer Lining Project (CP 2021-14) SEH ENGINEERING This work order (“Work Order”) is issued on this 7th day of June, 2021 by the City of Prior Lake (“City”) pursuant to the Public Works Consultant Pool – Master Agreement dated April 6, 2020 (“Contract”) between the City and SEH Engineering (“Consultant”). Based on the mutual promises and covenants set forth herein, the sufficiency of which are hereby acknowledged, the City and Consultant agree as follows: 1.Scope of Work Order. Consultant agrees to provide, perform and complete all the services requested by the City in this Work Order and attached Exhibit 1 (“Work”), which Work shall be subject to the terms and conditions of this Work Order and the Contract. 2.Term of Work Order. All Work requested by this Work Order shall be completed by September 30, 2021. 3.Compensation for Work Order. City agrees to pay the Consultant an amount not to exceed $73,900 as full and complete payment for the Work requested by this Work Order. 4.Consultant Representative. Consultant has designated David Hutton to manage the Work Order subject to the supervision of Consultant’s representative. ISSUED BY CITY OF PRIOR LAKE ___________________________________ Mayor ___________________________________ City Manager RECEIVED AND ACCEPTED BY CONSULTANT _____________________________________ By:________________________________ Its:________________________________ Page 2 of 2 Exhibit 1 – Scope of Work Order Engineers | Architects | Planners | Scientists Short Elliott Hendrickson Inc., 10400 Yellow Circle Drive, Suite 500, Minnetonka, MN 55343-9229 952.912.2600 | 800.734.6757 | 888.908.8166 fax | sehinc.com SEH is 100% employee-owned | Affirmative Action–Equal Opportunity Employer April 30, 2021 RE: City of Prior Lake, MN Trunk Sanitary Sewer Pipe Condition Assessment SEH No. PRIOR 159012 10.03 Andy Brotzler, PE Public Works Director/City Engineer 4646 Dakota St. SE Prior Lake, MN 55372-1714 Dear Andy: Short Elliott Hendrickson Inc. (SEH®) appreciates the opportunity to submit this proposal for professional engineering services to assist the City of Prior Lake in completing the Trunk Sanitary Sewer Pipe Condition Assessment. This project’s background, scope of work, fee, and schedule are outlined below. BACKGROUND In addition to preserving the integrity of its sanitary infrastructure, inflow and infiltration (I/I) reduction is a priority to the City of Prior Lake (City). Reduction of I/I is necessary to relieve capacity restrictions and excess spending within the City’s wastewater conveyance system. With these goals in mind, the City desires to assess the condition of their vitrified clay pipe (VCP) trunk sanitary sewer and associated manholes that surround Spring Lake, Upper, and Lower Prior Lake. Selected pipe segments and manholes included in this proposal can be seen in the attached Figure 1 and include 92 sanitary manholes and 12,289 LF of VCP ranging in size from 8-inch to 10-inch in diameter. The intentions of this assessment are to ultimately develop a phased approach to necessary rehabilitation or replacement to the lakeside sanitary sewer system. Due to the proximity to the lakes, the location of these sanitary sewer segments provides unique challenges, including high groundwater and easement access. As such, a trenchless technology is an ideal method of rehabilitation, offering completely structural solutions, with minimal disturbance to surrounding areas. The most likely solution for any pipe deficiencies would be Ultraviolet (UV) Cured-in- Place-Pipe (CIPP) due to its small equipment footprint, ease of transportation to easement areas, and overall environmental benefits for the lakes and adjacent homeowners. SCOPE OF WORK Our scope of services has been developed to ensure timely completion of this project. The work components consist of collection of closed-circuit televising (CCTV) of selected trunk sanitary sewers, GIS analytical study to develop a condition ranking for each sanitary segment, and an optional task to complete 3-D manhole scanning and review. At this time, the City is not requesting SEH to provide engineering services related to the design, bidding, or construction oversight related to any potential rehabilitation that is recommended. A detail breakdown of activities included in the following tasks can be found in the attached Task Hour Budget. EXHIBIT 1 Andy Brotzler, PE April 30, 2021 Page 2 Three tasks have been identified as follows: 1) Task #1 Project Management – We have included routine project management tasks with Prior Lake and SEH team members along with phone calls or meetings as needed. We have assumed two formal meetings: 1) kickoff meeting to discuss City goals, and 2) final meeting to review findings and recommendations. 2) Task #2 Pipe Condition Assessment – This task includes the collection of CCTV data of the selected trunk sanitary sewers. The CCTV will be performed by a sub-consultant hired by SEH. This data will be assessed using GIS analytics to assign each pipe segment a condition rating based on operation/maintenance and structural defects. Based on the condition rankings, focused areas of rehabilitation will be recommended. The deliverables for this project will include a technical memorandum, with accompanying figures, that illustrate the findings of the CCTV. Based on goals of the City, recommendations of necessary rehabilitation, focused areas of rehabilitation, and estimated costs will be provided. All related CCTV and manhole files will be included as a separate submittal. 3) Optional Task #3 Manhole Inspection – This task includes the collection and review of data via 3- D manhole scanning. SEH crews will use the RapidView IBAK PANARAMO 3-D manhole scanner to produce scans of each manhole attached to a sanitary sewer pipe segment included in the study. The 3-D scans will be reviewed and given a condition rating. PROJECT TEAM The team will be led by our Project Manager Dave Hutton, Senior Project Engineer in our Civil/Trenchless division. Dave is a hands-on Project Manager and will be your primary contact during the project. Technical support and detailed pipe evaluation services will be provided by Anna Breland and manhole assessment by Spencer Cossalter, I/I expert. SCHEDULE We understand the City desires this work be completed in 2021 so the City can budget money in their CIP for 2022 to complete any necessary improvements. We are ready to begin work on the project immediately upon receiving a signed contract and notice to proceed. Our proposed schedule for this project is shown below: May 2021 – City Council Authorization of SEH proposal and issues notice to proceed June-July 2021 – CCTV of sewers and manhole scanning August 2021 – GIS analytics, manhole scan review, prepare memorandum September 2021 – Final memorandum and Meeting with City to discuss results If the City desires to design and bid the project for 2022 construction, we would be prepared to give you a design proposal upon completion of the report and City staff direction. COMPENSATION Compensation is proposed to be the hourly cost of personnel plus reimbursable expenses including equipment, reproductions and mileage. Additional services beyond the tasks and estimated hours as described can be negotiated or provided as extra work on an hourly basis. Andy Brotzler, PE April 30, 2021 Page 3 Compensation for Task #1 and Task #2, our estimated fee for this project is $56,900 with reimbursable expenses, including $48,000 for the subconsultant CCTV work. If the City chooses to include the Optional Task #3, Manhole Scanning, the cost to complete all 92 manholes would be an additional $17,000. The number of manholes scanned can be change as the project progresses. We look forward to completing this project with the City. Please contact me with questions or comments at 952.797.2329 or dhutton@sehinc.com. Sincerely, SHORT ELLIOTT HENDRICKSON INC. David E. Hutton, PE (Lic. MN, ND, WI) Project Manager x:\pt\p\prior\159012\1-genl\10-setup-cont\03-proposal\attachment 1 proposal letter.docx Prepared by: AQBReviewed by: DEHPM Grad Eng. GIS Analyst Admin Tech Expenses Total1.1441.22241.328101.42461.524612 16 2 N/A 30$2,699.14 $1,768.96 $221.89 $4,689.982.1286162.224242.3288182.44162 224832402 N/A 82$1,799.42 $3,537.92 $5,812.48 $221.89 $40,798.80 $52,170.513.1N/A$17,020.00 $17,020.00QA/QC reviewCity staff meetings - assumes 2 meetings. Project kickoff meeting and a meeting to review assessment resultsOptional Task #3 - Manhole Scanning Coordination with CCTV SubcontractorGIS Program AnalyticsSEH Project No. PRIOR 159012Conduct day-to-day Project Management of team, administration, coordination with client, monthly scheduling, invoicing and general correspondenceDate: 4/30/21Billing TitleEmployee NameTask #1 - Project ManagementProject Name: Trunk Sewer Pipe Condition AssessmentClient: City of Prior Lake, MinnesotaTask Hours SummaryTask Fee SummaryTask #2 - Pipe Condition AssessmentClosed circuit televising (CCTV) 2Prepare letter communication for residents addressing assessment and what to expect/seeCreate GIS maps, detailing focused rehabilitation areas based on GIS program analyticsPrepare Technical Memorandum, including GIS figures of the analytics results, cost estimate of Ultra-Violet vs. traditional CIPP curing methodsTask Hours SummaryTask Fee SummaryManhole scanning with IBAK PANARAMO camera, including condition asseement 1Task Hours SummaryTask Fee SummaryPage 1 of 2 PM Grad Eng. GIS Analyst Admin Tech ExpensesTotalBilling Title12162N/A30$2,699.14 $1,768.96$221.89$4,689.98832402 N/A 82$1,799.42 $3,537.92 $5,812.48 $221.89 $40,798.80$52,170.512048404N/A112$4,498.56 $5,306.88 $5,812.48 $443.78 $40,798.80$56,860.50N/A$17,020.00$17,020.002048404N/A112$4,518.56 $5,354.88 $5,852.48 $447.78 $57,818.80$73,880.50Task #1 - Project ManagementTask Hours SummaryProject Summary with Optional Task #3Project Hours SummaryTask Fee SummaryTask #2 - Pipe Condition AssessmentTask Fee SummaryProject Hours SummaryProject Fee SummaryTask Hours SummaryProject SummaryTask Hours SummaryTask Fee SummaryOptional Task #3 - Manhole Scanning Project Fee SummaryPage 2 of 2 Spring Lake Upper Prior Lake Lower Prior Lake Trunk Sanitary Sewer Pipe Condition Assessment Prior Lake, MN FIGURE 1 Proposal ExhibitMap by: abreland Projection: Scott County Source: City of Prior Lake, Scott County Print Date: 4/30/2021 Legend Lower Prior Lake 6,221' VCP Upper Prior Lake 5,247' VCP Spring Lake 821' VCP O 0 2,000 4,0001,000 Feet CITY OF PRIOR LAKE PHASE 1 (2021) FISH POINT ROAD (CSAH 44 TO TH 13) RECONSTRUCTION PROJECT FINAL ASSESSMENT ROLL Date: 6/7/2021 Rate WSB Project No.: 013977-000 Residential Single-Family Per Unit Assessment As Determined By Special Benefit Consultation, Patchin Messner Valuation Counselors, Dated July 31, 2020: $9,000.00 Assessment Rate Determined by Special Benefit Consultation, Patchin Messner Valuation Counselors, Dated July 31, 2020:* MAP ID PID FEE OWNER FEE OWNER ADDRESS CITY/STATE/ZIP PROPERTY ADDRESS USE DESCRIPTION UNITS UNIT ASSESSMENT RATE PROPOSED ASSESSMENT 3 250480220 FLANAGAN KELLY MARGARET PO BOX 633 PRIOR LAKE, MN 55372 15480 OMEGA TRL SE SF RES 1.5 $9,000.00 $13,500.00 4 252670120 FRANZEN BENJAMIN 15504 OMEGA TRL SE PRIOR LAKE, MN 55372 15504 OMEGA TRL SE SF RES 1 $9,000.00 $9,000.00 5 252670110 ARDO TRUST 47-144 MAPELE WAY KANEOHE, HI 96744 15534 OMEGA TRL SE SF RES 1 $9,000.00 $9,000.00 6 252670100 TYSON BOROM 15546 OMEGA TRL SE PRIOR LAKE, MN 55372 15546 OMEGA TRL SE SF RES 1 $9,000.00 $9,000.00 7 252670090 WIKSTROM CRISTAL 15654 OMEGA TR SE PRIOR LAKE, MN 55372 15654 OMEGA TRL SE SF RES 1 $9,000.00 $9,000.00 14 252670030 PHILLIPICH JOHN 15659 OMEGA TRL SE PRIOR LAKE, MN 55372 15659 OMEGA TRL SE SF RES 1.5 $9,000.00 $13,500.00 15 252670020 PROPERTY OWNER OR CURRENT RESIDENT 15547 OMEGA TRL SE PRIOR LAKE, MN 55372 15547 OMEGA TRL SE SF RES 1 $9,000.00 $9,000.00 16 252670010 ANDREA MARIE STEGER REVOCABLE TRUST 15535 OMEGA TR SE PRIOR LAKE, MN 55372 15535 OMEGA TRL SE SF RES 1 $9,000.00 $9,000.00 19 259360470 YEATES SEAN R 15525 OMEGA TRL SE PRIOR LAKE, MN 55372 15525 OMEGA TRL SE SF RES 1.5 $9,000.00 $13,500.00 20 250480240 RUNNING GREGORY L 15489 OMEGA TR SE PRIOR LAKE, MN 55372 15489 OMEGA TRL SE SF RES 1 $9,000.00 $9,000.00 21 252250040 DALY JEFFREY D & SUSAN K LOEHRS 5884 TIMBER TRL SE PRIOR LAKE, MN 55372 5884 TIMBER TRL SE SF RES 1 $9,000.00 $9,000.00 22 252250030 MARTINI SCOTT J & KIMBERLEE 5900 TIMBER TRL SE PRIOR LAKE, MN 55372 5900 TIMBER TRL SE SF RES 1 $9,000.00 $9,000.00 23 252250020 KEOUGH TIMOTHY H & JANE L 5918 TIMBER TRL SE PRIOR LAKE, MN 55372 5918 TIMBER TRL SE SF RES 1 $9,000.00 $9,000.00 24 252250010 MILLER BRIAN D & KATHLEEN M 5940 TIMBER TRL SE PRIOR LAKE, MN 55372 5940 TIMBER TRL SE SF RES 1 $9,000.00 $9,000.00 25 259360581 AL-MAHMOOD PROPERTY LLC 2015 WASHTENAW AVE ANN ARBOR, MI 48104 5995 TIMBER TRL SE CH/AUD/THE **$17,820.00 26 258010090 CHARLES S & PATRICIA D STEVENS REVOCABLE TRUST 5975 TIMBER TRL SE PRIOR LAKE, MN 55372 5975 TIMBER TRL SE SF RES 1 $9,000.00 $9,000.00 27 252250140 COLLINS DAVID J & ANNETTE M 5959 TIMBER TRL SE PRIOR LAKE, MN 55372 5959 TIMBER TRL SE SF RES 1 $9,000.00 $9,000.00 28 252250130 UFKEN RANDALL L & NANCY L 5945 TIMBER TRL SE PRIOR LAKE, MN 55372 5945 TIMBER TRL SE SF RES 1 $9,000.00 $9,000.00 29 252250120 JACOBSON PAUL J 5931 TIMBER TRL SE PRIOR LAKE, MN 55372 5931 TIMBER TRL SE SF RES 1 $9,000.00 $9,000.00 30 252250110 FUHRMAN CHARLES F & JUDITH A 5915 TIMBER TRL SE PRIOR LAKE, MN 55372 5915 TIMBER TRL SE SF RES 1 $9,000.00 $9,000.00 31 252250100 RODGERS PHILIP LEE JR 5895 TIMBER TRL SE PRIOR LAKE, MN 55372 5895 TIMBER TRL SE SF RES 1 $9,000.00 $9,000.00 32 252250090 HAGEN JEFF 5879 TIMBER TR SE PRIOR LAKE, MN 55372 5879 TIMBER TRL SE SF RES 1 $9,000.00 $9,000.00 33 252250080 HEDDEN CORY 5863 TIMBER TRL SE PRIOR LAKE, MN 55372 5863 TIMBER TRL SE SF RES 1 $9,000.00 $9,000.00 34 252250070 HOWLETT PETER A 5847 TIMBER TRL SE PRIOR LAKE, MN 55372 5847 TIMBER TRL SE SF RES 1 $9,000.00 $9,000.00 35 252250060 DUDZIK ROBERT W & ELLEN 5833 TIMBER TRL SE PRIOR LAKE, MN 55372 5833 TIMBER TRL SE SF RES 1 $9,000.00 $9,000.00 36 252250050 MANTHEY TIFFANY G 15210 HOWARD LAKE RD NW SHAKOPEE, MN 55379 5821 TIMBER TRL SE SF RES 1 $9,000.00 $9,000.00 40 251800040 NUNEZ LUIS FERNANDO VEGA 15487 FISH POINT RD SE PRIOR LAKE, MN 55372 15487 FISH POINT RD SE SF RES 1 $9,000.00 $9,000.00 41 251800050 SAGAN ALEKSANDR 5874 GLORY CIR SE PRIOR LAKE, MN 55372 5874 GLORY CIR SE SF RES 1 $9,000.00 $9,000.00 42 251800060 BADLEY DONNA H PO BOX 909 PRIOR LAKE, MN 55372 5890 GLORY CIR SE SF RES 1 $9,000.00 $9,000.00 43 251800070 SPERRAZZA KELLI G 5900 GLORY CIR SE PRIOR LAKE, MN 55372 5900 GLORY CIR SE SF RES 1 $9,000.00 $9,000.00 44 251800080 AUTENRIETH MICHAEL & CHRISTI 5910 GLORY CIR SE PRIOR LAKE, MN 55372 5910 GLORY CIR SE SF RES 1 $9,000.00 $9,000.00 45 251800090 MOSHER KORY J 5901 GLORY CIR SE PRIOR LAKE, MN 55372 5901 GLORY CIR SE SF RES 1 $9,000.00 $9,000.00 47 250760010 LANGSDORF TROY F 15521 FISH POINT RD SE PRIOR LAKE, MN 55372 15521 FISH POINT RD SE SF RES 1.5 $9,000.00 $13,500.00 50 250880010 STROH JODY T 5910 MILLERS CIR SE PRIOR LAKE, MN 55372 5910 MILLERS CIR SE SF RES 1 $9,000.00 $9,000.00 51 250880020 NORBERG JEFFREY & CARIS 5920 MILLERS CIR SE PRIOR LAKE, MN 55372 5920 MILLERS CIR SE SF RES 1 $9,000.00 $9,000.00 52 250880031 HEIMKES ANTHONY 5926 MILLERS CIR SE PRIOR LAKE, MN 55372 5926 MILLERS CIR SE SF RES 1 $9,000.00 $9,000.00 53 250880030 AAREBORN LLC 256 CANNES ST HENDERSON, NV 89015 5930 MILLERS CIR SE SF RES 1 $9,000.00 $9,000.00 54 250880040 PETRIE CHRISTOPHER P 5923 MILLERS CIR SE PRIOR LAKE, MN 55372 5923 MILLERS CIR SE SF RES 1 $9,000.00 $9,000.00 55 250880050 RASMUSSON JUSTIN 5913 MILLERS CIR SE PRIOR LAKE, MN 55372 5913 MILLERS CIR SE SF RES 1 $9,000.00 $9,000.00 56 250880060 HANSON MARK S 5903 MILLERS CIR SE PRIOR LAKE, MN 55372 5903 MILLERS CIR SE SF RES 1 $9,000.00 $9,000.00 57 250880070 JOHNSON LEANN R 5893 MILLERS CIR SE PRIOR LAKE, MN 55372 5893 MILLERS CIR SE SF RES 1 $9,000.00 $9,000.00 59 250730190 MAHANEY MICHAEL W 3290 TODD RD SW PRIOR LAKE, MN 55372 5885 HIDDEN OAKS CIR SE SF RES 1 $9,000.00 $9,000.00 60 250730210 WOYNILKO JAMES A JR 5903 TERRI CIR SE PRIOR LAKE, MN 55372 5903 TERRI CIR SE SF RES 1 $9,000.00 $9,000.00 61 250730200 KUCINSKI RICHARD M 5891 HIDDEN OAKS CIR SE PRIOR LAKE, MN 55372 5891 HIDDEN OAKS CIR SE SF RES 1 $9,000.00 $9,000.00 62 250730220 JACKSON AMANDA GAIL 5970 TIMBERVIEW ST SE PRIOR LAKE, MN 55372 5970 TIMBERVIEW ST SE SF RES 1 $9,000.00 $9,000.00 63 250730230 LAMONT THOMAS M & CATHERINE M 5990 TIMBERVIEW ST SE PRIOR LAKE, MN 55372 5990 TIMBERVIEW ST SE SF RES 1 $9,000.00 $9,000.00 64 250730010 ROIGER NICHOLAS 5991 TIMBERVIEW ST SE PRIOR LAKE, MN 55372 5991 TIMBERVIEW ST SE SF RES 1 $9,000.00 $9,000.00 65 250730020 MICHAEL KLEIN 5915 HIDDEN OAKS CIR SE PRIOR LAKE, MN 55372 5915 HIDDEN OAKS CIR SE SF RES 1 $9,000.00 $9,000.00 66 250730030 OLSON MICHAEL J & JUDY M 5925 HIDDEN OAKS CIR SE PRIOR LAKE, MN 55372 5925 HIDDEN OAKS CIR SE SF RES 1 $9,000.00 $9,000.00 67 250730040 HETLAND MATTHEW 5935 HIDDEN OAKS CIR SE PRIOR LAKE, MN 55372 5935 HIDDEN OAKS CIR SE SF RES 1 $9,000.00 $9,000.00 68 250730050 MIU NICOLAE 5945 HIDDEN OAKS CIR SE PRIOR LAKE, MN 55372 5945 HIDDEN OAKS CIR SE SF RES 1 $9,000.00 $9,000.00 69 250730060 LEMLEY RAYMOND A 5955 HIDDEN OAKS CIR SE PRIOR LAKE, MN 55372 5955 HIDDEN OAKS CIR SE SF RES 1 $9,000.00 $9,000.00 70 250730070 WILTZ JEFFREY G & BRIDGET W 5952 HIDDEN OAKS CIR SE PRIOR LAKE, MN 55372 5952 HIDDEN OAKS CIR SE SF RES 1 $9,000.00 $9,000.00 71 250730080 SEERY DANIEL C & LISA K 5942 HIDDEN OAKS CIR SE PRIOR LAKE, MN 55372 5942 HIDDEN OAKS CIR SE SF RES 1 $9,000.00 $9,000.00 72 250730090 SANDBERG SCOTT 5932 HIDDEN OAKS CIR SE PRIOR LAKE, MN 55372 5932 HIDDEN OAKS CIR SE SF RES 1 $9,000.00 $9,000.00 73 250730100 DANKERS KRISTOPHER 5922 HIDDEN OAKS CIR SE PRIOR LAKE, MN 55372 5922 HIDDEN OAKS CIR SE SF RES 1 $9,000.00 $9,000.00 74 250730110 MERRILL WILLIAM R & KATHLEEN D 5912 HIDDEN OAKS CIR SE PRIOR LAKE, MN 55372 5912 HIDDEN OAKS CIR SE SF RES 1 $9,000.00 $9,000.00 75 250730120 MACHAL JOSEPH 5890 HIDDEN OAKS CIR SE PRIOR LAKE, MN 55372 5890 HIDDEN OAKS CIR SE SF RES 1 $9,000.00 $9,000.00 76 250730130 GERHARDT VANDERBEEK 5880 HIDDEN OAKS CIR SE PRIOR LAKE, MN 55372 5880 HIDDEN OAKS CIR SE SF RES 1 $9,000.00 $9,000.00 GRAND TOTAL - PRELIMINARY PROJECT STREET ASSESSMENT:$557,820.00 CITY OF PRIOR LAKE PHASE 1 (2021) FISH POINT ROAD (CSAH 44 TO TH 13) RECONSTRUCTION PROJECT FINAL ASSESSMENT ROLL Date: 6/7/2021 Rate WSB Project No.: 013977-000 Residential Single-Family Per Unit Assessment As Determined By Special Benefit Consultation, Patchin Messner Valuation Counselors, Dated July 31, 2020: $9,000.00 Assessment Rate Determined by Special Benefit Consultation, Patchin Messner Valuation Counselors, Dated July 31, 2020:* MAP ID PID FEE OWNER FEE OWNER ADDRESS CITY/STATE/ZIP PROPERTY ADDRESS USE DESCRIPTION UNITS UNIT ASSESSMENT RATE PROPOSED ASSESSMENT Page 1 of 2 Public Works Consultant Pool Work Order Towering Woods Construction Administration BOLTON & MENK This work order (“Work Order”) is issued on this 7th day of June, 2021 by the City of Prior Lake (“City”) pursuant to the Public Works Consultant Pool – Master Agreement dated April 20, 2020 (“Contract”) between the City and Bolton & Menk (“Consultant”). Based on the mutual promises and covenants set forth herein, the sufficiency of which are hereby acknowledged, the City and Consultant agree as follows: 1.Scope of Work Order. Consultant agrees to provide, perform and complete all the services requested by the City in this Work Order and attached Exhibit 1 (“Work”), which Work shall be subject to the terms and conditions of this Work Order and the Contract. 2.Term of Work Order. All Work requested by this Work Order shall be completed by December 31, 2022. 3.Compensation for Work Order. City agrees to pay the Consultant an amount not to exceed $70,300 as full and complete payment for the Work requested by this Work Order. 4.Consultant Representative. Consultant has designated Brian Hilgardner, PE, to manage the Work Order subject to the supervision of Consultant’s representative. ISSUED BY CITY OF PRIOR LAKE ___________________________________ City Manager ___________________________________ Mayor RECEIVED AND ACCEPTED BY CONSULTANT ___________________________________ By:________________________________ Its:________________________________ Page 2 of 2 Exhibit 1 – Scope of Work Order N:\Proposals\Prior Lake\Towering Woods\Amendment 1\Towering Woods Amendment_20210525.docx April 13, 2021 Mr. Nick Monserud, PE Assistant City Engineer 4646 Dakota Street SE Prior Lake, MN 55372 RE: Engineering for Towering Woods – 170th Street Improvement Project Additional Project Scope Dear Mr. Monserud: DESIGN PHASE As you are aware, the 170th Street Improvement Project has had several additions to the project scope which have resulted in additional design phase fees being accrued. We have been tracking these fees and updating the City so the project team can continue to evaluate overall project costs. Below is a list of several of the changes to the project since the original contract was submitted: •Extension of sidewalk along 170th Street from Ponds Parkway to the Ponds Athletic Complex •Street width change on 170th Street from 32-feet F-F to 28-feet F-F •Retaining wall structural design due to wall heights exceeding 4-feet on 170th Street between Toronto Avenue and Ponds Parkway •Addition of street lighting •Review of developer provided survey control to adjust to a compatible coordinate system •Storm sewer alterations from the preliminary plans provided by Barr The extension of the sidewalk on 170th Street required additional topographic survey to capture this area for design. The design of this sidewalk was also additional work requiring running a corridor in Civil 3D to model the new sidewalk grades to match into the existing features and grades. The street width on 170th Street was changed from 32-feet face-to-face, as shown on the preliminary plans provided by Barr, to 28-feet face-to-face. This required the redesign of the entire 170th Street corridor including the reevaluation of how the sidewalk fits into the corridor, additional profiles and cross sections, and additional intersection and pedestrian ramp designs. After redesigning this corridor, it was determined that retaining walls would still be required adjacent to the sidewalk to accommodate grades. Each of these retaining walls exceeded 4-feet in height which requires an engineered wall design and added additional scope to the project. Street lighting was EXHIBIT 1 N:\Proposals\Prior Lake\Towering Woods\Amendment 1\Towering Woods Amendment_20210525.docx also added to the project corridor which will require additional coordination time with the electric company to implement the lights into the project construction. While completing additional topographic survey, it was determined that the survey control provided by Barr did not match the Scott County Coordinates system and had been manually adjusted to fit the development. Our survey crews spent significant additional time in the field and in the office analyzing these shots to verify the issue and determine the extent. After direction from the City, further time was spent to manually adjust our survey control work to “best fit” the provided survey control. The storm sewer alterations from the preliminary plans provided by Barr along Toronto Avenue were required due to the design connecting a 15” diameter storm pipe into a 12” diameter storm pipe. This storm revision and intersection curb revisions also required the redesign of the Toronto Avenue sheets, as directed by the City. Additionally, the site design needed to be revised to reflect a pond skimmer structure for the pond outlet rather than the planned storm apron. All of these project additions have resulted in an increase to the project topographic survey and design fees. We are requesting an amendment for $19,100. Please see the attached spreadsheet with our breakdown of estimated hours that have been accrued to accommodate the described scope changes. This brings the total design fee for the project, including the original contract amount, to $52,000. TOTAL DESIGN FEE $19,100 CONSTRUCTION STAKING This task will involve the completion of all necessary construction staking by a Bolton & Menk survey crew as required during the project construction. Features to be staked include construction limits for removals, storm sewer, curb & gutter, sidewalk extensions, pedestrian ramp zero height locations, and retaining walls. CONSTRUCTION STAKING FEE $11,800 CONSTRUCTION SERVICES This task will include construction administration and construction observation services for the project. Specific responsibilities will include attendance at weekly meetings, project progress review, conformance with contract documents, field measurements, record keeping, and miscellaneous engineering tasks associated with the construction of the project. According to our discussions, the City of Prior Lake desires a part-time construction inspector. It is estimated that the inspector would be utilized for 30 hours per week over the course of 8 weeks and a project manager would be utilized for 4 hours per week for 8 weeks to conduct construction administration. This assumption may need to be altered depending on the contractor’s actual construction work schedule and progress. We will monitor the budget based on these totals and notify the City if we feel an adjustment is necessary. CONSTRUCTION SERVICES FEE $31,400 N:\Proposals\Prior Lake\Towering Woods\Amendment 1\Towering Woods Amendment_20210525.docx MATERIALS TESTING Bolton & Menk will contract with a geotechnical sub-consultant to provide materials testing for the project. Testing will include materials verification for conformance with the specifications, densities to verify trench compaction, and concrete testing. A contract has not yet been received so we have estimated the fee for materials testing services based on previous projects and the testing requirements for the project. ESTIMATED MATERIALS TESTING FEE $8,000 TOTAL PROJECT AMENDMENT FEE = $70,300 The total fee to compete all of the described tasks above is $70,300. Please see the attached spreadsheet with our breakdown of estimated hours for each task. We can’t thank you enough for assisting us in working through these project changes and your continued consideration of our services to the City of Prior Lake. If you have any questions regarding our amendment, please do not hesitate to call us. Sincerely, Bolton & Menk, Inc. Brian Hilgardner, PE Principal Nick Monserud, PE Assistant City Engineer, City of Prior Lake Client: City of Prior Lake Project: 170th Street Improvement Project - Amendment 1 Task No.Work Task Description Principal-in-ChargeProject Manager/ Construction AdministrationSenior Engineering Technician/Construction AdministrationStructural EngineerProject SurveyorSurvey CrewTotals 1.0 Design 1.1 Topographic Survey 6 20 26 1.2 Final Design Plans and Specifications 6 10 100 4 120 1.3 Contract Documents 2 2 4 Subtotal Hours - Task 1 6 12 100 6 6 20 150 2.0 Construction Staking 2.1 Field Staking 13 60 73 Subtotal Hours - Task 2 0 0 0 0 13 60 73 3.0 Construction Services 3.1 Construction Administration 32 32 3.2 Construction Observation 240 240 Subtotal Hours - Task 3 0 32 240 0 0 0 272 4.0 Materials Testing 4.1 Construction Materials Testing Services 0 Subtotal Hours - Task 4 0 0 0 0 0 0 0 Estimated Hours Bolton & Menk, Inc. See Cost Summary 170th Street Improvement Project City of Prior Lake, Minnesota Page 1 Client: City of Prior LakeProject: 170th Street Improvement Project - Amendment 1Task No.Work Task DescriptionPrincipal-in-ChargeProject Manager/ Construction AdministrationSenior Engineering Technician/Construction AdministrationStructural EngineerProject SurveyorSurvey CrewTotal HoursTotal Cost1.0 Design 6 12 100 6 6 20 150 $19,1282.0 Construction Staking 0 0 0 0 13 60 73 $11,8363.0 Construction Services 0 32 240 0 0 0 272 $31,4244.0 Materials Testing$8,000Total Hours6 44 340 6 19 80 495Average Hourly Rate$184.00 $142.00 $112.00 $148.00 $172.00 $160.00Subtotal$1,104 $6,248 $38,080 $888 $3,268 $12,800Design Services (Task 1)$19,128$43,260$8,000Detailed Cost EstimateBolton & Menk, Inc.Geotechnical Subconsultant - Estimate$70,388Geotechnical Services (Task 4)*Includes an estimate for Construction Materials TestingTotal FeeSubtotalsConstruction Services (Tasks 2-3)*Includes 30 hours per week of construction observation for 8 weeks*Includes 4 hours per week of construction administration for 8 weeks170th Street ImprovementCity of Prior Lake, MinnesotaPage 1 550 Cleveland Avenue North St. Paul, MN 55114 Phone 651-659-9001 Toll Free 800-972-6364 Fax 651-659-1379 www.amengtest.com AA/EEO This document shall not be reproduced, except in full, without written approval from American Engineering Testing, Inc. CONSULTANTS ENVIRONMENTAL GEOTECHNICAL MATERIALS FORENSICS April 21, 2021 Bolton & Menk, Inc. 12224 Nicollet Avenue Bursville, MN 55337-1649 Attn: Mr. Brad Fisher, P.E. (Bradley.Fisher@bolton-menk.com) RE: Quality Assurance Testing Proposal 170th Street Improvement Project Client Project No. 0T1.123877 Prior Lake, Minnesota AET Proposal No. QUO00300510 Dear Mr. Fisher: Thank you for the opportunity to provide a proposal to perform testing services on the referenced project. This proposal has been prepared in response to your recent request by email on April 14, 2021, and describes our understanding of the project, our anticipated scope of services, our unit rates, and an estimated total fee to perform these services. PROJECT INFORMATION The city of Prior lake (City) will be performing a street improvement project during the 2021 construction season. The project will include 170th Street from Toronto Avenue to Pond Parkway and Toronto Avenue from Tower Street to 170th Street. The project will be funded with local funds. Plans by Bolton & Menk, Inc. (BMI) were available to us for review at the time this proposal was authored. The proposed design is not finalized, but major changes are not expected by BMI. Specifications were not available at this time. We have used the 2019 State Aid for Local Transportation Schedule of Materials Control (2019 SALT SMC) to determine the number of tests required, for estimation purposes. This proposal and fee estimate may need to be revised after final construction documents are completed. We understand Construction Inspection and Contract Management of the project will be performed by BMI. The project is anticipated to include grading, aggregate base, curb and gutter, bituminous pavement, concrete walk, pedestrian ramps, and concrete driveway. GEOTECHNICAL INFORMATION To our knowledge, a preliminary geotechnical exploration program has not been conducted for this project. Because of this, we cannot comment on the soil conditions at depth. Our judgments will be based only on those soils which we observe in the excavations and those present to the Bolton & Menk, Inc. – 170th Street Improvement Project; Prior Lake, Minnesota AET Proposal No. QUO00300510 April 21, 2021 Page 2 of 5 depths explored at our shallow hand auger boring and hand cone penetrometer probe locations. To further explore the soil conditions below these depths, deeper penetration test borings are needed. PROJECT APPROACH During the construction improvements, AET will provide Engineering Technicians to perform sampling and material testing services in accordance with the 2019 SALT SMC. For this project, Justin Staker will be AET’s contact. He can be reached at (651) 523-1265 (office). SCOPE OF SERVICES Based on our review of the available plans, our anticipated scope of services is outlined below. These services will be provided on an on-call basis coordinated through authorized BMI field personnel. Soils Sampling and Testing The MnDOT Dynamic Cone Penetrometer will be used to verify compaction on the granular sections, including the Select Granular Borrow and the Class 5 Aggregate Base sections of the project following the MnDOT Penetration Index procedures in accordance with the 2019 SALT SMC. AET will perform the sampling of the Select Granular Borrow and the Class 5 Aggregate Base and transport the samples to our St. Paul, Minnesota laboratory. BMI personnel will update AET on the schedule of material placement, material sources (including changes in source), and changes in quantities. Bituminous Pavement Sampling and Testing As bituminous paving is being completed, AET personnel will pick-up companion samples provided by the contractor, during each day of paving, and transport the samples to our St. Paul, Minnesota laboratory. Samples will be tested in our laboratory for MnDOT Gyratory Mix Properties as follows: •Gyratory Density (AASHTO T 312) MnDOT Modified •Rice Specific Gravity (ASTM D2041) •Asphalt Extraction and Aggregate Gradation (ASTM D2172 Method E-11) MnDOT Modified C137 and C117 •Fine Aggregate Angularity (AASHTO T 304, Method A, MnDOT 1206.5) •Percent Crushed Particles (MnDOT 1214.8) AET assumes that BMI will utilize the MnDOT program to determine random core locations of bituminous based on information regarding tonnage (lot sizes) and pavement placement patterns. We also assume BMI personnel will mark the core locations in the field. This proposal does not incorporate the time and cost to mark the core locations or to determine random core locations. These services will be provided at your request. BMI will coordinate the removal of both the contractor and companion cores with the contractor. Bolton & Menk, Inc. – 170th Street Improvement Project; Prior Lake, Minnesota AET Proposal No. QUO00300510 April 21, 2021 Page 3 of 5 After the completion of the coring, AET will retrieve companion core samples from the project contractor for laboratory testing. This testing will include the following: • The thickness of each layer of the core sample • The density of each layer of the core sample Concrete Sampling and Testing During the placement of concrete, AET will perform field testing consisting of slump, air content, temperature of the plastic concrete, and casting of cylinders for compression testing. The 2019 SALT SMC requires field testing for slump, air content, and temperature per every 100 cubic yards of each type of concrete placed each day. Compressive strength cylinders (1 set of 3 cylinders) are required once per every 300 cubic yards of each type of concrete placed each day; the cylinders will be retrieved the following day for curing and testing in our laboratory. The 3 cylinders are to be tested at 28-days. We are proposing to cast sets of 5 cylinders, with compressive strength testing as follows: 1 at 7 days, 3 at 28 days, and the 5th cylinder will be held in reserve for future testing if the 28-day strength requirement is not met. We have assumed BMI personnel will be compiling the concrete batch tickets, certificates of compliance, and AET’s field test results of the plastic concrete, which we will provide each day we are on-site performing testing services. REPORTING AET staff will prepare reports for BMI to review. These reports will include the results of our field and laboratory testing as performed per the 2019 SALT SMC. Daily field reports will also be prepared and made available upon request. ESTIMATED FEES Our services will be provided on a unit cost basis according to the unit rates provided in the attached Materials Testing Estimate. Our invoices will be determined by multiplying the number of personnel hours or tests by their respective unit rates. The rates are from the annual fee schedule for 2021 projects. We have estimated a “minimum required estimate” for the project which estimates the tests needed to satisfy the requirements as defined in the 2019 SALT SMC. The “likely needed estimate” is the cost that we anticipate will be required to complete the previously described testing services, based on our experience and assumed scheduling of the project. Therefore, we propose a budget cost estimate using the “likely needed” estimate for the scope of services for the project as outlined in this proposal. Our “likely needed” estimated fee is $7,835.50. We refer you to the attached Materials Testing Estimate as reference to how we arrived at this estimated cost. We caution that this is only an estimated cost. Often, variations in the overall cost of the services occur due to reasons beyond our control, such as weather delays, changes in the contractor’s schedule, unforeseen conditions, or retesting. These variations will affect the actual invoice totals, Bolton & Menk, Inc. – 170th Street Improvement Project; Prior Lake, Minnesota AET Proposal No. QUO00300510 April 21, 2021 Page 4 of 5 either increasing or decreasing our total costs for the project from those estimated in this proposal. If more time or tests are required, additional fees may be needed to complete the project testing services. If less time or tests are needed, a cost savings will be realized. We will not, however, exceed the estimated total cost for the project without first obtaining your authorization. TERMS AND CONDITIONS Our services will be performed per the Subconsultant Master Agreement for Professional Services (Task Orders) between Bolton & Menk, Inc. and American Engineering Testing, Inc., effective January 1, 2021 through December 31, 2023. ACCEPTANCE AET requests written acceptance of this proposal in the Proposal Acceptance box below, but the following actions shall constitute your acceptance of this proposal together with the Terms and Conditions: 1) issuing an authorizing purchase order for any of the Services described in this proposal, 2) authorizing AET’s presence on site, or 3) written or electronic notification for AET to proceed with any of the Services described in this proposal. Please indicate your acceptance of this proposal by signing below and returning a copy to us. When you accept this proposal, you represent that you are authorized to accept on behalf of the Client. Bolton & Menk, Inc. – 170th Street Improvement Project; Prior Lake, Minnesota AET Proposal No. QUO00300510 April 21, 2021 Page 5 of 5 GENERAL REMARKS AET appreciates the opportunity to provide this service for you and looks forward to working with you on this project. If you have any questions or need addition information, please contact me. Sincerely, American Engineering Testing, Inc. Prepared By: Reviewed By: Justin L. Staker, P.E. Zachary J. Anunson, P.E. Engineer II Senior Engineer Phone: (651) 523-1265 Phone: (651) 659-1368 Email: jstaker@amengtest.com Email: zanunson@amengtest.com Attachments: Materials Testing Estimate AET PROPOSAL No. QUO00300510 ACCEPTANCE AND AUTHORIZATION Signature: _______________________________________ Date: ______________________ Printed Name: _________________________________________________________________ Title: ________________________________________________________________________ Representing: _________________________________________________________________ Page 1 of 1 Minimum Likely Minimum Likely 1 1 110.00 110.00 110.00 2 5 50.00 100.00 250.00 110.00 0.00 0.00 Percent Crushed (1/source, if required)110.00 0.00 0.00 2 2 110.00 220.00 220.00 Penetration Index DCP (1/1000 TON), not test rolled 2 5 50.00 100.00 250.00 2 2 515.00 1030.00 1030.00 2 4 46.00 92.00 184.00 Boulevard Topsoil Borrow CY 605 300.00 0.00 0.00 10 35 30.00 300.00 1050.00 2 5 80.00 160.00 400.00 13 33 Subtotal =2,112.00 3,494.00 Notes: 1. Per the 2019 SALT SMC, less than 500 tons (250 CY) may be accepted by the Engineer without testing. 2. Material quantities are estimated based upon Statement of Estimated Quantities, conversions, and plans. 3. Number of "Likely" bituminous samples, cores, and trips assumes 2 days of paving (~500 tons of bituminous per day). Assumes testing of all companion cores and no longitudinal density cores. 4. We have not included time for marking or determining bituminous core locations. Unit Rate ($)Minimum Quantity Likely Quantity Minimum Cost Mile 0.75 650 650 487.50 Hour 93.00 33 33 3,069.00 Project Management, Level II Engineer Hour 157.00 4 5 628.00 Subtotal =4,184.50 Minimum Likely Estimate prepared by: Justin Staker 6,296.50 7,835.50 Materials Testing Estimate for 170th Street Improvement Project ‒ 2019 SALT SMC Likely Cost Agency Testing & Frequency Plastic Concrete Testing (1 set of tests/100 CY) - Included in hourly rate see below Topsoil Borrow Testing (Engineer's discretion) Client Project No. 0T1.123877; Prior Lake, Minnesota Cost ($)Cost per Test ($) MnDOT Gyratory Mix Properties (1/day/mix type) Concrete sample pick up from job site # of Tests Aggregate Base Class 5 (100% Crushed Limestone)TON 4,341.50 QuantityUnits Time and Mileage Material HoursTrips Select Granular Borrow CY 2,813 2 4 1,425 2 4 Stabilizing Aggregate (note 1)CY 241 Total Cost Estimate = Concrete Compressive Strength, Curing, & Handling 4x8 Cylinders (includes mold) (5 cyls/300 CY) 2 4 Concrete - Walk, Pedestrian Ramps, Curb & Gutter, Driveway (note 2) CY 296 7 21 Companion Core Density & Thickness 785.00 Mileage, Personal Automobile/Truck 487.50 Level II Engineering Technician 3,069.00 Gradation (1/40000 CY) Gradation (2 per lot, 1 lot ≤ 4000 TON) Gradation (1/40000 CY) Penetration Index DCP (1/2000 CY) Bituminous - SP WE/NW TON 912 ABSTRACT OF BIDS 170TH STREET IMPROVEMENT PROJECT CITY OF PRIOR LAKE, MINNESOTA Date:1 2 3 4 5 ITEM APPROX. NO.ITEM QUANT.UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT 1 MOBILIZATION 1 LUMP SUM $100,000.00 $100,000.00 $56,952.00 $56,952.00 $27,100.00 $27,100.00 $27,900.00 $27,900.00 $80,000.00 $80,000.00 $69,000.00 $69,000.00 2 CLEARING 62 TREE $400.00 $24,800.00 $210.00 $13,020.00 $232.00 $14,384.00 $210.00 $13,020.00 $240.49 $14,910.38 $258.00 $15,996.00 3 GRUBBING 66 TREE $300.00 $19,800.00 $84.00 $5,544.00 $84.40 $5,570.40 $85.00 $5,610.00 $80.16 $5,290.56 $86.00 $5,676.00 4 REMOVE SIGN 11 EACH $125.00 $1,375.00 $42.00 $462.00 $42.20 $464.20 $115.00 $1,265.00 $42.75 $470.25 $46.00 $506.00 5 SALVAGE BOLLARD 1 EACH $100.00 $100.00 $100.00 $100.00 $84.00 $84.00 $225.00 $225.00 $159.00 $159.00 $136.00 $136.00 6 SALVAGE SIGN 1 EACH $150.00 $150.00 $42.00 $42.00 $42.20 $42.20 $42.35 $42.35 $42.75 $42.75 $46.00 $46.00 7 SALVAGE SIGN TYPE SPECIAL 1 EACH $150.00 $150.00 $53.00 $53.00 $52.75 $52.75 $53.00 $53.00 $53.44 $53.44 $57.00 $57.00 8 SAWING CONCRETE PAVEMENT (FULL DEPTH)35 LIN FT $15.00 $525.00 $6.00 $210.00 $5.50 $192.50 $5.05 $176.75 $8.76 $306.60 $7.00 $245.00 9 SAWING BITUMINOUS PAVEMENT (FULL DEPTH)320 LIN FT $8.00 $2,560.00 $4.00 $1,280.00 $2.00 $640.00 $2.25 $720.00 $3.24 $1,036.80 $2.60 $832.00 10 REMOVE CURB & GUTTER 710 LIN FT $6.00 $4,260.00 $3.50 $2,485.00 $4.50 $3,195.00 $3.55 $2,520.50 $3.30 $2,343.00 $2.10 $1,491.00 11 REMOVE WOOD FENCE 30 LIN FT $10.00 $300.00 $10.00 $300.00 $8.00 $240.00 $8.75 $262.50 $11.31 $339.30 $11.60 $348.00 12 REMOVE CONCRETE DRIVEWAY PAVEMENT 43 SQ YD $10.00 $430.00 $7.00 $301.00 $13.95 $599.85 $4.00 $172.00 $18.37 $789.91 $6.50 $279.50 13 REMOVE CONCRETE PAVEMENT (VALLEY GUTTER)16 SQ YD $30.00 $480.00 $7.00 $112.00 $18.75 $300.00 $17.20 $275.20 $38.20 $611.20 $14.50 $232.00 14 REMOVE BITUMINOUS PAVEMENT 3270 SQ YD $5.00 $16,350.00 $2.80 $9,156.00 $3.30 $10,791.00 $2.30 $7,521.00 $4.14 $13,537.80 $2.50 $8,175.00 15 REMOVE RETAINING WALL 300 SQ FT $7.50 $2,250.00 $5.00 $1,500.00 $3.35 $1,005.00 $5.45 $1,635.00 $6.24 $1,872.00 $12.00 $3,600.00 16 REMOVE BITUMINOUS WALK 780 SQ FT $2.50 $1,950.00 $0.75 $585.00 $0.40 $312.00 $2.05 $1,599.00 $1.34 $1,045.20 $0.60 $468.00 17 REMOVE CONCRETE WALK 150 SQ FT $3.00 $450.00 $0.75 $112.50 $2.00 $300.00 $6.75 $1,012.50 $4.24 $636.00 $3.70 $555.00 18 REMOVE BITUMINOUS DRIVEWAY PAVEMENT 150 SQ FT $4.00 $600.00 $0.75 $112.50 $1.50 $225.00 $2.35 $352.50 $2.94 $441.00 $3.70 $555.00 19 GEOTEXTILE FABRIC TYPE V 4142 SQ YD $2.50 $10,355.00 $1.20 $4,970.40 $1.25 $5,177.50 $1.20 $4,970.40 $2.00 $8,284.00 $1.25 $5,177.50 20 COMMON EXCAVATION (P)5751 CU YD $14.00 $80,514.00 $15.90 $91,440.90 $25.80 $148,375.80 $16.50 $94,891.50 $18.29 $105,185.79 $20.00 $115,020.00 21 SUBGRADE EXCAVATION (EV)241 CU YD $20.00 $4,820.00 $15.90 $3,831.90 $18.60 $4,482.60 $16.50 $3,976.50 $19.46 $4,689.86 $15.50 $3,735.50 22 SELECT GRANULAR BORROW (CV) (P)2814 CU YD $15.00 $42,210.00 $18.20 $51,214.80 $22.80 $64,159.20 $17.65 $49,667.10 $10.16 $28,590.24 $18.60 $52,340.40 23 STABILIZING AGGREGATE 241 CU YD $29.00 $6,989.00 $32.80 $7,904.80 $24.25 $5,844.25 $39.00 $9,399.00 $43.37 $10,452.17 $29.00 $6,989.00 24 STREET SWEEPER (WITH PICKUP BROOM)35 HOUR $160.00 $5,600.00 $150.00 $5,250.00 $132.00 $4,620.00 $140.00 $4,900.00 $135.35 $4,737.25 $145.00 $5,075.00 25 AGGREGATE BASE CLASS 5 (100% CRUSHED LIMESTONE)1427 TON $18.00 $25,686.00 $18.20 $25,971.40 $19.85 $28,325.95 $23.45 $33,463.15 $19.39 $27,669.53 $22.00 $31,394.00 26 BITUMINOUS MATERIAL FOR TACK COAT 211 GAL $5.00 $1,055.00 $3.00 $633.00 $4.00 $844.00 $3.15 $664.65 $3.21 $677.31 $3.40 $717.40 27 TYPE SP 12.5 WEARING COURSE MIXTURE (2,B) (3.0" THICK)71 SQ YD $55.00 $3,905.00 $48.75 $3,461.25 $31.65 $2,247.15 $49.50 $3,514.50 $42.75 $3,035.25 $45.00 $3,195.00 28 TYPE SP 9.5 WEARING COURSE MIXTURE (3,C)344 TON $73.00 $25,112.00 $79.21 $27,248.24 $84.85 $29,188.40 $74.00 $25,456.00 $74.82 $25,738.08 $79.00 $27,176.00 29 TYPE SP 12.5 WEARING COURSE MIXTURE (3,C)570 TON $71.00 $40,470.00 $71.05 $40,498.50 $78.10 $44,517.00 $74.00 $42,180.00 $74.82 $42,647.40 $79.00 $45,030.00 30 ORNAMENTAL METAL RAILING TYPE SPECIAL 322 LIN FT $40.00 $12,880.00 $191.00 $61,502.00 $192.00 $61,824.00 $192.00 $61,824.00 $194.53 $62,638.66 $208.00 $66,976.00 31 MODULAR BLOCK RETAINING WALL 1830 SQ FT $55.00 $100,650.00 $63.25 $115,747.50 $30.35 $55,540.50 $67.50 $123,525.00 $61.35 $112,270.50 $70.00 $128,100.00 32 ADJUST VALVE BOX 1 EACH $500.00 $500.00 $650.00 $650.00 $590.00 $590.00 $325.00 $325.00 $340.75 $340.75 $1,176.00 $1,176.00 33 4" CONCRETE WALK 8667 SQ FT $5.00 $43,335.00 $4.70 $40,734.90 $6.30 $54,602.10 $5.10 $44,201.70 $4.75 $41,168.25 $4.40 $38,134.80 34 6" CONCRETE WALK 695 SQ FT $10.00 $6,950.00 $14.15 $9,834.25 $18.80 $13,066.00 $15.35 $10,668.25 $19.03 $13,225.85 $14.50 $10,077.50 35 CONCRETE CURB AND GUTTER DESIGN B618 2409 LIN FT $16.00 $38,544.00 $13.85 $33,364.65 $17.25 $41,555.25 $16.10 $38,784.90 $15.98 $38,495.82 $15.00 $36,135.00 36 7" CONCRETE DRIVEWAY PAVEMENT 186 SQ YD $58.00 $10,788.00 $71.00 $13,206.00 $72.55 $13,494.30 $81.20 $15,103.20 $73.53 $13,676.58 $71.00 $13,206.00 37 TRUNCATED DOMES 188 SQ FT $55.00 $10,340.00 $48.00 $9,024.00 $39.90 $7,501.20 $47.65 $8,958.20 $40.40 $7,595.20 $50.75 $9,541.00 38 INSTALL BOLLARD 1 EACH $200.00 $200.00 $300.00 $300.00 $211.00 $211.00 $1,585.00 $1,585.00 $1,282.62 $1,282.62 $1,354.00 $1,354.00 39 TRAFFIC CONTROL 1 LUMP SUM $15,000.00 $15,000.00 $1,260.00 $1,260.00 $1,266.00 $1,266.00 $1,270.00 $1,270.00 $1,282.62 $1,282.62 $1,375.00 $1,375.00 40 INSTALL MARKER 1 EACH $200.00 $200.00 $110.00 $110.00 $211.00 $211.00 $210.00 $210.00 $213.77 $213.77 $229.00 $229.00 41 INSTALL SIGN 1 EACH $150.00 $150.00 $210.00 $210.00 $211.00 $211.00 $210.00 $210.00 $213.77 $213.77 $229.00 $229.00 SCHEDULE "A" - STREETS GMH ASPHALT MAX STEININGER VEIT & COMPANY May 27, 2021 at 11:00 a.m. ENGINEERS ESTIMATE HESELTON CONSTRUCTIONNORTHWEST CITY PROJECT NO. 2020-35 BMI PROJECT NO. 0T.1123877 ITEM APPROX. NO.ITEM QUANT.UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT GMH ASPHALT MAX STEININGER VEIT & COMPANYENGINEERS ESTIMATE HESELTON CONSTRUCTIONNORTHWEST 42 SIGN PANELS TYPE C 44 SQ FT $45.00 $1,980.00 $50.00 $2,200.00 $48.50 $2,134.00 $48.50 $2,134.00 $49.17 $2,163.48 $53.00 $2,332.00 43 SIGN PANEL TYPE SPECIAL 4 EACH $150.00 $600.00 $290.00 $1,160.00 $290.00 $1,160.00 $290.00 $1,160.00 $293.93 $1,175.72 $315.00 $1,260.00 44 PRUNE TREES 18 HOUR $200.00 $3,600.00 $150.00 $2,700.00 $148.00 $2,664.00 $145.00 $2,610.00 $480.98 $8,657.64 $515.00 $9,270.00 45 STABILIZED CONSTRUCTION EXIT 1 LUMP SUM $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,730.00 $1,730.00 $2,000.00 $2,000.00 $1,807.13 $1,807.13 $1,647.00 $1,647.00 46 STORM DRAIN INLET PROTECTION 12 EACH $225.00 $2,700.00 $100.00 $1,200.00 $105.50 $1,266.00 $165.00 $1,980.00 $236.43 $2,837.16 $200.00 $2,400.00 47 SILT FENCE, TYPE MACHINE SLICED 600 LIN FT $4.50 $2,700.00 $2.10 $1,260.00 $2.00 $1,200.00 $1.85 $1,110.00 $2.14 $1,284.00 $2.20 $1,320.00 48 SEDIMENT CONTROL LOG, TYPE WOOD FIBER 450 LIN FT $4.00 $1,800.00 $3.15 $1,417.50 $2.90 $1,305.00 $3.95 $1,777.50 $3.21 $1,444.50 $3.20 $1,440.00 49 BOULEVARD TOPSOIL BORROW (LV)606 CU YD $20.00 $12,120.00 $34.00 $20,604.00 $0.01 $6.06 $38.00 $23,028.00 $46.79 $28,354.74 $31.00 $18,786.00 50 ROLLED EROSION PREVENTION CATEGORY 35 W/SEED 75 SQ YD $25.00 $1,875.00 $6.00 $450.00 $2.65 $198.75 $2.35 $176.25 $5.34 $400.50 $2.90 $217.50 51 HYDRAULIC BONDED FIBER MATRIX W/SEED 3599 SQ YD $4.00 $14,396.00 $2.65 $9,537.35 $1.78 $6,406.22 $2.05 $7,377.95 $2.67 $9,609.33 $1.80 $6,478.20 52 CROSSWALK MULTI-COMPONENT (WHITE)200 SQ FT $8.00 $1,600.00 $9.70 $1,940.00 $9.75 $1,950.00 $3.95 $790.00 $9.89 $1,978.00 $4.25 $850.00 SCHEDULE "A" - STREETS $707,654.00 $684,664.34 $673,372.13 $688,254.05 $737,708.66 $756,581.30 53 REMOVE DRAINAGE STRUCTURE 3 EACH $250.00 $750.00 $400.00 $1,200.00 $370.00 $1,110.00 $385.00 $1,155.00 $374.10 $1,122.30 $580.00 $1,740.00 54 REMOVE SEWER PIPE (STORM)90 LIN FT $20.00 $1,800.00 $12.00 $1,080.00 $26.40 $2,376.00 $11.80 $1,062.00 $23.54 $2,118.60 $18.50 $1,665.00 55 4" PERF PVC PIPE DRAIN 230 LIN FT $8.00 $1,840.00 $18.00 $4,140.00 $19.00 $4,370.00 $25.00 $5,750.00 $19.24 $4,425.20 $15.50 $3,565.00 56 15" RC PIPE DRAIN CLASS V 1290 LIN FT $30.00 $38,700.00 $51.86 $66,899.40 $66.20 $85,398.00 $63.00 $81,270.00 $58.79 $75,839.10 $64.50 $83,205.00 57 18" RC PIPE DRAIN CLASS V 25 LIN FT $45.00 $1,125.00 $58.64 $1,466.00 $61.20 $1,530.00 $138.00 $3,450.00 $75.77 $1,894.25 $88.00 $2,200.00 58 CONNECT TO EXISTING DRAINAGE STRUCTURE 1 EACH $1,000.00 $1,000.00 $950.00 $950.00 $4,748.00 $4,748.00 $1,475.00 $1,475.00 $1,735.92 $1,735.92 $938.00 $938.00 59 4" POLYSTYRENE INSULATION 11 SQ YD $36.00 $396.00 $30.00 $330.00 $50.65 $557.15 $320.00 $3,520.00 $21.63 $237.93 $33.50 $368.50 60 ADJUST FRAME & RING CASTING 1 EACH $600.00 $600.00 $800.00 $800.00 $883.00 $883.00 $715.00 $715.00 $460.68 $460.68 $468.00 $468.00 61 CONSTRUCT DRAINAGE STRUCTURE DESIGN 48-4020 (R-1733 CSTG AND RINGS)4 LIN FT $450.00 $1,935.00 $561.00 $2,412.30 $636.00 $2,734.80 $710.00 $3,053.00 $735.18 $3,161.27 $783.00 $3,366.90 62 CONSTRUCT DRAINAGE STRUCTURE DESIGN 48-4020 (R-3067-V CSTG AND RINGS)33 LIN FT $500.00 $16,550.00 $565.00 $18,701.50 $519.00 $17,178.90 $685.00 $22,673.50 $639.78 $21,176.72 $727.00 $24,063.70 63 CONSTRUCT DRAINAGE STRUCTURE DESIGN H (R-4340A CSTG AND RINGS)3 LIN FT $225.00 $742.50 $464.00 $1,531.20 $491.00 $1,620.30 $655.00 $2,161.50 $682.53 $2,252.35 $934.00 $3,082.20 64 CONSTRUCT DRAINAGE STRUCTURE SPECIAL (2'X3' W/R-3067-V CSTG AND RINGS)4 LIN FT $275.00 $1,017.50 $535.00 $1,979.50 $700.00 $2,590.00 $1,040.00 $3,848.00 $768.15 $2,842.16 $670.00 $2,479.00 65 CONSTRUCT DRAINAGE STRUCTURE DESIGN SPECIAL 1 (48" OCS W/ GRATE)10 LIN FT $500.00 $4,900.00 $589.00 $5,772.20 $637.00 $6,242.60 $505.00 $4,949.00 $683.76 $6,700.85 $562.00 $5,507.60 SCHEDULE "B" - STORM SEWER $71,356.00 $107,262.10 $131,338.75 $135,082.00 $123,967.33 $132,648.90 SCHEDULE "A" - STREETS $707,654.00 $684,664.34 $673,372.13 $688,254.05 $737,708.66 $756,581.30 SCHEDULE "B" - STORM SEWER $71,356.00 $107,262.10 $131,338.75 $135,082.00 $123,967.33 $132,648.90 $779,010.00 $791,926.44 $804,710.88 $823,336.05 $861,675.99 $889,230.20 SCHEDULE "B" - STORM SEWER SUBTOTAL - SUBTOTAL - TOTAL BID ABSTRACT OF BIDS 170TH STREET IMPROVEMENT PROJECT CITY OF PRIOR LAKE, MINNESOTA Date: ITEM APPROX. NO.ITEM QUANT.UNIT 1 MOBILIZATION 1 LUMP SUM 2 CLEARING 62 TREE 3 GRUBBING 66 TREE 4 REMOVE SIGN 11 EACH 5 SALVAGE BOLLARD 1 EACH 6 SALVAGE SIGN 1 EACH 7 SALVAGE SIGN TYPE SPECIAL 1 EACH 8 SAWING CONCRETE PAVEMENT (FULL DEPTH)35 LIN FT 9 SAWING BITUMINOUS PAVEMENT (FULL DEPTH)320 LIN FT 10 REMOVE CURB & GUTTER 710 LIN FT 11 REMOVE WOOD FENCE 30 LIN FT 12 REMOVE CONCRETE DRIVEWAY PAVEMENT 43 SQ YD 13 REMOVE CONCRETE PAVEMENT (VALLEY GUTTER)16 SQ YD 14 REMOVE BITUMINOUS PAVEMENT 3270 SQ YD 15 REMOVE RETAINING WALL 300 SQ FT 16 REMOVE BITUMINOUS WALK 780 SQ FT 17 REMOVE CONCRETE WALK 150 SQ FT 18 REMOVE BITUMINOUS DRIVEWAY PAVEMENT 150 SQ FT 19 GEOTEXTILE FABRIC TYPE V 4142 SQ YD 20 COMMON EXCAVATION (P)5751 CU YD 21 SUBGRADE EXCAVATION (EV)241 CU YD 22 SELECT GRANULAR BORROW (CV) (P)2814 CU YD 23 STABILIZING AGGREGATE 241 CU YD 24 STREET SWEEPER (WITH PICKUP BROOM)35 HOUR 25 AGGREGATE BASE CLASS 5 (100% CRUSHED LIMESTONE)1427 TON 26 BITUMINOUS MATERIAL FOR TACK COAT 211 GAL 27 TYPE SP 12.5 WEARING COURSE MIXTURE (2,B) (3.0" THICK)71 SQ YD 28 TYPE SP 9.5 WEARING COURSE MIXTURE (3,C)344 TON 29 TYPE SP 12.5 WEARING COURSE MIXTURE (3,C)570 TON 30 ORNAMENTAL METAL RAILING TYPE SPECIAL 322 LIN FT 31 MODULAR BLOCK RETAINING WALL 1830 SQ FT 32 ADJUST VALVE BOX 1 EACH 33 4" CONCRETE WALK 8667 SQ FT 34 6" CONCRETE WALK 695 SQ FT 35 CONCRETE CURB AND GUTTER DESIGN B618 2409 LIN FT 36 7" CONCRETE DRIVEWAY PAVEMENT 186 SQ YD 37 TRUNCATED DOMES 188 SQ FT 38 INSTALL BOLLARD 1 EACH 39 TRAFFIC CONTROL 1 LUMP SUM 40 INSTALL MARKER 1 EACH 41 INSTALL SIGN 1 EACH SCHEDULE "A" - STREETS May 27, 2021 at 11:00 a.m. CITY PROJECT NO. 2020-35 BMI PROJECT NO. 0T.1123877 6 7 8 9 10 11 UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT $75,000.00 $75,000.00 $33,000.00 $33,000.00 $39,075.00 $39,075.00 $50,000.00 $50,000.00 $96,800.00 $96,800.00 $50,000.00 $50,000.00 $275.00 $17,050.00 $194.00 $12,028.00 $210.00 $13,020.00 $400.00 $24,800.00 $205.00 $12,710.00 $211.88 $13,136.56 $275.00 $18,150.00 $110.00 $7,260.00 $85.00 $5,610.00 $300.00 $19,800.00 $82.00 $5,412.00 $84.75 $5,593.50 $50.00 $550.00 $44.00 $484.00 $42.50 $467.50 $100.00 $1,100.00 $41.00 $451.00 $40.00 $440.00 $200.00 $200.00 $180.00 $180.00 $125.00 $125.00 $50.00 $50.00 $357.00 $357.00 $350.00 $350.00 $50.00 $50.00 $44.00 $44.00 $42.50 $42.50 $100.00 $100.00 $41.00 $41.00 $40.00 $40.00 $50.00 $50.00 $55.00 $55.00 $53.00 $53.00 $150.00 $150.00 $51.00 $51.00 $50.00 $50.00 $10.00 $350.00 $6.25 $218.75 $4.40 $154.00 $10.00 $350.00 $10.00 $350.00 $10.76 $376.60 $4.00 $1,280.00 $3.50 $1,120.00 $2.90 $928.00 $5.00 $1,600.00 $4.00 $1,280.00 $3.97 $1,270.40 $8.00 $5,680.00 $5.50 $3,905.00 $4.00 $2,840.00 $5.00 $3,550.00 $5.00 $3,550.00 $2.99 $2,122.90 $20.00 $600.00 $4.00 $120.00 $2.80 $84.00 $30.00 $900.00 $18.00 $540.00 $8.46 $253.80 $9.00 $387.00 $10.75 $462.25 $10.00 $430.00 $15.00 $645.00 $7.00 $301.00 $5.49 $236.07 $8.00 $128.00 $19.25 $308.00 $20.00 $320.00 $20.00 $320.00 $12.00 $192.00 $5.42 $86.72 $3.00 $9,810.00 $2.50 $8,175.00 $2.75 $8,992.50 $5.00 $16,350.00 $2.50 $8,175.00 $3.51 $11,477.70 $5.00 $1,500.00 $7.00 $2,100.00 $6.45 $1,935.00 $10.00 $3,000.00 $6.50 $1,950.00 $6.70 $2,010.00 $0.50 $390.00 $1.50 $1,170.00 $0.65 $507.00 $1.00 $780.00 $0.40 $312.00 $0.51 $397.80 $1.00 $150.00 $2.00 $300.00 $1.10 $165.00 $1.00 $150.00 $1.30 $195.00 $5.52 $828.00 $0.50 $75.00 $1.50 $225.00 $0.45 $67.50 $1.00 $150.00 $2.00 $300.00 $0.47 $70.50 $1.00 $4,142.00 $1.75 $7,248.50 $1.65 $6,834.30 $2.00 $8,284.00 $2.80 $11,597.60 $1.80 $7,455.60 $14.00 $80,514.00 $16.25 $93,453.75 $22.25 $127,959.75 $25.00 $143,775.00 $18.80 $108,118.80 $19.78 $113,754.78 $14.00 $3,374.00 $14.75 $3,554.75 $20.50 $4,940.50 $12.00 $2,892.00 $18.80 $4,530.80 $19.33 $4,658.53 $23.00 $64,722.00 $24.00 $67,536.00 $28.00 $78,792.00 $30.00 $84,420.00 $19.70 $55,435.80 $29.54 $83,125.56 $38.00 $9,158.00 $38.00 $9,158.00 $40.00 $9,640.00 $15.00 $3,615.00 $36.00 $8,676.00 $80.95 $19,508.95 $150.00 $5,250.00 $150.00 $5,250.00 $135.00 $4,725.00 $125.00 $4,375.00 $181.00 $6,335.00 $130.00 $4,550.00 $20.00 $28,540.00 $29.00 $41,383.00 $27.65 $39,456.55 $20.00 $28,540.00 $21.80 $31,108.60 $30.53 $43,566.31 $5.00 $1,055.00 $3.25 $685.75 $3.20 $675.20 $3.00 $633.00 $3.00 $633.00 $3.01 $635.11 $65.00 $4,615.00 $61.00 $4,331.00 $68.50 $4,863.50 $50.00 $3,550.00 $55.00 $3,905.00 $51.03 $3,623.13 $90.00 $30,960.00 $77.00 $26,488.00 $77.10 $26,522.40 $70.00 $24,080.00 $88.00 $30,272.00 $76.94 $26,467.36 $70.00 $39,900.00 $77.00 $43,890.00 $74.25 $42,322.50 $70.00 $39,900.00 $79.00 $45,030.00 $72.43 $41,285.10 $200.00 $64,400.00 $179.00 $57,638.00 $193.00 $62,146.00 $190.00 $61,180.00 $200.00 $64,400.00 $182.00 $58,604.00 $70.00 $128,100.00 $90.00 $164,700.00 $75.50 $138,165.00 $70.00 $128,100.00 $79.25 $145,027.50 $87.05 $159,301.50 $250.00 $250.00 $400.00 $400.00 $220.00 $220.00 $700.00 $700.00 $325.00 $325.00 $253.68 $253.68 $6.00 $52,002.00 $6.50 $56,335.50 $5.70 $49,401.90 $6.00 $52,002.00 $6.40 $55,468.80 $5.62 $48,708.54 $20.00 $13,900.00 $22.00 $15,290.00 $7.50 $5,212.50 $10.00 $6,950.00 $15.00 $10,425.00 $19.47 $13,531.65 $18.00 $43,362.00 $18.00 $43,362.00 $15.10 $36,375.90 $18.00 $43,362.00 $19.00 $45,771.00 $14.95 $36,014.55 $85.00 $15,810.00 $92.00 $17,112.00 $97.15 $18,069.90 $70.00 $13,020.00 $77.50 $14,415.00 $83.80 $15,586.80 $41.00 $7,708.00 $42.00 $7,896.00 $53.45 $10,048.60 $40.00 $7,520.00 $54.00 $10,152.00 $37.80 $7,106.40 $500.00 $500.00 $326.00 $326.00 $420.00 $420.00 $150.00 $150.00 $765.00 $765.00 $1,500.00 $1,500.00 $2,500.00 $2,500.00 $1,500.00 $1,500.00 $4,375.00 $4,375.00 $10,000.00 $10,000.00 $22,300.00 $22,300.00 $1,200.00 $1,200.00 $220.00 $220.00 $220.00 $220.00 $210.00 $210.00 $150.00 $150.00 $204.00 $204.00 $125.00 $125.00 $220.00 $220.00 $220.00 $220.00 $210.00 $210.00 $200.00 $200.00 $204.00 $204.00 $200.00 $200.00 RYAN CONTRACTING S.M. HENTGES MEYER CONTRACTINGMINGER CONST PEMBER COMPANIESKRUEGER EXCAVATING ITEM APPROX. NO.ITEM QUANT.UNIT 42 SIGN PANELS TYPE C 44 SQ FT 43 SIGN PANEL TYPE SPECIAL 4 EACH 44 PRUNE TREES 18 HOUR 45 STABILIZED CONSTRUCTION EXIT 1 LUMP SUM 46 STORM DRAIN INLET PROTECTION 12 EACH 47 SILT FENCE, TYPE MACHINE SLICED 600 LIN FT 48 SEDIMENT CONTROL LOG, TYPE WOOD FIBER 450 LIN FT 49 BOULEVARD TOPSOIL BORROW (LV)606 CU YD 50 ROLLED EROSION PREVENTION CATEGORY 35 W/SEED 75 SQ YD 51 HYDRAULIC BONDED FIBER MATRIX W/SEED 3599 SQ YD 52 CROSSWALK MULTI-COMPONENT (WHITE)200 SQ FT SCHEDULE "A" - STREETS 53 REMOVE DRAINAGE STRUCTURE 3 EACH 54 REMOVE SEWER PIPE (STORM)90 LIN FT 55 4" PERF PVC PIPE DRAIN 230 LIN FT 56 15" RC PIPE DRAIN CLASS V 1290 LIN FT 57 18" RC PIPE DRAIN CLASS V 25 LIN FT 58 CONNECT TO EXISTING DRAINAGE STRUCTURE 1 EACH 59 4" POLYSTYRENE INSULATION 11 SQ YD 60 ADJUST FRAME & RING CASTING 1 EACH 61 CONSTRUCT DRAINAGE STRUCTURE DESIGN 48-4020 (R-1733 CSTG AND RINGS)4 LIN FT 62 CONSTRUCT DRAINAGE STRUCTURE DESIGN 48-4020 (R-3067-V CSTG AND RINGS)33 LIN FT 63 CONSTRUCT DRAINAGE STRUCTURE DESIGN H (R-4340A CSTG AND RINGS)3 LIN FT 64 CONSTRUCT DRAINAGE STRUCTURE SPECIAL (2'X3' W/R-3067-V CSTG AND RINGS)4 LIN FT 65 CONSTRUCT DRAINAGE STRUCTURE DESIGN SPECIAL 1 (48" OCS W/ GRATE)10 LIN FT SCHEDULE "B" - STORM SEWER SCHEDULE "A" - STREETS SCHEDULE "B" - STORM SEWER SCHEDULE "B" - STORM SEWER SUBTOTAL - SUBTOTAL - TOTAL BID UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT RYAN CONTRACTING S.M. HENTGES MEYER CONTRACTINGMINGER CONST PEMBER COMPANIESKRUEGER EXCAVATING $60.00 $2,640.00 $51.00 $2,244.00 $48.80 $2,147.20 $46.00 $2,024.00 $47.00 $2,068.00 $46.00 $2,024.00 $275.00 $1,100.00 $305.00 $1,220.00 $291.65 $1,166.60 $275.00 $1,100.00 $280.00 $1,120.00 $275.00 $1,100.00 $450.00 $8,100.00 $305.00 $5,490.00 $148.50 $2,673.00 $400.00 $7,200.00 $145.00 $2,610.00 $148.32 $2,669.76 $5,000.00 $5,000.00 $2,000.00 $2,000.00 $1,000.00 $1,000.00 $500.00 $500.00 $1,500.00 $1,500.00 $750.00 $750.00 $250.00 $3,000.00 $165.00 $1,980.00 $115.00 $1,380.00 $125.00 $1,500.00 $189.00 $2,268.00 $150.00 $1,800.00 $2.50 $1,500.00 $2.10 $1,260.00 $2.30 $1,380.00 $1.00 $600.00 $2.00 $1,200.00 $1.90 $1,140.00 $3.50 $1,575.00 $3.00 $1,350.00 $3.00 $1,350.00 $2.00 $900.00 $3.00 $1,350.00 $2.75 $1,237.50 $40.00 $24,240.00 $41.00 $24,846.00 $58.00 $35,148.00 $30.00 $18,180.00 $37.00 $22,422.00 $62.00 $37,572.00 $6.00 $450.00 $2.75 $206.25 $3.15 $236.25 $3.00 $225.00 $5.00 $375.00 $2.50 $187.50 $3.00 $10,797.00 $1.75 $6,298.25 $2.60 $9,357.40 $2.00 $7,198.00 $2.60 $9,357.40 $1.55 $5,578.45 $4.00 $800.00 $4.00 $800.00 $9.80 $1,960.00 $10.00 $2,000.00 $9.40 $1,880.00 $9.25 $1,850.00 $791,804.00 $786,827.75 $804,200.95 $832,620.00 $854,217.30 $835,412.31 $500.00 $1,500.00 $635.00 $1,905.00 $550.00 $1,650.00 $1,000.00 $3,000.00 $340.00 $1,020.00 $339.95 $1,019.85 $25.00 $2,250.00 $13.00 $1,170.00 $17.00 $1,530.00 $15.00 $1,350.00 $18.00 $1,620.00 $20.86 $1,877.40 $25.00 $5,750.00 $21.00 $4,830.00 $22.80 $5,244.00 $18.00 $4,140.00 $11.30 $2,599.00 $21.70 $4,991.00 $60.00 $77,400.00 $79.00 $101,910.00 $72.00 $92,880.00 $60.00 $77,400.00 $74.40 $95,976.00 $75.43 $97,304.70 $65.00 $1,625.00 $85.00 $2,125.00 $78.00 $1,950.00 $65.00 $1,625.00 $78.00 $1,950.00 $143.99 $3,599.75 $1,250.00 $1,250.00 $1,800.00 $1,800.00 $780.00 $780.00 $3,000.00 $3,000.00 $1,184.00 $1,184.00 $1,923.03 $1,923.03 $80.00 $880.00 $12.00 $132.00 $47.00 $517.00 $30.00 $330.00 $80.00 $880.00 $6.47 $71.17 $500.00 $500.00 $950.00 $950.00 $745.00 $745.00 $1,000.00 $1,000.00 $554.00 $554.00 $969.14 $969.14 $1,100.00 $4,730.00 $675.00 $2,902.50 $690.00 $2,967.00 $500.00 $2,150.00 $616.00 $2,648.80 $1,056.71 $4,543.85 $860.00 $28,466.00 $800.00 $26,480.00 $655.00 $21,680.50 $400.00 $13,240.00 $614.00 $20,323.40 $1,156.47 $38,279.16 $970.00 $3,201.00 $555.00 $1,831.50 $500.00 $1,650.00 $600.00 $1,980.00 $650.00 $2,145.00 $889.15 $2,934.20 $940.00 $3,478.00 $635.00 $2,349.50 $635.00 $2,349.50 $600.00 $2,220.00 $665.00 $2,460.50 $1,116.57 $4,131.31 $860.00 $8,428.00 $560.00 $5,488.00 $583.00 $5,713.40 $800.00 $7,840.00 $750.00 $7,350.00 $916.25 $8,979.25 $139,458.00 $153,873.50 $139,656.40 $119,275.00 $140,710.70 $170,623.80 $791,804.00 $786,827.75 $804,200.95 $832,620.00 $854,217.30 $835,412.31 $139,458.00 $153,873.50 $139,656.40 $119,275.00 $140,710.70 $170,623.80 $931,262.00 $940,701.25 $943,857.35 $951,895.00 $994,928.00 $1,006,036.11 h:\plak\0t1123877\1_corres\c_to others\city\award recommendation\123877 bid results ltr.docx May 27, 2021 Honorable Mayor and City Council 4646 Dakota Street SE Prior Lake, MN 55372 RE: Bid Results 170th Street Improvement Project City of Prior Lake Dear Honorable Mayor and City Council, Bids for the 170th Street Improvement Project were opened on Thursday, May 27, 2021. Eleven (11) bids were received and ranged from $791,926.44 to $1,006,036.11. Prices came in favorably and as expected due to the current competitive bidding environment. The following is a bid summary: The low bidder for the project is Northwest Asphalt, Inc., from Shakopee, MN. Based on past performance on similar projects in previous years, it is our opinion that Northwest Asphalt, Inc. is qualified to perform the work required under this contract. If the City Council wishes to award the Project to the lowest bidder, then Northwest Asphalt should be awarded the Project on the Total Bid Amount of $791,926.44. If you have any questions, please feel free to contact me at (952) 890-0509. Sincerely, Bolton & Menk, Inc. Brad Fisher, P.E. Project Engineer BIDDERS TOTAL BID Engineer’s Estimate $817,960.50 1 Northwest Asphalt, Inc. $791,926.44 2 GMH Asphalt Corp $804,710.88 3 Heselton Construction, LLC $823,336.05 4 Max Steininger $861,675.99 5 Veit & Company $889,230.20 BIDDERS TOTAL BID 6 Krueger Excavating $931,262.00 7 Minger Construction $940,701.25 8 Pember Companies $943,857.35 9 Ryan Contracting $951,895.00 10 S.M. Hentges & Sons $994,928.00 11 Meyer Contracting $1,006,036.11 CITY OF PRIOR LAKE SCOTT COUNTY, MINNESOTA Financial Statements and Supplemental Information Year Ended December 31, 2020 THIS PAGE INTENTIONALLY LEFT BLANK Page INTRODUCTORY SECTION ELECTED AND APPOINTED OFFICIALS 1 FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT 2–4 MANAGEMENT’S DISCUSSION AND ANALYSIS 5–19 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 20 Statement of Activities 21–22 Fund Financial Statements Governmental Funds Balance Sheet 23–24 Reconciliation of the Balance Sheet to the Statement of Net Position 25 Statement of Revenues, Expenditures, and Changes in Fund Balances 26–27 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 28 Statement of Revenues, Expenditures, and Changes in Fund Balances – General Fund – Budget and Actual 29 Proprietary Funds Statement of Net Position 30–31 Statement of Revenues, Expenses, and Changes in Net Position 32–33 Statement of Cash Flows 34–37 Notes to Basic Financial Statements 38–76 REQUIRED SUPPLEMENTARY INFORMATION PERA – General Employees Retirement Fund Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability 77 Schedule of City Contributions 77 PERA – Public Employees Police and Fire Fund Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability 78 Schedule of City Contributions 78 Prior Lake Fire Relief Association Schedule of Changes in the Relief Association’s Net Pension Asset and Related Ratios 79 Schedule of City Contributions 80 Other Post-Employment Benefits Plan Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 81 Notes to Required Supplementary Information 82–88 CITY OF PRIOR LAKE SCOTT COUNTY, MINNESOTA Table of Contents Page SUPPLEMENTAL INFORMATION Combining and Individual Fund Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 89 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 90 Nonmajor Special Revenue Funds Combining Balance Sheet 91–92 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 93–94 Nonmajor Capital Projects Funds Combining Balance Sheet 95–98 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 99–102 General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual 103–108 Debt Service Fund Balance Sheet by Account 109–113 Schedule of Revenues, Expenditures, and Changes in Fund Balances by Account 114–118 Internal Service Funds Combining Statement of Net Position 119 Combining Statement of Revenues, Expenses, and Changes in Net Position 120 Combining Statement of Cash Flows 121 OTHER INFORMATION SECTION Summary Financial Report Revenues and Expenditures for General Operations 122 Combined Schedule of Indebtedness 123–124 Bond Schedules 125–130 Debt Service Requirements 131–132 Tax Levies and Collections, and Special Assessment Levies and Collections 133 Schedules of Market Value, Tax Levy, Tax Capacity Values, Tax Capacity Rate, and Market Value Rate 134 Key Financial Indicators 135 SINGLE AUDIT AND OTHER REQUIRED REPORTS Schedule of Expenditures of Federal Awards 136 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 137–138 Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance 139–140 Independent Auditor’s Report on Minnesota Legal Compliance 141 Schedule of Findings and Questioned Costs 142–143 CITY OF PRIOR LAKE SCOTT COUNTY, MINNESOTA Table of Contents (continued) INTRODUCTORY SECTION THIS PAGE INTENTIONALLY LEFT BLANK -1- Term Expires Mayor 12/31/2024 Councilmember 12/31/2024 Councilmember 12/31/2024 Councilmember 12/31/2022 Kirt Briggs Zach Braid Kevin Burkart Kimberly Churchill Annette Thompson Councilmember 12/31/2022 Jason Wedel City Manager Cathy Erickson Finance Director Kelly Horn Assistant Finance Director Jason Etter Senior Accountant ELECTED APPOINTED CITY OF PRIOR LAKE SCOTT COUNTY, MINNESOTA Elected and Appointed Officials As of December 31, 2020 THIS PAGE INTENTIONALLY LEFT BLANK FINANCIAL SECTION THIS PAGE INTENTIONALLY LEFT BLANK -2- INDEPENDENT AUDITOR’S REPORT To the City Council and Management City of Prior Lake, Minnesota REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Prior Lake, Minnesota (the City) as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. AUDITOR’S RESPONSIBILITY Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the 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. (continued) C E R T I F I E D A C C O U N T A N T S P UBLIC PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1 -3- OPINIONS In our opinion, the financial statements referred to on the previous page 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, 20 20, 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. OTHER MATTERS Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the required supplementary information (RSI), as listed in the table of contents, 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 RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, supplemental information, and other information section, as listed in the table of contents, are presented for purposes of additional analysis and are not required parts of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. The supplemental information and the Schedule of Expenditures of Federal Awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and the Schedule of Expenditures of Federal Awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and other information sections have 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 them. (continued) -4- Prior Year Comparative Information We have previously audited the City’s 2019 financial statements, and we expressed unmodified audit opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information in our report dated May 18, 2020. In our opinion, the partial comparative information presented herein as of and for the year ended December 31, 2019 is consistent, in all material respects, with the audited fi nancial statements from which it has been derived. OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS In accordance with Government Auditing Standards, we have also issued our report dated May 17, 2021 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, 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. Minneapolis, Minnesota May 17, 2021 THIS PAGE INTENTIONALLY LEFT BLANK -5- CITY OF PRIOR LAKE Management’s Discussion and Analysis Fiscal Year Ended December 31, 2020 As the management of the City of Prior Lake, 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, 2020. FINANCIAL HIGHLIGHTS • The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $219,772,469 (net position). Of this amount, $21,728,736 (unrestricted net position) may be used to meet the government’s ongoing obligations to citizens and creditors. • The City’s total net position increased by $12,550,177. • As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $26,591,308, an increase of $3,629,050 in comparison with the prior year. • At the end of the current fiscal year, the total fund balance for the General Fund was $10,114,088, or 67.1 percent, of budgeted 2021 expenditures and transfers out of $15,077,717. The total fund balance reflects an increase of $2,210,913 from the prior year and an increase of $2,570,625 from the amended budget. The original budget reflected use of fund balance for a transfer of funds to the City’s Economic Development Authority (EDA) and a website upgrade, while an amendment for a health insurance adjustment and project carryover from 2019 resulted in a budgeted use of fund balance totaling $359,712. The increase in fund balance is primarily due to unbudgeted intergovernmental revenues of $1,951,401 arising from federal coronavirus relief funds and total expenditures and transfers out less than budget by $531,515, due to cost-saving measures put in place to minimize the financial impact of the pandemic. The expenditure reduction measures were primarily in general government, public works, and culture and recreation functions , as service levels, programs, and employee personnel costs and training were reduced during the pandemic. • Of the total fund balance of $10,114,088, $70,066 is nonspendable for prepaid items and $260,704 is assigned for the 2021 budget, primarily for projects carried over from 2020 and anticipated police aid revenue shortfall. The unassigned amount of $9,783,378 is 64.9 percent of budgeted 2021 expenditures and transfers out of $15,077,717. 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 include three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains supplemental information in addition to the basic financial statements themselves. 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. -6- The Statement of Net Position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between them 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). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (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, public works, culture and recreation, and economic development. The business-type activities of the City include water, sewer, and water quality operations. The government-wide financial statements can be found in the financial section following 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 city ’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 of the City’s near-term financing decisions. Both the governmental funds Balance Sheet and the governmental funds 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. Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Rev enues, Expenditures, and Changes in Fund Balances for the General Fund, Debt Service Fund, and Construction Fund, all of which are considered 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 are provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for this fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found in the financial section of this report immediately following the government-wide financial statements. -7- Proprietary Funds – The City maintains two types of proprietary funds. 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, sewer, and water quality operations. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the enterprise funds, all of which are considered to be major funds of the City. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for severance compensation and insurance benefits. All internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements, labeled Governmental Activities – Internal Service Funds. Because these internal service fund activities predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found in the financial section of this report immediately following the governmental fund statements. Notes to Basic Financial Statements – The notes to basic financial statements 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 basic financial statements can be found following the proprietary fund statements within the financial section of this report. Other Information – In addition to the basic financial statements and accompanying notes, the financial section also presents required supplementary information, and t he combining and individual fund statements and schedules (presented as supplemental information) referred to earlier in connection with nonmajor governmental funds and internal service funds, which are presented immediately following the basic financial statements. Further, an other information section has been included as part of the financial statements to facilitate additional analysis. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a city’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $219,772,469 at the close of the most recent fiscal year. The City’s investment in capital assets (e.g., land, buildings, and machinery and equipment), less any related debt used to acquire those assets that is still outstanding, totaled 85.2 percent of total net position. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. -8- The following table provides the City’s Summary of Net Position: 2020 2019 2020 2019 2020 2019 Assets Current and other assets 34,530,060$ 35,015,361$ 11,523,717$ 10,461,812$ 46,053,777$ 45,477,173$ Capital assets 153,595,893 152,157,816 71,516,241 71,130,568 225,112,134 223,288,384 Total assets 188,125,953$ 187,173,177$ 83,039,958$ 81,592,380$ 271,165,911$ 268,765,557$ Deferred outflows of resources Pension and OPEB plan deferments 2,526,494$ 3,544,708$ 157,600$ 111,916$ 2,684,094$ 3,656,624$ Liabilities Long-term liabilities 43,777,198$ 46,988,267$ 4,013,500$ 4,083,650$ 47,790,698$ 51,071,917$ Other liabilities 3,044,317 7,256,426 256,354 1,846,603 3,300,671 9,103,029 Total liabilities 46,821,515$ 54,244,693$ 4,269,854$ 5,930,253$ 51,091,369$ 60,174,946$ Deferred inflows of resources Pension and OPEB plan deferments 2,900,602$ 4,787,351$ 85,565$ 237,592$ 2,986,167$ 5,024,943$ Net position Net investment in capital assets 118,120,401$ 112,279,178$ 69,058,053$ 68,398,856$ 187,178,454$ 180,678,034$ Restricted 10,865,279 7,988,232 – – 10,865,279 7,988,232 Unrestricted 11,944,650 11,418,431 9,784,086 7,137,595 21,728,736 18,556,026 Total net position 140,930,330$ 131,685,841$ 78,842,139$ 75,536,451$ 219,772,469$ 207,222,292$ Governmental Activities Business-Type Activities Total Summary of Net Position as of December 31, 2020 and 2019 Table 1 An additional portion of the City’s net position ($10,865,279, or 4.9 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $21,728,736, may be used to meet the government’s ongoing obligations to citizens and creditors. The significant reduction in deferred outflows of resources, long-term liabilities, and deferred inflows of resources relates to improvements in portfolio earnings in the Public Employees Retirement Association (PERA) pension plans in 2020. The Governmental Accounting Standards Board Statement No. 68 requires the City to recognize its proportionate share of pension benefit obligations. The decline in other liabilities relates to the City having significant outstanding construction contracts payable in the prior year. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year. -9- 2020 2019 2020 2019 2020 2019 Revenues Program revenues Charges for services 2,154,819$ 2,552,868$ 10,358,971$ 8,474,649$ 12,513,790$ 11,027,517$ Operating grants and contributions 1,790,808 1,628,053 35,983 2,924 1,826,791 1,630,977 Capital grants and contributions 6,237,207 8,605,951 1,812,139 616,975 8,049,346 9,222,926 General revenues Property taxes and tax increments 14,395,457 13,537,055 – – 14,395,457 13,537,055 Franchise taxes 670,917 639,783 – – 670,917 639,783 Grants and contributions not restricted to specific programs 1,951,940 12,867 – – 1,951,940 12,867 Investment income 790,517 1,094,987 298,677 290,301 1,089,194 1,385,288 Miscellaneous 149,353 113,489 35,230 31,435 184,583 144,924 Gain on sale of assets 38,913 – – – 38,913 – Total revenues 28,179,931 28,185,053 12,541,000 9,416,284 40,720,931 37,601,337 Expenses General government 3,831,010 3,582,241 – – 3,831,010 3,582,241 Public safety 7,025,367 6,490,001 – – 7,025,367 6,490,001 Public works 6,024,512 5,700,624 – – 6,024,512 5,700,624 Culture and recreation 2,127,013 2,462,914 – – 2,127,013 2,462,914 Economic development 964,213 936,034 – – 964,213 936,034 Interest on long-term debt 896,377 1,038,292 – – 896,377 1,038,292 Water – – 3,281,173 3,026,239 3,281,173 3,026,239 Sewer – – 3,397,772 3,321,093 3,397,772 3,321,093 Water quality – – 623,317 611,654 623,317 611,654 Total expenses 20,868,492 20,210,106 7,302,262 6,958,986 28,170,754 27,169,092 Increase in net position before transfers 7,311,439 7,974,947 5,238,738 2,457,298 12,550,177 10,432,245 Transfers 1,933,050 (5,380,609) (1,933,050) 5,380,609 – – Changes in net position 9,244,489 2,594,338 3,305,688 7,837,907 12,550,177 10,432,245 Net position Beginning of year 131,685,841 129,091,503 75,536,451 67,698,544 207,222,292 196,790,047 End of year 140,930,330$ 131,685,841$ 78,842,139$ 75,536,451$ 219,772,469$ 207,222,292$ Governmental Activities Business-Type Activities Total Table 2 Changes in Net Position for the Years Ended December 31, 2020 and 2019 The significant increase in grants and contributions not restricted to specific programs relates to the receipt of federal Coronavirus Relief Fund aid in the current year. Governmental Activities – Governmental activities increased the City’s net position by $9,244,489. Key elements of this increase are seen in the table above. The increase is primarily due to net transfers in from the enterprise funds for operations and debt service and operating results of the governmental funds, including unbudgeted federal revenues and an increase in property taxes. The business-type activities increased the City’s net position in total by $3,305,688, mostly due to increased charges for services from rate and usage increases and capital contributions from developers. -10- Below are specific graphs that provide comparisons of the governmental activities program revenues and expenses. Program revenues as compared to program expenses are consistent with the prior year for all categories except public works. Public works revenue will vary based on development and transportation projects. In 2020, the City received about $3.5 million in easement donations from developers and about $1.0 million in development program trunk/connection fees. Revenue also included about $1.0 million in street project special assessments. $– $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 General Government Public Safety Public Works Culture and Recreation Economic Development Interest on Long-Term Debt Expenses Program Revenues Governmental Activities – Revenue by Program -11- Business-Type Activities – Below are graphs showing the business-type activities program revenues and expense comparisons. Revenues are collected to fund operations, capital improvements, debt service, and the utility work completed as part of the street projects identified in the Five-Year Capital Improvement Program. $– $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 $2,000,000 $2,250,000 $2,500,000 $2,750,000 $3,000,000 $3,250,000 $3,500,000 $3,750,000 $4,000,000 $4,250,000 $4,500,000 $4,750,000 $5,000,000 $5,250,000 $5,500,000 $5,750,000 $6,000,000 Water Sewer Water Quality Expenses Program Revenues Business-Type Activities – Revenue by Source -12- 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. As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $26,591,308, an increase of $3,629,050 in comparison with the prior year. The General Fund is the chief operating fund of the City. At the end of the recent fiscal year, total fund balance reached $10,114,088. As a measure of the General Fund’s liquidity, it may be useful to compare the total fund balance to total fund expenditures. Total fund balance represents about 67.1 percent of total 2021 General Fund budgeted expenditures and transfers out $15,077,717. Of the total fund balance of $10,114,088, $70,006 is nonspendable for prepaids and $260,704 is assigned for subsequent year’s budgeted expenditures. This leaves an unassigned fund balance of the General Fund of $9,783,378, or 64.9 percent, of total 2021 General Fund budgeted expenditures, and transfers out of $15,077,717. The total fund balance reflects an increase of $2,210,913 from the prior year and an increase of $2,570,625 from the amended budget. The amended budget reflected the use of fund balance of $359,712 for a transfer of funds to the City’s EDA, an upgrade of the City’s website, and project carryover from 2019. The Debt Service Fund balance decreased by $169,276. The City manages cash flow in all debt service accounts and ensures adequate resources exist to fund future obligations. The Construction Fund balance increased by $232,539, due to timing differences between project financing inflows and capital outlays. Proprietary Funds – The City’s proprietary funds provide the same information for the business-type activities found in the government-wide financial statements, but in more detail. -13- GENERAL FUND BUDGETARY HIGHLIGHTS The original budget reflected use of fund balance of $201,250 for a transfer of funds to the City’s EDA and a website upgrade. The City amends its budget at various points during the year. The General Fund budget was amended in 2020 to increase the spending of the fund balance by $158,462 for a health insurance reserve adjustment, and carryforward of 2019 projects/spending for capital outlay, parks, and police. Actual revenues were $2,036,507 over budget in 2020, due primarily to unbudgeted federal coronavirus relief funds. Actual expenditures were $631,515 less than budget in 2020. Many factors impacted expenditures. The largest variance from budget was in parks being under budget by $443,392, and recreation being under budget by $135,285. This is primarily due to the City deciding to reduce service levels and not to hire seasonal parks staff during the summer of 2020, as a financial precaution related to pandemic uncertainties. Additionally, street maintenance and supplies expenditures were less than planned, primarily due to a reduction in activities related to the pandemic. CAPITAL ASSETS AND LONG-TERM DEBT Capital Assets – The City’s investment in capital assets for its governmental and business-type activities as of December 31, 2020 amounts to $225,112,134 (net of accumulated depreciation). This investment in capital assets includes items such as land, buildings and improvements, machinery and equipment, park facilities, roads, highways, and bridges. 2020 2019 2020 2019 2020 2019 Land 33,088,883$ 33,269,751$ –$ –$ 33,088,883$ 33,269,751$ Utility access agreement – – 2,499,970 2,499,970 2,499,970 2,499,970 Easements 48,680,620 48,173,410 218,912 218,912 48,899,532 48,392,322 Construction in progress 4,738,038 3,820,430 81,203 3,070 4,819,241 3,823,500 Land improvements 996,343 1,067,742 39,581 43,968 1,035,924 1,111,710 Machinery and equipment 2,832,036 2,797,763 523,389 565,623 3,355,425 3,363,386 Vehicles 2,557,655 2,448,016 343,554 360,330 2,901,209 2,808,346 Infrastructure 60,702,318 60,580,704 67,809,632 67,438,695 128,511,950 128,019,399 Total 153,595,893$ 152,157,816$ 71,516,241$ 71,130,568$ 225,112,134$ 223,288,384$ Table 3 Capital Assets (Net of Depreciation) TotalBusiness-Type ActivitiesGovernmental Activities Additional information on the City’s capital assets can be found in Note 3 of the notes to basic financial statements. -14- Long-Term Debt – At the end of the current fiscal year, the City had total bonded debt outstanding, including premiums of $36,809,881. This amount comprises debt backed by the full faith and credit of the City. The City’s total long-term liabilities decreased during the current fiscal year, due to scheduled payments on debt obligations and energy loans payable. 2020 2019 2020 2019 2020 2019 G.O. bonds 11,030,000$ 12,185,000$ –$ –$ 11,030,000$ 12,185,000$ G.O. special assessment bonds 16,115,000 18,465,000 – – 16,115,000 18,465,000 G.O. tax increment bonds 110,000 135,000 – – 110,000 135,000 G.O. revenue bonds 5,845,000 6,245,000 2,190,000 2,430,000 8,035,000 8,675,000 Premium (discount) on bonds payable 1,251,694 1,430,714 268,187 301,712 1,519,881 1,732,426 Energy loan payable 1,283,798 1,552,924 – – 1,283,798 1,552,924 Compensated absences payable 948,807 841,031 215,032 200,014 1,163,839 1,041,045 Net OPEB obligation 709,417 654,579 155,471 141,945 864,888 796,524 Net pension liability – GERF and PEPFF 6,483,482 5,479,019 1,184,810 1,009,979 7,668,292 6,488,998 Total 43,777,198$ 46,988,267$ 4,013,500$ 4,083,650$ 47,790,698$ 51,071,917$ Table 4 Long-Term Liabilities TotalGovernmental Activities Business-Type Activities The City’s statutory debt limit is equal to 3 percent of estimated taxable market value of property located within the City. The taxable market value totals $3,713,161,300, which calculates to a debt limit of $111,394,839. Debt financed partially or entirely by special assessments, tax increments, and other revenue sources is not applied against the City’s debt limit, nor is debt financed by proprietary fund revenues. Currently, the City has $11,030,000 of general obligation debt outstanding, leaving a debt limit of $100,364,839. Additional information on the City’s long-term debt can be found in Note 5 of the notes to basic financial statements. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES • The City adopted a general operating budget of $15,077,717 for expenditures and other financing uses for fiscal 2021, an increase of $420,969, or 2.9 percent, from the 2020 original budget. • The City is continuing to monitor and assess the revenue impacts related to the ongoing COVID-19 pandemic. To manage the impact of any projected revenue shortfall, planned expenditure reductions would be made. Similar to 2020, these cost-saving measures could include reductions in seasonal staffing, overtime, training, and reduced services for recreation, pavement management, city parks mowing, and streetscaping. The City’s Comprehensive Financial Management Policy established a fund balance policy regarding the minimum unrestricted fund balance for the General Fund. The policy established that the City will strive to maintain an unrestricted General Fund balance within a range of 40 to 50 percent of projec ted expenditures for the subsequent year. In no case will the reserve be allowed to fall below 40 percent. The fund balance policy is in place to provide adequate cash flow, offset revenue shortfalls, and insurance for unforeseen catastrophic events, such as the COVID-19 pandemic. -15- • Growth is robust in the City, with 162 single-family residential permits issued in 2020 and a total of 563 single-family residential permits issued between 2018 and 2020. From 2005 to 2019, the City has consistently ranked in the top 25 in the Twin Cities metro area in total number of residential units and ranked in the top 15 in the Twin Cities metro area in total single-family residential units. (Source: Metropolitan Council, Community Profile, Building Permits, Residential, Twin Cities Region (7-county metro area).) Since 2016, the City issued permits for six multi-family residential buildings, with a total of 440 units. The City anticipates issuing permits for one additional 98-unit multi-family residential building in 2021. Total building permit valuation (new and addition/alteration) has remained consistent over the past five years (2016–2020), with an average of $78.6 million each year. Commercial building permit valuation (new and addition/alteration) has also remained consistent with an average annual valuation of $14.2 million over the past four years (2017–2020). • Continued staged development of land within the City and areas to be annexed under the orderly annexation agreement with Spring Lake Township will provide most of the City’s anticipated market value growth over the course of the next 10 to 15 years. To meet the City’s water needs as it continues to grow, the City entered into a Water Purchase and Facility Expansion Agreement with the Shakopee Mdewakanton Sioux Community. The plant can supply additional water to the City and will have future expansion available to meet the City’s long-term needs. This approach provides the City with the flexibility to evaluate the pace and timing of development in the Orderly Annexation Area before a substantial investment is needed to construct the expansion of the water treatment plant. The initial improvements, combined with the long-term water purchase agreement, could provide the City with enough water capacity for the next 15 to 20 years, depending on the rate of development. Financial Management Policies The City has set a goal to establish “Financial Performance Standards” to measure the financial health of the City. These standards serve multiple purposes: a) To serve as best practice measures to strengthen the City’s financial position and maximize the return of the taxpayer dollar. b) To communicate the fiscal performance and condition of the City to residents in a consistent manner. c) To facilitate the setting of policy and financial direction by the City Council with resident input. -16- Objective 1: Aa2 Bond Rating Maintain or improve current Aa2 Bond Rating – Strong credit rating by Moody’s Investors Service (Moody’s), provides low-cost financing for the City’s general obligation bonds. In April 2010, Moody’s recalibrated the City’s bond rating to the global rating scale and, therefore, changed the City’s bond rating from Aa3 to an Aa2. The Aa2 bond rating was reaffirmed with the 2015 bond issuances. The City also received an initial bond rating of AA+ from Standard & Poors (S&P) in 2015. The AA+ bond rating was reaffirmed with the 2016, 2017, 2018, and 2019 bond issuance: Moody's S&P 2015 Aa2 AA+ 2016 AA+ 2017 AA+ 2018 AA+ 2019 AA+ Objective 2: General Fund Reserve Balance Maintain a 40 to 50 percent General Fund reserve balance – The Office of the State Auditor recommends a reserve balance between 35 to 50 percent to provide adequate cash flow, offset revenue shortfalls, and insurance for unforeseen catastrophic events. The City Council adopted a revision to the Comprehensive Financial Management Policy, which established a fund balance policy regarding the minimum unrestricted fund balance for the General Fund. The policy established that the City will strive to maint ain an unrestricted General Fund balance (which includes committed, assigned, and unassigned classifications) within a range from 40 to 50 percent of projected expenditures for the subsequent year. $12,945,738 $13,070,878 $12,767,768 $13,554,319 $14,656,748 $15,077,717 47% 51%52% 53% 54% 67% $11,500,000 $12,000,000 $12,500,000 $13,000,000 $13,500,000 $14,000,000 $14,500,000 $15,000,000 $15,500,000 2015 2016 2017 2018 2019 2020 Subsequent Year’s Budget Actual Fund Balance The increase in the 2020 reserve percentage is primarily due to unbudgeted intergovernmental revenues of $1,951,401 arising from federal coronavirus relief funds. -17- Objective 3: Property Taxes Maintain or improve property tax rank when compared to a broader list of metro area cities. The favorable tax rate provides stimulus for growth of residential and commercial property tax base. This dat a reflects the tax capacity rate, which is based on the levies approved by the City Council to fund general services, such as police, fire, street maintenance, parks, recreation, finance, and general administration, as well as the EDA. The tables do not reflect the market value rate, which is a tax based on market referenda approved by the City’s voters to finance the construction of two fire stations and improvements to the City’s parks and library. Year Seven-County Metro Area City of Prior Lake 2016 42.95 31.95 2017 N/A 32.69 2018 42.19 33.04 2019 41.43 33.02 2020 40.87 32.96 Source: League of Minnesota Cities Average City Tax Capacity Rate -18- Objective 4: Property Taxes/Household Maintain a level of property taxes on a per household basis, which takes into account the cost of inflation and community growth. The goal is to have a tax levy per household that is at or below the rate of inflation and growth over time. This chart reflects community growth and the cost of inflation using the Minneapolis-St. Paul Consumer Price Index (CPI). The 2020 property tax levy included additional funding for EDA for economic initiatives, including downtown redevelopment and areas where costs are coming in higher than the inflation benchmark. $1,000 $1,050 $1,100 $1,150 $1,200 $1,250 $1,300 $1,350 $1,400 2012 2013 2014 2015 2016 2017 2018 2019 2020 Property Tax Levy Per Household Property Tax Levy/HH Expected Property Tax Levy/HH -19- Objective 5: General Fund Expenditures/Household Maintain a level of General Fund operational expenditures on a per household basis, which takes into account the cost of inflation and community growth. The goal is to maintain General Fund operating expenditures per household at or below the rate of inflation over time. This chart reflects community growth and the cost of inflation using the Minneapolis-St. Paul CPI. $1,150 $1,200 $1,250 $1,300 $1,350 $1,400 $1,450 $1,500 $1,550 $1,600 $1,650 $1,700 $1,750 2012 2013 2014 2015 2016 2017 2018 2019 2020 General Fund Total Operating Expenditures Per Household Expected Operating Expenditures/HH Operating Expenditures/HH REQUESTS FOR INFORMATION These financial statements are designed to provide a general overview of the City’s finances for all those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the office of the City’s Finance Director at the City of Prior Lake, 4646 Dakota Street Southeast, Prior Lake, Minnesota 55372-1714. THIS PAGE INTENTIONALLY LEFT BLANK BASIC FINANCIAL STATEMENTS THIS PAGE INTENTIONALLY LEFT BLANK Governmental Business-Type Activities Activities Total Assets Cash and investments 29,074,935$ 10,179,826$ 39,254,761$ Receivables Delinquent taxes 143,143 – 143,143 Accounts 382,277 1,250,306 1,632,583 Special assessments 3,043,786 80,274 3,124,060 Due from other governmental agencies 130,806 13,311 144,117 Restricted assets – temporarily restricted Cash and investments held in escrow 39,777 – 39,777 Prepaid items 70,006 – 70,006 Assets held for resale 417,268 – 417,268 Net pension asset – fire relief 1,228,062 – 1,228,062 Capital assets not being depreciated 86,507,541 2,800,085 89,307,626 Capital assets net of accumulated depreciation 67,088,352 68,716,156 135,804,508 Total assets 188,125,953 83,039,958 271,165,911 Deferred outflows of resources Pension plan deferments – GERF and PEPFF 2,175,791 151,125 2,326,916 Pension plan deferments – fire relief 321,157 – 321,157 OPEB plan deferments 29,546 6,475 36,021 Total deferred outflows of resources 2,526,494 157,600 2,684,094 Total assets and deferred outflows of resources 190,652,447$ 83,197,558$ 273,850,005$ Liabilities Accounts and contracts payable 838,625$ 154,300$ 992,925$ Accrued salaries and employee benefits payable 300,812 56,280 357,092 Due to other governmental agencies 120,833 40,136 160,969 Deposits payable 1,101,248 1,500 1,102,748 Accrued interest payable 40,762 4,138 44,900 Unearned revenue 642,037 – 642,037 Long-term liabilities Total OPEB liability – due in more than one year 709,417 155,471 864,888 Net pension liability – GERF and PEPFF – due in more than one year 6,483,482 1,184,810 7,668,292 Due within one year 4,635,850 344,059 4,979,909 Due in more than one year 31,948,449 2,329,160 34,277,609 Total liabilities 46,821,515 4,269,854 51,091,369 Deferred inflows of resources Pension plan deferments – GERF and PEPFF 2,293,766 63,099 2,356,865 Pension plan deferments – fire relief 504,326 – 504,326 OPEB plan deferments 102,510 22,466 124,976 Total deferred inflows of resources 2,900,602 85,565 2,986,167 Net position Net investment in capital assets 118,120,401 69,058,053 187,178,454 Restricted for debt service 5,333,333 – 5,333,333 Restricted for net pension asset 1,044,893 – 1,044,893 Restricted for capital improvements 2,268,074 – 2,268,074 Restricted for other purposes 2,218,979 – 2,218,979 Unrestricted 11,944,650 9,784,086 21,728,736 Total net position 140,930,330 78,842,139 219,772,469 Total liabilities, deferred inflows of resources, and net position 190,652,447$ 83,197,558$ 273,850,005$ CITY OF PRIOR LAKE Statement of Net Position as of December 31, 2020 See notes to basic financial statements -20- Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental activities General government 3,831,010$ 441,040$ 36,779$ 16,000$ Public safety 7,025,367 1,381,810 1,744,065 28,117 Public works 6,024,512 68,701 824 6,015,365 Culture and recreation 2,127,013 248,451 9,021 177,725 Economic development 964,213 14,817 119 – Interest on long-term debt 896,377 – – – Total governmental activities 20,868,492 2,154,819 1,790,808 6,237,207 Business-type activities Water 3,281,173 4,784,064 18,935 889,695 Sewer 3,397,772 4,399,718 12,645 889,806 Water quality 623,317 1,175,189 4,403 32,638 Total business-type activities 7,302,262 10,358,971 35,983 1,812,139 Total 28,170,754$ 12,513,790$ 1,826,791$ 8,049,346$ 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 Investment income Miscellaneous Gain on sale of assets Transfers Total general revenues and transfers Change in net position Net position Beginning of year End of year CITY OF PRIOR LAKE Statement of Activities Year Ended December 31, 2020 See notes to basic financial statements -21- Governmental Business-Type Activities Activities Total (3,337,191)$ –$ (3,337,191)$ (3,871,375) – (3,871,375) 60,378 – 60,378 (1,691,816) – (1,691,816) (949,277) – (949,277) (896,377) – (896,377) (10,685,658) – (10,685,658) – 2,411,521 2,411,521 – 1,904,397 1,904,397 – 588,913 588,913 – 4,904,831 4,904,831 (10,685,658) 4,904,831 (5,780,827) 10,279,490 – 10,279,490 3,316,380 – 3,316,380 799,587 – 799,587 670,917 – 670,917 1,951,940 – 1,951,940 790,517 298,677 1,089,194 149,353 35,230 184,583 38,913 – 38,913 1,933,050 (1,933,050) – 19,930,147 (1,599,143) 18,331,004 9,244,489 3,305,688 12,550,177 131,685,841 75,536,451 207,222,292 140,930,330$ 78,842,139$ 219,772,469$ Changes in Net Position Net (Expense) Revenues and -22- THIS PAGE INTENTIONALLY LEFT BLANK FUND FINANCIAL STATEMENTS Debt General Service Construction Assets Cash and investments 11,068,473$ 2,813,475$ 1,243,962$ Cash and investments held in escrow – – – Prepaid items 70,006 – – Receivables Delinquent taxes 143,053 – – Accounts 222,709 9,442 7,193 Special assessments Delinquent 1,032 20,829 6,304 Deferred 22,523 2,092,724 56,490 Other (Green Acres)– 451,350 – Due from other governmental agencies 111,466 14,044 – Assets held for resale – – – Total assets 11,639,262$ 5,401,864$ 1,313,949$ Liabilities Accounts and contracts payable 148,134$ 2,769$ 172,575$ Accrued salaries and employee benefits payable 296,621 – – Due to other governmental agencies 120,270 – – Deposits payable 783,822 – – Unearned revenue 23,515 – 584,772 Total liabilities 1,372,362 2,769 757,347 Deferred inflows of resources Unavailable revenue from delinquent taxes 143,053 – – Unavailable revenue from special assessments 9,759 2,564,904 62,794 Total deferred inflows of resources 152,812 2,564,904 62,794 Fund balances Nonspendable 70,006 – – Restricted – 2,834,191 – Assigned 260,704 – 493,808 Unassigned 9,783,378 – – Total fund balances 10,114,088 2,834,191 493,808 Total liabilities, deferred inflows of resources, and fund balances 11,639,262$ 5,401,864$ 1,313,949$ CITY OF PRIOR LAKE Balance Sheet Governmental Funds as of December 31, 2020 See notes to basic financial statements -23- Nonmajor Total Governmental Governmental Funds Funds 13,418,059$ 28,543,969$ 39,777 39,777 – 70,006 90 143,143 139,899 379,243 1,544 29,709 390,990 2,562,727 – 451,350 5,296 130,806 417,268 417,268 14,412,923$ 32,767,998$ 515,147$ 838,625$ 4,191 300,812 563 120,833 317,426 1,101,248 33,750 642,037 871,077 3,003,555 90 143,143 392,535 3,029,992 392,625 3,173,135 – 70,006 4,486,963 7,321,154 8,662,258 9,416,770 – 9,783,378 13,149,221 26,591,308 14,412,923$ 32,767,998$ -24- THIS PAGE INTENTIONALLY LEFT BLANK 26,591,308$ Capital assets are included in net position,but are excluded from fund balances because they do not represent financial resources. Cost of capital assets 225,596,425 Less accumulated depreciation (72,000,532) Net pension assets are included in net position,but are excluded from fund balances because they do not represent financial resources.1,228,062 Long-term liabilities are included in net position,but are excluded from fund balances until due and payable. Bond principal payable (33,100,000) Energy loan payable (1,283,797) Total OPEB liability (709,417) Net pension liability – GERF and PEPFF (6,483,482) Debt issuance premiums and discounts are excluded from net position until amortized,but are included in fund balances upon issuance as other financing sources and uses.(1,251,694) Accrued interest payable on long-term debt is included in net position,but is excluded from fund balances until due and payable.(40,762) Internal service funds are used by management to charge certain costs to individual funds.The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position.(414,808) The recognition of certain revenues and expenses/expenditures differ between the full accrual governmental activities financial statements and the modified accrual governmental fund financial statements. Delinquent property taxes 143,143 Special assessments 3,029,992 Deferred outflows of resources – GERF and PEPFF pension plans 2,175,791 Deferred outflows of resources – fire relief pension plan 321,157 Deferred outflows of resources – OPEB 29,546 Deferred inflows of resources – GERF and PEPFF pension plans (2,293,766) Deferred inflows of resources – fire relief pension plan (504,326) Deferred inflows of resources – OPEB (102,510) Total net position – governmental activities 140,930,330$ Amounts reported for governmental activities in the Statement of Net Position are different because: as of December 31, 2020 CITY OF PRIOR LAKE Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds Total fund balances – governmental funds See notes to basic financial statements -25- Debt General Service Construction Revenues Taxes 8,923,782$ 3,316,380$ –$ Franchise taxes 670,917 – – Special assessments 5,457 616,627 7,824 Licenses and permits 900,601 – – Intergovernmental 4,092,040 – 747,941 Charges for services 1,081,405 – – Fines and forfeits 1,652 – – Investment income 186,820 117,528 73,155 Miscellaneous 159,331 – – Total revenues 16,022,005 4,050,535 828,920 Expenditures Current General government 3,279,680 – – Public safety 6,693,505 – – Public works 1,999,412 – – Culture and recreation 1,628,772 – – Economic development – – – Capital outlay 144,308 – 1,028,446 Debt service Principal – 4,199,126 – Interest and other – 1,125,331 – Total expenditures 13,745,677 5,324,457 1,028,446 Excess (deficiency) of revenues over expenditures 2,276,328 (1,273,922) (199,526) Other financing sources (uses) Contributions from governmental activities – – – Transfers in 470,000 1,260,291 690,000 Transfers out (538,018) (155,645) (257,935) Sale of capital assets 2,603 – – Total other financing sources (uses)(65,415) 1,104,646 432,065 Net change in fund balances 2,210,913 (169,276) 232,539 Fund balances Beginning of year 7,903,175 3,003,467 261,269 End of year 10,114,088$ 2,834,191$ 493,808$ CITY OF PRIOR LAKE Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year Ended December 31, 2020 See notes to basic financial statements -26- Nonmajor Total Governmental Governmental Funds Funds 2,126,031$ 14,366,193$ – 670,917 306,455 936,363 – 900,601 – 4,839,981 1,235,583 2,316,988 – 1,652 396,110 773,613 91,183 250,514 4,155,362 25,056,822 4,724 3,284,404 12,896 6,706,401 – 1,999,412 11,152 1,639,924 170,354 170,354 3,210,304 4,383,058 – 4,199,126 – 1,125,331 3,409,430 23,508,010 745,932 1,548,812 180,868 180,868 733,185 3,153,476 (368,828) (1,320,426) 63,717 66,320 608,942 2,080,238 1,354,874 3,629,050 11,794,347 22,962,258 13,149,221$ 26,591,308$ -27- THIS PAGE INTENTIONALLY LEFT BLANK 3,629,050$ Capital outlays are recorded in net position and the cost is allocated over their estimated useful lives as depreciation expense; however, fund balances are reduced for the full cost of capital outlays at the time of purchase. Capital outlay 3,292,312 Capital contributions 3,236,717 Depreciation expense (4,870,870) Capital contributions from governmental funds (180,868) A gain or loss on the disposal of capital assets,including the difference between the carrying value and any related sale proceeds,is included in the change in net position.However,only the sale proceeds are included in the change in fund balance.(39,214) Net pension assets are only recorded in the government-wide financial statements,as they are not current financial resources to governmental funds.588,288 The amount of debt issued is reported in the governmental funds as a source of financing.Debt obligations are not revenues in the Statement of Activities,but rather constitute long-term liabilities.Repayment of long-term debt does not affect the change in net position; however, it reduces fund balances. Principal repayments 4,199,126 Certain expenses are included in the change in net position,but do not require the use of current funds,and are not included in the change in fund balances. Total OPEB liability (54,838) Net pension liability – GERF and PEPFF (1,004,463) Interest on long-term debt is included in the change in net position as it accrues,regardless of when the payment is due; however, it is included in the change in fund balances when due.49,934 Debt issuance premiums and discounts are included in the change in net position as they are amortized over the life of the debt; however, they are included in the change in fund balances upon issuance as other financing sources and uses. 179,020 Internal service funds are used by management to charge certain costs to individual funds.The net revenue (expense)of certain activities of the internal service funds is reported with governmental activities in the government-wide financial statements.(39,244) The recognition of certain revenues and expenses/expenditures differ between the full accrual governmental activities financial statements and the modified accrual governmental fund financial statements. Delinquent property taxes 29,810 Special assessments (638,806) Deferred outflows of resources – GERF and PEPFF pension plans (784,176) Deferred outflows of resources – fire relief pension plan (240,226) Deferred outflows of resources – OPEB 6,188 Deferred inflows of resources – GERF and PEPFF pension plans 2,088,627 Deferred inflows of resources – fire relief pension plan (216,747) Deferred inflows of resources – OPEB 14,869 9,244,489$ Change in net position – governmental activities CITY OF PRIOR LAKE Year Ended December 31, 2020 Governmental Funds to the Statement of Activities Amounts reported for governmental activities in the Statement of Activities are different because: Total net change in fund balances – governmental funds Revenues, Expenditures, and Changes in Fund Balances Reconciliation of the Statement of See notes to basic financial statements -28- THIS PAGE INTENTIONALLY LEFT BLANK Actual Variance With Original Final Amounts Final Budget Revenues Taxes Property taxes 8,953,156$ 8,953,156$ 8,923,782$ (29,374)$ Franchise taxes 630,000 630,000 670,917 40,917 Special assessments 5,000 5,000 5,457 457 Licenses and permits 830,464 830,464 900,601 70,137 Intergovernmental 2,126,362 2,126,362 4,092,040 1,965,678 Charges for services 1,178,050 1,178,050 1,081,405 (96,645) Fines and forfeits – – 1,652 1,652 Investment income 102,700 102,700 186,820 84,120 Miscellaneous 159,766 159,766 159,331 (435) Total revenues 13,985,498 13,985,498 16,022,005 2,036,507 Expenditures Current General government 3,283,425 3,256,464 3,279,680 23,216 Public safety Police 4,848,910 4,855,232 5,011,955 156,723 Fire and rescue 1,038,440 1,038,440 995,854 (42,586) Other 647,988 719,989 685,696 (34,293) Public works 2,200,445 2,215,845 1,999,412 (216,433) Culture and recreation 2,166,203 2,214,173 1,628,772 (585,401) Capital outlay 68,319 77,049 144,308 67,259 Total expenditures 14,253,730 14,377,192 13,745,677 (631,515) Excess (deficiency) of revenues over expenditures (268,232) (391,694) 2,276,328 2,668,022 Other financing sources (uses) Transfers in 470,000 470,000 470,000 – Transfers out (403,018) (438,018) (538,018) (100,000) Sale of assets – – 2,603 2,603 Total other financing sources (uses)66,982 31,982 (65,415) (97,397) Net change in fund balances (201,250)$ (359,712)$ 2,210,913 2,570,625$ Fund balances Beginning of year 7,903,175 End of year 10,114,088$ CITY OF PRIOR LAKE Budgeted Amounts Year Ended December 31, 2020 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual See notes to basic financial statements -29- 2020 2019 2020 2019 Current assets Cash and investments 5,604,480$ 5,775,364$ 2,635,109$ 1,992,299$ Receivables Accounts 399,384 398,848 680,551 606,549 Special assessments Delinquent 39,318 49,624 39,318 49,624 Deferred 1,638 1,633 – – Due from other governmental agencies 2,645 2,231 124 180 Total current assets 6,047,465 6,227,700 3,355,102 2,648,652 Noncurrent assets Capital assets not being depreciated 2,602,388 2,575,270 12,118 – Depreciable capital assets 52,086,842 51,188,338 35,179,400 34,182,869 Accumulated depreciation (12,024,118) (11,068,791) (8,937,816) (8,323,323) Total noncurrent assets 42,665,112 42,694,817 26,253,702 25,859,546 Total assets 48,712,577 48,922,517 29,608,804 28,508,198 Deferred outflows of resources Pension plan deferments – GERF 60,771 45,893 62,894 43,362 OPEB plan deferments 2,770 2,247 2,569 1,989 Total deferred outflows of resources 63,541 48,140 65,463 45,351 Total assets and deferred outflows of resources 48,776,118$ 48,970,657$ 29,674,267$ 28,553,549$ Current liabilities Accounts and contracts payable 41,492$ 382,909$ 33,916$ 129,511$ Accrued salaries and employee benefits payable 22,533 46,270 25,143 42,453 Due to other governmental agencies 35,164 1,098,043 3,543 5,848 Deposits payable 1,500 4,500 – – Accrued interest payable 2,069 2,269 2,069 2,269 Current portion of compensated absences payable 50,014 39,289 39,592 18,618 Current portion of bonds payable 120,000 120,000 120,000 120,000 Total current liabilities 272,772 1,693,280 224,263 318,699 Noncurrent liabilities Compensated absences payable 78,845 77,991 26,962 46,211 Bonds premium (discount)134,094 150,856 134,094 150,856 Bonds payable 975,000 1,095,000 975,000 1,095,000 Net pension liability – GERF 476,440 433,789 493,085 409,860 Total OPEB Liability 66,510 62,971 61,684 55,755 Total noncurrent liabilities 1,730,889 1,820,607 1,690,825 1,757,682 Total liabilities 2,003,661 3,513,887 1,915,088 2,076,381 Deferred inflows of resources Pension plan deferments – GERF 25,374 91,114 26,260 86,088 OPEB plan deferments 9,611 11,292 8,913 9,998 Total deferred inflows of resources 34,985 102,406 35,173 96,086 Net position Net investment in capital assets 41,436,018 41,328,961 25,024,608 24,493,690 Unrestricted 5,301,454 4,025,403 2,699,398 1,887,392 Total net position 46,737,472 45,354,364 27,724,006 26,381,082 Total liabilities, deferred inflows of resources, and net position 48,776,118$ 48,970,657$ 29,674,267$ 28,553,549$ CITY OF PRIOR LAKE Statement of Net Position Proprietary Funds as of December 31, 2020 Business-Type Activities – Enterprise Funds Water Sewer (With Partial Comparative Information as of December 31, 2019) See notes to basic financial statements -30- Governmental Activities – Internal Service 2020 2019 2020 2019 Fund 1,940,237$ 1,404,780$ 10,179,826$ 9,172,443$ 530,966$ 170,371 168,353 1,250,306 1,173,750 3,034 – – 78,636 99,248 – – – 1,638 1,633 – 10,542 12,327 13,311 14,738 – 2,121,150 1,585,460 11,523,717 10,461,812 534,000 185,579 146,682 2,800,085 2,721,952 – 3,302,231 3,203,355 90,568,473 88,574,562 – (890,383) (773,832) (21,852,317) (20,165,946) – 2,597,427 2,576,205 71,516,241 71,130,568 – 4,718,577 4,161,665 83,039,958 81,592,380 534,000 27,460 17,597 151,125 106,852 – 1,136 828 6,475 5,064 – 28,596 18,425 157,600 111,916 – 4,747,173$ 4,180,090$ 83,197,558$ 81,704,296$ 534,000$ 78,892$ 114,352$ 154,300$ 626,772$ –$ 8,604 15,768 56,280 104,491 – 1,429 2,411 40,136 1,106,302 – – – 1,500 4,500 – – – 4,138 4,538 – 14,453 8,483 104,059 66,390 360,991 – – 240,000 240,000 – 103,378 141,014 600,413 2,152,993 360,991 5,165 9,422 110,972 133,624 587,817 – – 268,188 301,712 – – – 1,950,000 2,190,000 – 215,285 166,330 1,184,810 1,009,979 – 27,277 23,219 155,471 141,945 – 247,727 198,971 3,669,441 3,777,260 587,817 351,105 339,985 4,269,854 5,930,253 948,808 11,465 34,936 63,099 212,138 – 3,942 4,164 22,466 25,454 – 15,407 39,100 85,565 237,592 – 2,597,427 2,576,205 69,058,053 68,398,856 – 1,783,234 1,224,800 9,784,086 7,137,595 (414,808) 4,380,661 3,801,005 78,842,139 75,536,451 (414,808) 4,747,173$ 4,180,090$ 83,197,558$ 81,704,296$ 534,000$ Water Quality Totals -31- 2020 2019 2020 2019 Operating revenues Sewer charges –$ –$ 4,034,543$ 3,341,491$ Water charges 4,273,809 3,338,696 – – Storm water charges – – – – Capital facility charges 383,331 280,532 365,175 280,542 Meter sales 126,924 153,312 – – Charges for services – 19,781 – – Total operating revenues 4,784,064 3,792,321 4,399,718 3,622,033 Operating expenses Personal services 761,721 805,403 801,367 813,914 Supplies 355,088 321,455 47,654 44,624 Repairs and maintenance 402,654 234,088 35,494 123,317 Other services and charges 153,624 166,945 117,411 111,946 Insurance 7,210 36,733 25,998 36,733 Utilities 596,704 530,893 59,732 42,736 Disposal charges – – 1,658,137 1,544,728 Miscellaneous 11,355 – – – Depreciation 955,327 888,449 614,493 563,826 Total operating expenses 3,243,683 2,983,966 3,360,286 3,281,824 Operating income (loss)1,540,381 808,355 1,039,432 340,209 Nonoperating revenues (expenses) Intergovernmental 18,935 1,583 12,645 954 Investment income 172,842 184,077 70,637 68,827 Gain (loss) on sale of capital assets – (3,000) – – Interest expense (37,490)(39,273) (37,486) (39,269) Miscellaneous 13,905 18,166 – 942 Total nonoperating revenues 168,192 161,553 45,796 31,454 Income (loss) before contributions and transfers 1,708,573 969,908 1,085,228 371,663 Special assessments 3,391 6,614 – – Capital grants – – 2,601 (3,734) Capital contributions from other funds – 2,537,191 – 1,709,980 Capital contributions from developers 886,304 285,509 887,205 310,986 Transfers in – 1,873,151 – 306,280 Transfers out (1,215,160) (995,495) (632,110) (527,147) Change in net position 1,383,108 4,676,878 1,342,924 2,168,028 Net position Beginning of year 45,354,364 40,677,486 26,381,082 24,213,054 End of year 46,737,472$ 45,354,364$ 27,724,006$ 26,381,082$ Business-Type Activities – Enterprise Funds CITY OF PRIOR LAKE Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds Year Ended December 31, 2020 Water Sewer (With Partial Comparative Information for the Year Ended December 31, 2019) See notes to basic financial statements -32- Governmental Activities – Internal Service 2020 2019 2020 2019 Fund –$ –$ 4,034,543$ 3,341,491$ –$ – – 4,273,809 3,338,696 – 1,175,189 1,060,295 1,175,189 1,060,295 – – – 748,506 561,074 – – – 126,924 153,312 – – – – 19,781 32,368 1,175,189 1,060,295 10,358,971 8,474,649 32,368 343,057 304,445 1,906,145 1,923,762 212,562 28,408 18,441 431,150 384,520 – 74,117 115,319 512,265 472,724 – 61,184 39,022 332,219 317,913 – – – 33,208 73,466 – – – 656,436 573,629 – – – 1,658,137 1,544,728 – – – 11,355 – – 116,551 134,427 1,686,371 1,586,702 – 623,317 611,654 7,227,286 6,877,444 212,562 551,872 448,641 3,131,685 1,597,205 (180,194) 4,403 387 35,983 2,924 – 55,198 37,397 298,677 290,301 16,904 – – – (3,000) – – – (74,976) (78,542) – 21,325 12,327 35,230 31,435 24,046 80,926 50,111 294,914 243,118 40,950 632,798 498,752 3,426,599 1,840,323 (139,244) – – 3,391 6,614 – – – 2,601 (3,734) – – 335,892 – 4,583,063 – 32,638 17,600 1,806,147 614,095 – – 267,517 – 2,446,948 100,000 (85,780) (126,760) (1,933,050) (1,649,402) – 579,656 993,001 3,305,688 7,837,907 (39,244) 3,801,005 2,808,004 75,536,451 67,698,544 (375,564) 4,380,661$ 3,801,005$ 78,842,139$ 75,536,451$ (414,808)$ Water Quality Totals -33- 2020 2019 2020 2019 Cash flows from operating activities Cash received from customers 4,790,415$ 3,808,967$ 4,336,078$ 3,603,484$ Cash payments to suppliers (2,930,931) (2,299,532) (2,042,326) (1,948,990) Cash payments to employees (810,511) (750,358) (808,823) (722,460) Miscellaneous/other revenue 13,905 18,166 – 942 Net cash flows from operating activities 1,062,878 777,243 1,484,929 932,976 Cash flows from noncapital financing activities Intergovernmental revenue 18,935 1,583 12,645 954 Transfers in – 1,873,151 – 306,280 Transfers (out)(1,215,160) (995,495) (632,110) (527,147) Net cash flows from noncapital financing activities (1,196,225) 879,239 (619,465) (219,913) Cash flows from capital and related financing activities Special assessments 3,391 6,614 – – Capital grants – – 2,601 (3,734) Acquisition of capital assets (39,318) (2,360,036) (121,444) (418,887) Payments on bonds payable (120,000) (105,000) (120,000) (105,000) Interest paid on long-term debt (54,452) (78,204) (54,448) (78,200) Net cash flows from capital and related financing activities (210,379) (2,536,626) (293,291) (605,821) Cash flows from investing activities Interest received 172,842 184,077 70,637 68,827 Net increase (decrease) in cash and cash equivalents (170,884) (696,067) 642,810 176,069 Cash and cash equivalents, January 1 5,775,364 6,471,431 1,992,299 1,816,230 Cash and cash equivalents, December 31 5,604,480$ 5,775,364$ 2,635,109$ 1,992,299$ Water Sewer Business-Type Activities – Enterprise Funds CITY OF PRIOR LAKE Statement of Cash Flows Proprietary Funds Year Ended December 31, 2020 (With Partial Comparative Information for the Year Ended December 31, 2019) See notes to basic financial statements -34- Governmental Activities – Internal Service 2020 2019 2020 2019 Fund 1,174,956$ 1,032,454$ 10,301,449$ 8,444,905$ 32,492$ (200,151) (236,456) (5,173,408) (4,484,978) – (329,359) (306,773) (1,948,693) (1,779,591) (104,785) 21,325 12,327 35,230 31,435 23,989 666,771 501,552 3,214,578 2,211,771 (48,304) 4,403 387 35,983 2,924 – – 267,517 – 2,446,948 100,000 (85,780) (126,760) (1,933,050) (1,649,402) – (81,377) 141,144 (1,897,067) 800,470 100,000 – – 3,391 6,614 – – – 2,601 (3,734) – (105,135) (71,569) (265,897) (2,850,492) – – – (240,000) (210,000) – – – (108,900) (156,404) – (105,135) (71,569) (608,805) (3,214,016) – 55,198 37,397 298,677 290,301 16,904 535,457 608,524 1,007,383 88,526 68,600 1,404,780 796,256 9,172,443 9,083,917 462,366 1,940,237$ 1,404,780$ 10,179,826$ 9,172,443$ 530,966$ TotalsWater Quality -35-(continued) 2020 2019 2020 2019 Reconciliation of operating income (loss) to net cash flows from operating activities Operating income (loss)1,540,381$ 808,355$ 1,039,432$ 340,209$ Adjustments to reconcile operating income (loss) to net cash flows from operating activities Depreciation 955,327 888,449 614,493 563,826 Miscellaneous / other revenue 13,905 18,166 – 942 (Increase) decrease in assets and deferred outflows of resources Accounts receivable (536) 28,058 (74,002) (7,348) Special assessments receivable 10,301 (10,095) 10,306 (11,193) Due from other governments (414) (1,317) 56 (8) Deferred outflows of resources – GERF (14,878) 31,808 (19,532) 21,388 Deferred outflows of resources – OPEB (523) 756 (580) 1,014 Increase (decrease) in liabilities and deferred inflows of resources Accounts and contracts payable (341,417) 132,598 (95,595) (43,234) Accrued salaries and employee benefits payable (23,737) 12,568 (17,310) 6,411 Due to other governmental agencies (1,062,879) (1,142,016) (2,305) (1,672) Deposits payable (3,000) – – – Compensated absences payable 11,579 16,952 1,725 12,036 Net pension liability – GERF 42,651 (2,252) 83,225 46,493 Total OPEB liability 3,539 27,414 5,929 20,198 Deferred inflows of resources – GERF (65,740) (43,493) (59,828) (26,084) Deferred inflows of resources – OPEB (1,681) 11,292 (1,085) 9,998 Net cash flows from operating activities 1,062,878$ 777,243$ 1,484,929$ 932,976$ Schedule of noncash activities from capital and related financing activities Capital assets contributed from other funds –$ 2,537,191$ –$ 1,709,980$ Capital assets contributed by developers 886,304$ 285,509$ 887,205$ 310,986$ Business-Type Activities – Enterprise Funds Water CITY OF PRIOR LAKE Sewer Statement of Cash Flows (continued) Proprietary Funds Year Ended December 31, 2020 (With Partial Comparative Information for the Year Ended December 31, 2019) See notes to basic financial statements -36- Governmental Activities – Internal Service 2020 2019 2020 2019 Fund 551,872$ 448,641$ 3,131,685$ 1,597,205$ (180,194)$ 116,551 134,427 1,686,371 1,586,702 – 21,325 12,327 35,230 31,435 24,046 (2,018) (15,514) (76,556) 5,196 67 – – 20,607 (21,288) – 1,785 (12,327) 1,427 (13,652) – (9,863) 14,778 (44,273) 67,974 – (308) 460 (1,411) 2,230 – (35,460) 79,326 (472,472) 168,690 – (7,164) 3,385 (48,211) 22,364 – (982) (143,000) (1,066,166) (1,286,688) – – – (3,000) – – 1,713 3,407 15,017 32,395 107,777 48,955 (15,352) 174,831 28,889 – 4,058 7,980 13,526 55,592 – (23,471) (21,150) (149,039) (90,727) – (222) 4,164 (2,988) 25,454 – 666,771$ 501,552$ 3,214,578$ 2,211,771$ (48,304)$ –$ 335,892$ –$ 4,583,063$ –$ 32,638$ 17,600$ 1,806,147$ 614,095$ –$ TotalsWater Quality -37- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF PRIOR LAKE Notes to Basic Financial Statements December 31, 2020 -38- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES A. Organization The City of Prior Lake, Minnesota (the City) operates under “Optional Plan B” as defined in Minnesota Statutes. Under this plan, the government of the City is directed by a City Council composed of an elected mayor and four elected councilmembers. 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 accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to governmental units. B. Reporting Entity As required by accounting principles generally accepted in the United States of America, these financial statements include the City (the primary government) and its component units. Component units are legally separate entities for which the primary government is financially accountable, or for which t he exclusion of the component unit would render the financial statements of the primary government misleading . The criteria used to determine if the primary government is financially accountable for a component unit includes whether or not the primary government appoints the voting majority of the potential component unit’s board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. As a result of applying these criteria, certain organizations have been included or disclosed in this report as follows: Blended Component Unit – The Prior Lake Economic and Development Authority (EDA) was created pursuant to Minnesota Statutes § 469.090 through § 469.108 to carryout economic and industrial development and redevelopment within the City in accordance with policies established by the City Council. The five-member Board of Directors consists of two councilmembers and three members appointed from the community by the City Council. The EDA is reported as a blended component unit within the EDA Special Revenue Fund. Separate financial statements are not issued for this component unit. The EDA may not exercise any of the powers enumerated by the authorizing statutes without prior approval of the City Council. C. Government-Wide Financial Statements The government-wide financial statements (Statement of Net Position and Statement of Activities) display information about the reporting government as a whole. These statements include all of the financial activities of the City. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which significantly rely upon sales, fees, and charges for support. -39- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. 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, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other internally directed revenues are reported as general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes and special assessments are recognized as revenues in the fiscal year for which they are certified for levy. Grants and similar items are recognized when all eligibility requirements imposed by the provider have been met. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. However, charges between the City’s enterprise funds and other functions are not eliminated, as that would distort the direct costs and program revenues reported in those functions. The City applies restricted resources first when an expense is incurred for which both restricted and unrestricted resources are available. Depreciation expense is included in the direct expenses of each function. Interest on long-term debt is considered an indirect expense and is reported separately on the Statement of Activities. D. Fund Financial Statement Presentation Separate fund financial statements are provided for governmental and proprietary funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements. Aggregated information for the remaining nonmajor governmental funds is reported in a single column in the fund financial statements. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this basis of accounting, transactions are recorded in the following manner: 1. Revenue Recognition – Revenue is recognized when it becomes measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are coll ected within 60 days after year-end. 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. Grants and similar items are recognized when all eligibility requirements imposed by the provider have been met. Proceeds of long-term debt and acquisitions under capital leases are reported as other financing sources. Major revenue that is susceptible to accrual includes property taxes, franchise taxes, special assessments, intergovernmental revenue, charges for services, and interest earned on investments. Major revenue that is not susceptible to accrual includes licenses and permits, fees, and miscellaneous revenue. Such revenue is recorded only when received because it is not measurable until collected. 2. Recording of Expenditures – Expenditures are generally recorded when a liability is incurred, except for principal and interest on long-term debt, compensated absences, and other long-term liabilities, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as capital outlay expenditures in the governmental funds. -40- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, similar to the 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’s enterprise funds and internal service funds are charges to customers for sales and services. The operating expenses for the enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses that do not meet this definition are reported as nonoperating revenues and expenses. Aggregated information for the internal service funds is reported in a single column in the proprietary fund financial statements. Because the principal user of the internal services is the City’s governmental activities, the financial statements of the internal service funds are consolidated into the governmental column when presented in the government-wide financial statements. The cost of these services is reported in the appropriate functional activity. Description of Funds The City reports the following major governmental funds: General Fund – This is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Debt Service Fund – This fund accounts for the resources accumulated to provide repayment of the City’s general obligation debt. Construction Capital Project Fund – This fund accounts for the resources accumulated and payments made for city projects. The City reports the following major proprietary funds: Water Fund – This fund is used to account for the operation, maintenance, and improvement of the City’s water system. Sewer Fund – This fund is used to account for the operation, maintenance, and improvement of the City’s sewer collection operations. Water Quality Fund – This fund accounts for the costs associated with the City’s storm water system. The City also reports the following fund type: Internal Service Funds – Internal service funds account for the financing of goods and services provided to other departments or agencies of the City on a cost-reimbursement basis. The City utilizes a Severance Compensation Internal Service Fund and an Insurance Internal Service Fund in managing city operations. -41- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Cash and Investments 1. Deposits and Investments The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, government securities, and short-term investments with original maturities of three months or less from the date of acquisition. Cash balances from all funds are combined and invested to the extent available in short -term investments. Earnings from the pooled investments are allocated to the individual funds based on the average monthly cash and investment balances of the respective funds. The Minnesota Municipal Money Market (4M) Fund is a customized cash management and investment program for Minnesota public funds. Sponsored and governed by the League of Minnesota Cities since 1987, the 4M Fund is a unique investment alternative designed to address the daily and long-term investment needs of Minnesota cities and other municipal entities. Allowable under Minnesota Statutes, the 4M Fund is comprised of top quality-related investments. Investments are generally stated at fair value, except for investments in external investment pools, which are stated at amortized cost. Short-term, highly liquid debt instruments (including bankers’ acceptance and U.S. treasury and agency obligations) purchased with a remaining maturity of one year or less may also be reported at amortized cost. Investment income is accrued at the Balance Sheet date. Cash held in escrow includes balances held in escrow accounts for future capital projects from energy loan proceeds and cash deposits in the police department. Earnings on these accounts are allocated directly to those funds. The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. 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; and Level 3 inputs are significant unobservable inputs. Debt securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. See Note 2 for the City’s recurring fair value measurements as of year-end. -42- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Investment Policy The City’s investment policy contains the following restrictions: a) Allowable Investments The City may invest in any type of security allowed by Minnesota Statutes and may be amended from time to time. The City has chosen to limit its allowable investments to those instruments listed below: 1) Bonds, notes, certificates of indebtedness, treasury bills, or other securities now or hereafter issued by the United States of America, its agencies and allowable instrumentalities. 2) Interest-bearing checking and savings accounts, or any other investments constituting direct obligations of any bank. 3) Certificates of deposit at state and federally-chartered institutions that are limited to the amount of coverage provided by the Federal Deposit Insurance Corporation (FDIC). 4) Money market accounts that are invested in the above referenced government securities. 5) State and local securities, which have at the time of investment one of the three highest credit ratings by a nationally recognized rating agency. 6) Investments may be made only in those savings banks or savings and loan associations the shares, or investment certificates, of which are insured by the FDIC. 7) Bankers’ acceptances issued by United States banks and commercial paper issued by a United States corporation or its Canadian subsidiary that is rated in the highest quality category by at least two nationally recognized rating agencies and mature in 270 days or less . 8) Investment products that are considered as derivatives are specifically excluded from approved investments. b) Diversification It is the policy of the City to diversify its investment portfolio. Investments shall be diversified to eliminate the risk of loss resulting in over concent ration in a specific maturity, issuers, or class of securities. Diversification strategies shall be determined and revised periodically by the City’s finance director. The diversification shall be as follows: 1) Up to 100 percent of 2. a) 1) 2) Up to 100 percent of 2. a) 2) and 2. a) 3) 3) Up to 25 percent of 2. a) 4) 4) Up to 25 percent of 2. a) 5) 5) Up to 10 percent of 2. a) 6 and 2. a) 7) c) Duration It is the policy of the City to require that all investment maturities shall not extend beyond 10 years with no more than 20 percent maturing beyond 5 years. Subject to market conditions and cash flow requirements, it is desirable for the City’s investments to be laddered over time in an effort to reduce interest rate market risk. -43- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Receivables Accounts receivable include amounts billed for services provided before year-end. The City annually certifies delinquent water and sewer accounts to the county for collection in the following year. Therefore, there has been no allowance for doubtful accounts established. G. Property Taxes Property tax levies are set by the City Council in December of each year and are certified to Scott County for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. The county spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City on that date. Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes are due in full on May 15. The county provides tax settlements to cities and other taxing districts three times a year; in July, December, and January. Taxes which remain unpaid on December 31 are classified as delinquent taxes receivable. H. Special Assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as delinquent (levied but unremitted) or deferred (certified but not yet levied), or other (Green Acres) special assessments receivable. Deferred contingent special assessments represent assessments on undeveloped property that will not be levied and collected until the properties are subdivided or developed. I. 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. Prepaid items are reported using the consumption method and recorded as expenses/expenditures at the time of consumption. J. Assets Held for Resale Assets held for resale are reported as an asset in the government-wide and fund financial statements. These assets are reported at the lower of cost or acquisition value. K. Interfund Receivables and Payables In the fund financial statements, activity between funds that is representative of lending or borrowing arrangements is reported as either “due to/from other funds” (current portion) or “advances to/from other funds.” 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.” -44- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Capital Assets Capital assets, which include property, buildings, improvements, equipment, infrastructure assets (roads, bridges, sidewalks, and similar items), and intangible assets, such as water access agreements and easements, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Such assets are capitalized at historical cost, or estimated historical cost for assets where actual historical cost is not available. Donated assets are recorded as capital assets at their estimated acquisition value on the date of donation. The City defines capital assets as those with an initial, individual cost of $5,000 or more with an estimated useful life in excess of one year. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. In the case of initial capitalization of general infrastructure assets (i.e., those reported by governmental activities) the City chose to include items dating back to June 30, 1980. The City was able to estimate the historical cost for the initial reporting of these assets through back -trending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). Capital assets are recorded in the government-wide and proprietary fund financial statements, but are not reported in the governmental fund financial statements. 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 Land improvements 5–20 Machinery and equipment 5–30 Vehicles 8–25 Infrastructure 10–65 Land, utility access agreements, easements, and construction in progress are not depreciated. M. Compensated Absences It is the City’s policy to permit employees to accumulate earned but unused vacation and sick leave. Upon separation, unused vacation and 50 percent of sick pay are paid to the employee if employed longer than five years. The majority of separation benefits are paid into a retirement health savings plan. As benefits accrue to employees, vacation, and vested sick leave is reported as expense and liability in the government-wide and proprietary fund financial statements. Accrued vacation, and the portion of sick leave payable to employees upon termination are reported as expenditures in the governmental fund that will pay them when they become due and payable. The City has provided funding for these obligations in the Severance Compensation Internal Service Fund and enterprise funds. -45- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. Long-Term Liabilities In the government-wide and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. In the fund financial statements, governmental fund types recognize 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. O. Other Post-Employment Benefits (OPEB) Under Minnesota Statutes § 471.61, Subd. 2b, public employers must allow retirees and their dependents to continue coverage indefinitely in an employer-sponsored healthcare plan, under the following conditions: 1) retirees must be receiving (or be eligible to receive) an annuity from a Minnesota public pension plan; 2) coverage must continue in a 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. P. State-Wide Pension Plans 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 the PERA’s fiduciary net position have been determined on the same basis as they are reported by the PERA. 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. Q. Deferred Outflows/Inflows of Resources In addition to assets and liabilities, statements of financial position, or balance sheets, will sometimes report a separate section for deferred outflows and deferred inflows of resources. These separate financial statement elements represent a consumption or acquisition of net position that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) or an inflow of financial resources (revenue) until then. The City reports deferred outflows and inflows of resources related to pensions and OPEB in the government-wide and enterprise funds Statement of Net Position. These deferred outflows and inflows result from differences between expected and actual experience, changes in proportion, changes of assumptions, difference between projected and actual earnings on pension plan investments, and from contributions to the plan subsequent to the measurement date and before the end of the reporting period. These amounts are deferred and amortized as required under pension and OPEB standards. Unavailable revenue, arises only under a modified accrual basis of accounting and, therefore, is only reported in the governmental funds Balance Sheet. The governmental funds report unavailable revenue from two sources: property taxes and special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. -46- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) R. Net Position In the government-wide and proprietary fund financial statements, net position represents the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources. Net position is displayed in three components: • Net Investment in Capital Assets – Consists of capital assets, net of accumulated depreciation, reduced by any outstanding debt attributable to acquire capital assets. • Restricted Net Position – Consists of net position restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. • Unrestricted Net Position – All other elements of net position that do not meet the definition of “restricted” or “net investment in capital assets.” The City applies restricted resources first when an expense is incurred for which both restricted and unrestricted resources are available. S. Fund Balance Classifications In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: • Nonspendable – Consists of amounts that are not in spendable form, such as prepaid items, inventory, and other long-term assets. • Restricted – Consists of amounts related to externally imposed constraints established by creditors, grantors, or contributors; or constraints imposed by state statutory provisions. • Committed – Consists of internally imposed constraints that are established by resolution of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. • Assigned – Consists of internally imposed constraints. These constraints consist of amounts intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds, assigned amounts represent intended uses established by the governing body itself or by an official to which the governing body delegates the authority. Pursuant to City Council resolution, the finance director is authorized to establish assignments of fund balance. • Unassigned – The residual classification for the General Fund, which also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, then use unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for use, it is the City’s policy to use resources in the following order: 1) committed, 2) assigned, and 3) unassigned. -47- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) T. Comparative Data The basic financial statements include certain prior year partial comparative information in total, but not at the level of detail required for a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the City’s financial statements for the year ended December 31, 2019, from which the summarized information was derived. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year’s presentation. U. Budgets and Budgetary Accounting Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the General Fund. All annual appropriations lapse at year-end. The City does not use encumbrance accounting. In June of each year, all departments of the City submit requests for appropriations to the finance director so that a budget may be prepared. In September, 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 early December. The appropriated budget is prepared by fund, function, and department. The City’s department heads may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the city manager. The legal level of budgetary control is the fund level. V. Statement of Cash Flows For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an original maturity from the time of purchase by the City of three months or less to be cash equivalents. The proprietary funds’ portion in the government-wide cash and investment management pool is considered to be cash equivalent. W. 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; and natural disasters. The City participates in the League of Minnesota Cities Insurance Trust (LMCIT), a public entity risk pool for its general property and casualty, workers’ compensation, and other miscellaneous insurance coverages. The LMCIT operates as a common risk management and insurance program for a large number of cities in Minnesota. The City pays an annual premium to the LMCIT for insurance coverage. The LMCIT agreement provides that the trust will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of certain limits. Settled claims did not exceed insurance coverage in the past three fiscal years. There were no significant reductions in insurance coverage in the current year. X. Restricted Assets Restricted assets are cash, investments, and interest accrued thereon; the use of which is limited by external requirements, such as a bond indenture or trust agreements. Y. Use of Estimates The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect amounts reported in the financial statements during the reporting period. Actual results could differ from those estimates. -48- NOTE 2 – CASH AND INVESTMENTS A. Components of Cash and Investments Cash and investments at year-end consist of the following: Deposits 297,110$ Investments 38,996,478 Cash on hand 950 Total 39,294,538$ Cash and investments are presented in the financial statements as follows: Statement of Net Position Cash and investments 39,254,761$ Restricted assets – temporarily restricted – cash and investments held in escrow 39,777 Total 39,294,538$ B. Deposits In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks authorized by the City Council, including checking accounts and certificates of deposit. The following is considered the most significant risk associated with deposits: Custodial Credit Risk – In the case of deposits, this is the risk that in the event of a bank failure, the City’s deposits may be lost. Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated “A” or better; revenue obligations rated “AA” or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as collateral be held in safekeeping in a restricted account at the 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 City has no additional deposit policies addressing custodial credit risk. At year-end, the carrying amount of the City’s deposits was $298,060, while the balance on the bank records was $784,818. At December 31, 2020, all deposits were fully covered by federal deposit insurance, surety bonds, or by collateral held by the City’s agent in the City’s name. -49- NOTE 2 – CASH AND INVESTMENTS (CONTINUED) C. Investments The City has the following investments at year-end: Fair Value Investment Type Rating Agency Measurement Less Than 1 1 to 5 Total U.S. agency securities AA S&P Level 2 200,340$ –$ 200,340$ Local government securities AAA S&P Level 2 – 1,426,816 1,426,816 Local government securities AAA Moody’s Level 2 260,489 488,915 749,404 Local government securities AA S&P Level 2 2,531,243 1,897,832 4,429,075 Local government securities AA Moody’s Level 2 379,664 3,986,783 4,366,447 Local government securities A S&P Level 2 301,276 265,498 566,774 Local government securities MIG1 Moody's Level 2 604,434 – 604,434 Negotiable certificates of deposit N/R N/A Level 2 2,684,574 10,031,517 12,716,091 6,962,020$ 18,097,361$ 25,059,381 Investment pools/mutual funds 4M Fund N/R N/A Amortized Cost 10,030,757 U.S. Treasuries Fund AAA S&P Level 1 1,222,058 Government Obligation Fund AAA S&P Level 1 1,094,325 U.S. Government Securities Money Market Fund AAA S&P Level 1 1,589,957 Total investment pools/ mutual funds 13,937,097 Total investments 38,996,478$ N/A – Not Applicable N/R – Not Rated Credit Risk Interest Risk – Segmented Time Distribution in Years The City’s investments include investment pools managed by the 4M Fund, which is an external investment pool regulated by Minnesota Statutes and is not registered with the Securities and Exchange Commission. The City’s investments in this investment pool are measured at the net asset value per share provided by the pools, which are based on amortized cost methods that approximate fair value. There are no restrictions or limitations on withdrawals from the 4M Fund. The 4M Fund term series portfolios are intended to be held until maturity; a participant’s withdrawal prior to maturity will require seven-days’ notice of redemption and will likely carry a penalty, which could be substantial in that it would be intended to allow the term series portfolio to recoup any associated penalties, charges, losses, or other costs associated with the early redemption of the investments therein. Investments are subject to various risks, the following of which are considered the most significant: Custodial Credit Risk – For investments, this is the risk that in the event of a failure of the counterparty to an investment transaction (typically a broker-dealer) the City would not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City does not have a formal investment policy addressing this risk, but typically limits its exposure by purchasing insured or registered investments, or by the control of who holds the securities. -50- NOTE 2 – CASH AND INVESTMENTS (CONTINUED) Credit Risk – This is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Minnesota Statutes limit the City’s investments to direct obligations or obligations guaranteed by the United States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of 13 months or less; general obligations rated “A” or better; revenue obligations rated “AA” or better; general obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of a foreign bank, or a United States insurance company, and with a credit quality in one of the top two highest categories; repurchase or reverse purchase 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 $10,000,000; that are a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or certain Minnesota securities broker-dealers. The City’s investment policy as described in Note 1 addresses credit risk. Concentration Risk – This is the risk associated with investing a significant portion of the City’s investment (considered 5.0 percent or more) in the securities of a single issuer, excluding U.S. guaranteed investments (such as treasuries), investment pools, and mutual funds. The City’s investment policy as described in Note 1, addresses concentration risk. Interest Rate Risk – This is the risk of potential variability in the fair value of fixed rate investments resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the greater the risk). The City has an investment policy as described in Note 1, which addresses interest rate risk. -51- NOTE 3 – CAPITAL ASSETS Capital asset activity for the year ended December 31, 2020 was as follows: A. Changes in Capital Assets Used in Governmental Activities Transfers Beginning and Completed of Year Additions Deletions Construction End of Year Capital assets, not depreciated Land 33,269,751$ –$ –$ (180,868)$ 33,088,883$ Easements 48,173,410 507,210 – – 48,680,620 Construction in progress 3,820,430 1,273,570 – (355,962) 4,738,038 Total capital assets, not depreciated 85,263,591 1,780,780 – (536,830) 86,507,541 Capital assets, depreciated Land improvements 2,832,128 – – – 2,832,128 Machinery and equipment 7,360,762 403,053 (386,382) 48,800 7,426,233 Vehicles 6,964,941 629,847 (633,898) – 6,960,890 Infrastructure 117,847,122 3,715,349 – 307,162 121,869,633 Total capital assets, depreciated 135,004,953 4,748,249 (1,020,280) 355,962 139,088,884 Less accumulated depreciation on Land improvements (1,764,386) (71,399) – – (1,835,785) Machinery and equipment (4,562,999) (395,093) 363,895 – (4,594,197) Vehicles (4,516,925) (503,481) 617,171 – (4,403,235) Infrastructure (57,266,418) (3,900,897) – – (61,167,315) Total accumulated depreciation (68,110,728) (4,870,870) 981,066 – (72,000,532) Net capital assets, depreciated 66,894,225 (122,621) (39,214) 355,962 67,088,352 Total capital assets, net 152,157,816$ 1,658,159$ (39,214)$ (180,868)$ 153,595,893$ B. Changes in Capital Assets Used in Business-Type Activities Transfers Beginning and Completed of Year Additions Deletions Construction End of Year Capital assets, not depreciated Utility access agreements 2,499,970$ –$ –$ –$ 2,499,970$ Easements 218,912 – – – 218,912 Construction in progress 3,070 116,731 – (38,598) 81,203 Total capital assets, not depreciated 2,721,952 116,731 – (38,598) 2,800,085 Capital assets, depreciated Land improvements 87,739 – – – 87,739 Machinery and equipment 1,376,307 24,400 – – 1,400,707 Vehicles 465,213 – – – 465,213 Infrastructure 86,645,303 1,930,913 – 38,598 88,614,814 Total capital assets, depreciated 88,574,562 1,955,313 – 38,598 90,568,473 Less accumulated depreciation on Land improvements (43,771) (4,388) – – (48,159) Machinery and equipment (810,684) (66,634) – – (877,318) Vehicles (104,883) (16,776) – – (121,659) Infrastructure (19,206,608) (1,598,573) – – (20,805,181) Total accumulated depreciation (20,165,946) (1,686,371) – – (21,852,317) Net capital assets, depreciated 68,408,616 268,942 – 38,598 68,716,156 Total capital assets, net 71,130,568$ 385,673$ –$ –$ 71,516,241$ -52- NOTE 3 – CAPITAL ASSETS (CONTINUED) C. Depreciation Expense by Function Depreciation expense for the year ended December 31, 2020 was charged to the following functions: Governmental activities General government 523,762$ Public safety 300,901 Public works 3,605,422 Culture and recreation 440,785 Total depreciation expense – governmental activities 4,870,870$ Business-type activities Water 955,327$ Sewer 614,493 Water quality 116,551 Total depreciation expense – business-type activities 1,686,371$ NOTE 4 – TRANSFERS A schedule of interfund transfers is as follows: Internal Service Funds Transfers Out General Debt Service Construction Nonmajor Severance Total Governmental funds General –$ 241,768$ –$ 196,250$ 100,000$ 538,018$ Debt Service – 155,645 – – – 155,645 Construction – – – 257,935 – 257,935 Nonmajor – 308,828 60,000 – – 368,828 Proprietary funds Water 202,110 554,050 292,000 167,000 – 1,215,160 Sewer 202,110 – 338,000 92,000 – 632,110 Water Quality 65,780 – – 20,000 – 85,780 470,000$ 1,260,291$ 690,000$ 733,185$ 100,000$ 3,253,476$ Transfer In Governmental Funds Transfers are used to move revenues from the funds in which they are collected to the funds where they are to be spent in accordance with statutory, budgetary, or contractual requirements. -53- NOTE 5 – LONG-TERM DEBT A. Components of Long-Term Debt Final Balance – Original Issue Interest Rate Issue Date Maturity Date End of Year Governmental activities General obligation bonds Fire Hall Refunding Bonds 2011B 3,500,000$ 2.00–3.40%12/14/2011 12/15/2031 2,660,000$ Capital Improvement Refunding Bonds 2012A 9,825,000$ 2.00–2.70%03/13/2012 12/15/2029 5,925,000 Street Reconstruction Bonds of 2015B 2,330,000$ 1.00–2.25%05/14/2015 12/15/2022 715,000 Street Reconstruction Bonds of 2016A 760,000$ 2.00%05/01/2016 12/15/2026 395,000 Improvement Bonds 2017A 370,000$ 2.00–2.25%06/29/2017 12/15/2027 220,000 Improvement Bonds 2018A 1,165,000$ 4.00–5.00%08/15/2018 12/15/2028 915,000 Improvement Bonds 2019A 215,000$ 5.00%06/27/2019 12/15/2028 200,000 Total general obligation bonds 11,030,000 Improvement Bonds of 2011A 2,130,000$ 1.80–2.50%08/31/2011 12/15/2021 225,000 Improvement Bonds of 2011B 2,280,000$ 2.00–2.35%12/14/2011 12/15/2022 490,000 Improvement Bonds of 2013A 3,240,000$ 2.00–2.65%08/15/2013 12/15/2023 965,000 Improvement Bonds of 2014A 2,665,000$ 2.00–2.50%09/25/2014 12/15/2024 945,000 Improvement Bonds of 2015A 4,640,000$ 2.00–3.00%05/14/2015 12/15/2030 4,640,000 Improvement Bonds of 2015B 160,000$ 1.00–2.25%05/14/2015 12/15/2022 50,000 Improvement Bonds of 2016A 1,105,000$ 2.00%05/01/2016 12/15/2026 660,000 Improvement Bonds of 2017A 4,135,000$ 2.00–2.25%06/29/2017 12/15/2024 2,895,000 Improvement Bonds of 2018A 4,465,000$ 4.00–5.00%08/15/2018 12/15/2028 3,545,000 Improvement Bonds of 2019A 1,850,000$ 5.00%06/27/2019 12/15/2028 1,700,000 Total general obligation special assessment bonds 16,115,000 Tax increment bonds Tax Increment Refunding Bonds of 2011A 290,000$ 1.80–3.00%08/31/2011 12/15/2024 110,000 General obligation revenue bonds General Obligation Improvement Bonds of 2015A 5,360,000$ 1.00–3.00%05/14/2015 12/15/2031 5,135,000 General Obligation Improvement Bonds of 2016A 1,640,000$ 2.00%05/01/2016 12/15/2022 710,000 Total general obligation revenue bonds 5,845,000 Premium (discount) on bonds payable 1,251,694 Energy loan payable 2,667,924$ 2.12%12/08/2014 06/19/2025 1,283,797 Compensated absences payable 948,808 Total governmental activity long-term liabilities 36,584,299 Business-type activities General obligation revenue bonds General Obligation Improvement Bonds of 2018A 2,640,000$ 4.00–5.00%08/15/2018 12/15/2028 2,190,000 Premium (discount) on bonds payable 268,188 Compensated absences payable 215,031 Total business-type activity long-term liabilities 2,673,219 Total government-wide long-term liabilities 39,257,518$ -54- NOTE 5 – LONG-TERM DEBT (CONTINUED) B. Changes in Long-Term Debt Balance – Beginning Balance –Due Within of Year Additions Deletions End of Year One Year Governmental activities Bonds payable G.O. bonds 12,185,000$ –$ 1,155,000$ 11,030,000$ 1,290,000$ G.O. special assessment bonds 18,465,000 – 2,350,000 16,115,000 2,265,000 G.O. tax increment bonds 135,000 – 25,000 110,000 25,000 G.O. revenue bonds 6,245,000 – 400,000 5,845,000 420,000 Premium (discount) on bonds payable 1,430,714 – 179,020 1,251,694 – Total bonds payable, net of premium (discount)38,460,714 – 4,109,020 34,351,694 4,000,000 Energy loan payable 1,552,924 – 269,127 1,283,797 274,859 Compensated absences payable 841,031 178,212 70,435 948,808 360,991 Governmental activities long-term liabilities 40,854,669$ 178,212$ 4,448,582$ 36,584,299$ 4,635,850$ Business-type activities Bonds payable G.O. revenue bonds 2,430,000$ –$ 240,000$ 2,190,000$ 240,000$ Premium (discount) on bonds payable 301,711 – 33,523 268,188 – Total bonds payable, net of premium (discount)2,731,711 – 273,523 2,458,188 240,000 Compensated absences payable 200,014 40,487 25,470 215,031 104,059 Business-type activities long-term liabilities 2,931,725$ 40,487$ 298,993$ 2,673,219$ 344,059$ C. Minimum Debt Payments Minimum annual principal and interest payments required to retire long-term debt are as follows: Year Ending December 31,Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2021 1,290,000$ 295,047$ 2,265,000$ 496,204$ 25,000$ 3,175$ 420,000$ 145,700$ 274,859$ 25,755$ 240,000$ 99,300$ 2022 1,450,000 265,802 2,070,000 433,038 25,000 2,550 440,000 137,675 280,714 19,900 250,000 89,700 2023 1,080,000 232,316 2,165,000 373,318 30,000 1,800 480,000 129,250 286,693 13,920 260,000 79,700 2024 1,070,000 206,591 1,950,000 310,363 30,000 900 495,000 119,650 292,800 7,813 270,000 69,300 2025 1,060,000 179,620 1,845,000 255,188 – – 515,000 109,750 148,731 1,576 270,000 58,500 2026–2030 4,765,000 426,010 5,820,000 500,851 – – 2,855,000 351,100 – – 900,000 92,000 2031 315,000 10,710 – – – – 640,000 19,200 – – – – 11,030,000$ 1,616,096$ 16,115,000$ 2,368,962$ 110,000$ 8,425$ 5,845,000$ 1,012,325$ 1,283,797$ 68,964$ 2,190,000$ 488,500$ G.O. Revenue Bonds Business-Type Activities Energy Loan Payable Governmental Activities General Obligation G.O. Special Assessment G.O. Tax Increment Bonds G.O. Revenue Bonds D. Other Long-Term Liabilities The City offers a number of benefits to its employees, including severance benefits payable and compensated absences payable. The details of these various benefit liabilities are discussed elsewhere in these notes. Such benefits are financed primarily from the General, Enterprise Funds, and Internal Service Funds. -55- NOTE 5 – LONG-TERM DEBT (CONTINUED) E. Descriptions and Restrictions of Long-Term Debt General Obligation Bonds – The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. They will be repaid with ad valorem taxes. General obligation bonds have been issued for general government activities. In addition, general obligation bonds have been issued to refund bond issues. General obligation bonds are direct obligations and pledge the full faith and credit of the City. The capital improvement plan bonds were issued on behalf of the City by Scott County for the City’s share of the County Road 82 improvement. General Obligation Special Assessment Bonds – Special assessment bonds were issued to finance various improvements and will be repaid primarily from special assessments levied on the properties benefiting from the improvements. Some issues, however, are partly financed by ad valorem tax levies. All special assessment debt is backed by full faith and credit of the City. General Obligation Tax Increment Bonds – These bonds were issued for downtown redevelopment projects. The additional tax increments resulting from increased tax capacity of the redeveloped properties will be used to retire related debt. General Obligation Revenue Bonds – These bonds were used to finance maintenance and building improvements. They will be repaid with ad valorem taxes and revenue from the utilities. The bonds are backed by the full faith and credit of the City. Compensated Absences – This liability represents vested benefits earned by employees through the end of the year, which will be paid at termination of employment in future years. The Internal Service Fund and enterprise funds will be used to liquidate this liability. Energy Loan Payable – In 2014, the City entered into an energy loan payable for the purpose of furnishing certain equipment and work designed to reduce energy consumption and operational costs in the City. In this energy loan payable agreement, the provider guarantees a minimum level of energy and operational savings in the City. Payments on the loan will be made semiannually in the amount of $150,307 commencing December 19, 2015 and each June and December 19 thereafter, until final payment is made on June 19, 2025. If the City fails to make loan payments specified in this agreement or otherwise defaults on the loan, the lender may declare the loan fully due and payable, take possession of the equipment identified in this agreement without terminating the agreement, exclude the City from possession of the equipment and attempt to sell the equipment identified in the loan, or take legal actions to force the City to comply with the terms of the loan. -56- NOTE 5 – LONG-TERM DEBT (CONTINUED) F. Conduit Debt Obligations Conduit debt obligations are certain limited-obligation revenue bonds or similar instruments issued for the express purpose of providing capital financing for a specific third party. The City has issued revenue bonds to provide funding to private sector entities for projects deemed to be in the public interest. Although these bonds bear the name of the City, the City has no obligation for such debt . Accordingly, the bonds are not reported as liabilities in the financial statements of the City. The aggregate amount of all conduit debt outstanding at December 31, 2020 is $4,498,268. G. Revenue Pledged Future revenue pledged for the payment of long-term debt is as follows: Percent of Remaining Principal Pledged Use of Total Term of Principal and Interest Revenue Bond Issue Proceeds Type Debt Service Pledge and Interest Paid Received Tax Increment Refunding Street and site Tax increment 100%2011–2024 118,425$ 28,763$ 130,212$ Bonds of 2011A improvements financing General Obligation Partial refunding Utility charges 100%2015–2031 6,125,825$ 207,625$ 4,784,064$ Bonds of 2015A General Obligation Partial refunding Utility charges 100%2016–2022 731,500$ 345,700$ 4,784,064$ Bonds of 2016A General Obligation Water and sewer Utility charges 100%2018–2028 2,678,500$ 348,900$ 9,183,782$ Bonds of 2018A improvements Revenue Pledged Current Year H. Legal Debt Margin The City’s statutory debt limit is equal to 3 percent of estimated taxable market value of property located within the City. The taxable market value totals $3,713,161,300, which calculates to a debt limit of $111,394,839. Debt financed partially or entirely by special assessments, tax increments, and other revenue sources, is not applied against the City’s debt limit, nor is debt financed by proprietary fund revenues. Currently, the City has $11,030,000 of general obligation debt outstanding, leaving a debt margin of $100,364,839. -57- NOTE 6 – FUND BALANCES A. Classifications At December 31, 2020, a summary of the City’s governmental fund balance classifications are as follows: Debt Construction Nonmajor General Fund Service Fund Fund Funds Total Nonspendable Prepaid items 70,006$ –$ –$ –$ 70,006$ Restricted Future debt service – 2,834,191 – – 2,834,191 Economic development – – – 216,117 216,117 Communications – – – 97,986 97,986 Capital improvements – – – 2,268,074 2,268,074 Development – – – 877,359 877,359 Tax increment – – – 864,565 864,565 Forfeiture sales – – – 162,862 162,862 Total restricted – 2,834,191 – 4,486,963 7,321,154 Assigned Subsequent year’s budget 260,704 – – – 260,704 Capital improvements – – 493,808 8,662,258 9,156,066 Total assigned 260,704 – 493,808 8,662,258 9,416,770 Unassigned 9,783,378 – – – 9,783,378 Total 10,114,088$ 2,834,191$ 493,808$ 13,149,221$ 26,591,308$ B. Minimum Unrestricted Fund Balance Policy The City Council has formally adopted a fund balance policy regarding the minimum unrestricted fund balance for the General Fund. The policy establishes that the City will strive to maintain an unrestricted General Fund balance (which includes committed, assigned, and unassigned classifications) between 40.0 and 50.0 percent of the subsequent year’s General Fund budgeted expenditures. At December 31, 2020, the unrestricted fund balance of the General Fund was 66.6 percent and the unassigned balance of the General Fund was 64.9 percent of the subsequent year’s budgeted expenditures and transfers out. -58- NOTE 6 – FUND BALANCES (CONTINUED) The City Council may consider the judicious use of reserve balances in the following situations: • to fund an expenditure of long-term benefit or legacy to the community • to fund a one-time (nonrecurring) expenditure or grant matching opportunity • to fund a one-time unplanned revenue shortfall • to fund an unplanned expenditure, due to an emergency or disaster • to moderate property taxes • to retire existing debt • to fund policy shifts by other governmental entities having a negative impact on the City • to provide catch-up funding for long-term obligations not previously recognized In no case will the unrestricted balance be allowed to fall below 40 percent. In the event that the year-end unrestricted balance is projected to be less than the target level, due to the use of unrestricted balances for purposes identified above, a plan must be presented to the City Council at the time the unrestricted funds are appropriated that will reestablish the target level within 24 to 36 months. If restoration of the unrestricted balance cannot be accomplished within such period without severe hardship to the City, then the City Council will establish a different time period. -59- NOTE 7 – DEFINED BENEFIT PENSION PLANS - STATE-WIDE A. Plan Description The City participates in the following cost-sharing, multiple-employer defined benefit pension plans administered by the PERA of Minnesota. The PERA’s defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. The PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. The following is a summary of the net pension liabilities, deferred outflows and inflows of resources, and pension expense reported for these plans as of and for the year ended December 31, 2020: Net Deferred Deferred Pension Outflows of Inflows of Pension Pension Plans Liabilities Resources Resources Expense GERF 4,280,758$ 546,022$ 227,978$ 218,441$ PEPFF 3,387,534 1,780,894 2,128,887 454,819 Total 7,668,292$ 2,326,916$ 2,356,865$ 673,260$ 1. General Employees Retirement Fund (GERF) All full-time and certain part-time employees of the City are covered by the GERF. The GERF members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. 2. Public Employees Police and Fire Fund (PEPFF) The Public Employees Police and Fire Fund (PEPFF), 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 PEPFF also covers police officers and firefighters belonging to local relief associations that elected to merge with and transfer assets and administration to the PERA. B. Benefits Provided The PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statutes 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 la st terminated their public service. 1. GERF Benefits 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 the 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 Plan 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 Plan members is 1.7 percent of 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 Securit y benefits capped at age 66. -60- NOTE 7 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the post-retirement increase will be equal to 50.0 percent of the cost of living adjustment (COLA) announced by the Social Security Administration, with a minimum increase of at least 1.0 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. 2. PEPFF Benefits Benefits for the PEPFF members first hired after June 30, 2010 but before July 1, 2014, vest on a prorated basis from 50.0 percent after five years, up to 100.0 percent after 10 years of credited service. Benefits for the PEPFF members first hired after June 30, 2014 vest on a prorated basis from 50.0 percent after 10 years, up to 100.0 percent after 20 years of credited service. The annuity accrual rate is 3.0 percent of average salary for each year of service. For Police and Fire Plan members who were first hired prior to July 1, 1989, a full annuity is available when age plus year of service equal at least 90. Benefit increases are provided to benefit recipients each January. Beginning in 2019, the post-retirement increase will be fixed at 1.0 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. 1. GERF Contributions Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2020. The City was required to contribute 7.50 percent for Coordinated Plan members. The City’s contributions to the GERF for the year ended December 31, 2020, were $395,820. The City’s contributions were equal to the required contributions as set by state statutes. 2. PEPFF Contributions Police and fire member’s contribution rates increased from 11.30 percent of pay to 11.80 percent and employer rates increased from 16.95 percent to 17.70 percent on January 1, 2020. The City’s contributions to the PEPFF for the year ended December 31, 2020, were $555,781. The City’s contributions were equal to the required contributions as set by state statutes. -61- NOTE 7 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) D. Pension Costs 1. GERF Pension Costs At December 31, 2020, the City reported a liability of $4,280,758 for its proportionate share of the GERF’s net pension liability. The City’s net pension liability reflected a reduction, due to the state of Minnesota’s contribution of $16.0 million. The state of Minnesota is considered a nonemployer contributing entity and the state’s contribution meets the definition of a special funding situation. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by the PERA during the measurement period for employer payroll paid dates from July 1, 201 9 through June 30, 2020, relative to the total employer contributions received from all of the PERA’s participating employers. The City’s proportionate share was 0.0714 percent at the end of the measurement period and 0.0679 percent for the beginning of the period. The amount recognized by the City as its proportionate share of the net pension liability, the direct aid, and total portion of the net pension liability that was associated with the City were as follows: City’s proportionate share of net pension liability 4,280,758$ State’s proportionate share of the net pension liability associated with the City 132,000$ For the year ended December 31, 2020, the City recognized pension expense of $206,953 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $11,488 as pension expense (and grant revenue) for its proportionate share of the state of Minnesota’s contribution of $16.0 million to the GERF. At December 31, 2020, the City reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual economic experience 37,064$ 16,196$ Changes in actuarial assumptions – 152,734 Differences between projected and actual investment earnings 92,643 – Changes in proportion 211,699 59,048 Contributions paid to the PERA subsequent to the measurement date 204,616 – Total 546,022$ 227,978$ -62- NOTE 7 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) A total of $204,616 reported as deferred outflows of resources related to pensions resulting from city contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ending December 31, 2021. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31,Amount 2021 (203,764)$ 2022 84,314$ 2023 129,452$ 2024 103,426$ 2. PEPFF Pension Costs At December 31, 2020, the City reported a liability of $3,387,534 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by the PERA during the measurement period for employer payroll paid dates from July 1, 2019 through June 30, 2020, relative to the total employer contributions received from all of the PERA’s participating employers. The City’s proportionate share was 0.2570 percent at the end of the measurement period and 0.2569 percent for the beginning of the period. The state of Minnesota also contributed $13.5 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2020. The contribution consisted of $4.5 million in direct state aid that does meet the definition of a special funding situation and $9.0 million in fire state aid that does not meet the definition of a special funding situation. The $4.5 million direct state was paid on October 1, 2019. Thereafter, by October 1 of each year, the state will pay $9.0 million to the Police and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9.0 million in fire state aid will continue until the fund is 90.0 percent funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90.0 percent funded, whichever occurs later. As a result, the state of Minnesota is included as a nonemployer contributing entity in the Police and Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules) for the $4.5 million in direct state aid. Police and Fire Plan employers need to recognize their proportionate share of the state of Minnesota’s pension expense (and grant revenue) under GASB Statement No. 68 special funding situation accounting and financial reporting requirements. For the year ended December 31, 2020, the City recognized pension expense of $430,272 for its proportionate share of the Police and Fire Plan’s pension expense. In addition, the City recognized an additional $24,547 as pension expense (and grant revenue) for its proportionate share of the state of Minnesota’s contribution of $4.5 million to the Police and Fire Fund. -63- NOTE 7 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) The amount recognized by the City as its proportionate share of the net pension liability, the direct aid, and total portion of the net pension liability that was associated with the City were as follows: City’s proportionate share of net pension liability 3,387,534$ State’s proportionate share of the net pension liability associated with the City 79,788$ The state of Minnesota is not included as a nonemployer contributing entity in the Police and Fire Pension Plan pension allocation schedules for $9.0 million in fire state aid. The City also recognized $23,130 for the year ended December 31, 2020, as revenue and an offsetting reduction of net pension liability for its proportionate share of the state of Minnesota’s on behalf contributions to the Police and Fire Fund. At December 31, 2020, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual economic experience 145,898$ 148,978$ Changes in actuarial assumptions 1,051,306 1,949,368 Differences between projected and actual investment earnings 135,190 – Changes in proportion 145,743 30,541 Contributions paid to the PERA subsequent to the measurement date 302,757 – Total 1,780,894$ 2,128,887$ A total of $302,757 reported as deferred outflows of resources related to pensions resulting from city contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ending December 31, 2021. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31,Amount 2021 (181,307)$ 2022 (827,083)$ 2023 189,311$ 2024 165,767$ 2025 2,562$ -64- NOTE 7 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) E. Actuarial Assumptions The total pension liability in the June 30, 2020 actuarial valuation was determined using an individual entry-age normal actuarial cost method and the following actuarial assumptions: GERF PEPFF Inflation 2.25% per year 2.50% per year Active member payroll growth 3.00% per year 3.25% per year Investment rate of return 7.50%7.50% Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors, and disabilitants for all plans were based on RP-2014 tables for males and females, as appropriate, with slight adjustments to fit the PERA’s experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25 percent per year for the GERF, and 1.00 percent per year for the PEPFF. Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the GERF was completed in 2019. The assumption changes were adopted by the Board and become effective with the July 1, 2020 actuarial valuation. The most recent four-year experience study for the PEPFF was completed in 2020. The recommended assumptions for those plans were adopted by the Board and will be effective with the July 1, 2021 actuarial valuations if approved by the State Legislature. The following changes in actuarial assumptions and plan provisions occurred in 2020: 1. GERF CHANGES IN ACTUARIAL ASSUMPTIONS • The price inflation assumption was decreased from 2.50 percent to 2.25 percent. • The payroll growth assumption was decreased from 3.25 percent to 3.00 percent. • Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25 percent less than previous rates. • Assumed rates of retirement were changed as recommended in the J une 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. • Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years two through five, and slightly higher thereafter. • Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females. -65- NOTE 7 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) • The base mortality table for healthy annuitants and employees was changed from the RP-2014 Table to the Pub-2010 General Mortality Table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 Disabled Annuitant Mortality Table to the Pub-2010 General/Teacher Disabled Annuitant Mortality Table, with adjustments. • The mortality improvement scale was changed from MP-2018 to MP-2019. • The assumed spouse age difference was changed from two years older for females to one year older. • The assumed number of married male new retirees electing the 100.00 percent joint and survivor option changed from 35.00 percent to 45.00 percent. The assumed number of married female new retirees electing the 100.00 percent joint and survivor option changed from 15.00 percent to 30.00 percent. The corresponding number of married new retirees electing the life annuity option was adjusted accordingly. CHANGES IN PLAN PROVISIONS • Augmentation for current privatized members was reduced to 2.00 percent for the period July 1, 2020 through December 31, 2023, and zero percent thereafter. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2. PEPFF CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2018 to MP-2019. The Minnesota State Board of Investment, which manages the investments of the PERA, prepares an analysis of the reasonableness of the long-term expected rate of return on a regular basis using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best-estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Class Domestic stocks 35.50 %5.10 % International stocks 17.50 5.30 % Bonds (fixed income)20.00 0.75 % Alternative assets (private markets)25.00 5.90 % Cash 2.00 – % Total 100.00 % Allocation Target Real Rate of Return Long-Term Expected -66- NOTE 7 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) F. Discount Rate The discount rate used to measure the total pension liability in 2020 was 7.50 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net positions of the GERF and the PEPFF were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. Pension Liability Sensitivity The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate (6.50%)(7.50%)(8.50%) City’s proportionate share of the GERF net pension liability 6,860,568$ 4,280,758$ 2,152,619$ City’s proportionate share of the PEPFF net pension liability 6,751,845$ 3,387,534$ 604,158$ 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 PERA website at www.mnpera.org; by writing to the PERA at 60 Empire Drive, Suite 200, St. Paul, Minnesota 55103; or by calling (651) 296-7460 or (800) 652-9026. -67- NOTE 8 – DEFINED BENEFIT PENSION PLANS – FIRE RELIEF ASSOCIATION A. Plan Description All members of the Prior Lake Fire Department (the Department) are covered by a defined benefit plan administered by the Prior Lake Fire Department Relief Association (the Association). As of December 31, 2019, the plan covered 41 active firefighters and 13 vested terminated firefighters whose pension benefits are deferred. The plan was established November 1, 1957, and the Association operates under the provisions of Minnesota Laws 1965, Chapter 446, as amended and Minnesota Statutes, Chapters 69 and 424A. It is governed by a Board of Trustees (the Board) made up of six members elected by the members of the Association for three-year terms, and the mayor, city manager, and fire chief, who serve as ex officio voting members of the Board of Trustees. The Association maintains a separate Special Fund to accumulate assets to fund the retirement benefits earned by the Department’s membership. Funding for the Association is derived from an insurance premium tax in accordance with the Volunteer Firefighter’s Relief Association Financing Guidelines Act of 1971 (Chapter 261 as amended by Chapter 509 of Minnesota Statutes 1980). Funds are also derived from investment income. B. Benefits Provided Retirement Benefits According to the bylaws of the Association and pursuant to Minnesota Statutes, Chapter 424A.02, Subdivisions 2 and 4, the Association pays to each member who has served as an active firefighter in the Department for a period of 20 years or more to his/her resignation, and who has reached the age of 50 years or more, $8,500 per year of service. A member who has served in the Department for at least 20 years but has not reached the age of 50, may retire and be placed on the deferred pension roll until he/she reaches the age of 50. Members who retire with less than 20 years of service, have reached the age of 50, and have completed at least 10 years of active membership are entitled to a reduced service pension. Disability Benefits If a member of the Association becomes totally or permanently disabled, the Association shall pay to such members the lump sum of $8,500 for each year that they have served as an active member of the Department. Death Benefit Upon the death of any member of the Association who is in good standing at the time of their death, the Association shall pay to the surviving spouse, if any, and if there is no surviving spouse, to surviving child or children, if any, and if no child or children survive, to the estate of such deceased member under 10 years of service, the sum of $8,500 for each year that they served as an active member of the Department. -68- NOTE 8 – DEFINED BENEFIT PENSION PLANS – FIRE RELIEF ASSOCIATION (CONTINUED) C. Contributions Minnesota Statutes, Chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. The plan is funded by fire state aid, investment earnings, and, if necessary, employer contributions as specified in Minnesota Statutes and voluntary city contributions (if applicable). The state of Minnesota contributed $247,275 in fire state aid to the plan on behalf of the Department for the year ended December 31, 2020, which was recorded as revenue. Required employer contributions are calculated annually based on statutory provisions. The City’s statutorily-required contributions to the plan for the year ended December 31, 2020 were $247,275. The City’s contributions were equal to the required contributions as set by state statutes. The City made a $20,000 voluntary contribution to the plan in the year ended December 31, 2020. Furthermore, firefighters have no obligation to contribute to the plan. D. Pension Costs At December 31, 2020, the City reported a net pension liability (asset) of $1,228,062 for the plan. The net pension liability (asset) was measured as of December 31, 2019. The total pension liability used to calculate the net pension liability (asset) in accordance with GASB Statement No. 68 was determined by applying an actuarial formula to specific census data certified by the Department as of December 31, 2019. For the year ended December 31, 2020, the City recognized pension expense of $364,966. The City also recognized $233,651 as revenue for the state of Minnesota’s on-behalf contributions to the Department. The following table presents the changes in net pension liability (asset) during the year: Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (Asset) Beginning balance – January 1, 2020 3,550,594$ 4,190,368$ (639,774)$ Changes for the year Service cost 153,304 – 153,304 Interest on pension liability (asset)197,843 – 197,843 Projected investment earnings – 231,574 (231,574) Contributions (employer)– 20,000 (20,000) Contributions (state)– 233,651 (233,651) Asset (gain) loss – 454,210 (454,210) Benefit payments (213,500) (213,500) – Total net changes 137,647 725,935 (588,288) Ending balance – December 31, 2020 3,688,241$ 4,916,303$ (1,228,062)$ -69- NOTE 8 – DEFINED BENEFIT PENSION PLANS – FIRE RELIEF ASSOCIATION (CONTINUED) At December 31, 2020, the City reported deferred inflows of resources and deferred outflows of resources related to the pension from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Net difference between projected and actual earnings on plan investments –$ 210,685$ Changes in actuarial assumptions 39,880 – Difference between expected and actual economic experience 14,002 45,366 State aid to the City subsequent to the measurement date – 248,275 Contributions from the City subsequent to the measurement date 267,275 – Total 321,157$ 504,326$ Deferred outflows of resources totaling $267,275 related to pensions resulting from the City’s contributions to the plan subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending December 31, 2021. Deferred inflows of resources totaling $248,275 related to state aid received subsequent to the measurement date will be recognized for its impact on the net pension liability in the year ending December 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to the plan will be recognized in pension expense as follows: Pension Year Ending Expense December 31,Amount 2021 (75,389)$ 2022 (56,983) 2023 20,287 2024 (88,258) 2025 (915) Thereafter (911) E. Actuarial Assumptions The total pension liability (asset) at December 31, 2020 was determined using the entry-age normal actuarial cost method and the following actuarial assumptions: Retirement eligibility at 100 percent service pension at age 50 with 20 years of service, early vested retirement at age 50 with 10 years of service vested at 60 percent and increased by 4 percent for each additional year of service, up to 20 and eligibility for deferred service pension payable at age 50 with 20 years of service Salary increases 2.50% Investment rate of return 5.50% 20-year municipal bond yield 3.50% The 5.50 percent long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimates for expected future real rates of return (expected returns, net of inflation) were developed for each asset class us ing the plan’s target investment allocation. along with long-term return expectations by asset class. Inflation expectations were applied to derive the nominal rate of return for the portfolio. -70- NOTE 8 – DEFINED BENEFIT PENSION PLANS – FIRE RELIEF ASSOCIATION (CONTINUED) 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 Cash 11.00 %2.25 % Fixed income 34.00 3.75 % Equities 55.00 7.25 % Other – 6.00 % Total 100.00 % Weight Portfolio Return Class Expected F. Discount Rate The discount rate used to measure the total pension liability was 5.5 percent. The projection of cash flows used to determine the discount rate assumed that contributions to the plan will be made as specified in state statutes. Based on that assumption and considering the funding ratio of the plan, the fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. Pension Liability (Asset) Sensitivity The following presents the City’s net pension liability (asset) for the plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s net pension liability (asset) would be if it were calculated using a discount rate 1 percent lower or 1 percent higher than the current discount rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate (4.50%)(5.50%)(6.50%) Net pension liability (asset)(1,130,017)$ (1,228,062)$ (1,320,028)$ H. Pension Plan Fiduciary Net Position The Association issues a publicly available financial report. This report may be obtained by writing to the Prior Lake Fire Relief Association, 5316 Hampton Street, Prior Lake, Minnesota 55372. I. Plan Changes A benefit level increase from $8,000 to $8,500 occurred for fiscal year 2019. -71- NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN A. Plan Description The City provides post-employment insurance benefits to certain eligible employees through its OPEB Plan, a single-employer defined benefit plan administered by the City. All post-employment benefits are based on contractual agreements with employee groups. Eligibility for these benefits is based on years of service and/or minimum age requirements. These contractual agreements do not include any specific contribution or funding requirements. The Plan does not issue a publicly available financial report. No plan assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. B. Benefits Provided All retirees of the City upon retirement have the option under state law to continue their medical insurance coverage through the City. For members of certain employee groups, the City pays for all or part of the eligible retiree’s premiums for medical and/or dental insurance from the time of retirement until the employee reaches the age of eligibility for Medicare. Benefits paid by the City differ by bargaining unit and date of hire, with some contracts specifying a certain dollar amount per month, and som e covering premium costs as defined within each collective bargaining agreement. Retirees not eligible for these city-paid premium benefits must pay the full city premium rate for their coverage. The City is legally required to include any retirees for whom it provides health insurance coverage in the same insurance pool as its active employees until the retiree reaches Medicare eligibility, whether the premiums are paid by the City or the retiree. Consequently, participating retirees are considered to receive a secondary benefit known as an “implicit rate subsidy.” This benefit relates to the assumption that the retiree is receiving a more favorable premium rate than they would otherwise be able to obtain if purchasing insurance on their own, due to being included in the same pool with the City’s younger and statistically healthier active employees. C. Contributions The required contribution is based on projected pay-as-you-go financing requirements, with additional amounts to prefund benefits as determined periodically by the City. The City’s current year required pay-as-you-go contributions to finance the benefits described in the previous section totaled $36,021. Contributions for OPEB are paid by the General Fund and enterprise funds. D. Membership Membership in the Plan consisted of the following as of the latest actuarial valuation: Retirees and beneficiaries receiving benefits 6 Active plan members 94 Total members 100 -72- NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) E. Total OPEB Liability of the City The City’s total OPEB liability of $864,888 as of year-end was measured as of January 1, 2020, and was determined by an actuarial valuation as of January 1, 2019. F. Actuarial Methods and Assumptions The total OPEB liability was determined by an actuarial valuation as of January 1, 2019, using the entry-age, level percentage of pay actuarial method and the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Discount rate 3.80% 20-year municipal bond yield 3.80% Inflation rate 2.50% Salary increases 3.00% Healthcare trend rate 6.50%, grading to 5.00% over 6 years The actuarial assumptions used in the latest valuation were based on those used to value pension liabilities for Minnesota city employees. The state pension plans base their assumptions on periodic experience studies. Economic assumptions are based on input from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source information, as well as for consistency with the other economic assumptions. Since the Plan is not funded by an irrevocable trust, the discount rate is equal to the 20-year municipal bond yield rate of 3.80 percent, which was set by considering published rate information for 20-year high quality, tax-exempt, general obligation municipal bonds as of the measurement date. The City discount rate used in the prior measurement date was 3.80 percent. Mortality rates were based on the RP-2014 White Collar Mortality Tables with MP-2018 Generational Improvement Scale (with Blue Collar adjustment for Police and Fire Personnel). Future retirees electing coverage is assumed to be 50 percent when a pre -age 65 subsidy is not available. Married future retirees electing spouse coverage is assumed to be 25 percent when a pre-age 65 subsidy is not available. G. Changes in the Total OPEB Liability Total OPEB Liability Beginning balance – January 1, 2020 796,524$ Changes for the year Service cost 64,598 Interest 32,188 Benefit payments – employer-financed (28,422) Total net changes 68,364 Ending balance – December 31, 2020 864,888$ -73- NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN CONTINUED) H. Total OPEB Liability Sensitivity to Discount and Healthcare Cost Trend Rate Changes The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liabi lity would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount rate: OPEB discount rate 3.80% Total OPEB liability 932,304$ 802,080$ 2.80%4.80% 1% Decrease in 1% Increase in Discount Rate Discount RateDiscount Rate 864,888$ The following presents the net OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage point higher than the current healthcare cost trend rates: OPEB healthcare trend rate Total OPEB liability 1% Decrease in 1% Increase in 5.50% decreasing to 7.50% decreasing to Healthcare Trend Rate 6.50% decreasing to Healthcare Trend Rate Healthcare Trend Rate 768,354$ 979,115$ 4.00% over 6 years 6.00% over 6 years5.00% over 6 years 864,888$ I. OPEB Expense and Related Deferred Outflows of Resources and Deferred Inflows of Resources For the current year ended, the City recognized OPEB expense of $78,930. As of year-end, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Changes in actuarial assumptions –$ 95,934$ Difference between expected and actual economic experience – 29,042 Contributions from the City subsequent to the measurement date 36,021 – 36,021$ 124,976$ Deferred outflows of resources totaling $36,021 related to pensions resulting from city contributions to the Plan subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending December 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to the plan will be recognized in pension expense as follows: OPEB Year Ending Expense June 30,Amount 2021 (17,856)$ 2022 (17,856)$ 2023 (17,856)$ 2024 (17,856)$ 2025 (17,856)$ Thereafter (35,696)$ -74- NOTE 10 – STEWARDSHIP AND ACCOUNTABILITY Deficit Net Position As of December 31, 2020, the Severance Compensation Internal Service Fund had a deficit net position of $442,978. This deficit will be eliminated by future charges for services. NOTE 11 – TAX ABATEMENT AGREEMENTS The City, in order to spur economic development and redevelopment, has entered into private development and redevelopment agreements to encourage a developer to construct, expand, or improve new or existing properties and buildings or clean-up and redevelop blighted areas. The City currently has six agreements that would be considered tax abatements. Outstanding Amount Principal Date of Abated During Balance Required Name Purpose the Fiscal Year at Year-End Decertification 1-3 Lakefront 80-unit owner-occupied senior housing facility and 12,000 square feet of retail space and related improvements 97,659$ 890,127$ 12/31/2029 1-4 River Valley Vet 9,434$ 8,124$ 12/31/2022 3-1 Creekside Estates 54-unit senior housing facility 44,321$ –$ 12/31/2029 5-1 Premier Dance 14,461$ 111,111$ 12/31/2034 6-1 Shepherds Path 80.03 acres,including 442 senior housing units, a YMCA facility,youth center,medical office/clinic,bank,park area,trails,and companion uses to the existing church 319,480$ 2,877,238$ 12/31/2034 1-5 Gateway Center 182,119$ 1,366,437$ 12/31/2035 Acquisition,construction,and equipping of a 170-unit multi-family senior housing development 10,000 square foot commercial facility to be used as a dance studio 7,000 square foot addition to the existing veterinary clinic facility -75- NOTE 11 – TAX ABATEMENT AGREEMENTS (CONTINUED) The City is authorized to create a tax increment financing plan under Minnesota Statutes, Chapter 469.175. The criteria that must be met under the state statutes are that, in the opinion of the municipality: • The proposed development or redevelopment would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future; • The increased market value of the site that could reasonably be expected to occur without the u se of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the plan. The requirements of this item do not apply if the district is a housing district; • The tax increment financing plan conforms to the general plan for the development or redevelopment of the municipality as a whole; and • The tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the development or redevelopment of the project by private enterprise. The City has entered into private development agreements regarding certain tax increment properties. The vehicle used for this reimbursement is called a tax increment revenue note. These notes provide for the payment of principal, equal to the developer’s costs, plus interest at a set rate. Payments on the loan will be made at the lesser of the note payment or the actual net tax increment received (or a reduced percentage received in certain cases) during specific years as stated in the agreement. Payments are first applied to accrued interest and then to the principal balance. The note is canceled at the end of the agreement term, whether or not the note has been repaid. Any additional tax increments received in years following the term are retained by the City. The outstanding principal balances as of December 31, 2020 for these agreements are listed on the previous page. These amounts are not included in long-term debt because the nature of these notes is that repayment is required only if sufficient tax increments are received. The City’s position is that these are obligations to assign future and uncertain revenue sources and, as such, is not actual debt in-substance. -76- NOTE 12 – COMMITMENTS AND CONTINGENCIES A. Federal and State Funding Amounts received or receivable from federal and state agencies are subject to agency audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of funds that may be disallowed by the agencies cannot be determined at this time although the City expects such amounts, if any, to be immaterial. B. Legal Claims The City has the usual and customary type of miscellaneous legal claims pending at year-end. Although the outcome of these lawsuits is not presently determinable, the City’s management believes that the City will not incur any material monetary loss resulting from these claims. No loss has been recorded on the City’s financial statements relating to these claims. C. Construction Contracts During fiscal 2020, the City awarded contracts for various construction and remodeling projects. The City’s commitment for uncompleted work on these contracts at December 31, 2020 is $369,422. D. Tax Increment Districts The City’s tax increment districts are subject to review by the Office of the State Auditor. Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance, which would have a material effect on the financial statements. E. COVID-19 The COVID-19 pandemic has caused economic and financial market volatility in the United States and around the world, along with significant business and operational disruptions for many organizations. Due to the unknown breadth and duration of this pandemic, any potential impact it may have on the City’s future operations and financial condition cannot be determined at this time and has not been reflected in these financial statements. THIS PAGE INTENTIONALLY LEFT BLANK REQUIRED SUPPLEMENTARY INFORMATION Proportionate Share of the City’s Net Pension Proportionate Liability and City’s Share of the the City’s Proportionate Plan Fiduciary State of Share of the Share of the Net Position City’s City’s Minnesota’s State of Net Pension as a PERA Fiscal Proportion Proportionate Proportionate Minnesota’s Liability as a Percentage Year-End Date of the Net Share of the Share of the Share of the City’s Percentage of of the Total (Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension Date)Liability Liability Liability Liability Payroll Payroll Liability 06/30/2015 0.0719% 3,726,231$ –$ 3,726,231$ 4,189,768$ 88.94% 78.20% 06/30/2016 0.0691% 5,610,578$ 73,274$ 5,683,852$ 4,285,600$ 130.92% 68.90% 06/30/2017 0.0692% 4,417,682$ 55,547$ 4,473,229$ 4,457,941$ 99.10% 75.90% 06/30/2018 0.0655% 3,633,671$ 119,282$ 3,752,953$ 4,405,847$ 82.47% 79.50% 06/30/2019 0.0679% 3,754,038$ 116,662$ 3,870,700$ 4,803,433$ 78.15% 80.20% 06/30/2020 0.0714% 4,280,758$ 132,000$ 4,412,758$ 5,090,738$ 84.09% 79.10% Contributions Contributions in Relation to as a Statutorily the Statutorily Contribution Percentage Required Required Deficiency Covered of Covered Contributions Contributions (Excess)Payroll Payroll 314,233$ 314,233$ –$ 4,189,768$ 7.50% 332,258$ 332,258$ –$ 4,430,122$ 7.50% 328,001$ 328,001$ –$ 4,373,614$ 7.50% 344,234$ 344,234$ –$ 4,589,776$ 7.50% 374,803$ 374,803$ –$ 4,999,585$ 7.50% 395,820$ 395,820$ –$ 5,278,601$ 7.50% Note: 12/31/2020 12/31/2020 The City implemented GASB Statement No.68 in fiscal 2015 (using a June 30,2015 measurement date).This schedule is intended to present 10-year trend information. Additional years will be added as they become available. Year-End Date 12/31/2015 12/31/2017 12/31/2018 12/31/2019 CITY OF PRIOR LAKE PERA – General Employees Retirement Fund Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability PERA – General Employees Retirement Fund 12/31/2016 Schedule of City Contributions City Fiscal Year-End Date 12/31/2015 12/31/2016 Year Ended December 31, 2020 12/31/2017 Year Ended December 31, 2020 12/31/2018 12/31/2019 City Fiscal -77- Proportionate Share of the City’s Net Pension Proportionate Liability and City’s Share of the the City’s Proportionate Plan Fiduciary State of Share of the Share of the Net Position City’s City’s Minnesota’s State of Net Pension as a PERA Fiscal Proportion Proportionate Proportionate Minnesota’s Liability as a Percentage Year-End Date of the Net Share of the Share of the Share of the City’s Percentage of of the Total (Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension Date)Liability Liability Liability Liability Payroll Payroll Liability 06/30/2015 0.2400% 2,726,962$ –$ 2,726,962$ 2,244,215$ 121.51% 86.60% 06/30/2016 0.2380% 9,551,354$ –$ 9,551,354$ 2,294,383$ 416.29% 63.90% 06/30/2017 0.2360% 3,186,282$ –$ 3,186,282$ 2,425,426$ 131.37% 85.40% 06/30/2018 0.2463% 2,625,304$ –$ 2,625,304$ 2,595,948$ 101.13% 88.80% 06/30/2019 0.2569% 2,734,960$ –$ 2,734,960$ 2,713,440$ 100.79% 89.30% 06/30/2020 0.2570% 3,387,534$ 79,788$ 3,467,322$ 3,019,145$ 112.20% 87.20% Contributions Contributions in Relation to as a Statutorily the Statutorily Contribution Percentage Required Required Deficiency Covered of Covered Contributions Contributions (Excess)Payroll Payroll 363,525$ 363,525$ –$ 2,244,215$ 16.20% 377,586$ 377,586$ –$ 2,337,729$ 16.15% 400,549$ 400,549$ –$ 2,472,531$ 16.20% 431,541$ 431,541$ –$ 2,666,989$ 16.18% 498,625$ 498,625$ –$ 2,941,707$ 16.95% 555,781$ 555,781$ –$ 3,139,767$ 17.70% Note: Schedule of City Contributions Year Ended December 31, 2020 PERA – Public Employees Police and Fire Fund Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability Year Ended December 31, 2020 PERA – Public Employees Police and Fire Fund City Fiscal Year-End 12/31/2015 12/31/2016 CITY OF PRIOR LAKE The City implemented GASB Statement No.68 in fiscal 2015 (using a June 30,2015 measurement date).This schedule is intended to present 10-year trend information. Additional years will be added as they become available. City Fiscal Year-End 12/31/2015 12/31/2016 12/31/2020 12/31/2017 12/31/2017 12/31/2018 12/31/2018 12/31/2019 12/31/2019 12/31/2020 -78- City fiscal year-end dated December 31,2015 2016 2017 2018 2019 2020 Measurement period – December 31,2014 2015 2016 2017 2018 2019 Total pension liability Service cost 106,719$ 109,387$ 110,441$ 132,893$ 151,350$ 153,304$ Interest 148,718 164,204 192,181 208,100 220,949 197,843 Asset (gain) loss – – 28,006 – (60,490) – Benefit payments – – (34,403) (209,373) (691,031) (213,500) Assumption changes – – – – 53,174 – Plan changes – 99,450 34,110 304,902 – – Net change in total pension liability 255,437 373,041 330,335 436,522 (326,048) 137,647 Total pension liability – beginning 2,481,307 2,736,744 3,109,785 3,440,120 3,876,642 3,550,594 Total pension liability – ending 2,736,744$ 3,109,785$ 3,440,120$ 3,876,642$ 3,550,594$ 3,688,241$ Plan fiduciary net position Contributions (state and local)215,194$ 228,087$ 235,891$ 237,182$ 247,610$ 253,651$ Net investment income 154,856 (169,276) 320,811 640,986 (262,184) 685,784 Benefit payments – – (34,403) (209,373) (691,031) (213,500) Administrative costs (6,647) (6,640) (9,160) (120) (2,644) – Net change in plan fiduciary net position 363,403 52,171 513,139 668,675 (708,249) 725,935 Total plan fiduciary net position – beginning 3,301,229 3,664,632 3,716,803 4,229,942 4,898,617 4,190,368 Total plan fiduciary net position – ending 3,664,632$ 3,716,803$ 4,229,942$ 4,898,617$ 4,190,368$ 4,916,303$ Net pension liability (asset) – ending (927,888)$ (607,018)$ (789,822)$ (1,021,975)$ (639,774)$ (1,228,062)$ Plan fiduciary net position as a percentage of the total pension liability 133.90%119.52%122.96%126.36%118.02%133.30% Note: (Last Six Years) The City implemented GASB Statement No.68 in fiscal 2015 (using a December 31,2014 measurement date).This information is not available for previous years. CITY OF PRIOR LAKE Prior Lake Fire Relief Association Schedule of Changes in the Relief Association’s Net Pension Liability (Asset) and Related Ratios -79- Contributions in Relation to the Statutorily Statutorily Contribution Voluntary Required Required Deficiency City Contributions Contributions (Excess)Contribution 208,087$ 208,087$ –$ 20,000$ 215,891$ 215,891$ –$ 20,000$ 217,182$ 217,182$ –$ 20,000$ 225,610$ 225,610$ –$ 20,000$ 234,651$ 234,651$ –$ 20,000$ 247,275$ 247,275$ –$ 20,000$ Note:The City implemented GASB Statement No.68 in fiscal 2015 (using a December 31,2014 measurement date).This information is not available for previous years. City Fiscal Year-End Date CITY OF PRIOR LAKE Prior Lake Fire Relief Association Schedule of City Contributions Year Ended December 31, 2020 (Last Six Years) 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 -80- 2018 2019 2020 Total OPEB liability Service cost 61,214$ 62,717$ 64,598$ Interest 29,555 31,270 32,188 Changes of assumptions – (37,343) – Differences between expected and actual experiences – (123,346) – Benefit payments (37,688) (42,907) (28,422) Net change in total OPEB liability 53,081 (109,609) 68,364 Total OPEB liability – beginning of year 853,052 906,133 796,524 Total OPEB liability – end of year 906,133$ 796,524$ 864,888$ Covered payroll 6,560,761$ 7,134,065$ 7,348,087$ Total OPEB liability as a percentage of covered payroll 13.81% 11.17% 11.77% Note: Year Ended December 31, 2020 The City implemented GASB Statement No.75 in fiscal 2018.This schedule is intended to present 10-year trend information. Additional years will be added as they become available. CITY OF PRIOR LAKE Other Post-Employment Benefits Plan Schedule of Changes in the City’s Total OPEB Liability and Related Ratios Fiscal Year-End -81- CITY OF PRIOR LAKE Notes to Required Supplementary Information December 31, 2020 -82- PERA – GENERAL EMPLOYEES RETIREMENT FUND 2020 CHANGES IN ACTUARIAL ASSUMPTIONS • The price inflation assumption was decreased from 2.50 percent to 2.25 percent. • The payroll growth assumption was decreased from 3.25 percent to 3.00 percent. • Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25 percent less than previous rates. • Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. • Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years two through five, and slightly higher thereafter. • Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females. • The base mortality table for healthy annuitants and employees was changed from the RP-2014 Table to the Pub-2010 General Mortality Table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 Disabled Annuitant Mortality Table to the Pub-2010 General/Teacher Disabled Annuitant Mortality Table, with adjustments. • The mortality improvement scale was changed from MP-2018 to MP-2019. • The assumed spouse age difference was changed from two years older for females to one year older. • The assumed number of married male new retirees electing the 100.00 percent joint and survivor option changed from 35.00 percent to 45.00 percent. The assumed number of married female new retirees electing the 100.00 percent joint and survivor option changed from 15.00 percent to 30.00 percent. The corresponding number of married new retirees electing the life annuity option was adjusted accordingly. 2020 CHANGES IN PLAN PROVISIONS • Augmentation for current privatized members was reduced to 2.00 percent for the period July 1, 2020 through December 31, 2023, and zero percent thereafter. Augmentation was eliminated for privatizations occurring after June 30, 2020. CITY OF PRIOR LAKE Notes to Required Supplementary Information (continued) December 31, 2020 -83- PERA – GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED) 2019 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2017 to MP-2018. 2019 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. 2018 CHANGES IN ACTUARIAL ASSUMPTIONS • 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. 2018 CHANGES IN PLAN PROVISIONS • 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 zero percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. • Contribution stabilizer provisions were repealed. • Post-retirement 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. CITY OF PRIOR LAKE Notes to Required Supplementary Information (continued) December 31, 2020 -84- PERA – GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED) 2017 CHANGES IN ACTUARIAL ASSUMPTIONS • The Combined Service Annuity (CSA) loads were changed from 0.80 percent for active members and 60.00 percent for vested and nonvested deferred members. The revised CSA loads are now zero percent for active member liability, 15.00 percent for vested deferred member liability, and 3.00 percent for nonvested deferred member liability. • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year for all years, to 1.00 percent per year through 2044, and 2.50 percent per year thereafter. 2017 CHANGES IN PLAN PROVISIONS • The state’s contribution for the Minneapolis Employees Retirement Fund equals $16.0 million in 2017 and 2018, and $6.0 million thereafter. • The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21.0 million to $31.0 million in calendar years 2019 to 2031. The state’s contribution changed from $16.0 million to $6.0 million in calendar years 2019 to 2031. 2016 CHANGES IN ACTUARIAL ASSUMPTIONS • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2035, and 2.50 percent per year thereafter, to 1.00 percent per year for all years. • The assumed investment return was changed from 7.90 percent to 7.50 percent. The single discount rate changed from 7.90 percent to 7.50 percent. • Other assumptions were changed pursuant to the experience study 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 CHANGES IN ACTUARIAL ASSUMPTIONS • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2030, and 2.50 percent per year thereafter, to 1.00 percent per year through 2035, and 2.50 percent per year thereafter. 2015 CHANGES IN PLAN PROVISIONS • 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 $892.0 million. Upon consolidation, state and employer contributions were revised; the state’s contribution of $6.0 million, which meets the special funding situation definition, was due September 2015. CITY OF PRIOR LAKE Notes to Required Supplementary Information (continued) December 31, 2020 -85- PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND 2020 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2018 to MP-2019. 2019 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2017 to MP-2018. 2018 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2016 to MP-2017. 2018 CHANGES IN PLAN PROVISIONS • Post-retirement benefit increases were changed to 1.00 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 100.00 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 zero 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. CITY OF PRIOR LAKE Notes to Required Supplementary Information (continued) December 31, 2020 -86- PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND (CONTINUED) 2017 CHANGES IN ACTUARIAL ASSUMPTIONS • 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 CSA load was 30.00 percent for vested and nonvested deferred members. The CSA has been changed to 33.00 percent for vested members, and 2.00 percent for nonvested 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 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 5.60 percent per annum to 7.50 percent per annum. CITY OF PRIOR LAKE Notes to Required Supplementary Information (continued) December 31, 2020 -87- PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND (CONTINUED) 2016 CHANGES IN ACTUARIAL ASSUMPTIONS • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2037, and 2.50 percent per year thereafter, to 1.00 percent per year for all future years. • The assumed investment return was changed from 7.90 percent to 7.50 percent. • The single discount rate changed from 7.90 percent to 5.60 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 CHANGES IN ACTUARIAL ASSUMPTIONS • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2030, and 2.50 percent per year thereafter, to 1.00 percent per year through 2037, and 2.50 percent per year thereafter. 2015 CHANGES IN PLAN PROVISIONS • The post-retirement benefit increase to be paid after attainment of the 90.00 percent funding threshold was changed from inflation up to 2.50 percent, to a fixed rate of 2.50 percent. CITY OF PRIOR LAKE Notes to Required Supplementary Information (continued) December 31, 2020 -88- PRIOR LAKE FIRE RELIEF ASSOCIATION • The discount rate was changed from 6.00 percent to 5.50 percent for 2019. • A benefit level increase from $8,000 to $8,500 was reflected in the pension liability for 2019. • A benefit level increase from $7,200 to $8,000 was reflected in the pension liability for 2018. • A benefit level increase from $7,100 to $7,200 was reflected in the pension liability for 2017. • A benefit level increase from $6,800 to $7,100 was reflected in the pension liability for 2016. OTHER POST-EMPLOYMENT BENEFITS PLAN 2019 CHANGES IN ACTUARIAL ASSUMPTIONS • The healthcare trend rates were changed from 6.25 percent, grading to 5.00 percent over five years, to 6.50 percent, grading to 5.00 percent over six years. • The mortality tables were updated to meet current actuarial standards. • The discount rate was changed from 3.30 percent to 3.80 percent. 2018 CHANGES IN ACTUARIAL ASSUMPTIONS • The healthcare trend rates were changed from 6.50 percent, grading to 5.00 percent over six years, to 6.25 percent, grading to 5.00 percent over five years. • The mortality table was updated from RP-2014 adjusted to 2006 White Collar Mortality Tables with MP-2016 Generational Improvement Scale, to RF-2014 White Collar with MP-2016 Generational Improvement Scale. • The actuarial cost method was changed from entry-age normal level dollar to entry-age level percent of pay. • The discount rate was changed from 3.50 percent to 3.30 percent. THIS PAGE INTENTIONALLY LEFT BLANK SUPPLEMENTAL INFORMATION Special Revenue Capital Projects Total Assets Cash and investments 3,354,245$ 10,063,814$ 13,418,059$ Cash held in escrow 39,777 – 39,777 Receivables Delinquent taxes 90 – 90 Accounts 90,100 49,799 139,899 Special assessments Delinquent – 1,544 1,544 Deferred – 390,990 390,990 Due from other governmental agencies 927 4,369 5,296 Assets held for resale 417,268 – 417,268 Total assets 3,902,407$ 10,510,516$ 14,412,923$ Liabilities Accounts and contracts payable 40,489$ 474,658$ 515,147$ Accrued salaries and employee benefits payable 4,191 – 4,191 Due to other governmental agencies 563 – 563 Deposits payable 200,926 116,500 317,426 Unearned revenue 33,750 – 33,750 Total liabilities 279,919 591,158 871,077 Deferred inflows of resources Unavailable revenue from delinquent taxes 90 – 90 Unavailable revenue from special assessments – 392,535 392,535 Total deferred inflows of resources 90 392,535 392,625 Fund balances Restricted 3,622,398 864,565 4,486,963 Assigned – 8,662,258 8,662,258 Total fund balances 3,622,398 9,526,823 13,149,221 Total liabilities, deferred inflows of resources, and fund balances 3,902,407$ 10,510,516$ 14,412,923$ CITY OF PRIOR LAKE Nonmajor Governmental Funds Combining Balance Sheet as of December 31, 2020 -89- Special Revenue Capital Projects Total Revenue Taxes 273,460$ 1,852,571$ 2,126,031$ Special assessments – 306,455 306,455 Charges for services 282,414 953,169 1,235,583 Investment income 88,530 307,580 396,110 Miscellaneous Contributions and donations 35,030 – 35,030 Other 28,117 28,036 56,153 Total revenue 707,551 3,447,811 4,155,362 Expenditures Current General government 4,724 – 4,724 Public safety 12,896 – 12,896 Culture and recreation 11,152 – 11,152 Economic development 170,125 229 170,354 Capital outlay 622,913 2,587,391 3,210,304 Total expenditures 821,810 2,587,620 3,409,430 Excess (deficiency) of revenues over expenditures (114,259) 860,191 745,932 Other financing sources (uses) Contributions from governmental activities 180,868 – 180,868 Transfers in 161,250 571,935 733,185 Transfers out – (368,828) (368,828) Sale of capital assets – 63,717 63,717 Total other financing sources (uses)342,118 266,824 608,942 Net change in fund balances 227,859 1,127,015 1,354,874 Fund balances Beginning of year 3,394,539 8,399,808 11,794,347 End of year 3,622,398$ 9,526,823$ 13,149,221$ Year Ended December 31, 2020 CITY OF PRIOR LAKE Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -90- Capital ED Revolving Revolving Park Loan Loan Assets Cash and investments 1,678,603$ 134,528$ 664$ Cash held in escrow – – – Receivables Delinquent taxes – – – Accounts 2,858 579 346 Due from other governmental agencies – – – Assets held for resale – – – Total assets 1,681,461$ 135,107$ 1,010$ Liabilities Accounts and contracts payable 17,393$ –$ –$ Accrued salaries and employee benefits payable – – – Due to other governmental agencies – – – Deposits payable – – – Unearned revenue 33,750 – – Total liabilities 51,143 – – Deferred inflows of resources Unavailable revenue from delinquent taxes – – – Fund balances Restricted for economic development – 135,107 1,010 Restricted for forfeiture sales – – – Restricted for capital improvements 1,630,318 – – Restricted for development – – – Restricted for communications – – – Total fund balances 1,630,318 135,107 1,010 Total liabilities, deferred inflows of resources, and fund balances 1,681,461$ 135,107$ 1,010$ as of December 31, 2020 CITY OF PRIOR LAKE Nonmajor Special Revenue Funds Combining Balance Sheet -91- Cable Police Franchise EDA Forfeiture DAG Total 91,746$ 464,303$ 162,638$ 821,763$ 3,354,245$ 25,000 – 14,777 – 39,777 – 90 – – 90 6,240 79,853 224 – 90,100 – 927 – – 927 – 417,268 – – 417,268 122,986$ 962,441$ 177,639$ 821,763$ 3,902,407$ –$ 238$ –$ 22,858$ 40,489$ – 4,191 – – 4,191 – 563 – – 563 25,000 – 14,777 161,149 200,926 – – – – 33,750 25,000 4,992 14,777 184,007 279,919 – 90 – – 90 – 80,000 – – 216,117 – – 162,862 – 162,862 – – – 637,756 2,268,074 – 877,359 – – 877,359 97,986 – – – 97,986 97,986 957,359 162,862 637,756 3,622,398 122,986$ 962,441$ 177,639$ 821,763$ 3,902,407$ -92- Capital ED Revolving Revolving Park Loan Loan Revenues Taxes –$ –$ –$ Charges for services 174,820 – – Investment income 63,581 4,595 5 Miscellaneous Contributions and donations 30,130 – – Other – – – Total revenues 268,531 4,595 5 Expenditures Current General government – – – Public safety – – – Culture and recreation 11,152 – – Economic development – – – Capital outlay 357,754 – – Total expenditures 368,906 – – Excess (deficiency) of revenues over expenditures (100,375) 4,595 5 Other financing sources Contributions from governmental activities – – – Transfers in – – – Total other financing sources – – – Net change in fund balances (100,375) 4,595 5 Fund balances Beginning of year 1,730,693 130,512 1,005 End of year 1,630,318$ 135,107$ 1,010$ Year Ended December 31, 2020 CITY OF PRIOR LAKE Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -93- Cable Police Franchise EDA Forfeiture DAG Total –$ 273,460$ –$ –$ 273,460$ 31,276 7,617 – 68,701 282,414 2,667 12,366 5,316 – 88,530 – 4,900 – – 35,030 – – 28,117 – 28,117 33,943 298,343 33,433 68,701 707,551 4,724 – – – 4,724 – – 12,896 – 12,896 – – – – 11,152 – 170,125 – – 170,125 6,399 87,533 31 171,196 622,913 11,123 257,658 12,927 171,196 821,810 22,820 40,685 20,506 (102,495) (114,259) – 180,868 – – 180,868 – 161,250 – – 161,250 – 342,118 – – 342,118 22,820 382,803 20,506 (102,495) 227,859 75,166 574,556 142,356 740,251 3,394,539 97,986$ 957,359$ 162,862$ 637,756$ 3,622,398$ -94- Tax Revolving Trunk Increment Equipment Reserve Assets Cash and investments 20,294$ 799,452$ 4,012,844$ Receivables Accounts 926 5,043 19,967 Special assessments Delinquent – – 726 Deferred – – 6,245 Due from other governmental agencies – 2,347 – Total assets 21,220$ 806,842$ 4,039,782$ Liabilities Accounts and contracts payable –$ 169,838$ –$ Deposits payable – – – Total liabilities – 169,838 – Deferred inflows of resources Unavailable revenue from special assessments – – 6,972 Fund balances Restricted for tax increment 21,220 – – Assigned for capital improvements – 637,004 4,032,810 Total fund balances 21,220 637,004 4,032,810 Total liabilities, deferred inflows of resources, and fund balances 21,220$ 806,842$ 4,039,782$ CITY OF PRIOR LAKE Nonmajor Capital Projects Funds Combining Balance Sheet as of December 31, 2020 -95- Tax Tax Street Water Increment 1-3 Increment 3-1 Oversizing Storage Lakefront Creekside 1,376,660$ 622,005$ 151,666$ 265,562$ 3,645 13,775 657 295 – 559 – – – 3,218 – – – – – – 1,380,305$ 639,557$ 152,323$ 265,857$ –$ –$ 42,074$ –$ 116,500 – – – 116,500 – 42,074 – – 3,777 – – – – 110,249 265,857 1,263,805 635,780 – – 1,263,805 635,780 110,249 265,857 1,380,305$ 639,557$ 152,323$ 265,857$ -96-(continued) Tax Tax Tax Increment 5-1 Increment 6-1 Increment 1-4 Premiere Shepard’s Path River Vet Assets Cash and investments 17,643$ 587,115$ 6,080$ Receivables Accounts 22 848 (11) Special assessments Delinquent – – – Deferred – – – Due from other governmental agencies – – – Total assets 17,665$ 587,963$ 6,069$ Liabilities Accounts and contracts payable 7,230$ 159,740$ 4,717$ Deposits payable – – – Total liabilities 7,230 159,740 4,717 Deferred inflows of resources Unavailable revenue from special assessments – – – Fund balances Restricted for tax increment 10,435 428,223 1,352 Assigned for capital improvements – – – Total fund balances 10,435 428,223 1,352 Total liabilities, deferred inflows of resources, and fund balances 17,665$ 587,963$ 6,069$ as of December 31, 2020 CITY OF PRIOR LAKE Nonmajor Capital Projects Funds Combining Balance Sheet (continued) -97- Tax Revolving Permanent Increment 1-5 Park Facility Improvement Gateway Ctr Equipment Management Revolving Total 118,470$ 1,220,590$ 506,207$ 359,226$ 10,063,814$ (182) 1,303 3,643 (132) 49,799 – – – 259 1,544 – – – 381,527 390,990 – 1,197 111 714 4,369 118,288$ 1,223,090$ 509,961$ 741,594$ 10,510,516$ 91,059$ –$ –$ –$ 474,658$ – – – – 116,500 91,059 – – – 591,158 – – – 381,786 392,535 27,229 – – – 864,565 – 1,223,090 509,961 359,808 8,662,258 27,229 1,223,090 509,961 359,808 9,526,823 118,288$ 1,223,090$ 509,961$ 741,594$ 10,510,516$ -98- Tax Revolving Trunk Increment Equipment Reserve Revenues Taxes –$ 624,897$ –$ Special assessments – – 1,844 Charges for services 7,200 – 604,347 Investment income 1,064 21,105 123,209 Miscellaneous – – – Total revenues 8,264 646,002 729,400 Expenditures Current Economic development 229 – – Capital outlay 73,340 1,115,758 492 Total expenditures 73,569 1,115,758 492 Excess (deficiency) of revenues over expenditures (65,305) (469,756) 728,908 Other financing sources (uses) Transfers in – 215,000 – Transfers out – –(60,000) Sale of capital assets – 63,717 – Total other financing sources (uses)– 278,717 (60,000) Net change in fund balances (65,305) (191,039) 668,908 Fund balances Beginning of year 86,525 828,043 3,363,902 End of year 21,220$ 637,004$ 4,032,810$ CITY OF PRIOR LAKE Nonmajor Capital Projects Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2020 -99- Tax Tax Street Water Increment 1-3 Increment 3-1 Oversizing Storage Lakefront Creekside –$ –$ 130,212$ 96,149$ – 1,317 – – 44,461 297,161 – – 44,972 16,365 3,754 6,249 – – – – 89,433 314,843 133,966 102,398 – – – – – – 100,368 1,009 – – 100,368 1,009 89,433 314,843 33,598 101,389 – – – – – – (28,895) – – – – – – – (28,895) – 89,433 314,843 4,703 101,389 1,174,372 320,937 105,546 164,468 1,263,805$ 635,780$ 110,249$ 265,857$ -100-(continued) Tax Tax Tax Increment 5-1 Increment 6-1 Increment 1-4 Premiere Shepard’s Path River Vet Revenues Taxes 16,068$ 354,978$ 10,483$ Special assessments – – – Charges for services – – – Investment income 372 14,676 61 Miscellaneous – – – Total revenues 16,440 369,654 10,544 Expenditures Current Economic development – – – Capital outlay 15,490 320,471 10,445 Total expenditures 15,490 320,471 10,445 Excess (deficiency) of revenues over expenditures 950 49,183 99 Other financing sources (uses) Transfers in – – – Transfers out – – – Sale of capital assets – – – Total other financing sources (uses)– – – Net change in fund balances 950 49,183 99 Fund balances Beginning of year 9,485 379,040 1,253 End of year 10,435$ 428,223$ 1,352$ Year Ended December 31, 2020 CITY OF PRIOR LAKE Nonmajor Capital Projects Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (continued) -101- Tax Revolving Permanent Increment 1-5 Park Facility Improvement Gateway Ctr Equipment Management Revolving Total 191,705$ 318,599$ 29,523$ 79,957$ 1,852,571$ – – – 303,294 306,455 – – – – 953,169 951 33,131 17,466 24,205 307,580 – 28,036 – – 28,036 192,656 379,766 46,989 407,456 3,447,811 – – – – 229 183,131 62,120 114,490 590,277 2,587,391 183,131 62,120 114,490 590,277 2,587,620 9,525 317,646 (67,501) (182,821) 860,191 – – 99,000 257,935 571,935 – – – (279,933) (368,828) – – – – 63,717 – – 99,000 (21,998) 266,824 9,525 317,646 31,499 (204,819) 1,127,015 17,704 905,444 478,462 564,627 8,399,808 27,229$ 1,223,090$ 509,961$ 359,808$ 9,526,823$ -102- 2019 Variance With Original Final Actual Final Budget Actual Revenues Taxes Property taxes 8,953,156$ 8,953,156$ 8,923,782$ (29,374)$ 8,367,851$ Franchise taxes 630,000 630,000 670,917 40,917 639,783 Total taxes 9,583,156 9,583,156 9,594,699 11,543 9,007,634 Special assessments 5,000 5,000 5,457 457 140 Licenses and permits Business 84,145 84,145 11,625 (72,520) 81,320 Nonbusiness 746,319 746,319 888,976 142,657 910,776 Total licenses and permits 830,464 830,464 900,601 70,137 992,096 Intergovernmental Federal grants 10,000 10,000 1,957,795 1,947,795 1,821 State Road and bridge aid 377,000 377,000 417,958 40,958 378,807 Fire relief aid 242,650 242,650 248,275 5,625 273,282 Police aid 251,990 251,990 296,262 44,272 291,594 Other state aids 25,905 25,905 34,315 8,410 11,905 County and local Township fire and rescue aid 364,147 364,147 365,765 1,618 314,136 Liaison aid 54,670 54,670 54,670 – 52,680 Other local aids – – 17,000 17,000 1,000 Payment in lieu of taxes 800,000 800,000 700,000 (100,000) 600,000 Total intergovernmental 2,126,362 2,126,362 4,092,040 1,965,678 1,925,225 Charges for services Zoning fees 30,000 30,000 36,370 6,370 32,104 Plan check fees 320,487 320,487 397,284 76,797 382,837 Park fees 181,850 181,850 128,565 (53,285) 202,125 Project fees 122,000 122,000 41,995 (80,005) 73,290 Park program revenue 62,000 62,000 36,348 (25,652) 75,084 Tower leases 317,582 317,582 305,566 (12,016) 312,116 Park admission/rent 107,200 107,200 96,534 (10,666) 76,419 Facility rental 35,831 35,831 36,374 543 37,536 Reports 1,100 1,100 2,369 1,269 1,602 Total charges for services 1,178,050 1,178,050 1,081,405 (96,645) 1,193,113 CITY OF PRIOR LAKE General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Year Ended December 31, 2020 (With Comparative Actual Amounts for the Year Ended December 31, 2019) 2020 Budgeted Amounts -103-(continued) 2019 Variance With Original Final Actual Final Budget Actual Revenues (continued) Fines and forfeits – – 1,652 1,652 996 Investment income Interest earnings 102,700 102,700 153,053 50,353 152,608 Amortization – premium/discount – – (66,083) (66,083) (8,690) Unrealized gain (loss)– – 99,850 99,850 116,516 Total investment income 102,700 102,700 186,820 84,120 260,434 Miscellaneous Other 29,766 29,766 82,535 52,769 56,864 Contributions and donations – – 14,734 14,734 18,403 Developers’ agreements 130,000 130,000 62,062 (67,938) 119,021 Total miscellaneous 159,766 159,766 159,331 (435) 194,288 Total revenues 13,985,498 13,985,498 16,022,005 2,036,507 13,573,926 Expenditures Current expenditures General government Mayor and City Council Personal services 66,857 66,857 61,277 (5,580) 63,060 Supplies 300 300 170 (130) 311 Other services and charges 8,350 8,350 4,240 (4,110) 6,773 Total Mayor and City Council 75,507 75,507 65,687 (9,820) 70,144 Ordinance Other services and charges 7,500 7,500 5,440 (2,060) 4,025 Administration Personal services 274,743 274,743 243,543 (31,200) 464,153 Supplies 6,500 6,500 7,176 676 6,983 Other services and charges 59,230 59,230 67,020 7,790 57,863 Total administration 340,473 340,473 317,739 (22,734) 528,999 Boards and commissions Personal services 10,765 10,765 5,306 (5,459) 8,719 Other services and charges 1,000 1,000 201 (799) – Total boards and commissions 11,765 11,765 5,507 (6,258) 8,719 Schedule of Revenues, Expenditures, and Budgeted Amounts General Fund Changes in Fund Balances – Budget and Actual (continued) CITY OF PRIOR LAKE Year Ended December 31, 2020 (With Comparative Actual Amounts for the Year Ended December 31, 2019) 2020 -104-(continued) 2019 Variance With Original Final Actual Final Budget Actual Expenditures (continued) Current expenditures (continued) General government (continued) City Clerk Personal services 115,093 115,093 115,545 452 81,824 Supplies – – 76 76 179 Other services and charges 1,190 1,190 1,540 350 1,977 Total City Clerk 116,283 116,283 117,161 878 83,980 Election Personal services 28,231 28,231 43,468 15,237 – Supplies 3,000 3,000 8,991 5,991 – Other services and charges 3,000 3,000 5,934 2,934 – Total election 34,231 34,231 58,393 24,162 – Finance Personal services 502,507 502,507 481,376 (21,131) 465,968 Supplies 1,450 1,450 1,533 83 485 Other services and charges 16,615 19,655 16,989 (2,666) 14,122 Total finance 520,572 523,612 499,898 (23,714) 480,575 Auditing Other services and charges 35,475 35,475 31,184 (4,291) 37,564 Assessing Other services and charges 218,704 218,704 216,236 (2,468) 202,418 Legal services Other services and charges 180,000 180,000 193,279 13,279 152,275 Personnel Personal services 262,440 262,440 269,685 7,245 154,461 Supplies 250 250 46 (204) 69 Other services and charges 44,200 44,200 33,475 (10,725) 32,588 Total personnel 306,890 306,890 303,206 (3,684) 187,118 Communications Personal services 113,981 113,981 111,308 (2,673) 106,378 Supplies 200 200 – (200) – Other services and charges 66,150 66,150 38,736 (27,414) 20,183 Total communications 180,331 180,331 150,044 (30,287) 126,561 General Fund 2020 Year Ended December 31, 2020 CITY OF PRIOR LAKE Changes in Fund Balances – Budget and Actual (continued) (With Comparative Actual Amounts for the Year Ended December 31, 2019) Schedule of Revenues, Expenditures, and Budgeted Amounts -105-(continued) 2019 Variance With Original Final Actual Final Budget Actual Expenditures (continued) Current expenditures (continued) General government (continued) Community development Personal services 315,151 315,151 304,334 (10,817) 299,211 Supplies 5,450 5,450 3,536 (1,914) 1,530 Other services and charges 59,320 59,320 142,284 82,964 27,449 Total community development 379,921 379,921 450,154 70,233 328,190 Technology Personal services 211,666 138,152 141,468 3,316 150,439 Supplies 34,376 34,376 45,693 11,317 43,069 Other services and charges 130,633 224,147 197,960 (26,187) 134,730 Total technology 376,675 396,675 385,121 (11,554) 328,238 Buildings and plant Personal services 98,827 48,826 61,740 12,914 95,013 Supplies 8,000 8,000 7,762 (238) 8,388 Other services and charges 392,271 392,271 411,129 18,858 357,849 Total buildings and plant 499,098 449,097 480,631 31,534 461,250 Total general government 3,283,425 3,256,464 3,279,680 23,216 3,000,056 Public safety Police Personal services 4,270,175 4,270,175 4,543,382 273,207 4,126,264 Supplies 177,757 184,079 181,722 (2,357) 145,362 Other services and charges 400,978 400,978 286,851 (114,127) 230,468 Total police 4,848,910 4,855,232 5,011,955 156,723 4,502,094 Fire and rescue Personal services 744,129 744,129 759,660 15,531 691,220 Supplies 115,260 115,260 91,930 (23,330) 91,345 Other services and charges 179,051 179,051 144,264 (34,787) 154,190 Total fire and rescue 1,038,440 1,038,440 995,854 (42,586) 936,755 Building inspections Personal services 549,272 621,273 614,709 (6,564) 562,078 Supplies 17,250 17,250 8,444 (8,806) 14,713 Other services and charges 37,791 37,791 23,013 (14,778) 17,675 Total building inspections 604,313 676,314 646,166 (30,148) 594,466 Emergency management Other services and charges 14,875 14,875 10,335 (4,540) 9,947 Year Ended December 31, 2020 (With Comparative Actual Amounts for the Year Ended December 31, 2019) 2020 Budgeted Amounts CITY OF PRIOR LAKE General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (continued) -106-(continued) 2019 Variance With Original Final Actual Final Budget Actual Expenditures (continued) Current expenditures (continued) Public safety (continued) Animal control Other services and charges 28,800 28,800 29,195 395 28,200 Total public safety 6,535,338 6,613,661 6,693,505 79,844 6,071,462 Public works Engineering Personal services 341,628 341,628 316,764 (24,864) 303,932 Supplies 10,600 10,600 8,004 (2,596) 6,693 Other services and charges 26,862 26,862 31,353 4,491 37,671 Total engineering 379,090 379,090 356,121 (22,969) 348,296 Central garage Personal services 244,744 244,744 232,956 (11,788) 225,463 Supplies 184,525 184,525 177,965 (6,560) 144,447 Other services and charges 53,800 53,800 59,315 5,515 42,934 Total central garage 483,069 483,069 470,236 (12,833) 412,844 Streets Personal services 468,818 484,218 470,933 (13,285) 422,174 Supplies 333,601 333,601 208,033 (125,568) 332,140 Other services and charges 535,867 535,867 494,089 (41,778) 438,729 Total streets 1,338,286 1,353,686 1,173,055 (180,631) 1,193,043 Total public works 2,200,445 2,215,845 1,999,412 (216,433) 1,954,183 Culture and recreation Recreation Personal services 351,207 351,207 249,411 (101,796) 304,211 Supplies 87,052 87,052 57,188 (29,864) 103,307 Other services and charges 35,800 35,800 32,175 (3,625) 26,050 Total recreation 474,059 474,059 338,774 (135,285) 433,568 Parks Personal services 1,107,555 1,118,055 863,292 (254,763) 990,650 Supplies 183,755 183,755 123,499 (60,256) 143,591 Other services and charges 331,761 369,231 240,858 (128,373) 259,408 Total parks 1,623,071 1,671,041 1,227,649 (443,392) 1,393,649 Budgeted Amounts Year Ended December 31, 2020 (With Comparative Actual Amounts for the Year Ended December 31, 2019) Changes in Fund Balances – Budget and Actual (continued) Schedule of Revenues, Expenditures, and General Fund CITY OF PRIOR LAKE 2020 -107-(continued) 2019 Variance With Original Final Actual Final Budget Actual Expenditures (continued) Current expenditures (continued) Culture and recreation (continued) Libraries Supplies 5,000 5,000 2,839 (2,161) 10,449 Other services and charges 64,073 64,073 59,510 (4,563) 51,598 Total libraries 69,073 69,073 62,349 (6,724) 62,047 Total culture and recreation 2,166,203 2,214,173 1,628,772 (585,401) 1,889,264 Total current expenditures 14,185,411 14,300,143 13,601,369 (698,774) 12,914,965 Capital outlay General government Technology 61,819 70,549 85,525 14,976 74,206 Public safety Police – – 46,544 46,544 3,588 Fire – – – – 7,595 Public works Streets – – – – 7,485 Buildings and plant 6,500 6,500 12,239 5,739 7,722 Total capital outlay 68,319 77,049 144,308 67,259 100,596 Total expenditures 14,253,730 14,377,192 13,745,677 (631,515) 13,015,561 Excess (deficiency) of revenues over expenditures (268,232) (391,694) 2,276,328 2,668,022 558,365 Other financing sources (uses) Transfers in 470,000 470,000 470,000 – 456,300 Transfers out (403,018) (438,018) (538,018) (100,000) (334,769) Sale of assets – – 2,603 2,603 9,877 Total other financing sources (uses)66,982 31,982 (65,415) (97,397) 131,408 Net change in fund balances (201,250)$ (359,712)$ 2,210,913 2,570,625$ 689,773 Fund balances Beginning of year 7,903,175 7,213,402 End of year 10,114,088$ 7,903,175$ Budgeted Amounts Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (continued) Year Ended December 31, 2020 2020 (With Comparative Actual Amounts for the Year Ended December 31, 2019) General Fund CITY OF PRIOR LAKE -108- Water Tax City Hall Fire Treatment Increment 2005 Station #2 Plant 2004 Assets Cash and investments 20,163$ 212$ 2,037$ 29,949$ Receivables Accounts 143 – – 127 Special assessments Delinquent – – – – Deferred – – – – Other (Green Acres)– – – – Due from other governmental agencies 2,490 – – – Total assets 22,796$ 212$ 2,037$ 30,076$ Liabilities Accounts and contracts payable 251$ 126$ –$ 128$ Deferred inflows of resources Unavailable revenue from special assessments – – – – Fund balances Restricted for debt service 22,545 86 2,037 29,948 Total liabilities, deferred inflows of resources, and fund balances 22,796$ 212$ 2,037$ 30,076$ CITY OF PRIOR LAKE Debt Service Fund Balance Sheet by Account as of December 31, 2020 -109- CR 12 and CSAH 44, Fish 2010 Boudin Boudin Welcome,Crest, Point Reconstruction Phase I Phase II CR 12, Sunset Maplewood –$ –$ 90,819$ 140,339$ 373,924$ 199,967$ – – 1,475 1,041 3,945 252 – – – – 663 – 30,112 – 30,084 37,079 300,203 20,308 451,350 – – – – – – – 628 679 638 601 481,462$ –$ 123,006$ 179,138$ 679,373$ 221,128$ –$ –$ 128$ 126$ 251$ 251$ 481,462 – 30,084 37,079 300,866 20,308 – – 92,794 141,933 378,256 200,569 481,462$ –$ 123,006$ 179,138$ 679,373$ 221,128$ -110 (continued) Street TH 13, 150th Reconstruction Street 2015 Manitou Road GESP Lease 2015 Reconstruction Improvement Assets Cash and investments 43,899$ 175,498$ 549,309$ 133,937$ Receivables Accounts 2,373 893 (311) (142) Special assessments Delinquent – 11,459 – 3,621 Deferred 16,504 517,239 – 125,771 Other (Green Acres)– – – – Due from other governmental agencies 1,642 – 842 1,062 Total assets 64,418$ 705,089$ 549,840$ 264,249$ Liabilities Accounts and contracts payable –$ 251$ 251$ 84$ Deferred inflows of resources Unavailable revenue from special assessments 16,504 528,699 – 129,392 Fund balances Restricted for debt service 47,914 176,139 549,589 134,773 Total liabilities, deferred inflows of resources, and fund balances 64,418$ 705,089$ 549,840$ 264,249$ Balance Sheet by Account (continued) Debt Service Fund CITY OF PRIOR LAKE as of December 31, 2020 -111- Cates, Balsam, Franklin Trail, Sycamore Trail, Maintenance 2017 2018 TH 13, 150th Center Roof Mill and Franklin, Street 2016 Equipment Improvements Overlay Huron,2018 Reconstruction 2016 2017 Improvements Woodside Street Overlay 9,331$ 14,310$ 541,867$ 5,665$ 348,868$ 12,242$ (5) (9) 1 (3) (276) (8) – – 4,172 – 914 – – – 586,093 – 418,774 – – – –– –– 157 254 1,613 5 2,569 23 9,483$ 14,555$ 1,133,746$ 5,667$ 770,849$ 12,257$ 84$ 84$ 188$ 63$ 188$ 63$ – – 590,265 – 419,688 – 9,399 14,471 543,293 5,604 350,973 12,194 9,483$ 14,555$ 1,133,746$ 5,667$ 770,849$ 12,257$ -112 (continued) THIS PAGE INTENTIONALLY LEFT BLANK 2019 2019 Street Street Improvements Overlay Total Assets Cash and investments 121,139$ –$ 2,813,475$ Receivables Accounts (54) – 9,442 Special assessments Delinquent – – 20,829 Deferred 10,557 – 2,092,724 Other (Green Acres)– – 451,350 Due from other governmental agencies 841 – 14,044 Total assets 132,483$ –$ 5,401,864$ Liabilities Accounts and contracts payable 252$ –$ 2,769$ Deferred inflows of resources Unavailable revenue from special assessments 10,557 – 2,564,904 Fund balances Restricted for debt service 121,674 – 2,834,191 Total liabilities, deferred inflows of resources, and fund balances 132,483$ –$ 5,401,864$ CITY OF PRIOR LAKE Debt Service Fund Balance Sheet by Account (continued) as of December 31, 2020 -113- Water Tax City Hall Fire Treatment Increment 2005 Station #2 Plant 2004 Revenues Taxes 663,030$ –$ –$ –$ Special assessments – – – – Investment income 3,179 – – 988 Total revenues 666,209 – – 988 Expenditures Debt service Principal 515,000 160,000 400,000 25,000 Interest and other 148,902 81,740 153,325 3,934 Total expenditures 663,902 241,740 553,325 28,934 Excess (deficiency) of revenues over expenditures 2,307 (241,740) (553,325) (27,946) Other financing sources (uses) Transfers in – 241,768 554,050 28,895 Transfers out – – – – Total other financing sources (uses)– 241,768 554,050 28,895 Net change in fund balances 2,307 28 725 949 Fund balances Beginning of year 20,238 58 1,312 28,999 End of year 22,545$ 86$ 2,037$ 29,948$ Year Ended December 31, 2020 and Changes in Fund Balances by Account CITY OF PRIOR LAKE Debt Service Fund Schedule of Revenues, Expenditures, -114- CR 12 and CSAH 44, Fish 2010 Boudin Boudin Welcome,Crest, Point Reconstruction Phase I Phase II CR 12, Sunset Maplewood –$ 124,241$ 167,295$ 180,826$ 169,755$ 159,915$ – 14,288 32,551 28,640 85,474 6,095 – 1,912 5,399 7,521 16,076 10,422 – 140,441 205,245 216,987 271,305 176,432 – 130,000 220,000 240,000 325,000 225,000 – 4,160 11,374 16,490 31,526 26,547 – 134,160 231,374 256,490 356,526 251,547 – 6,281 (26,129) (39,503) (85,221) (75,115) – – – – – – – (45,645) – – – – – (45,645) – – – – – (39,364) (26,129) (39,503) (85,221) (75,115) – 39,364 118,923 181,436 463,477 275,684 –$ –$ 92,794$ 141,933$ 378,256$ 200,569$ -115-(continued) Street TH 13, 150th Reconstruction Street 2015 Manitou Road GESP Lease 2015 Reconstruction Improvement Revenues Taxes 300,147$ –$ 124,241$ 76,267$ Special assessments – 26,682 117,777 26,715 Investment income 203 12,934 15,484 5,741 Total revenues 300,350 39,616 257,502 108,723 Expenditures Debt service Principal 269,126 – 210,000 110,000 Interest and other 31,488 117,571 21,476 15,483 Total expenditures 300,614 117,571 231,476 125,483 Excess (deficiency) of revenues over expenditures (264) (77,955) 26,026 (16,760) Other financing sources (uses) Transfers in 45,645 – 110,000 – Transfers out – (110,000) – – Total other financing sources (uses)45,645 (110,000) 110,000 – Net change in fund balances 45,381 (187,955) 136,026 (16,760) Fund balances Beginning of year 2,533 364,094 413,563 151,533 End of year 47,914$ 176,139$ 549,589$ 134,773$ and Changes in Fund Balances by Account (continued) Year Ended December 31, 2020 CITY OF PRIOR LAKE Debt Service Fund Schedule of Revenues, Expenditures, -116- Cates, Balsam, Franklin Trail, Sycamore Trail, Maintenance 2017 2018 TH 13, 150th Center Roof Mill and Franklin, Street 2016 Equipment Improvements Overlay Huron,2018 Reconstruction 2016 2017 Improvements Woodside Street Overlay 41,824$ 67,656$ 325,980$ 1,230$ 683,942$ 6,151$ – – 160,830 – 115,781 – 414 658 20,131 156 11,821 234 42,238 68,314 506,941 1,386 811,544 6,385 35,000 60,000 420,000 70,000 525,000 95,000 5,084 4,884 69,952 4,462 208,988 16,262 40,084 64,884 489,952 74,462 733,988 111,262 2,154 3,430 16,989 (73,076) 77,556 (104,877) – – – 74,400 – 111,200 – – – – – – – – – 74,400 – 111,200 2,154 3,430 16,989 1,324 77,556 6,323 7,245 11,041 526,304 4,280 273,417 5,871 9,399$ 14,471$ 543,293$ 5,604$ 350,973$ 12,194$ -117-(continued) THIS PAGE INTENTIONALLY LEFT BLANK 2019 2019 Street Street Improvements Overlay Total Revenues Taxes 223,880$ –$ 3,316,380$ Special assessments 1,794 – 616,627 Investment income 4,255 – 117,528 Total revenues 229,929 – 4,050,535 Expenditures Debt service Principal 100,000 65,000 4,199,126 Interest and other 122,350 29,333 1,125,331 Total expenditures 222,350 94,333 5,324,457 Excess (deficiency) of revenues over expenditures 7,579 (94,333) (1,273,922) Other financing sources (uses) Transfers in – 94,333 1,260,291 Transfers out – – (155,645) Total other financing sources (uses)– 94,333 1,104,646 Net change in fund balances 7,579 – (169,276) Fund balances Beginning of year 114,095 – 3,003,467 End of year 121,674$ –$ 2,834,191$ CITY OF PRIOR LAKE Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances by Account (continued) Year Ended December 31, 2020 -118- Severance Compensation Insurance Total Assets Cash and investments 503,080$ 27,886$ 530,966$ Receivables Accounts 2,750 284 3,034 Total assets 505,830$ 28,170$ 534,000$ Current liabilities Current portion of compensated absences payable 360,991$ –$ 360,991$ Noncurrent liabilities Compensated absences payable 587,817 – 587,817 Total liabilities 948,808 – 948,808 Net position Unrestricted (442,978) 28,170 (414,808) Total liabilities and net position 505,830$ 28,170$ 534,000$ CITY OF PRIOR LAKE Internal Service Funds Combining Statement of Net Position as of December 31, 2020 -119- Severance Compensation Insurance Total Operating revenues Charges for services 32,368$ –$ 32,368$ Operating expenses Personal services 107,562 105,000 212,562 Operating income (loss)(75,194) (105,000) (180,194) Nonoperating revenues Investment income 13,163 3,741 16,904 Other income – 24,046 24,046 Total nonoperating revenues 13,163 27,787 40,950 Income (loss) before transfers (62,031) (77,213) (139,244) Transfers in 100,000 – 100,000 Change in net position 37,969 (77,213) (39,244) Net position Beginning of year (480,947) 105,383 (375,564) End of year (442,978)$ 28,170$ (414,808)$ CITY OF PRIOR LAKE Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Position Year Ended December 31, 2020 -120- Severance Compensation Insurance Total Cash flows from operating activities Cash received from customers 32,492$ –$ 32,492$ Cash payments to employees 215 (105,000) (104,785) Other income – 23,989 23,989 Net cash flows from operating activities 32,707 (81,011) (48,304) Cash flows from noncapital financing activities Transfers in 100,000 – 100,000 Cash flows from investing activities Interest received on cash and investments 13,163 3,741 16,904 Net increase (decrease) in cash and cash equivalents 145,870 (77,270) 68,600 Cash and cash equivalents, January 1 357,210 105,156 462,366 Cash and cash equivalents, December 31 503,080$ 27,886$ 530,966$ Reconciliation of operating income (loss) to net cash flows from operating activities Operating income (loss)(75,194)$ (105,000)$ (180,194)$ Other income – 24,046 24,046 Adjustments to reconcile operating income (loss) to net cash flows from operating activities (Increase) decrease in assets Accounts receivable 124 (57) 67 Increase (decrease) in liabilities Compensated absences payable 107,777 – 107,777 Net cash flows from operating activities 32,707$ (81,011)$ (48,304)$ CITY OF PRIOR LAKE Internal Service Funds Combining Statement of Cash Flows Year Ended December 31, 2020 -121- OTHER INFORMATION SECTION THIS PAGE INTENTIONALLY LEFT BLANK Percent Increase 2020 2019 (Decrease) Revenues Taxes 14,366,193$ 13,536,829$ 6.1% Franchise taxes 670,917 639,783 4.9% Special assessments 936,363 1,079,348 (13.2%) Licenses and permits 900,601 992,096 (9.2%) Intergovernmental 4,839,981 4,143,994 16.8% Charges for services 2,316,988 3,364,364 (31.1%) Fines and forfeits 1,652 996 65.9% Interest on investments 773,613 1,073,558 (27.9%) Miscellaneous 250,514 343,951 (27.2%) Total revenues 25,056,822$ 25,174,919$ (0.5%) Per capita 920$ 938$ (1.8%) Expenditures Current General government 3,284,404$ 3,000,299$ 9.5% Public safety 6,706,401 6,186,859 8.4% Public works 1,999,412 1,954,183 2.3% Culture and recreation 1,639,924 1,938,999 (15.4%) Economic development 170,354 175,749 (3.1%) Capital outlay 4,383,058 10,089,051 (56.6%) Debt service Principal 4,199,126 4,193,512 0.1% Interest and other charges 1,125,331 1,222,378 (7.9%) Total disbursements 23,508,010$ 28,761,030$ (18.3%) Per capita 864$ 1,071$ (19.4%) Total long-term bonded indebtedness 33,100,000$ 37,030,000$ (10.6%) Per capita 1,216$ 1,379$ (11.8%) General Fund balance – December 31 10,114,088$ 7,903,175$ 28.0% Per capita 372$ 294$ 26.2% The purpose of this report is to provide a summary of financial information concerning the City to interested citizens.The complete financial statements may be examined at City Hall,4646 Dakota Street Southeast,Prior Lake,Minnesota 55372. Questions about this report should be directed to the Finance Director at (952) 447-9842. Governmental Funds Years Ended December 31, 2020 and 2019 Total CITY OF PRIOR LAKE Summary Financial Report Revenues and Expenditures for General Operations -122- Final Issue Maturity Date Date Bonded indebtedness General obligation special assessment bonds G.O. Improvement Bonds of 2010A 0.80–3.20 %05/26/2010 12/15/2020 G.O. Improvement Bonds of 2011A 1.80–2.50 08/31/2011 12/15/2021 G.O. Improvement Bonds of 2011B 2.00–2.35 12/14/2011 12/15/2022 G.O. Improvement Bonds of 2013A 2.00–2.65 08/15/2013 12/15/2023 G.O. Improvement Bonds of 2014A 2.00–2.50 09/25/2014 12/15/2024 G.O. Improvement Bonds of 2015A 2.00–3.00 05/14/2015 12/15/2030 G.O. Improvement Bonds of 2015B 1.00–2.25 05/14/2015 12/15/2022 G.O. Improvement Bonds of 2016A 2.00 05/01/2016 12/15/2026 G.O. Improvement Bonds of 2017A 2.00–2.25 06/29/2017 12/15/2027 G.O. Improvement Bonds of 2018A 4.00–5.00 08/15/2018 12/15/2028 G.O. Improvement Bonds of 2019A 5.00 06/27/2019 12/15/2029 Total general obligation special assessment bonds General obligation tax increment bonds G.O. Tax Increment Refunding Bonds of 2011A 1.80–3.00 08/31/2011 12/15/2024 General obligation bonds G.O. Improvement Bonds of 2011B 2.00–3.40 12/14/2011 12/15/2031 G.O. Capital Improvement Refunding Bonds of 2012A 2.00–2.70 03/13/2012 12/15/2029 G.O. Street Reconstruction Bonds of 2015B 1.00–2.25 05/14/2015 12/15/2022 G.O. Street Reconstruction Bonds of 2016A 2.00 05/01/2016 12/15/2026 G.O. Improvement Bonds of 2017A 2.00–2.25 06/29/2017 12/15/2024 G.O. Improvement Bonds of 2018A 4.00–5.00 08/15/2018 12/15/2028 G.O. Improvement Bonds of 2019A 5.00 06/27/2019 12/15/2028 Total general obligation bonds General obligation revenue bonds G.O. Improvement Refunding Bonds of 2015A 1.00–3.00 05/14/2015 12/15/2031 G.O. Improvement Refunding Bonds of 2016A 2.00 05/01/2016 12/15/2022 G.O. Improvement Bonds of 2018A 4.00–5.00 08/15/2018 12/15/2028 Total general obligation revenue bonds Total bonded indebtedness Rate CITY OF PRIOR LAKE Combined Schedule of Indebtedness Year Ended December 31, 2020 Interest -123- Outstanding Issued Outstanding Authorized January 1 (Retired)December 31 Principal Interest 1,235,000$ 130,000$ (130,000)$ –$ –$ –$ 2,130,000 445,000 (220,000) 225,000 225,000 5,625 2,280,000 730,000 (240,000) 490,000 245,000 11,148 3,240,000 1,290,000 (325,000) 965,000 325,000 23,955 2,170,000 1,170,000 (225,000) 945,000 230,000 21,300 4,640,000 4,640,000 – 4,640,000 – 115,825 160,000 75,000 (25,000) 50,000 25,000 1,088 1,105,000 770,000 (110,000) 660,000 110,000 13,200 4,135,000 3,330,000 (435,000) 2,895,000 445,000 59,963 4,465,000 4,035,000 (490,000) 3,545,000 455,000 159,100 1,850,000 1,850,000 (150,000) 1,700,000 205,000 85,000 27,410,000 18,465,000 (2,350,000) 16,115,000 2,265,000 496,204 290,000 135,000 (25,000) 110,000 25,000 3,175 3,500,000 2,820,000 (160,000) 2,660,000 175,000 78,136 9,825,000 6,440,000 (515,000) 5,925,000 545,000 137,858 2,330,000 900,000 (185,000) 715,000 290,000 15,653 760,000 490,000 (95,000) 395,000 95,000 7,900 370,000 275,000 (55,000) 220,000 55,000 4,400 1,165,000 1,045,000 (130,000) 915,000 110,000 41,100 215,000 215,000 (15,000) 200,000 20,000 10,000 18,165,000 12,185,000 (1,155,000) 11,030,000 1,290,000 295,047 5,360,000 5,210,000 (75,000) 5,135,000 75,000 131,500 1,640,000 1,035,000 (325,000) 710,000 345,000 14,200 2,640,000 2,430,000 (240,000) 2,190,000 240,000 99,300 9,640,000 8,675,000 (640,000) 8,035,000 660,000 245,000 55,505,000$ 39,460,000$ (4,170,000)$ 35,290,000$ 4,240,000$ 1,039,426$ Due in 2021 -124- Final Issue Maturity Date Date Principal General obligation special assessment bonds $2,130,000 General Obligation Improvement Bonds, Series 2011A 08/31/2011 2.50 %12/15/2021 225,000$ $2,280,000 General Obligation Improvement Bonds, Series 2011B 12/14/2011 2.50 %12/15/2021 245,000 3.00 12/15/2022 245,000 Total 490,000 $3,240,000 General Obligation Improvement Bonds, Series 2013A 08/15/2013 2.30 %12/15/2021 325,000 2.50 12/15/2022 320,000 2.65 12/15/2023 320,000 Total 965,000 $2,170,000 General Obligation Improvement Bonds, Series 2014A 09/25/2014 2.00 %12/15/2021 230,000 2.00 12/15/2022 235,000 2.50 12/15/2023 235,000 2.50 12/15/2024 245,000 Total 945,000 CITY OF PRIOR LAKE Bond Schedules December 31, 2020 Rate Interest -125-(continued) Final Issue Maturity Date Date Principal General obligation special assessment bonds (continued) $4,640,000 General Obligation Improvement Bonds, Series 2015A 05/14/2015 2.00 %12/15/2023 405,000 2.00 12/15/2024 575,000 2.00 12/15/2025 775,000 2.50 12/15/2026 610,000 2.50 12/15/2027 555,000 3.00 12/15/2028 550,000 3.00 12/15/2029 600,000 3.00 12/15/2030 570,000 Total 4,640,000 $160,000 General Obligation Improvement Bonds, Series 2015B 05/14/2015 2.10 %12/15/2021 25,000 2.25 12/15/2022 25,000 Total 50,000 $1,105,000 General Obligation Improvement Bonds, Series 2016A 05/01/2016 2.00 %12/15/2021 110,000 2.00 12/15/2022 110,000 2.00 12/15/2023 110,000 2.00 12/15/2024 110,000 2.00 12/15/2025 110,000 2.00 12/15/2026 110,000 Total 660,000 $4,135,000 General Obligation Improvement Bonds, Series 2017A 06/29/2017 2.00 %12/15/2021 445,000 2.00 12/15/2022 450,000 2.00 12/15/2023 385,000 2.00 12/15/2024 390,000 2.00 12/15/2025 400,000 2.25 12/15/2026 410,000 2.25 12/15/2027 415,000 Total 2,895,000 CITY OF PRIOR LAKE Bond Schedules (continued) December 31, 2020 Interest Rate -126-(continued) Final Issue Maturity Date Date Principal General obligation special assessment bonds (continued) $4,465,000 General Obligation Improvement Bonds, Series 2018A 08/15/2018 4.00 %12/15/2021 455,000 4.00 12/15/2022 475,000 4.00 12/15/2023 490,000 4.00 12/15/2024 395,000 5.00 12/15/2025 410,000 5.00 12/15/2026 420,000 5.00 12/15/2027 440,000 5.00 12/15/2028 460,000 Total 3,545,000 $1,850,000 General Obligation Improvement Bonds, Series 2019A 06/27/2019 5.00 %12/15/2021 205,000 5.00 12/15/2022 210,000 5.00 12/15/2023 220,000 5.00 12/15/2024 235,000 5.00 12/15/2025 150,000 5.00 12/15/2026 160,000 5.00 12/15/2027 165,000 5.00 12/15/2028 175,000 5.00 12/15/2029 180,000 Total 1,700,000 Total general obligation special assessment bonds 16,115,000$ General obligation tax increment bonds $290,000 Tax Increment Refunding Bonds, Series 2011A 08/31/2011 2.50 %12/15/2021 25,000 3.00 12/15/2022 25,000 3.00 12/15/2023 30,000 3.00 12/15/2024 30,000 Total general obligation tax increment bonds 110,000$ Bond Schedules (continued) December 31, 2020 Interest Rate CITY OF PRIOR LAKE -127-(continued) Final Issue Maturity Date Date Principal General obligation bonds $3,500,000 General Obligation Improvement Bonds, Series 2011B 12/14/2011 2.20 %12/15/2021 175,000 2.35 12/15/2022 180,000 2.50 12/15/2023 195,000 2.65 12/15/2024 215,000 2.75 12/15/2025 230,000 2.85 12/15/2026 240,000 3.00 12/15/2027 255,000 3.20 12/15/2028 270,000 3.20 12/15/2029 285,000 3.40 12/15/2030 300,000 3.40 12/15/2031 315,000 Total 2,660,000 $9,825,000 General Obligation Capital Improvement Refunding Bonds of 2012A 03/13/2012 2.00 %12/15/2021 545,000 2.00 12/15/2022 565,000 2.00 12/15/2023 590,000 2.15 12/15/2024 615,000 2.30 12/15/2025 645,000 2.40 12/15/2026 685,000 2.50 12/15/2027 720,000 2.60 12/15/2028 760,000 2.70 12/15/2029 800,000 Total 5,925,000 $2,330,000 General Obligation Street Reconstruction Bonds, Series 2015B 05/14/2015 2.10 %12/15/2021 290,000 2.25 12/15/2022 425,000 Total 715,000 $760,000 General Obligation Street Reconstruction Bonds, Series 2016A 05/01/2016 2.00 %12/15/2021 95,000 2.00 12/15/2022 95,000 2.00 12/15/2023 95,000 2.00 12/15/2024 35,000 2.00 12/15/2025 35,000 2.00 12/15/2026 40,000 Total 395,000 CITY OF PRIOR LAKE Bond Schedules (continued) December 31, 2020 Interest Rate -128-(continued) Final Issue Maturity Date Date Principal General obligation bonds (continued) $370,000 General Obligation Improvement Bonds of 2017A 06/29/2017 2.00 %12/15/2021 55,000 2.00 12/15/2022 55,000 2.00 12/15/2023 55,000 2.00 12/15/2024 55,000 Total 220,000 $1,165,000 General Obligation Improvement Bonds, Series 2018A 08/15/2018 4.00 %12/15/2021 110,000 4.00 12/15/2022 110,000 4.00 12/15/2023 120,000 4.00 12/15/2024 125,000 5.00 12/15/2025 125,000 5.00 12/15/2026 130,000 5.00 12/15/2027 130,000 5.00 12/15/2028 65,000 Total 915,000 $215,000 General Obligation Improvement Bonds, Series 2019A 06/27/2019 5.00 %12/15/2021 20,000 5.00 12/15/2022 20,000 5.00 12/15/2023 25,000 5.00 12/15/2024 25,000 5.00 12/15/2025 25,000 5.00 12/15/2026 25,000 5.00 12/15/2027 30,000 5.00 12/15/2028 30,000 Total 200,000 Total general obligation bonds 11,030,000$ CITY OF PRIOR LAKE Bond Schedules (continued) December 31, 2020 Interest Rate -129-(continued) Final Issue Maturity Date Date Principal General obligation revenue bonds $5,360,000 General Obligation Improvement Refunding Bonds, Series 2015A 05/14/2015 1.50 %12/15/2021 75,000 1.50 12/15/2022 75,000 2.00 12/15/2023 480,000 2.00 12/15/2024 495,000 2.00 12/15/2025 515,000 2.50 12/15/2026 530,000 2.50 12/15/2027 550,000 3.00 12/15/2028 570,000 3.00 12/15/2029 590,000 3.00 12/15/2030 615,000 3.00 12/15/2031 640,000 Total 5,135,000 $1,640,000 General Obligation Improvement Refunding Bonds, Series 2016A 05/01/2016 2.00 %12/15/2021 345,000 2.00 12/15/2022 365,000 Total 710,000 $2,640,000 General Obligation Improvement Bonds, Series 2018A 08/15/2018 4.00 %12/15/2021 240,000 4.00 12/15/2022 250,000 4.00 12/15/2023 260,000 4.00 12/15/2024 270,000 5.00 12/15/2025 270,000 5.00 12/15/2026 280,000 5.00 12/15/2027 300,000 5.00 12/15/2028 320,000 Total 2,190,000 Total general obligation revenue bonds 8,035,000$ December 31, 2020 Interest Rate CITY OF PRIOR LAKE Bond Schedules (continued) -130- Year Principal Interest Principal Interest 2021 1,290,000$ 295,047$ 2,265,000$ 496,204$ 2022 1,450,000 265,802 2,070,000 433,038 2023 1,080,000 232,316 2,165,000 373,318 2024 1,070,000 206,591 1,950,000 310,363 2025 1,060,000 179,620 1,845,000 255,188 2026 1,120,000 150,260 1,710,000 201,488 2027 1,135,000 118,430 1,575,000 145,813 2028 1,125,000 84,780 1,185,000 92,350 2029 1,085,000 51,630 780,000 44,100 2030 300,000 20,910 570,000 17,100 2031 315,000 10,710 – – Total 11,030,000$ 1,616,096$ 16,115,000$ 2,368,962$ CITY OF PRIOR LAKE Debt Service Requirements December 31, 2020 General Obligation General Obligation Bonds Special Assessment Bonds -131- Principal Interest Principal Interest 25,000$ 3,175$ 660,000$ 245,000$ 25,000 2,550 690,000 227,375 30,000 1,800 740,000 208,950 30,000 900 765,000 188,950 – – 785,000 168,250 – – 810,000 144,450 – – 850,000 117,200 – – 890,000 88,450 – – 590,000 55,350 – – 615,000 37,650 – – 640,000 19,200 110,000$ 8,425$ 8,035,000$ 1,500,825$ Revenue Bonds General ObligationGeneral Obligation Tax Increment Bonds -132- Collection Collections Total of Current of Prior Total Year Levy Year Levy Years’ Levy Collections 2011 10,114,124$ 10,114,124$ 100.00 %*148,029$ 10,262,153$ 101.46 % 2012 9,414,124 9,414,124 100.00 132,726 9,546,850 101.41 2013 9,414,124 9,414,124 100.00 79,901 9,494,025 100.85 2014 9,448,918 9,448,918 100.00 86,180 9,535,098 100.91 2015 10,394,086 10,394,086 100.00 48,336 10,442,422 100.47 2016 11,078,361 11,034,353 99.60 68,478 11,102,831 100.22 2017 11,568,155 11,520,353 99.59 12,692 11,533,045 99.70 2018 12,077,538 11,994,082 99.31 61,762 12,055,844 99.82 2019 12,778,035 12,697,865 99.37 65,150 12,763,015 99.88 2020 13,326,387 13,260,149 99.50 32,451 13,292,600 99.75 *Market value credit was withheld by the state of Minnesota Collection Collections Total of Current of Prior Total Year Levy Year Levy**Years’ Levy Collections 2011 347,795$ 345,533$ 99.35 %6,113$ 351,646$ 101.11 % 2012 385,017 384,144 99.77 4,477 388,621 100.94 2013 393,347 391,132 99.44 5,606 396,738 100.86 2014 526,584 460,800 87.51 4,946 465,746 88.45 2015 354,412 365,481 103.12 11,655 377,136 106.41 2016 453,962 475,376 104.72 2,611 477,987 105.29 2017 504,420 474,936 94.15 7,331 482,267 95.61 2018 657,443 635,553 96.67 34,485 670,038 101.92 2019 728,099 699,440 96.06 13,554 712,994 97.93 2020 670,146 653,522 97.52 20,682 674,204 100.61 **Excludes prepaid assessment collections Percentage Percentage Percentage Collected Percentage Collectionsof Levy of Total of Total to Levy CITY OF PRIOR LAKE Tax Levies and Collections, and Special Assessment Levies and Collections Special Assessment Levies and Collections Prior Ten Years Tax Levies and Collections of Levy Collected to Levy Collections -133- 2018 2019 2020 Taxable market value 3,261,128,200$ 3,447,986,900$ 3,713,161,300$ Tax levy 12,077,538$ 12,778,035$ 13,601,137$ Tax capacity, net of fiscal disparities, and tax increment 33,172,374$ 35,200,266$ 37,983,304$ Tax capacity rate 33.040% 33.020% 32.496% Market value rate 0.007% 0.007% 0.007% EDA tax capacity rate 0.390% 0.395% 0.840% CITY OF PRIOR LAKE Schedules of Market Value, Tax Levy, Tax Capacity Values, Tax Capacity Rate, and Market Value Rate Prior Three Years -134- 2018 2019 2020 Current population 26,207 26,849 27,222 Tax capacity, net of fiscal disparities, and tax increment 33,172,374$ 35,200,266$ 37,983,304$ Percent of current property taxes collected 99.31% 99.37% 99.50% City revenues per capita (governmental funds)869$ 938$ 921$ City expenditures per capita (governmental funds)1,013$ 1,071$ 862$ Ratio of bonded debt to tax capacity 108.36% 103.88% 88.10% Bond rating AA+ (S&P)AA+ (S&P)N/A Prior Three Years Key Financial Indicators CITY OF PRIOR LAKE -135- SINGLE AUDIT AND OTHER REQUIRED REPORTS THIS PAGE INTENTIONALLY LEFT BLANK Pass-Through Entity Federal Identification Federal CFDA No.Number Expenditures U.S. Department of Justice Direct Program Bulletproof Vest Partnership Program 16.607 3,754$ U.S. Department of Transportation Passed through the City of Shakopee State and Community Highway Safety 20.600 2,640 Management and Budget COVID-19 – Coronavirus Relief Fund 21.019 SLT0016 1,969,018 COVID-19 – HAVA Election Security Grants 90.404 13,304 Total federal awards 1,988,716$ Note 1: Note 2: Note 3: Note 4: Federal Grantor/Pass-Through Grantor/Program Title CITY OF PRIOR LAKE Schedule of Expenditures of Federal Awards Year Ended December 31, 2020 Unaudited Disclosure –The City received donated personal protective equipment (PPE)with an estimated value of less than $1,000. The City was unable to determine whether federal dollars were used to purchase the donated PPE. U.S. Department of Treasury Passed through the Minnesota Department of Unless noted in the table above,the pass-through entities use the same CFDA numbers as the federal grantors to identify these grants, and have not assigned any additional identifying numbers. The City did not elect to use the 10 percent de minimis indirect cost rate. The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting.The information in this schedule is presented in accordance with the OMB’s Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards.Therefore,some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the City’s basic financial statements. U.S. Election Assistance Commission Passed through Scott County -136- THIS PAGE INTENTIONALLY LEFT BLANK -137- INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the City Council and Management City of Prior Lake, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Prior Lake, Minnesota (the City) as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated May 17, 2021. INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we di d not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. (continued) C E R T I F I E D A C C O U N T A N T S P UBLIC PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1 -138- COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this report is not suitable for any other purpose. Minneapolis, Minnesota May 17, 2021 -139- INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the City Council and Management City of Prior Lake, Minnesota REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM We have audited the City of Prior Lake, Minnesota’s (the City) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended December 31, 2020. The City’s major federal programs are identified in the Summary of Audit Results section of the accompanying Schedule of Findings and Questioned Costs. MANAGEMENT’S RESPONSIBILITY Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. AUDITOR’S RESPONSIBILITY Our responsibility is to express an opinion on compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance. OPINION ON EACH MAJOR FEDERAL PROGRAM In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2020. (continued) C E R T I F I E D A C C O U N T A N T S P UBLIC PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1 -140- REPORT ON INTERNAL CONTROL OVER COMPLIANCE Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to on the previous page. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of complianc e requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. PURPOSE OF THIS REPORT The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Minneapolis, Minnesota May 17, 2021 -141- INDEPENDENT AUDITOR’S REPORT ON MINNESOTA LEGAL COMPLIANCE To the City Council and Management City of Prior Lake, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Prior Lake, Minnesota (the City) as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated May 17, 2021. MINNESOTA LEGAL COMPLIANCE In connection with our audit, nothing came to our attention that caused us to believe that the City 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 Minnesota Statutes § 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. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this report is not suitable for any other purpose. Minneapolis, Minnesota May 17, 2021 C E R T I F I E D A C C O U N T A N T S P UBLIC PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1 CITY OF PRIOR LAKE Schedule of Findings and Questioned Costs Year Ended December 31, 2020 -142- A. SUMMARY OF AUDIT RESULTS This summary is formatted to provide federal granting agencies and pass-through agencies answers to specific questions regarding the audit of federal awards. Financial Statements What type of auditor’s report is issued? X Internal control over financial reporting: Material weakness(es) identified?Yes X No Significant deficiency(ies) identified?Yes X Noncompliance material to the financial statements noted?Yes X No Federal Awards Internal controls over major federal award programs: Material weakness(es) identified?Yes X No Significant deficiency(ies) identified?Yes X Type of auditor’s report issued on compliance for major programs? U.S. Department of Treasury – COVID-19 – Coronavirus Relief Fund Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)?Yes X No Programs tested as major programs: Program or Cluster(s)CFDA No. U.S. Department of Treasury – COVID-19 – Coronavirus Relief Fund 21.019 Threshold for distinguishing between type A and B programs. 750,000$ Does the auditee qualify as a low-risk auditee?Yes X No Unmodified Qualified Adverse Disclaimer None reported None reported CITY OF PRIOR LAKE Schedule of Findings and Questioned Costs (continued) Year Ended December 31, 2020 -143- B. FINANCIAL STATEMENT FINDINGS None. C. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None. D. MINNESOTA LEGAL COMPLIANCE FINDINGS None. THIS PAGE INTENTIONALLY LEFT BLANK 4646 Dakota Street SE Prior Lake, MN 55372 Phone 952.447.9800/Fax 952.447.4245/www.cityofpriorlake.com Corrective Action Plans and Summary Schedule of Prior Audit Findings Year Ended December 31, 2020 A. FINANCIAL STATEMENT FINDINGS None. B. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None. C. MINNESOTA LEGAL COMPLIANCE FINDINGS None. D. SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS No audit findings were reported for the year ended December 31, 2019. The City of Prior Lake did not require a single audit of federal awards for the year ended December 31, 2019. Management Report for City of Prior Lake, Minnesota December 31, 2020 THIS PAGE INTENTIONALLY LEFT BLANK To the City Council and Management City of Prior Lake, Minnesota We have prepared this management report in conjunction with our audit of the City of Prior Lake, Minnesota’s (the City) financial statements for the year ended December 31, 2020. We have organized this report into the following sections: •Audit Summary •Governmental Funds Overview •Enterprise Funds Overview •Government-Wide Financial Statements •Legislative Updates •Accounting and Auditing Updates We would be pleased to further discuss any of the information contained in this report or any other concerns that you would like us to address. We would also like to express our thanks for the courtesy and assistance extended to us during the course of our audit. The purpose of this report is solely to provide those charged with governance of the City, management, and those who have responsibility for oversight of the financial reporting process comments resulting from our audit process and information relevant to city finances in Minnesota. Accordingly, this report is not suitable for any other purpose. Minneapolis, Minnesota May 17, 2021 C E R T I F I E D A C C O U N T A N T S P UBLIC PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1 THIS PAGE INTENTIONALLY LEFT BLANK -1- AUDIT SUMMARY The following is a summary of our audit work, key conclusions, and other information that we consider important or that is required to be communicated to the City Council, administration, or those charged with governance of the City. OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA, GOVERNMENT AUDITING STANDARDS, AND TITLE 2 U.S. CODE OF FEDERAL REGULATIONS (CFR) PART 200, UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS (UNIFORM GUIDANCE) 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 as of and for the year ended December 31, 2020. Professional standards require that we provide you with information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards, the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information to you verbally and in our audit engagement letter. Professional standards also require that we communicate the following information related to our audit. PLANNED SCOPE AND TIMING OF THE AUDIT We performed the audit according to the planned scope and timing previously discussed and coordinated in order to obtain sufficient audit evidence and complete an effective audit. AUDIT OPINION AND FINDINGS Based on our audit of the City’s financial statements for the year ended December 31, 2020: •We have issued an unmodified opinion on the City’s basic financial statements. •We reported no deficiencies in the City’s internal control over financial reporting that we considered to be material weaknesses. •The results of our testing disclosed no instances of noncompliance required to be reported under Government Auditing Standards. •We reported that the Schedule of Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the basic financial statements. •The results of our tests indicate that the City has complied, in all material respects, with the types of compliance requirements that could have a direct and material effect on each of its major federal programs. •We reported no deficiencies in the City’s internal controls over compliance that we considered to be material weaknesses with the types of compliance requirements that could have a direct and material effect on each of its major federal programs. •We reported no findings based on our testing of the City’s compliance with Minnesota laws and regulations. -2- OTHER OBSERVATIONS AND RECOMMENDATIONS Electronic Funds Transfers Fraud As the use of electronic funds transfers and payment methods has become more prevalent, we have seen increases in both the incidences of fraud related to these transactions and the dollar amounts involved. Operational changes related to the COVID-19 pandemic, including greater reliance on technology and more employees working remotely, have tended to increase risk in this area. We urge cities to carefully review controls over these transactions, and consider best practices to address these risks, such as: • Ensuring segregation of duties over these transactions by involving more than one employee in the process. • Requiring multi-factor authentication of requests for electronic payments from new vendors or for changes in wiring instructions for existing vendors. It is recommended that changes for existing vendors be verified through trusted contact information used previously for that vendor, not as provided in the change request, to verify the accuracy of the change. • Educate employees on the controls in place to protect the organization’s financial assets and ensure management is supportive and accepting of the processes in place. Attempted fraudulent transactions are often initiated using the profile of a supervisor. Employees must be comfortable questioning unusual transactions or requests, and instructed not to circumvent internal control procedures regardless of whom they believe initiated the transaction. • Recommended cyber security measures, such as limiting network access and requiring robust passwords that are changed regularly, should be implemented and followed by all city employees, not just those directly involved with financial transactions. • Review insurance policies to understand the coverage provided for financial losses due to cybersecurity risks and evaluate whether they provide adequate coverage based on management’s assessment of these risks. Uniform Guidance Written Controls and Micro-Purchase Threshold Federal Uniform Guidance requires that nonfederal entities must have and use documented pr ocurement procedures consistent with 2CFR § 200.317-320 for the acquisition of property or services required under a federal award or subaward. Effective August 31, 2020, the federal micro-purchase threshold, which is the threshold that allows for procurements without soliciting competitive price or rate quotations given certain conditions, was increased from $3,500 to $10,000 in the Federal Acquisition Regulations (FAR). Effective November 12, 2020, the Uniform Guidance was also revised to allow nonfederal entities to establish a micro-purchase threshold higher than the $10,000 threshold established in the FAR under certain circumstances. The nonfederal entity may self-certify a micro-purchase threshold up to $50,000 if the requirements in 2CFR § 200.320(a)(1)(iv) are followed. Requirements include an annual self-certification and clear documentation of the justification to support the increase in the threshold. Acceptable reasons for justification must meet one of the following criteria: • A qualification as a low-risk auditee, in accordance with the criteria in §200.520 for the most recent audit, • An annual internal institutional risk assessment to identify, mitigate, and manage financial risks, or, • A higher threshold consistent with state law. This flexibility would allow Minnesota local governments to increase and align their federal procurement procedures, specifically the micro-purchase threshold, with state law, which allows for procurements below $25,000 to be made without competitive price or rate quotations. -3- We recommend that the City review its current federal procurement policy. If the micro -purchase threshold in your currently adopted policy is below the allowable FAR limit of $10,000, you would need to make a one-time amendment to the policy to adopt the $10,000 FAR limit before using it. If you prefer to increase your federal micro-purchase threshold to $25,000 to align it with state law, in addition to amending your federal procurement policy, you would need to annuall y certify the higher threshold and the justification for using the higher threshold. SIGNIFICANT ACCOUNTING POLICIES 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 of the notes to basic financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year ended December 31, 2020. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. ACCOUNTING ESTIMATES AND MANAGEMENT JUDGMENTS 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: • Depreciation – Management’s estimates of depreciation expense are based on the estimated useful lives of the assets. • Compensated Absences – Estimates for compensated absences payable are based on current sick and vacation leave balances. • Total Other Post-Employment Benefits (OPEB) and Net Pension Liabilities – The City has recorded liabilities and activity for pension benefits and OPEB. These obligations are calculated using actuarial methodologies described in Governmental Accounting Standards Board Statement Nos. 68 and 75. These actuarial calculations include significant assumptions, including projected changes, healthcare insurance costs, investment returns, retirement ages, proportionate share, and employee turnover. • Assets Held for Resale – Management’s estimates of the assets are based on net realizable value (lower of cost or acquisition value). We evaluated the key factors and assumptions used by management to develop these estimates in determining that they are reasonable in relation to the basic financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The disclosures included in the notes to the basic financial statements related to OPEB and pension benefits are particularly sensitive, due to the materiality of the liabilities, and the large and complex estimates involved in determining the disclosures. The financial statement disclosures are neutral, consistent, and clear. DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT We encountered no significant difficulties in dealing with management in performing and completing our audit. -4- CORRECTED AND UNCORRECTED MISSTATEMENTS Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no misstatements detected as a result of audit procedures that were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole. DISAGREEMENTS WITH MANAGEMENT For purposes of this report, a disagreement with management is 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 17, 2021. MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. OTHER AUDIT FINDINGS OR ISSUES We generally discuss a variety of matters, including the application of accounting principles and auditing standards with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. OTHER MATTERS We applied certain limited procedures to the management’s discussion and analysis (MD&A) and the pension and OPEB-related required supplementary information (RSI) 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 supplemental information and the Schedule of Expenditures of Federal Awards accompanying the financial statements, which 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 fr om 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 and other information sections, which accompany the financial statements, but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. -5- GOVERNMENTAL FUNDS OVERVIEW This section of the report provides you with an overview of the financial trends and activities of the City’s governmental funds, which includes the General, special revenue, debt service, and capital project funds. These funds are used to account for the basic services the City provides to all of its citizens, whi ch are financed primarily with property taxes. The governmental fund information in the City’s financial statements focuses on budgetary compliance and the sufficiency of each governmental fund’s current assets to finance its current liabilities. PROPERTY TAXES Minnesota cities rely heavily on local property tax levies to support their governmental fund activities. For the 2019 fiscal year, local ad valorem property tax levies provided 40.8 percent of the total governmental fund revenues for cities over 2,500 in population, and 37.6 percent for cities under 2,500 in population. Total property taxes levied by all Minnesota cities for taxes payable in 2020 increased 6.1 percent from the prior year. The total tax capacity value of property in Minnesota cities increased about 6.5 percent for the 2020 levy year. The tax capacity values used for levying property taxes are based on the assessed market values for the previous fiscal year (e.g., tax capacity values for taxes levied in 2020 were based on assessed market values as of January 1, 2019), so the trend of change in these tax capacity values lags somewhat behind the housing market and economy in general. The City’s taxable market value increased 5.7 percent for taxes payable in 2019 and 7.7 percent for taxes payable in 2020. The following graph shows the City’s changes in taxable market value over the past 10 years: $– $500,000,000 $1,000,000,000 $1,500,000,000 $2,000,000,000 $2,500,000,000 $3,000,000,000 $3,500,000,000 $4,000,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Taxable Market Value -6- Tax capacity is considered the actual base available for taxation. It is calculated by applying the state’s property classification system to each property’s market value. Each property classification, such as commercial or residential, has a different calculation and uses different rates. Consequently, a city’s total tax capacity will change at a different rate than its total market value, as tax capacity is affected by the proportion of its tax base that is in each property classification from year-to-year, as well as legislative changes to tax rates. The City’s tax capacity increased 6.1 percent and 7.9 percent for taxes payable in 2019 and 2020, respectively. The following graph shows the City’s change in tax capacities over the past 10 years: $– $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Local Net Tax Capacity The following table presents the average tax rates applied to city residents for each of the last three levy years: 2018 2019 2020 Average tax rate City 33.0 33.0 32.5 County 35.1 33.8 32.7 School 33.0 31.7 29.9 Special taxing 8.7 7.8 7.3 Total 109.8 106.3 102.4 City of Prior Lake Rates Expressed as a Percentage of Net Tax Capacity The City’s portion of the tax rate has been consistent over the past three years. -7- GOVERNMENTAL FUND BALANCES The following table summarizes the changes in the fund balances of the City’s governmental funds during the year ended December 31, 2020, presented both by fund balance classification and by major fund: 2020 2019 Change Fund balances of governmental funds Total by classification Nonspendable 70,006$ –$ 70,006$ Restricted 7,321,154 4,088,161 3,232,993 Assigned 9,416,770 11,295,634 (1,878,864) Unassigned 9,783,378 7,578,463 2,204,915 Total governmental funds 26,591,308$ 22,962,258$ 3,629,050$ Total by fund General 10,114,088$ 7,903,175$ 2,210,913$ Debt Service 2,834,191 3,003,467 (169,276) Construction 493,808 261,269 232,539 Special revenue nonmajor funds 3,622,398 3,394,539 227,859 Capital projects nonmajor funds 9,526,823 8,399,808 1,127,015 Total governmental funds 26,591,308$ 22,962,258$ 3,629,050$ Governmental Funds Change in Fund Balance Fund Balance as of December 31, In total, the fund balances of the City’s governmental funds increased by $3,629,050 during the year ended December 31, 2020. The overall increase in fund balances relates to increase in the General Fund balance and nonmajor capital project funds, including increases to the Trunk Reserve, Water Storage, and Revolving Park Equipment Funds. The increases to restricted fund balance and decline in assigned fund balance mostly relates to reclassifications of special revenue fund balances. -8- GOVERNMENTAL FUNDS REVENUE AND EXPENDITURES The following table presents the per capita revenue of the City’s governmental funds for the past three years, along with state-wide averages. We have included the most recent comparative state-wide averages available from the Office of the State Auditor to provide a benchmark for interpreting the City’s data. The amounts received from the typical major sources of governmental fund revenue will naturally vary between cities based on factors , such as a city’s stage of development, location, size and density of its population, property values, services it provides, and other attributes. It will also differ from year -to-year, due to the effect of inflation and changes in its operation. Also, certain data in these tables may be classified differently than how the y appear in the City’s financial statements in order to be more comparable to the state-wide information, particularly in separating capital expenditures from current expenditures. We have designed this section of our management report using per capita d ata in order to better identify unique or unusual trends and activities of the City. We intend for this type of comparative and trend information to complement, rather than duplicate, information in the MD&A. An inherent difficulty in presenting per capita information is the accuracy of the population count, which for most years is based on estimates. Year 2018 2019 2020 Population 2,500–10,000 10,000–20,000 20,000–100,000 26,207 26,849 27,222 Property taxes 514$ 489$ 512$ 460$ 475$ 498$ Tax increments 30 28 44 29 29 29 Franchise and other taxes 45 50 50 24 24 25 Special assessments 54 38 53 51 40 34 Licenses and permits 40 35 51 38 37 33 Intergovernmental revenues 342 297 201 71 154 178 Charges for services 135 108 115 168 125 85 Other 89 78 79 28 54 39 Total revenue 1,249$ 1,123$ 1,105$ 869$ 938$ 921$ December 31, 2019 City of Prior LakeState-Wide Governmental Funds Revenue per Capita With State-Wide Averages by Population Class In total, the City’s governmental fund revenues for 2020 were $25,056,822, a decrease of $118,097 (0.5 percent) from the prior year. On a per capita basis, the City received $921 in governmental fund revenue for 2020, a decrease of $17 from the prior year. Charges for services revenues decreased $40 per capita, due to decreased services provided, as a result of COVID-19. In general, the City has generated less governmental fund revenue per capita than the state-wide averages spread across all categories. -9- The expenditures of governmental funds will also vary from state -wide averages and from year-to-year, based on the City’s circumstances. Expenditures are classified into three types as follows: • Current – These are typically the general operating type expenditures occurring on an annual basis, and are primarily funded by general sources, such as taxes and intergovernmental revenues. • Capital Outlay and Construction – These expenditures do not occur on a consistent basis, more typically fluctuating significantly from year-to-year. Many of these expenditures are project-oriented, and are often funded by specific sources that have benefited from the expenditure, such as special assessment improvement projects. • Debt Service – Although the expenditures for debt service may be relatively consistent over the term of the respective debt, the funding source is the important factor. Some debt may be repaid through specific sources, such as special assessments or redevelopment funding, while other debt may be repaid with general property taxes. The City’s expenditures per capita of its governmental funds for the past three years, together with comparative state-wide averages, are presented in the following table: Year 2018 2019 2020 Population 2,500–10,000 10,000–20,000 20,000–100,000 26,207 26,849 27,222 Current 152$ 128$ 107$ 105$ 112$ 121 300 282 306 222 230 246 146 149 119 72 73 73 103 124 106 73 72 60 74 75 97 6 7 6 775 758 735 478 494 506 Capital outlay and construction 438 376 355 345 375 161 Debt service 168 182 88 151 156 154 43 41 28 39 46 41 211 223 116 190 202 195 Total expenditures 1,424$ 1,357$ 1,206$ 1,013$ 1,071$ 862$ Interest and fiscal charges Public safety Streets and highways Culture and recreation All other Principal General government Governmental Funds Expenditures per Capita With State-Wide Averages by Population Class December 31, 2019 City of Prior LakeState-Wide Total expenditures in the City’s governmental funds for 2020 were $23,508,010, a decrease of $5,253,020 (18.3 percent) from the prior year. On a per capita basis, the City expended a total of $862 in 2020. Capital outlay expenditures decreased $214 per capita from the prior year, due to less construction related expenditures in 2020. -10- GENERAL FUND The City’s General Fund accounts for the financial activity of the basic services provided to the community. The primary services included within this fund are the administration of the municipal operation, police and fire protection, building inspection, streets and highway maintenance, and culture and recreation. The graph below illustrates the change in the General Fund financial position over the last five years. We have also included a line representing annual expenditures and transfers out to reflect the change in the size of the General Fund operation over the same period. 2016 2017 2018 2019 2020 Fund Balance $6,684,920 $6,840,928 $7,213,402 $7,903,175 $10,114,088 Cash and Inv (Net of Borrowing)$7,211,301 $8,306,654 $8,938,262 $9,604,268 $11,068,473 Expenditures and Transfers Out $12,417,787 $13,208,933 $13,115,121 $13,350,330 $14,283,695 $– $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 General Fund Financial Position Year Ended December 31, The City’s General Fund cash and investments balance increased $1,464,205 during the current year. Total fund balance increased $2,210,913 from the prior year. As the graph illustrates, the City has generally been able to maintain healthy cash and fund balance leve ls as the volume of financial activity has grown. This is an important factor because a government, like any organization, requires a certain amount of equity to operate. A healthy financial position allows the City to avoid volatility in tax rates; helps minimize the impact of state funding changes; allows for the adequate and consistent funding of services, repairs, and unexpected costs; and is a factor in determining the City’s bond rating and resulting interest costs. Maintaining an adequate fund balance has become increasingly important given the fluctuations in state funding for cities in recent years. The City has formally adopted a fund balance policy regarding the minimum unrestricted fund balance for the General Fund. The policy establishes that the City will strive to maintain an unrestricted General Fund balance (which includes committed, assigned, and unassigned classifications) between 40.0 percent and 50.0 percent of the subsequent year’s General Fund budgeted expenditures. At December 31, 2020, the unrestricted fund balance of the General Fund was 66.6 percent of the subsequent year’s budgeted expenditures and transfers out. -11- The following graph reflects the City’s General Fund revenue sources for 2020 compared to budget: All Other Fines and Forfeits Charges for Services Intergovernmental Licenses and Permits Taxes General Fund Revenue Budget and Actual Actual Budget General Fund revenue for 2020 was $16,022,005, which was $2,036,507 (14.6 percent) more than budget, mainly due to the City receiving more intergovernmental aid in 2020 related to federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funding. Investment income, included in “all other” in the graph above, also exceeded budgeted amounts by $84,120 as earnings exceeded conservative projected amounts. The following graph presents the City’s General Fund revenue by source for the last five years. The graph reflects the City’s increased reliance on property tax revenue in recent years. Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeits All Other 2016 $8,886,211 $751,824 $1,581,752 $1,132,504 $4,743 $248,153 2017 $8,779,030 $820,433 $1,657,988 $1,346,676 $2,250 $324,924 2018 $8,619,057 $994,613 $1,835,750 $1,357,049 $1,448 $385,047 2019 $9,007,634 $992,096 $1,925,225 $1,193,113 $996 $454,862 2020 $9,594,699 $900,601 $4,092,040 $1,081,405 $1,652 $351,608 $– $1,500,000 $3,000,000 $4,500,000 $6,000,000 $7,500,000 $9,000,000 $10,500,000 General Fund Revenue by Source Year Ended December 31, Total General Fund revenue for 2020 was $2,448,079 (18.0 percent) higher than last year. Intergovernmental increased $2,166,815, or 112.5 percent, related to federal CARES Act funding. Property taxes increased $587,065 related to an increased levy. -12- The following graph illustrates the components of General Fund spending for 2020 compared to budget: All Other Culture and Recreation Public Works Public Safety General Government General Fund Expenditures Budget and Actual Actual Budget Total General Fund expenditures for 2020 were $13,745,677, which was $631,515 (4.4 percent) under budget. Culture and recreation was under budget by $585,401, mainly due to COVID-19 restrictions. Public works was also under budget by $216,433. This amount includes amounts favorable to budget variances in a number of areas, including engineering, central garage, and streets. The following graph presents the City’s General Fund expenditures by function for the last five years: General Government Public Safety Public Works Culture and Recreation All Other 2016 $2,531,266 $5,034,978 $1,875,534 $1,593,975 $222,808 2017 $2,741,278 $5,239,456 $1,798,918 $1,677,597 $115,563 2018 $2,755,367 $5,746,524 $1,882,971 $1,850,587 $60,021 2019 $3,000,056 $6,071,462 $1,954,183 $1,889,264 $100,596 2020 $3,279,680 $6,693,505 $1,999,412 $1,628,772 $144,308 $– $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 General Fund Expenditures by Function Year Ended December 31, 2020 Total General Fund expenditures for 2020 were $730,116 (5.6 percent) greater than the previous year. Public safety expenditures increased $622,043, due to wages and benefits for additional police officers, cost of living adjustments in the current year, and increased overtime costs. Expenditures were also higher in general government by $279,624. This includes increases mainly for elections, personnel costs, and community development. -13- ENTERPRISE FUNDS OVERVIEW The City maintains a number of enterprise funds to account for services the City provides that are financed primarily through fees charged to those utilizing the service. This section of the report provides you with an overview of the financial trends and activities of the City’s enterprise funds, which include the Water, Sewer, and Water Quality Funds. ENTERPRISE FUNDS FINANCIAL POSITION The following table summarizes the changes in the financial position of the City’s enterprise funds during the year ended December 31, 2020, presented by both classification and by fund: 2020 2019 Change Net position of enterprise funds Total by classification Investment in capital assets 69,058,053$ 68,398,856$ 659,197$ Unrestricted 9,784,086 7,137,595 2,646,491 Total enterprise funds 78,842,139$ 75,536,451$ 3,305,688$ Total by fund Water 46,737,472$ 45,354,364$ 1,383,108$ Sewer 27,724,006 26,381,082 1,342,924 Water Quality 4,380,661 3,801,005 579,656 Total enterprise funds 78,842,139$ 75,536,451$ 3,305,688$ Enterprise Funds Change in Financial Position Net Position as of December 31, INTERNAL SERVICE FUND The City has established a Compensated Absences Internal Service Fund to finance the compensated absence obligations of the governmental funds of the City. At December 31, 2020, this fund had assets totaling $505,830, while liabilities totaled $948,808, leaving a deficit net position balance of ($442,978). We recommend that the City continue to include the financing of these obligations as part of its long-range financial plans. The City has also established an Insurance Internal Service Fund to account for risk management activities, including workers’ compensation, volunteer accident, and property/casualty insurance. At December 31, 2020, this fund had assets totaling $28,170 and no liabilities, leading to a net position balance of $28,170. -14- WATER ENTERPRISE FUND The following graph presents five years of comparative operating results for the City’s Water Fund: 2016 2017 2018 2019 2020 Oper Revenue $3,674,099 $3,796,097 $3,967,706 $3,792,321 $4,784,064 Oper Expenses $2,493,541 $2,621,448 $2,679,154 $2,983,966 $3,243,683 Oper Income (Loss)$1,180,558 $1,174,649 $1,288,552 $808,355 $1,540,381 Inc Before Depr $1,870,854 $1,912,281 $2,092,678 $1,696,804 $2,495,708 $– $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 Water Enterprise Fund Year Ended December 31, The Water Fund ended 2020 with net position of $46,737,472, an increase of $1,383,108 from the prior year. Of this, $41,436,018 represents the investment in capital assets, leaving $5,301,454 in unrestricted net position. The Water Fund had transfers out totaling $1,215,160 in 2020 to support other funds, pay debt service, and provide for construction projects. Operating revenue in the Water Fund increased $991,743 (26.2 percent) from the prior year. This increase was due to increased rates and increased usage in the current year. Water Fund operating expenses for 2020 increased $259,717 (8.7 percent) from the previous year. This increase was mainly for repairs and maintenance. State and federal grants, interest revenue and expenses, miscellaneous income, and loss on sale of capital assets, which are not included in the graph above, totaled $168,192 in 2020. After including these revenues and expenses, the Water Fund reflected income before contributions and transfers of $1,708,573. -15- SEWER ENTERPRISE FUND The following graph presents five years of comparative operating results for the City’s Sewer Fund: 2016 2017 2018 2019 2020 Oper Revenue $2,741,578 $3,090,773 $3,270,026 $3,622,033 $4,399,718 Oper Expenses $2,635,304 $2,771,143 $2,892,003 $3,281,824 $3,360,286 Oper Income (Loss)$106,274 $319,630 $378,023 $340,209 $1,039,432 Inc Before Depr $530,299 $789,288 $889,932 $904,035 $1,653,925 $– $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 $2,000,000 $2,250,000 $2,500,000 $2,750,000 $3,000,000 $3,250,000 $3,500,000 $3,750,000 $4,000,000 $4,250,000 $4,500,000 Sewer Enterprise Fund Year Ended December 31, The Sewer Fund ended 2020 with net position of $27,724,006, an increase of $1,342,924 from the prior year. Of this, $25,024,608 represents the City’s investment in capital assets, leaving $2,699,398 in unrestricted net position. The Sewer Fund had transfers out totaling $632,110 in 2020 to support other funds, pay debt service, and provide for construction projects. Operating revenue in the Sewer Fund increased $777,685 (21.5 percent) from the prior year, mainly related to increased usage and rates in 2020. Sewer Fund operating expenses for 2020 increased $78,462 (2.4 percent) from the previous year. These increases were mainly for disposal charges. State and federal grants, interest revenue and expenses, and miscellaneous revenues, which are not included in the graph above, totaled $45,796 in 2020. After including these revenues and expenses, the Sewer Fund reflected income before contributions and transfers of $1,085,228. -16- WATER QUALITY ENTERPRISE FUND The following graph presents five years of comparative operating results for the City’s Water Quality Fund: 2016 2017 2018 2019 2020 Oper Revenue $920,128 $925,988 $986,338 $1,060,295 $1,175,189 Oper Expenses $598,972 $633,557 $600,030 $611,654 $623,317 Oper Income (Loss)$321,156 $292,431 $386,308 $448,641 $551,872 Inc Before Depr $427,648 $402,799 $508,197 $583,068 $668,423 $– $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 Water Quality Enterprise Fund Year Ended December 31, The Water Quality Fund ended 2020 with net position of $4,380,661, an increase of $579,656 from the prior year. Of this, $2,597,427 represents the investment in capital assets, leaving $1,783,234 in unrestricted net position. Operating revenue in the Water Quality Fund increased $114,894 (10.8 percent) from the prior year, due to an increase in the rates in 2020. Water Quality Fund operating expenses for 2020 increased $11,663 (1.9 percent) from the previous year. -17- GOVERNMENT-WIDE FINANCIAL STATEMENTS In addition to fund-based information, the current reporting model for governmental entities also requires the inclusion of two government-wide financial statements designed to present a clear picture of the City as a single, unified entity. These government-wide financial statements provide information on the total cost of delivering services, including capital assets and long-term liabilities. STATEMENT OF NET POSITION The Statement of Net Position essentially tells you what the City owns and owes at a given point in time, the last day of the fiscal year. Theoretically, net position represents the resources the City has leftover to use for providing services after its debts are settled. However, those resources are not always in spendable form, or there may be restrictions on how some of those resources can be used. Therefore, net position is divided into three components: net investment in capital assets, restricted, and unrestricted. The following table presents the components of the City’s net position as of December 31, 2020 and 2019, for governmental activities and business-type activities: 2020 2019 Change Net position Governmental activities Net investment in capital assets 118,120,401$ 112,279,178$ 5,841,223$ Restricted 10,865,279 7,988,232 2,877,047 Unrestricted 11,944,650 11,418,431 526,219 Total governmental activities 140,930,330 131,685,841 9,244,489 Business-type activities Net investment in capital assets 69,058,053 68,398,856 659,197 Unrestricted 9,784,086 7,137,595 2,646,491 Total business-type activities 78,842,139 75,536,451 3,305,688 Total net position 219,772,469$ 207,222,292$ 12,550,177$ As of December 31, The City’s total net position at December 31, 2020 was $12,550,177 higher than the total net position reported at the previous year-end. The increase in the net investment in capital assets balance was mostly due to capital outlay and capital contribution activity during fiscal 2020. The increase in restricted net position in governmental activities is related to reclassifications of special revenue fund balances in the current year. Increases in unrestricted fund balance in the business-type activities relates to positive operating results in these funds in the current year. At the end of the current fiscal year, the City is able to present positive balances in all categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior year. -18- STATEMENT OF ACTIVITIES The Statement of Activities tracks the City’s yearly revenues and expenses, as well as any other transactions that increase or reduce total net position. These amounts represent the full cost of providing services. The Statement of Activities provides a more comprehensive measure than just the amount of cash that changed hands, as reflected in the fund-based financial statements. This statement includes the cost of supplies used, depreciation of long-lived capital assets, and other accrual-based expenses. The following table presents the change in the net position of the City for the years ended December 31, 2020 and 2019: 2019 Program Expenses Revenues Net Change Net Change Governmental activities General government 3,831,010$ 493,819$ (3,337,191)$ (2,927,283)$ Public safety 7,025,367 3,153,992 (3,871,375) (3,348,722) Public works 6,024,512 6,084,890 60,378 2,686,022 Culture and recreation 2,127,013 435,197 (1,691,816) (1,879,877) Economic development 964,213 14,936 (949,277) (915,082) Interest on long-term debt 896,377 – (896,377) (1,038,292) Business-type activities Water 3,281,173 5,692,694 2,411,521 1,059,788 Sewer 3,397,772 5,302,169 1,904,397 609,146 Water quality 623,317 1,212,230 588,913 466,628 28,170,754$ 22,389,927$ (5,780,827) (5,287,672) General revenues Taxes 15,066,374 14,176,838 Unrestricted grants and contributions 1,951,940 12,867 Investment income 1,089,194 1,385,288 Miscellaneous 184,583 144,924 Sale of assetsGain on sale of assets 38,913 – Total general revenues 18,331,004 15,719,917 12,550,177$ 10,432,245$ Total net (expense) revenue Change in net position Net (expense) revenue 2020 One of the goals of this statement is to provide a side-by-side comparison to illustrate the difference in the way the City’s governmental and business-type operations are financed. The table clearly illustrates the dependence of the City’s governmental operations on general revenues, such as property taxes and unrestricted grants. It also shows that the City’s business-type activities are generating sufficient program revenues (service charges and program-specific grants) to cover expenses. This is critical given the current downward pressures on the general revenue sources. -19- LEGISLATIVE UPDATES The 2020 legislative session, coming in the second half of the state’s fiscal biennium, was expected to be a typical short session focused primarily on making relatively minor modifications to the biennial budget. Given a projected budget surplus of $1.5 billion going into the session, consideration of a substantial capital investment and bonding bill was also a potential focus. The start of the legislative session in February was followed by a series of significant events that changed the course of the session, including a world-wide health pandemic, the death of George Floyd while in police custody and the ensuing protests and unrest, and a hotly contested national election. On March 13, 2020, the Governor issued an executive order declaring a peacetime emergency, giving his administration the ability to quickly impose restrictions and measures aimed at mitigating the COVID-19 outbreak. By early May, the state’s budget outlook had changed from a robust surplus to a projected deficit of $2.4 billion. The legislative session ultimately encompassed an unprecedented seven special sessions, more than double the previous state record of three, with the final special session in mid-December. In the end, a $1.87 billion omnibus bonding bill was passed that included $1.36 billion in general obligation state bonding for capital improvements, $31.0 million in supplemental General Fund budget spending, and provisions for tax relief and economic assistance. The session also yielded a new Police Accountability Act, and a $217.0 million economic relief package to help businesses negatively impacted by the pandemic. The following is a brief summary of legislative changes from the 2020 session or previous legislative sessions potentially impacting Minnesota cities. Coronavirus Aid, Relief, and Economic Security (CARES) Act – The CARES Act provided federal economic relief to protect the American people from the public health and economic impacts of COVID-19. Minnesota received approximately $2.2 billion in funding under the CARES Act. When the first legislative special session ended without an agreement on the distribution of approximately $841.5 million of federal Coronavirus Relief Fund (CRF) funding earmarked for Minnesota local governments, the Governor distributed the funds by executive order based on the framework of the legislative agreement debated during the first special session. This resulted in $350.4 million being distributed directly to Minnesota cities with populations equal to or greater than 200. The funds were authorized for use for unbudgeted costs related to the COVID-19 pandemic, but not to replace lost revenues. In accordance with CARES Act provisions, the CRF funding was available to cover costs that; 1) were necessary expenditures incurred due to the public health emergency related to COVID-19; 2) were not accounted for in the entity’s budget most recently approved as of March 27, 2020; and 3) were incurred during the period from March 1, 2020 through December 31, 2020 (the availability period end date was revised by the state to November 15, 2020 for Minnesota cities). Emergency Small Business Assistance Program – The Legislature created a program to appropriate $60.0 million of federal CRF funding to make grants available through the Minnesota Department of Employment and Economic Development for eligible small businesses impacted by COVID-19. Small businesses employing up to 50 full-time employees are eligible to receive grants of up to $10,000. The allocation is split between the metro area and greater Minnesota, with specific allocations for busines ses owned by minorities, veterans, and women. $18.0 million of the allocation is earmarked for businesses with 6 or less employees. Workers’ Compensation Claims – COVID-19 Presumption – The Legislature adopted several new provisions to state unemployment statutes related to COVID-19, including a presumption that an employee who contracts COVID-19 has an “occupational disease” arising out of, and in the course of, employment if the employee works in one of the specified occupations and has a confirmed case of COVID-19. Covered occupations include nurses, healthcare workers, and workers required to provide childcare for first responders and healthcare workers under Executive Orders 20 -02 and 20-19. The COVID-19 presumption provision sunsets on May 1, 2021. -20- Bonding Bill – The 2020 bonding bill provided financing for approximately $1.36 billion of projects. Some of the more significant appropriations for local infrastructure included: $105 million in undesignated grants for local road improvement and bridge replacement; $100 million for water infrastructure and point source implementation grants; $25 million for state match of federal grants for public facilities improvements, $20 million for natural resource asset preservation, $17 million for flood control mitigation, $15 million for the Local Government Roads Wetlands Replacement Program; $5 million for Metropolitan Council inflow and infiltration grants; and $5 million for metropolitan regional parks and trails. The bill also included funding for a number of state initiatives, including: $300 million in trunk highway bonds for the improvement of the state trunk highway system; $145 million in appropriation bonds to fund the infrastructure and capital needs of the Minnesota Housing Finance Agency, Minnesota Pollution Control Agency, and Minnesota Public Television; $30 million for state agency projects aimed at promoting racial equity, $29.5 million for the state Emergency Operations Center; and $16 million for the Minnesota Housing Finance Agency. The bill provides authority for eligible local governments to own and operate childcare facilities, and permits local governments to enter into management agreements with licensed childcare providers to operate in publicly-owned facilities. It also makes cities, counties, school districts, and joint powers boards located outside of the seven-county metro area eligible to apply for grants through the Greater Minnesota Childcare Facility Capital Grant Program. The bill also included a provision extending the equal pay certificate of compliance requirement to contracts by any public entity, including political subdivisions, using state general obligation bond proceeds for all or part of a capital project. Local governments will be responsible for requiring that bids include proper certification on applicable projects, which applies to projects for goods or services valued at more than $1 million utilizing appropriated bond proceeds on or after January 1, 2022. Elections – A number of measures were passed to help ensure the safe and secure conduct of the 2020 state primary and general elections, including; allowing for the processing of absentee ballots to begin 14 days prior to the date of the election, extending the period during which absentee ballots could be processed for 2 days following the election, accepting electronic filings for affidavits of candidacy or nominating petitions, and specifying that municipalities were to use schools as polling places only when no other public or private location was reasonably available. Funds from the federal Help America Vote Act were made available for modernizing, securing, and improving election facilities, a portion of which was made available for grants to local governments to fund activities prescribed by this program. Minors Operating Lawn Care Equipment – Effective May 28, 2020, Minnesota Statutes lowered the employment age for operating lawn care equipment to age 16. Minors aged 16 and 17 must be trained in the safe operation of the equipment and wear appropriate personal protective equipment when operating the lawn care equipment. The exception under this statute applies only to minors directly employed by golf courses, resorts, rental property owners, or municipalities to perform lawn care on golf courses, resort grounds, rental property, or municipal grounds. Open Meeting Law Exception – The interactive television provision of the Minnesota Open Meeting Law was amended to allow for participation in meetings by interactive electronic means, such as Skype or Zoom, without requiring that an elected official be advised to do so by a healthcare professional for personal or family medical reasons. This allowance is available only when a national security or peacetime emergency has been declared and may be used up to 60 days after the emergency declaration has been lifted. Whenever public meetings are held via interactive electronic means of this type, votes must be conducted by roll call and be recorded in the minutes. Expanded Authority for Electronic Signatures During COVID-19 – Effective May 17, 2020, cities are allowed to accept certain documents, signatures, or filings electronically, by mail, or facsimile during the COVID-19 pandemic, including; planning and zoning applications and permits; land use documents; documents requiring the signature of licensed architects, engineers, land surveyors, geoscientists, or interior designers; applications for birth or death certificates; or recording notary commissions. This accommodation expires January 16, 2021, or 60 days following the termination of the peacetime public health emergency. -21- Solid Waste Recycling Exemption – The requirement that not more than 15 percent of mixed municipal solid waste received by recycling or composting facilities be disposed of, rather than recycled or composted, is suspended as long as the need for the exception is triggered by operational changes implemented to address the COVID-19 pandemic. Pension Changes – Effective January 1, 2021, the maximum lump-sum pension amount for volunteer firefighters is increased from $10,000 to $15,000 per year of service. Municipalities are permitted to split state fire aid received between its career firefighters and its affiliated volunteer firefighters, but only if the amount allocated to the career firefighters is approved by the membership of the volunteer firefighter relief association. Any aid allocated to career firefighters must be used to pay the Public Employees Retirement Association (PERA) employer contributions on their behalf within 18 months of the transfer or be returned to the relief association. Police Accountability Act – The Legislature passed the Police Accountability Act, which enacted a number of changes to laws governing police conduct, training, and oversight. Among the more significant changes adopted were: • Defined and authorized “public safety peer counseling” and “critical incident stress management,” and classifies information shared in these settings as private data. • Established an Independent Use of Force Investigations Unit within the Bureau of Criminal Apprehension to investigate all officer-involved deaths in the state, as well as criminal sexual assault allegations against peace officers, effective August 1, 2020. • Authorized statutory or home rule charter cities to offer incentives to encourage a person hired as a peace officer to be a resident of the city. • Limited the use of certain restraint methods by peace officer unless the use of deadly force is authorized in a given situation. • Established and modified provisions related to law enforcement use of deadly force. • Defined and prohibited “warrior-style” training for peace officers. • Established a 15-member “Ensuring Police Excellence and Improving Community Relations Advisory Council” under the Police Officer Standards and Training (POST) Board, to assist the POST Board in maintaining policies and regulating peace officers in a manner that ensures the protection of civil and human rights. • Established a duty for peace officers to intercede when another officer is using excessive force and report incidents of excessive force to supervisors. THIS PAGE INTENTIONALLY LEFT BLANK -22- ACCOUNTING AND AUDITING UPDATES The following is a summary of Governmental Accounting Standards Board (GASB) standards expe cted to be implemented in the next few years. Due to the COVID-19 pandemic, the GASB has delayed the original implementation dates of these and other standards as described below. GASB Statement No. 87, Leases A lease is a contract that transfers control of the right to use another entity’s nonfinancial asset as specified in the contract for a period of time in an exchange or exchange -like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. Any contract that meet s this definition should be accounted for under the leases guidance, unless specifically excluded in this statement. Governments enter into leases for many types of assets. Under the previous guidance, leases were classified as either capital or operating depending on whether the lease met any of the four tests. In many cases, the previous guidance resulted in reporting lease transactions differently than similar nonlease financing transactions. The goal of this statement is to better meet the information needs of users by improving accounting and financial reporting for leases by governments. It establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. This statement increase s the usefulness of 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. 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. To reduce the cost of implementation, this statement includes an exception for short -term leases, defined as a lease that, at the commencement of the lease term, has a maximum possible term under the lease contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. Lessees and lessors should recognize short-term lease payments as outflows of resources or inflows of resources, respectively, based on the payment provisions of the lease contract. The requirements of this statement are effective for reporting periods beginning after June 15, 2021. -23- GASB Statement No. 91, Conduit Debt Obligations 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 iss uer; 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. A conduit debt obligation is defined as a debt instrument having all of the following characteristics: • There are at least three parties involved: (1) an issuer, (2) a third party obligor, and (3) a debt holder or a debt trustee. • The issuer and the third party obligor are not within the same financial reporting entity. • The debt obligation is not a parity bond of the issuer, nor is it cross -collateralized with other debt of the issuer. • The third party obligor or its agent, not the issuer, ultimately receives the proceeds fr om the debt issuance. • The third party obligor, not the issuer, is primarily obligated for the payment of all amounts associated with the debt obligation (debt service payments). 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. 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. The requirements of this statement are effective for reporting periods beginning after December 15, 2021. Earlier application is encouraged. -24- GASB Statement No. 92, Omnibus 2020 The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This statement addresses a variety of topics and includes specific provisions about the following: • The effective date of Statement No. 87, Leases, and Implementation Guide No. 2019-3, Leases, for interim financial reports • Reporting of intra-entity transfers of assets between a primary government employer and a component unit defined benefit pension plan or defined benefit other post-employment benefit (OPEB) plan • The applicability of Statements No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, as amended, and No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, to reporting assets accumulated for post-employment benefits • The applicability of certain requirements of Statement No. 84, Fiduciary Activities, to post-employment benefit arrangements • Measurement of liabilities (and assets, if any) related to asset retirement obligations in a government acquisition • Reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers • Reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature • Terminology used to refer to derivative instruments The requirements of this statement are effective for fiscal years beginning after June 15, 2021. Earlier application is encouraged. GASB Statement No. 96, Subscription-Based Information Technology Arrangements This statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. An SBITA is defined as a contract that conveys control of the right to use another party’s (an SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange -like transaction. Under this statement, a government generally should recognize a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability. This statement provides an exception for short-term SBITAs with a maximum possible term under the SBITA contract of 12 months, including any options to extend, regardless of their probability of being exercised. Subscription payments for short-term SBITAs should be recognized as outflows of resources. This statement requires a government to disclose descriptive information about its SBITAs other than short-term SBITAs, such as the amount of the subscription asset, accumulated amortization, other payments not included in the measurement of a subscription liability, principal and interest requirements for the subscription liability, and other essential information. The requirements of this statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. -25- GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an Amendment of GASB Statement No. 14 and No. 84, and a Supersession of GASB Statement No. 32 The primary objectives of this statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution OPEB plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. The requirements of this statement that (1) exempt primary governments that perform the duties that a government board typically performs from treating the absence of a governing board the same as the appointment of a voting majority of a governing board in determining whether they are financially accountable for defined contribution pension plans, defined contribution OPEB plans, or other employee benefit plans, and (2) limit the applicability of the financial burden criterion in paragraph 7 of Statement 84 to defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that meet the criteria in paragraph 3 of Statement 67 or paragraph 3 of Statement 74, respectively, are effective immediately. The requirements of this statement that are related to the accounting and financial reporting for Section 457 plans are effective for fiscal years beginning after June 15, 2021. For purposes of determining whether a primary government is financially accountable for a potential component unit, the requirements of this statement that provide that for all other arrangements, the absence of a governing board be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform, are effective for reporting periods beginning after June 15, 2021. Earlier application of those requirements is encouraged and permitted by requirement as specified within this statement. Location Map Shimek Annexation 17944 Revere Way, Prior Lake, MN 55372 (PID 119120042) Credit River Township, soon to be City of Credit River ANNEXATION PARCEL Spring Lake Township Spring Lake Township Spring Lake Township Spring Lake Township City of Prior Lake Drawn by:Cad File:Date:Folder #:Sheet 1 of 1 NJK00-SURV-121006-BASE4-21-218618TIE SHEET FOR:DISTINCTIVE LAND DEVELOPMENT, LLCREVERE PLACECIVIL ENGINEERSLAND PLANNERSLAND SURVEYORSLANDSCAPE ARCHITECTS2422 Enterprise DriveMendota Heights, MN 55120(651) 681-1914www.pioneereng.comFax: 681-9488Revised:5-12-21 1 AGREEMENT FOR ANNEXATION OF THE STEVEN G. SHIMEK AND LEE ANN SHIMEK REVOCABLE TRUST PROPERTY SPRING LAKE TOWNSHIP THIS AGREEMENT (“Agreement”) is entered into by and between Steven G. Shimek and Lee Ann Shimek, as Trustees of the Steven G. Shimek and Lee Ann Shimek Revocable Trust dated September 8, 2014 (“Owner”) and the City of Prior Lake, a Minnesota municipal corporation (“City”). RECITALS: WHEREAS, Owner is the fee owner of property in Spring Lake Township located at 17944 Revere Way, Prior Lake, MN 55372 and legally described on attached Exhibit A (“Property”). WHEREAS, Owner has filed a petition with the City requesting that the City annex the Property pursuant to Minn. Stat. 414.033, Subd. 2 (3). WHEREAS, the Property is located near the intersection of Scott County Highway 21 and Scott County Highway 87 [Revere Way] (“Intersection”). WHEREAS, City is unwilling to approve the annexation allowing additional residential development in this area due to the anticipated increase in vehicle trips through the Intersection until safety improvements can be made to the Intersection unless Owner agrees to comply with the terms and conditions of this Agreement. . WHEREAS, it is expected that the Intersection will be re-constructed and possibly re- aligned within the next several years (“Intersection Project”). WHEREAS, Owner agrees to comply with the terms and conditions of this Agreement including conditions relating to the Intersection Project, limiting the development of the Property to low-density residential, and execution of a Deposit Agreement for the Intersection Project. 2 NOW THEREFORE, based on the mutual promises and covenants set forth herein, the sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Recitals. The Recitals set forth above are incorporated herein. 2. Transportation Infrastructure Deposit. Owner acknowledges that the annexation and development of the Property will have a substantial impact on the transportation infrastructure of the Intersection and therefore agrees to contribute toward the Intersection Project. Owner shall execute and satisfy all terms set forth in the Deposit Agreement attached hereto and incorporated herein as Exhibit B for the Intersection Project. 3. Spring Lake Township Reimbursement. To mitigate the financial impact of an annexation on a township, Minnesota Statute § 414.036 requires reimbursement to township for annexed taxable property. Owner shall deposit with the City two times the amount of taxes that Spring Lake Township levied against the Property in 2021, which totals $1,816.46. City shall use these funds only for reimbursement to Spring Lake Township, which will be provided in two substantially equal payments over two years following approval of the petition for annexation. 4. Development and Use of Property. a. Owner acknowledges that the Property shall be developed only for low-density single-family residential uses. Any use or development of the Property shall be subject to all standard City review and approvals. b. City acknowledges that the Property may have difficulty meeting the City’s minimum unit per acre requirement of 2.5 units per acre due to existing environmental, topographical impediments as well as the pre-determined street location as established by a previous adjacent residential subdivision. City shall cooperate in good faith with Owner or future developer to design a low-density residential subdivision which will meet minimum unit per acre requirements. 5. Annexation. Upon execution of this Agreement and the Deposit Agreement and the recording of this Agreement with the Scott County Recorder’s Office, City shall file an ordinance annexing the Property with the Chief Administrative Law Judge. 6. Indemnification and Hold Harmless. The Owner shall indemnify, defend and hold the City, its Council, agents, employees, attorneys and representatives harmless against and in respect of any and all claims, demands, actions, suits, proceedings, liens, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including interest, penalties, and attorneys’ fees, that the City incurs or suffers, which arise out of, result from or relate to the annexation of the Property or this Agreement. The responsibility to indemnify and hold the City harmless from claims arising out of or resulting from the actions or inactions of the City, its Council, agents, employees, and representatives does not extend to any willful or intentional misconduct on the part of any of these individuals. 7. Binding Effect. This Agreement shall run with the Property and bind and inure to the benefit of the parties hereto and their respective heirs, successors and assigns. 3 8. Severability. In the event any provisions of this Agreement shall be held invalid, illegal, or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof, and the remaining provisions shall not in any way be affected or impaired thereby. 9. Waiver. Failure of either party at any time to require performance of any provision of this Agreement shall not affect its right to require full performance thereof at any time thereafter and the waiver by either party of a breach of any such provision shall not be taken or held to be a waiver of any subsequent breach thereof or as nullifying the effectiveness of such provision. 10. Reimbursement of Fees and Costs. Any fees or costs incurred by the City associated with enforcing any of the terms and conditions set forth in this Agreement, including but not limited to City staff, engineering and attorney’s fees, shall be the sole responsibility of the Owner. The Owner agrees that if Owner fails to pay any invoiced amount within 30 days of receipt thereof, the City may assess the invoiced amount against the Property. 11. Governing Law. 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 and performance obligations between the parties. The appropriate venue and jurisdiction for any litigation hereunder shall be those courts located within Scott County, Minnesota. Litigation, however, in the federal courts involving parties herein shall be in the appropriate federal court within the State of Minnesota. 12. Entire Agreement. This Agreement constitutes the final and complete agreement of the parties and shall supersede and replace any prior oral or written agreements between City and Owner. Any subsequent modification must be in writing signed by both parties. (Signatures Appear on Next Page) 4 IN WITNESS WHEREOF, the parties to this Agreement have hereunto set their hands as of the date set forth above. Steven G. Shimek and Lee Ann Shimek Revocable Trust By: Steven G. Shimek Its: Trustee By: Lee Ann Shimek Its: Trustee STATE OF MINNESOTA ) ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this ____ day of __________, 2021 by Steven G. Shimek and Lee Ann Shimek, the Trustees of Steven G. Shimek and Lee Ann Shimek Revocable Trust dated September 8, 2014. Notary Public 5 City of Prior Lake By: Kirt Briggs Its: Mayor By: Jason Wedel Its: City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2021 by Kirt Briggs, Mayor and Jason Wedel, City Manager of the City of Prior Lake, a Minnesota municipal corporation on behalf of the corporation. Notary Public This Instrument Drafted By: Hoff Barry, P.A. 100 Prairie Center Drive, Suite 200 Eden Prairie, MN 55344 6 Exhibit A Legal Description of Property The South 662.41 feet of the East Half of the West Half of the Southeast Quarter of Section 12, Township 114, Range 22, Scott County Minnesota. Subject to an easement for road and utility purposes over, under and across the South 33.00 feet of the above described property. Also subject to an easement for road and utility purposes over, under and across that part of the above described property lying East of a line 33.00 feet West of the center line of Scott County Road Number 87. Scott County, Minnesota. PID: 119120042 7 Exhibit B Deposit Agreement 1 DEPOSIT AGREEMENT STEVEN G. SHIMEK AND LEE ANN SHIMEK REVOCABLE TRUST PROPERTY SPRING LAKE TOWNSHIP This Deposit Agreement (“Agreement”) is made and entered into on the _______ day of _______________, 2021, by and between the City of Prior Lake, a Minnesota municipal corporation (“City”), Steven G. Shimek and Lee Ann Shimek, as Trustees of the Steven G. Shimek and Lee Ann Shimek Revocable Trust dated September 8, 2014 (“Owner”) and Distinctive Land Development, L.L.C., a Minnesota Limited Liability Company (“Developer”). WHEREAS, Owner is the fee owner of property in Spring Lake Township located at 17944 Revere Way, Prior Lake, MN 55372 and legally described on attached Exhibit A (“Property”). WHEREAS, Owner intends to sell Property to Developer who will subdivide the property into a low-density residential subdivision (“Subdivision”) following annexation of the Property into the City of Prior Lake. WHEREAS, the intersection of Scott County Highway 87 and Scott County Highway 21 (“Intersection”) is in need of improvements and City is unwilling to approve the annexation allowing additional residential development in this area due to the anticipated increase in vehicle trips through the Intersection until safety improvements (“Improvements”) can be made to the Intersection unless Owner and Developer agree to execute and comply with this Deposit Agreement and Owner agrees to execute and comply with the related Agreement for the Annexation of the Property. WHEREAS, Owner and Developer acknowledge the Subdivision will have a substantial impact on the transportation infrastructure at the Intersection. 2 WHEREAS, due to the Subdivision’s impact on the Intersection, Developer has agreed to deposit funds with the City to contribute to the future Improvements. NOW, THEREFORE, as a condition of the City’s approval of the Petition for Annexation and based on the mutual promises and covenants set forth herein, the sufficiency of which are hereby acknowledged, the City, Owner and Developer agree as follows: 1. Obligation to Pay Deposit. Developer shall deposit with the City funds in the amount of $52,500 to be used by the City for the Improvements (“Deposit”). 2. Use of Deposit. a. The Deposit may be used only for the Improvements to the Intersection including but not limited to right-of-way acquisition; driving and turn lanes; medians; traffic control signals and signs; trails and sidewalks; and design, engineering and legal fees. b. Either the City or the County may construct or arrange for the construction of the Improvements. If the City constructs or arranges for construction, City shall use the Deposit for the Improvements. If the County constructs or arranges for construction, City shall pay the Deposit to the County for use towards the City’s share of the Improvements. c. The City shall not be responsible for paying any interest on the Deposit. d. The City shall account for the Deposit separately to ensure the Deposit is used only as set forth in this Agreement. 3. Improvements. City has not selected any design or timeline for the Improvements. City makes no assurances as to what the Improvements will consist of or when the Improvements will be constructed. 4. Refund. If the Improvements have not commenced by June 1, 2030, the City shall refund the full Deposit to Developer within 90 days of said date. If a refund is due, Developer shall provide City with written instructions detailing where the City should direct the refund. If Developer fails to do so, City shall submit the funds to the State as unclaimed funds. 5. No Third-Party Recourse. This Agreement is a contract agreement between the City, Owner and Developer. No provision of this Agreement inures to the benefit of any third person, including the public at large, so as to constitute any such person as a third-party beneficiary of the Agreement or of any one or more of the terms hereof, or otherwise give rise to any cause of action for any person not a party hereto. 6. Assignment. No party shall assign this Agreement, nor any interest arising herein, without the written consent of the other parties. 7. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota. Venue and jurisdiction for any action, suit or proceeding arising out of this 3 Agreement shall be only in the courts of Scott County, Minnesota or the federal courts for the United States for the District of Minnesota. 8. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties. 9. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Contract. 10. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be considered an original. (Signatures Appear on Next Page) 4 IN WITNESS WHEREOF, the parties have caused these presents to be executed as of the day and year aforesaid. Steven G. Shimek and Lee Ann Shimek Revocable Trust By: Steven G. Shimek Its: Trustee By: Lee Ann Shimek Its: Trustee STATE OF MINNESOTA ) ) ss. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this ____ day of __________, 2021 by Steven G. Shimek and Lee Ann Shimek, the Trustees of Steven G. Shimek and Lee Ann Shimek Revocable Trust dated September 8, 2014. 5 City of Prior Lake By: Kirt Briggs Its: Mayor By: Jason Wedel Its: City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2021 by Kirt Briggs, Mayor and Jason Wedel, City Manager of the City of Prior Lake, a Minnesota municipal corporation on behalf of the corporation. 6 Distinctive Land Development, L.L.C. By: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this ____ day of __________, 2021 by_________________________, the ______________________ of Distinctive Land Development, L.L.C, a Minnesota Limited Liability Company. This Instrument Drafted By: Hoff Barry, P.A. 100 Prairie Center Drive, Suite 200 Eden Prairie, MN 55344 7 of 7 Exhibit A Legal Description of Property The South 662.41 feet of the East Half of the West Half of the Southeast Quarter of Section 12, Township 114, Range 22, Scott County Minnesota. Subject to an easement for road and utility purposes over, under and across the South 33.00 feet of the above described property. Also subject to an easement for road and utility purposes over, under and across that part of the above described property lying East of a line 33.00 feet West of the center li ne of Scott County Road Number 87. Scott County, Minnesota. PID: 119120042 414.033 ANNEXATION BY ORDINANCE. Subdivision 1.Unincorporated property.Unincorporated property abutting a municipality may be annexed to the municipality by ordinance as provided for in this section. Subd.2.Conditions.A municipal council may by ordinance declare land annexed to the municipality and any such land is deemed to be urban or suburban in character or about to become so if: (1)the land is owned by the municipality; (2)the land is completely surrounded by land within the municipal limits; (3)the land abuts the municipality and the area to be annexed is 120 acres or less,and the area to be annexed is not presently served by public wastewater facilities or public wastewater facilities are not otherwise available,and the municipality receives a petition for annexation from all the property owners of the land. Except as provided for by an orderly annexation agreement,this clause may not be used to annex any property contiguous to any property either simultaneously proposed to be or previously annexed under this clause within the preceding 12 months if the property is or has been owned at any point during that period by the same owners and annexation would cumulatively exceed 120 acres;or (4)the land has been approved after August 1,1995,by a preliminary plat or final plat for subdivision to provide residential lots that average 21,780 square feet or less in area and the land is located within two miles of the municipal limits. Subd.2a.[Repealed,1997 c 202 art 5 s 9] Subd.2b.Notice,hearing required.Before a municipality may adopt an ordinance under subdivision 2,clause (2),(3),or (4),a municipality must hold a public hearing and give 30 days'written notice by certified mail to the town or towns affected by the proposed ordinance and to all landowners within and contiguous to the area to be annexed. Subd.3.60 percent bordered and 40 acres or less.If the perimeter of the area to be annexed by a municipality is 60 percent or more bordered by the municipality and if the area to be annexed is 40 acres or less,the municipality shall serve notice of intent to annex upon the town board and the chief administrative law judge,unless the area is appropriate for annexation by ordinance under subdivision 2,clause (3).The town board shall have 90 days from the date of service to serve objections with the chief administrative law judge.If no objections are forthcoming within the said 90-day period,such land may be annexed by ordinance. If objections are filed with the chief administrative law judge,the chief administrative law judge shall conduct hearings and issue an order as in the case of annexations under section 414.031,subdivisions 3 and 4. Subd.4.[Repealed,1978 c 705 s 33] Subd.5.Petition by property owners;objections;procedure.If the land is platted,or,if unplatted, does not exceed 200 acres,a majority of the property owners in number may petition the municipal council to have such land included within the abutting municipality and,within ten days thereafter,shall file copies of the petition with the chief administrative law judge,the town board,the county board and the municipal council of any other municipality which borders the land to be annexed.Within 90 days from the date of service,the town board or the municipal council of such abutting municipality may submit written objections to the annexation to the chief administrative law judge and the annexing municipality.Upon receipt of such objections,the chief administrative law judge shall proceed to hold a hearing and issue an order in accordance with section 414.031,subdivisions 3 and 4.If written objections are not submitted within the time specified in this section and if the municipal council determines that property proposed for the annexation is now or Copyright ©2017 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 414.033MINNESOTASTATUTES20171 is about to become urban or suburban in character,it may by ordinance declare such land annexed to the municipality.If the petition is not signed by all the property owners of the land proposed to be annexed,the ordinance shall not be enacted until the municipal council has held a hearing on the proposed annexation after at least 30 days'mailed notice to all property owners within the area to be annexed. Subd.6.If pending proceeding;waivers from parties.Whenever a proceeding for annexation is initiated under this section and all or any part of the land is included in another boundary adjustment proceeding pending before the chief administrative law judge,no action thereon shall be taken by the municipality,unless otherwise provided by an order of the chief administrative law judge,until final disposition has been made of the pending petition.Under this section,the chief administrative law judge will accept a waiver from all parties having a right to object,stating they have no objections to the proposed annexation and waiving the 90-day period before an annexation ordinance may be adopted. Subd.7.Filing;effective date;copy to auditors.Any annexation ordinance provided for in this section must be filed with the chief administrative law judge,the township,the county auditor and the secretary of state and is final on the date the ordinance is approved by the chief administrative law judge.A copy of the annexation ordinance must be delivered immediately by the governing body of the municipality to the appropriate county auditors. Subd.8.[Repealed,1980 c 487 s 23] Subd.9.[Repealed,1997 c 87 s 4] Subd.10.Chief administrative law judge may require additional information.The chief administrative law judge may require the city or property owners to furnish additional information concerning an annexation by ordinance to inform the chief administrative law judge about the extent to which the proposed annexation conforms to the statutory criteria set forth in sections 414.01,subdivision 1,and 414.031,subdivision 4. Subd.11.When annexed land is in floodplain or shoreland area.When a municipality declares land annexed to the municipality under subdivision 2,clause (3),and the land is within a designated floodplain, as provided by section 103F.111,subdivision 4,or a shoreland area,as provided by section 103F.205, subdivision 4,the municipality shall adopt or amend its land use controls to conform to chapter 103F,and any new development of the annexed land shall be subject to chapter 103F. Subd.12.Property taxes.When a municipality annexes land under subdivision 2,clause (2),(3),or (4),property taxes payable on the annexed land shall continue to be paid to the affected town or towns for the year in which the annexation becomes effective.If the annexation becomes effective on or before August 1 of a levy year,the municipality may levy on the annexed area beginning with that same levy year.If the annexation becomes effective after August 1 of a levy year,the town may continue to levy on the annexed area for that levy year,and the municipality may not levy on the annexed area until the following levy year. Subd.13.Electric utility service notice;cost impact.At least 30 days before a municipality may adopt an ordinance under subdivision 2,clause (2),(3),or (4),the petitioner must be notified by the municipality that the cost of electric utility service to the petitioner may change if the land is annexed to the municipality. The notice must include an estimate of the cost impact of any change in electric utility services,including rate changes and assessments,resulting from the annexation. History:1969 c 1146 s 12;1975 c 271 s 6;1978 c 705 s 15-21;1979 c 50 s 52;1985 c 30 s 2,3;1991 c 291 art 12 s 24;1992 c 556 s 5-8;1994 c 511 s 4-8;1996 c 303 s 13,14;1997 c 31 art 3 s 14,15;1997 c 202 art 5 s 3-5;2002 c 223 s 8-12;2006 c 270 art 2 s 8,9,13;2007 c 90 s 2,3,5;2008 c 196 art 2 s 15;2008 c 277 art 1 s 98;2014 c 220 s 3 Copyright ©2017 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 2MINNESOTASTATUTES2017414.033 17205 Adelmann Street SE Comprehensive Plan Amendment and Rezone 170thSt E GraniteCtSEGraystoneCtSEAdelm a n n S tSEIndustrial Ln SECredit River R d SE21 87 12 44 42 27 21 87 16 23 15 18 82 78 17 77 79 83 14 70 X:\Planning\Location Map\Location Map Template\17205 Adelmann St SE.aprx 0 1,000 Feet Subject PropertySubject PropertySubject Property Subject Property STAFFO RD TRL 179ST ELINKDR 152STW MAINAVSE29AV E 165ST E 174STE 180ST EDOVECTNE167ST EKE L L YCIR 169ST E SNELLCT 15 3 P L157ST W 157THST 150STSE 170STE B E A C H S T N E BOONEAV S1 5 1S T W 165ST E RICERDBLAKERDLI L A L N CH A NZICIR WACIPIDR DULUTHAV SE160STE A SPENAVNE137ST W TYROLDRHAHNLNLO R D S S T N E 170 ST E TINTA LN DAIRYLNAUTUMNTRL F OXT A ILT RL N W1 5 0 STW 170 ST E 182 ST E SUEANNLN CASEYPKWYTIMOTHYAV NEHADLEYAVPANDORABLVD17 4 S T E 180 ST ECHATEAUAV D A KOTASTSESIOUXTRLNW 165 ST W MISSIONTRL SEFISH POINTRD SEWHITE DRMANITOURDNEORIONRD NWDAKOTAHPKWYNW JOCKOCT T Y R OL L N TIWAH E CIR 154 ST WJEFFERSPKWYNWBLUEB I LLCIR HARLOW AVMARCIAL N PONDV I EW TRLS E B ELMONTAVNW MUS H T O W N R D 138 ST W LUEDKELN180 ST E VALLEYVIEW RD LON EPINEC T133 ST W GREENO A K STRLS EFISHERAVNESHADYBEACHTRLNE POND SPKWYS EI S L A N D V I E WC IR N WZUMBRO AVD A K OT A HP K WY SUNSETAVN ORTON D R LANGFORD AVYORKSHIREAVSPR IN G LA K E C IRWHITEWOOD AVRIDGEMONTAVSELE AVITT WOO DSLN SOUTHS H OREDRHAHN D RWI L D SRIDGE NW PEBBLEBROOK CTSUNRAY CIRSWPE NINS ULAPOINTRD WILDSPKWYNW 165 ST W 185 ST EVISTARIDGELN TINTAOCANKU WESTSI DEDRBUCKLA K ECIR 182 ST E 170 ST W CO UNTRYSQ UIRESCIRVERGUS AV145 ST W HORIZON D RKOPPKWYSEPIKELAKETRLNEPAR K RD180 ST E PR IBY L PONDLNT I WAHE LN 170 S T E 160 ST NW TH EISDRZUMBRO AVOLD BRICK YARD RD160 ST W ZUMBRO AVZUM BR O AV456777 456781 456712 456716456715 456779 456727 456742 456718 456783 456778 456742 456744 456723 456782 456787 456721 456717 456714 456773 456770 456721 456769 456779456715 -A13 -A282 -A13 Lower PriorLake MysticLake UpperPriorLake Spring Lake TholeLake Cleary Lake RiceLake Geis Lake O'DowdLake Scott County GIS Future Land Use Updated: 3/27/2020 I 0 ¼Miles 2040 Comprehensive Plan December 2019City of Prior Lake, MN Figure 3.2: Future Land Use Map OAKST SE BIRCHAV SEWESTAV SELYONSAVSECATESST SE JORDANAVSEALBANYAV SEBROOKSCIR SEST PAULAV SECREEKSIDECIR SEBOUNTYST SE CROSSANDRASTSEERI EAVSE MANDANAVSECAMBR IDGECI R SEL AKESIDEAVSEMAINAVSEMEM O RIALT R L SECOLORADO ST SE C R E DIT RIVER RD SEANNATRLSE K OPPKWYSE T IM B E R C R E STD R S E FRANKLINTRL SEDULUTHAVSEFRANKLINCIRS E PLEASANT ST SE BLUFFH E IG H T S TRLSE D AKOTASTSE PRIORWOODSTSE 456744 456721 -A13 LittlePriorLake Scott County GIS Aggregate Resources Legend City Limits Scott County Parcels Residential Rural Density Urban Low Density Urban Medium Density Urban High Density Commercial Retail/General Business Town Center Mixed Use District Office/Industrial Business Office Park Planned Industrial Public Public/Semi-Public Parks, Recreation, & Open Space SMSC Pond/Lake PRIOR LAKE: C-2 AND C-3 ZONING DISTRICT COMPARISON GENERAL BUSINESS (C-2)BUSINESS PARK (C-3) Permitted Uses Category: Permitted Uses Category: 1. Bank 1. Offices 2. Business Services 2. Business Services 3. Business/Trade School 3. Manufacturing/Processing 4. Copy Shop 4. Warehouse/Storage/Distribution 5. Exclusive Liquor Store 5. Printing Process 6. Funeral Home 6. Research & Testing Labs 7. Library 7. Hotels/Motels 8. Medical/Dental Office 8. Convention & Exhibition Center 9. Museum/Art Gallery 9. Data Center 10. Office 10. Medical/Dental Office 11. Parks/Open Space 11. Showroom 12. Police/Fire Station/Ambulance 12. Studio 13. Private Entertainment (Indoor)13. Business/Trade School 14. Retail 14. Office/Warehouse 15. Service 15. Medical/Dental Laboratory 16. Showroom 16. Personal Baot Slips 17. Studio 17. City Boat Slips 18. Personal Baot Slips 19. City Boat Slips Permitted Uses with Conditions: Permitted Uses with Conditions: 1. Adult Day Care 1. Wholesale 2. Dry Cleaning, Laundry with Route…2. Police & Fire Stations 3. Group Day Care/Nursery School 3. Public Service Structures 4. Public Service Structure 4. Outdoor Storage 5. Utility Substation 5. Retail Sales, Limited 6. Appliance, Small Engine & Bicycle Repair 6. Storage or Parking of Vehicles 7. Hotel/Motel 7. Private Entertainment (Indoor) 8. In-Vehicle Sales or Service 9. Medical/Dental Laboratories 10. Restaurant & Club/Lodge without Liquor 11. Shopping Center 12. Senior Care Facility Permitted w/ Conditional Use Permit: Permitted w/ Conditional Use Permit: 1. Motor Fuel Station 1. Outdoor Storage, Class II 2. Car Wash 2. Animal Handling 3. Motor Vehicle Sales 3. Heliport 4. Motor Vehicle Service or Repair 4. Gun Range, Indoor 5. Restaurants & Club/Lodge with Liquor 5. Auto Body/Painting 6. Shopping Center over 150,000 SF 6. Motor Vehicle Service & Repair 7. Convention & Exhibition Center 7. Self-Service Storage Facility 8. Outdoor Sales 8. Brew Pub, Small Brewer, Taproom, etc. 9. Marina, Commercial 10 Marina, Recreational 11. Animal Handling 12. Adult Uses 13. Alternative School 14. Community Center 15. Brew Pub, Small Brewer, Taproom, etc. 88.36 88.00 97.55 71. 8 499.2770. 5 2 72. 0 0 72. 0 0 86.00 88.1701270.39 86.5070. 0 0 70. 0 0 70.984 5 6 7 8 9 90 91 92 93 94 95 96 97 98 99 100 101 12,728 sf 14,787 sf 90,046 sf 11,615 sf 22,542 sf 10,549 sf 10,738 sf 12,393 sf 12,829 sf 12,148 sf 12,317 sf 13,315 sf 99320523 5994086110 15788 101 37 64495127 80161 78644 71 72 12 5 12 4 10288 132132328876 31 10 0 71 72 22 58 768641266 363 70 70 12 1 115 157134133134 152817052155133 11,605 sf 9,437 sf 9,609 sf 12,375 sf 11 3 . 1 0 105.00 F:\Projects\_Design_Misc_Projects\CH 12-CH 17 Int Skew\CH12-CH17_LAY.dwg (4/20/2021 10:44 AM) 00 50'100' CSAH 17 & 170TH ST. E INTERSECTION IMPROVEMENTS PRELIMINARY LAYOUT SCOTT COUNTY 17 SCOTT COUNTY 12 L:\21 FILES\21 SUBDIVISIONS\PRELIMINARY PLAT\Springview Meadows PDEV21-000004\Referrals and Correspondence\05 21 2021 Springview Meadows PrePlat Eng Memo.docx 701 XENIA AVENUE S | SUITE 300 | MINNEAPOLIS, MN | 55416 | 763.541.4800 | WSBENG.COM Memorandum To: Nick Monserud, Assistant City Engineer Pete Young, Water Resources Engineer From: Kris Keller, Tom Hoffman - WSB Date: May 21, 2021 Re: Springview Meadows WSB Project No. 10704-000 We have completed our secondary plat review of the civil and stormwater plans submitted for Springview Meadows on May 14, 2021 as prepared by Westwood Professional Services, Inc. The following documents were received: · Preliminary Plans (0020057.00 Springview Meadows Prelim Plans Rev 1pdf) · Preliminary Stormwater Summary (21-04-30 Springview Meadow- Stormwater Report.pdf) · Storm sewer Design (21-04-30 Storm Sewer Design - Springview Meadows.pdf) · Developer Response (21-04-30 WPS Response Springview Meadows Prelim Plat Review Memo 031721.pdf) · Geotechnical Report (B2010179_MARSCHALL PROPERTY_GEOTECHNICAL EVALUATION REPORT DRAFT.pdf) Comments are provided within this Memorandum and in the corresponding redlined plan set. Please note that not all comments within the plan set are in the Memorandum. We have the following comments with regards to stormwater management and engineering. General 1. Submit for and provide copies to the City of all required permits from regulatory agencies (MCES, Minnesota Pollution Control Agency, Minnesota Department of Health, NPDES, County, etc.) Noted. Copies all permits will be provided as approved. Plat 1. Provide drainage and utility easements for all public utilities running across private property. a. The width of the easement should be at least two times the greatest depth of the utility with a minimum of 20' centered on the utility Noted easements have been adjusted to reflect comment 2. Provide drainage and utility easements for all drainage swales that convey water from one lot across another a. The width of the easement should be a minimum of 10’ with at least 5' on either side of the center of the swale Noted. Easements have been adjusted to reflect comment Springview Meadows May 21, 2021 Page 2 Streets/Trails 1. Based on the proposed site plan the anticipated traffic generation would be 406 vehicle per day (vpd), 32 AM peak hour trips and 43 PM peak hour trips, assuming 43 single family lots on the site. Applicant noted 2. 170th Street is a local City street that is identified as a future transfer to Scott County (CSAH 12) as a Major Collector in the County’s 2040 Comprehensive Plan. CSAH 12 east of CSAH 17 has and existing ADT of 1600vpd and a projected 2040 ADT of 5800vpd. CSAH 17 north of CSAH 12 has an existing ADT of 6800vpd and a projected 2040 ADT of 11,900vpd. a. Applicant noted – any changes to be addressed with final plans 3. A sight line analysis shall be completed for all intersections including the intersection of Street 1 at 170th Street. 4. The final plans shall include a signing and pavement marking plan, including at a minimum, locations of stop signs, street signs, pedestrian crossing signs, street striping and pedestrian crossing striping. Applicant noted 5. Add sidewalks to: a. The east and west sides of Street 1 b. The north side of Street 2 c. The north side of Street 3 d. Label new sidewalks and trails e. Extend trail along CSAH 17 from Street 3 cul de sac to 170th Street intersection 6. Move the driveway access for Lot 1 Block 2 from Street 1 to Street 2 7. Provide locations for all proposed cluster mailboxes. a. Mailboxes to be included with Final Plans 8. The cul de sac at the southeast end of Street 3 should be designed per City Detail Plate #605. 9. Provide a temporary cul de sac at the west end of Street 3 a. Provide barricades and a future through street sign b. Applicant indicated that, following discussion with City staff, temporary cul de sac was not necessary 10. Street Profiles a. Identify centerlines of connecting streets at intersections in profile views. b. Several vertical curves do not meet the minimum required K value (30 for crest curves, 36 for sag curves) for 30 mph. 11. Provide horizontal curve/alignment information for all roads. a. Curves must meet a 30 MPH design speed and shall have a minimum 250’ centerline radius i. There are two curves on Street 2 that do not meet the 250’ minimum requirement (50’) Springview Meadows May 21, 2021 Page 3 ii. Applicant indicated Horizontal curves proposed match previous projects in the area (Summit Preserve) and that the design is intended to encourage slower speeds in the residential development. 12. Provide typical sections for all roads a. Include proposed curb types b. Include supporting geotechnical information 13. Revise 170th Street per Scott County alignment provided to Developer. 14. At this time grading of trail and sidewalk only will be allowed. A deposit for the sidewalk construction will be collected for future construction. The trail will be constructed when the property to the north is constructed. This will detour residents from trying to cross CSAH 17 until pedestrian facilities are able to be installed at the intersection. Stormwater Management (Updated Design) 1. Rate Control a. Provide the HydroCAD calculations for the 2- and 10-year events in addition to the 100-year event. b. Portions of the site drain to wetlands. Please verify the rate control requirements for wetland 1W. The wetland does not appear to meet the discharge requirements of 0.05 cfs per tributary acre for the 2-year event based on the Wetland Bounce and Inundation Table. i. Applicant indicated that per City Staff discussions, the project will not be required to meet the 0.05 cfs per tributary acre requirement. Wetland bounce and inundation will still apply. 2. Volume Control a. Preliminarily met via filtration. 3. Water Quality a. This requirement has been met. A pretreatment forebay has been adequately sized to 25% of the water quality volume. 4. Freeboard a. Label the emergency overflow elevations (EOF) for the wetlands. i. Ensure there is 2 feet of freeboard from the EOF to the low opening of the adjacent homes. b. Adjust the grading in several locations to allow for 2 feet of freeboard between the low openings and the EOF from the rear yard or street low point. c. The EOF of the basin should be at least 1 foot higher than the HWL. i. Applicant indicated that per discussions with City Staff, EOF of basin can be less than 1.0’ above the HWL. 5. General Stormwater a. Modify the pond skimmer outlet detail to show the weir wall and orifice. i. Modified detail to show weir wall and orfice Springview Meadows May 21, 2021 Page 4 b. Include pond cross section details. i. Added pond cross section detail c. Include the HydroCAD storage tables in the stormwater management report. i. Stage storage tables hae been added to report d. Define a maintenance access route to filtration basin 1P that is a maximum of 8% grade, 2% cross slope, and a minimum of 10 feet wide. i. Added maintenance access route to filtration basin 1P 6. Filtration Basin a. Ensure the velocities from the inlet pipes into the basins are non-erosive. i. Inlet velocities are designed to be less than 5 fps b. The invert elevations of the pond flared end sections shall match the outlet elevation of the pond. i. Adjusted per comment c. Call out the underdrain specifics. i. Include at least 2 observation/cleanout ports on each underdrain. ii. Include size of underdrain iii. Set at a minimum 0.5% slope. Added notes for underdrain 7. Wet Basin/Forebay a. A 10-foot wide aquatic bench is required below the NWL of the forebay. A 10 ft wide aquatic bench at 10:1 (H:V) has been provided for both forebays. Added slope labels for clarity 8. Drainage Areas a. Provide consistent labels between the proposed drainage area map and HydroCAD model. Updated labels for consistency 9. HydroCAD Model a. Filtration Basin 1P i. Modify the EOF elevation in HydroCAD to match the plans. Adjusted EOF elevation per HyrdoCAD b. Filtration Basin 2P i. Show pipe spacing/bedding detail to verify spacing to no meet dnr bridge requirements. See Requirements below: ii. Modify the primary outlet size to match the plans. Adjusted per HydroCAD iii. Modify the weir elevation in the plans and HydroCAD to match one another. Springview Meadows May 21, 2021 Page 5 Adjusted per HydroCAD c. Model the emergency overflow routes as secondary outlets. Pond EOF’s updated to secondary routing d. Use an infiltration rate in inches per hour and show the appropriate soil amendments to achieve that infiltration rate on a pond detail. A design filtration rate of 0.80 in/hr has been used to model the basins. An effective filtration flow has been calculated and applied to the HydroCAD model to accurately model the filtration based on the filtration area and basin live storage without including filtration over the wet cell (forebay). Refer to stormwater report for more details. e. Calculate the proposed time of concentration values in lieu of using a generic value. Calculated time of concentration values per comment Grading 1. Modify the grading and erosion control notes to state: a. Perimeter and downstream sediment control BMPs shall be installed by the contractor and inspected by the City prior to any site work. b. Slopes greater than or equal to 3:1 shall have approved erosion control BMPs installed immediately after grading has finished. Added notes 2. Show the wetland buffer on the grading plan. Added label for wetland buffer Utilities 1. Storm Sewer a. Label the storm sewer. Labeled storm sewer as requested b. Provide rational calculations for the storm sewer, designed for the 10-year 24- hour event. Refer to storm sewer design included with submittal c. Ensure the minimum storm sewer pipe diameter is 15 inches and the minimum slope is 0.5%. Noted. Pond inlets will have flatter slopes to maintain inlet velocities of less than 5 fps. d. Locate the catch basins to collect drainage on the upstream side of the intersection. Modified storm sewer layout per comment e. Include City of Prior Lake standard storm sewer details. Springview Meadows May 21, 2021 Page 6 Added storm sewer details f. Ensure that the last structure which is road accessible prior to discharge to any waterbody is an environmental manhole with a 3 foot sump. Noted sumps will be provided per city detail g. Label the existing culvert inverts near the project area on the plan sheets. Added labels for existing culverts h. Shift the structure on the north side of Lot 4 Block 1 to the right of way/ property line. Structure moved per comment i. Extend the storm sewer on the north side of 170th Street west to the western development limits. Storm sewer extended as requested. 2. Sanitary Sewer a. Include City of Prior Lake standard sanitary sewer details. b. Note the following pipe types and class are identified in general with respect to depths with soil type verification and design criteria required to substantiate size and type of pipe used: i. Depth 8’ to 16’ PVC, SDR 35 ii. Depth 16’ to 26’ PVC, SDR 26 iii. Depth 26’ to 40’ DIP, Class 52 iv. Over 40’ DIP, Class 53 c. When the sanitary sewer mainline is constructed with ductile iron pipe, the sanitary sewer services shall be constructed with Class 52 ductile iron pipe from main line sewer to the 45 degree bend. Applicant noted d. The size, type, and class of all sanitary sewer services shall be noted on the plans. i. Utility services to be included with Final Plans e. The maximum depth of the sanitary sewer service at the ROW line shall be 10’ unless documented by a proposed house or building elevation that justifies a deeper service. Applicant noted f. Install service risers where cover over the top of the sanitary main is greater than 12’ or as directed by the engineer. i. Service risers to be included with Final Plans g. Provide 10 gauge tracer wires for the sanitary sewer services for locating purposes. The tracer wire should connect to a tracer wire access box at the easement (see Plate #401). h. Show the existing and proposed sanitary sewer in plan and profile view, along with other existing and proposed utilities in the construction zone. i. Utility services to be included with Final Plans Springview Meadows May 21, 2021 Page 7 i. The construction plans for water main and sanitary sewer shall include the lowest elevation of all houses or buildings to be served. i. Service elevation details to be included with Final Plans j. Discuss the sanitary sewer, storm sewer and watermain locations within 170th Street with Scott County in case the road should become CSAH 12 at some point in the future. i. Applicant referenced meeting on 4/12/21 k. Stub sanitary sewer and water to the north on the west side of CSAH 17 at the intersection with 170th for future development. l. Do not construct manholes within CSAH 17. m. Connect the existing sanitary forcemain that runs along the west side of CSAH 17 into one of the new proposed sanitary manholes near the intersection of CSAH 17 and 170th Street. i. Existing/proposed forcemain is shown connecting into MH-13 in the Street 3 cul de sac per 4/12/21 meeting 1. Verify downstream pipe capacity/sizing for additional existing forcemain flows 2. Connect to structure with psx direct drive boot or approved equal 3. See city stanadard detail plate #404 (clean-out manhole) for extending tracer wire within structure 4. Use a radial turn instead of bends to go from the forcemain connection to MH-13 5. Provide the approximate elevation/depth to the forcemain connection 6. Verify/label the existing/proposed forcemain pipe material 7. Verify the existing grade (positive/negative) of the forcemain to maintain to structure MH-13 n. Utility crossings in CSAH 17 must be perpendicular to the highway. i. Scott County requires casing pipe for utilities under all highways. ii. All bends shall be outside the county row. o. Label sanitary sewer between MH-4 and MH-5 in 170th Street 3. Watermain a. Include City of Prior Lake standard water details. b. Remove the pipe past the existing hydroguard unit on the east side of CSAH 17 and connect to the existing watermain with a gate valve. c. Maintain the watermain on the outside of the Street 2 loop to minimize utility crossings. Storm sewer would shift to the inside of the loop. d. Shift the gate valve at the intersection of Street 1 with Street 2 from the north leg to the west leg to minimize affected lots during maintenance or an outage. e. Add a hydrogurad unit to the watermain at the west end of 170th Street. Springview Meadows May 21, 2021 Page 8 f. All water fittings should be labeled as to size and type such as bends, tees, plugs, etc. i. Water fitting labels to be included with Final Plans g. The size, type, and class of all water services shall be noted on the plans. i. Utility services to be included with Final Plans h. Developers are responsible for constructing the services to the easement line which is approximately 10’ beyond the right of way line. Applicant noted i. Provide a minimum of 18” vertical separation for all watermain crossings with sanitary and storm sewer. Also, other utilities that cross the watermain shall cross at a 90 degree angle, if possible, with the minimum requirement of a 45 degree angle for the crossing. Provide insulation for all storm sewer crossings. i. Utility crossings to be included with Final Plans j. Show on plans the existing and proposed watermain in plan and profile view along with other existing and proposed utilities in the construction zone. i. Utility profiles to be included with final plans k. Identify and address potential utility conflicts where the storm sewer is deeper (greater than 6’) or the sanitary sewer is shallower (less than 10’) with the watermain. i. Utility crossings to be included with Final Plans l. Fire official to verify fire protection. Applicant noted Miscellaneous 1. Utilize current City of Prior Lake Design Manual and Standard Detail Plates Added details 2. Add the MnDOT standard rip rap detail. Added MNDOT rip rap detail. SWPPP 1. Submit a SWPPP that meets all NPDES permit requirements. a. SWPPP documentation and NPDES permitting will be provided by DR Horton at time of final plans 2. Drainage areas over 5 acres must have a temporary sediment basin. Indicate on the erosion control plan. Added note Wetland 1. The development has an approved wetland delineation but not an approved wetland impact permit. Wetland impacts will need to be approved under WCA. Applicant noted Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com Memo The Community Development Department has reviewed the Preliminary Plat and PUD plans for the subject project with a plan date of 5-14-21 and we have the following comments. General 1. Development Fees – The following development fees are to be collected prior to recording of any approved 2021 final plat application: Park Dedication of 43 lots at $3,750 per lot, Trunk Water ($3,840/net acre), Trunk Sanitary Sewer ($4,700/net acre), Trunk Storm Sewer ($4,160/net acre), and a 6% administrative fee and 8% construction observation fee based on the total estimated construction costs (which include landscaping, streets, public trails, and public utilities). 2. The City Council will need to weight the number of modifications (lot size and setbacks) requested verses the amount of PUD Benefits proposed above standard development requirements. PUD benefits proposed include: · County Right of Way (Hwy 17) – 25-foot width above 75 feet · City Right of Way (170th Street) – 10 ft width above 50 ft 3. Warranty Deeds – Submit draft warranty deeds for any future public ownership Outlots with Final Plat application. Preliminary Plat/Site Plan 4. PUD Zoning Modifications – In addition to other proposed public improvement modifications, the developer requests modifications to the typical R-1 zoning requirements in the following areas: a. Lot size – Min. proposed – 9,494 sq. ft. Min. required (R-1) – 12,000 sq. ft. b. Lot width - Min. proposed – 11 lots at 70 feet, 30 lots at 86+ feet Min. required – 86 ft. 5. Setback Exceptions - Are any decks, eves, cantilevers, or window well pits proposed within the 10-foot side setbacks, 25-foot front setbacks, or 25-foot rear setbacks? If so, they need to be identified as a note on the preliminary plat plan. 6. Impervious Surface – all lots within the Shoreland Overlay district (northwest part of development) will be required to maintain maximum 30% impervious surface coverage. Date: May 24, 2021 To: Mike Suel, DR Horton From: Jeff Matzke, Planner Subject: Springview Meadows Preliminary Plat and PUD City Project #DEV21-000004 Grading Plan 7. Retaining walls – Any walls exceeding 4 feet in height will require a building permit application. Tree Preservation/Landscape Plan 8. Tree placement – On landscape plan/details plan, indicate note that placement of all trees shall be a minimum of 5 feet from front property lines within front yards. 9. Tree replacement – No tree replacement as a result of tree removals is required for this development. 2 front yard trees and 4 corner trees are required per lot and are indicated on the proposed landscape plan. 10. Final tree locations – Tree locations may be subject to change depending on field construction of public/private utilities and maintenance access locations for ponding and utilities. Springview Meadows Prior Lake, MN R-1 Sketch Plan Phone (952) 937-5150 Fax (952) 937-5822 Toll Free (888) 937-5150 12701 Whitewater Drive Minnetonka, MN 55343 westwoodps.com Westwood Professional Services, Inc. R-1 Single Family PONDING PONDING DELINEATED WETLAND DELINEATED WETLAND Wetland BUFFER (TYP.) Wetland Buer (TYP.) CONCEPT DATA Gross Site Area: 23.7 ac Estimated Wetlands: ~2.6 ac Addtl CR R/W: ~2.1 ac Net Developable Area: 19.0 ac Other Open Space: 3.5 ac (includes wetland buers and ponding) Proposed R-1 Lots: 38 lots 86’ wide x 140’ deep typical R-1 Standards: Min Lot Width: 86‘ at front sbk Min Lot Area: 12,000 Front & Rear Setback: 25’ Side Setbacks: 10’/10‘ (20’ total) Overall Gross Density: 1.6 un/ac (38 un / 23.7 gross acres) Overall Net Density: 2.0 un/ac (38 un / 19.0 net developable )